AN ACT CONCERNING NEGATIVE ACCOUNT BALANCES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 36a-303 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):

(a) No bank, Connecticut credit union or federal credit union may charge a fee or a penalty for an overdraft if such overdraft is due to an error on a direct deposit tape of the Social Security Administration or an accidental omission from such tape.

(b) No Connecticut bank may charge a customer a fee or penalty for an overdraft provided such customer cures a negative account balance on the business day following an insufficient funds alert issued to the customer by the bank.