The Parliament allowed banks not to return deposits prematurely

14 May 2015 14:41  2598893 099900
The Parliament allowed banks not to return deposits prematurely

The Parliament adopted the law, according to which banks are allowed not to return deposits to clients before the expiry of the set term.

243 deputies voted for the adoption of the law №1195.

Under this law, clients, who have signed a term contract with the bank, will not be able to withdraw money before the term specified in the contract expires.

"Under a term deposit contract, the bank is obliged to give the deposit and accrued interest on this deposit upon the expiry of the term specified in the deposit contract" - the law states.

Bank customers have the right to receive deposits and accrued interest thereon under a term contract upon expiry of the contract.

Early return of the deposit and accrued interest on the term deposit is possible only when provided by the term deposit contract.

This bill will apply only to those contracts that will be concluded after the adoption of this law and its entry into force.

Recall that Ukrainian legislation provides for two types of of bank deposit contracts: on demand and term. But, before adoption of these changes, banks were obliged to return any deposit, including term deposit, on demand of individual depositor.

Ukrainska Pravda

Tags: banks

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