6-882. Savings accounts and time deposits; insurance; withdrawal; notice

A. If authorized by the articles of incorporation and bylaws and if approved by the deputy director, a trust company may receive monies for the purpose of maintaining savings accounts and time deposits. The trust company may pay interest on the savings accounts and time deposits and may prescribe terms and conditions that are consistent with the requirements of the federal deposit insurance corporation.

B. Before offering savings accounts and time deposits the board of directors shall approve the action by a written resolution that specifies the written documents to be issued representing the savings accounts and time deposits. The board shall submit:

1. A certified copy of the approving resolution to the deputy director.

2. Copies of the written documents to the deputy director for approval by the deputy director.

C. The federal deposit insurance corporation or its successor shall insure all savings accounts and time deposits held by a trust company. A trust company shall immediately notify the deputy director when the trust company applies to the federal deposit insurance corporation or its successor for deposit insurance. Until final disposition of the application for deposit insurance, the trust company shall submit monthly reports to the deputy director specifying the status of the application.

D. A trust company may require the holder of a savings account to give the trust company written notice at least seven days before an intended withdrawal that is not payable on a specified date or at the expiration of a specified time after the date of deposit.

E. A trust company may issue a transferable, nontransferable, negotiable or nonnegotiable certificate, instrument, passbook or statement representing a time deposit or savings account.