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Financial Services Law Insights and Observations

Indiana enacts HB 1284 regarding change in terms for deposit accounts

State Issues State Legislation Disclosures Depository Institution

State Issues

On March 12, the Governor of Indiana signed HB 1284 which codified a new chapter regarding a contract for a deposit account between a depository institution and a consumer may be changed occasionally, subject to the terms of the deposit account agreement. The bill will provide that after continued use of the deposit account by the consumer after a modification to the agreement has been disclosed through written notice by the depository institution, then it will be considered clear or “prima facie” evidence that the consumer will accept the new terms. The depository institution must provide written notice of the changes at least 30 days before the effective date of any change to the deposit account agreement. The bill will go into effect on July 1.