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Texas Finance Code - Section 34.302. Amendment Of Deposit Contract

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 34.302. Amendment Of Deposit Contract

§ 34.302. AMENDMENT OF DEPOSIT CONTRACT.  (a) A bank and 
its account holder may amend the deposit contract by agreement or as 
permitted by Subsection (b) or other law.
	(b)  A bank may amend a deposit contract by mailing a written 
notice of the amendment to the account holder, separately or as an 
enclosure with or part of the account holder's statement of account 
or passbook.  The notice must include the text and effective date of 
the amendment.  The bank is required to deliver the notice to only 
one of the account holders of a deposit account that has more than 
one account holder.  The effective date may not be earlier than the 
30th day after the date of mailing the notice unless the amendment:
		(1)  is made to comply with a statute or rule that 
authorizes an earlier effective date;
		(2)  does not reduce the interest rate on the account or 
otherwise adversely affect the account holder;  or
		(3)  is made for a reason relating to security of an 
account.               
	(c)  Except for a disclosure required to be made under 
Section 34.303 or the Truth in Savings Act (12 U.S.C. Section 4301 
et seq.) or other federal law, before renewal of an account a notice 
of amendment is not required under Subsection (b) for:
		(1)  a change in the interest rate on a variable-rate 
account, including a money market or negotiable order of withdrawal 
account;
		(2)  a change in a term for a time account with a 
maturity of one month or less if the deposit contract authorizes the 
change in the term;  or
		(3)  a change contemplated and permitted by the 
original contract.          
	(d)  An amendment under Subsection (b) may reduce the rate of 
interest or eliminate interest on an account without a maturity 
date.
	(e)  Amendment of a deposit contract made in compliance with 
this section is not a violation of the Deceptive Trade 
Practices-Consumer Protection Act (Section 17.41 et seq., Business &
 Commerce Code).

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.                   

Last modified: August 10, 2007