Made available by
Touch N' Go Systems, Inc., and the
Law Offices of James B. Gottstein.
You can also go to The Alaska Legal Resource Center or search the entire website search.
(a) A credit union may establish share draft accounts if
(1) a summary of the policies and procedures for the accounts is available at the credit union's principal office;
(2) for a program which incorporates truncation of the instruments, the original instruments are maintained on file for at least five years unless other satisfactory means of retrieval of copies of those instruments has been established;
(3) the account holder gives, in writing, at least 15 days before the day of withdrawal, a notice of intent to withdraw money in the account, except that the board of directors may waive or reinstitute this provision at any time;
(4) surety bond coverage is in force; and
(5) those participating in the share draft program receive information which outlines the account holder's and credit union's responsibilities.
(b) The board of directors may provide for
(1) fees for share draft account usage, which may include stop payment orders, overdrafts, failure to maintain required balances, and costs required to maintain the account;
(2) participation in guarantee arrangements, if the guarantee to make payment will not place the holder of a share draft account in a preferential position if notice is imposed under (a)(3) of this section. Instruments drawn or other orders authorized before the effective date of notice may be paid in accordance with normal operational procedures; and
(3) an experimental share draft program with terms and conditions that restrict the number of share draft accounts for a period not to exceed one year, except that the dividend rate for those share draft accounts may not exceed the rate paid on regular share accounts.
History: Eff. 1/21/81, Register 77
Authority: AS 06.01.020
Note to HTML Version:
The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.
If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.
Last modified 7/05/2006