Third Party Transfers

PURPOSE: This rule permits associations on certain conditions to make specified payments to third parties with the authorization of the accountholder. (1) An association is authorized to offer savings accounts on which interest is paid and from which the owner may make withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties. (2) An association, if specifically authorized by a resolution of the board of directors and the authorization of the accountholder, may accept orders for payment from a saving or deposit account to third parties in such amounts as the accountholder determines. (A) The authorization of the accountholder may be a specific authorization for periodic payments to specified parties in specified amounts or may be a general authorization for payment to specified parties of such amounts as are later determined by subsequent order of the accountholder or a combination of both such types of authorizations. (B) Associations obtaining the initial written authorization to pay specified third parties at times and in amounts to be later specified may accept orally or electronically transmitted authorizations to pay those specified parties such amounts at such times determined by subsequent transmittal in accordance with the terms of the initial authorization, provided that no association shall use an electronic system for accepting such authorizations unless the board of directors shall be reasonably assured that reasonable internal controls exist to protect the customer and the association, which assurance shall be based, at least in part, on an independent audit report concerning such controls. A copy of such report shall be filed with the director of the division. (C) All authorization shall be subject to termination at the will of the accountholder, stated in writing and received by the association at least forty-eight (48) hours prior to the beginning of the day on which the payment of any amount to a third party is to be made. (D) At the request of a third party, any amount to be received by that third party may be transferred to a savings or deposit account of the third party. (E) The association may charge a fee for its services in making any payment or transfer pursuant to the provisions of this rule. (F) Associations may extend secured or unsecured credit in the form of overdraft privileges specifically related to accounts authorized by this section. AUTHORITY: sections 369.154, 369.189 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-10.050. This rule previously filed as 4 CSR 140-22.050. Original rule filed Sept. 28, 1971, effective Oct. 8, 1971. Amended: Filed Sept. 30, 1975, effective Oct. 10, 1975. Rescinded and readopted filed July 14, 1978, effective Nov. 13, 1978. Amended: Filed Oct. 15, 1980, effective Jan. 12, 1981. Amended: Filed June 12, 1981, effective Sept. 11, 1981. Changed to 4 CSR 140-22.050, effective July 6, 1994. Moved to 20 CSR 1140-22.050, effective Aug. 28, 2006. *Original authority: 369.154, RSMo 1971, amended 1982, 1983, 1994; 369.189, RSMo 1971, amended 1982, 1994; and 369.299, RSMo 1971, amended 1994.