Sec. 36a-321. (Formerly Sec. 36-27g). Changes in computation of interest or interest rate. Notice.
Sec. 36a-321. (Formerly Sec. 36-27g). Changes in computation of interest or
interest rate. Notice. (a) No financial institution, other than a Connecticut credit union
or federal credit union, shall change its method of computing interest in such manner
as to reduce the annual percentage yield on any savings account from that most recently
disclosed to the depositor, including changes to disclosures delivered in accordance
with section 36a-318, made in accordance with this section, unless the financial institution: (1) At least thirty days prior to such change, posts a notice reciting such reduction
adjacent to, or incorporates such notice in, the current deposit account disclosures posted
in each office at which deposits are accepted; and (2) delivers a notice reciting such
reduction to each depositor who has a deposit account which will be affected by such
reduction and for which such financial institution normally renders a periodic statement
of account, which notice of reduction shall be delivered (A) at least thirty days prior to
such reduction if any such periodic statement is normally rendered monthly or more
frequently, or (B) no later than delivery of the next subsequent periodic statement after
such reduction if any such periodic statement is normally rendered less frequently than
monthly.
(b) No financial institution, other than a Connecticut credit union or federal credit
union, shall reduce the interest rate and therefore the annual percentage yield paid on any
savings account from that most recently disclosed to the depositor, including changes to
disclosures delivered in accordance with section 36a-318, made in accordance with this
section unless: (1) Within fifteen days after such change, such financial institution posts
a notice reciting such reduction in interest rate and annual percentage yield adjacent to,
or incorporates such notice in, the deposit account disclosures posted in each office at
which deposits are accepted; and (2) such financial institution delivers a notice reciting
such reduction in interest rate and annual percentage yield to each depositor who has a
savings account which will be affected by such reduction and for which such financial
institution normally renders a periodic statement of account, which notice of reduction
shall be delivered no later than delivery of the next subsequent periodic statement, if
any, after such reduction.
(c) A financial institution may, without notice, change its method of computing
interest in such manner as to increase its annual percentage yield or may increase the
interest rate, not to exceed any maximum set by law, and therefore the annual percentage
yield paid on any deposit account from that most recently disclosed to the depositor,
including changes to disclosures delivered in accordance with section 36a-318, made
in accordance with this section.
(P.A. 79-433, S. 7, 11; P.A. 81-261, S. 6; P.A. 93-168, S. 6, 8; P.A. 94-14, S. 1, 2; 94-122, S. 152, 340.)
History: P.A. 79-433 effective July 1, 1980; P.A. 81-261 rephrased certain parts of the section, amended Subsec. (a)
to establish time periods for the delivery of a notice reciting a reduction in interest due to a change in computation method
depending upon the frequency with which the periodic statement is rendered to the depositor, and amended Subsec. (b) to
require that a financial institution which reduces the simple interest rate deliver to each depositor a notice of reduction no
later than delivery of the next subsequent periodic statement after such reduction; P.A. 93-168 changed all references of
"schedule of interest" to "most recently disclosed changes to disclosures", eliminated the use of "simple interest" in favor
of "interest" and deleted the reference to "effective annual percentage yield" in favor of "annual percentage yield", effective
June 23, 1993, except that compliance by financial institutions shall be optional prior to the mandatory compliance date
of the regulations applicable to the financial institution promulgated pursuant to the Federal Truth in Savings Act, Subtitle
F of Title II of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, as from time
to time amended, or January 1, 1994, whichever is sooner; P.A. 94-14 changed the January 1, 1994, compliance date to July
1, 1995, effective April 25, 1994; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-27g transferred to
Sec. 36a-321 in 1995.