Section 16. If a bank as a consequence of a default of a debt owed to said bank by a depositor or shareholder, makes a transfer of funds of such depositor or shareholder to reduce or extinguish said debt, such depositor or shareholder shall be notified forthwith of such transfer by written notice sent by first class mail directed to the last known address of such depositor; provided, however, that if the debt is the result of consumer credit granted under the federal Truth in Lending Act, 15 U.S.C. 1601 et. seq., any required notice shall be made in compliance with federal law and the regulations promulgated thereunder. A depositor or shareholder to whom such notice has not been sent shall be entitled to recover the amount of any actual damages.
Structure Massachusetts General Laws
Part I - Administration of the Government
Chapter 167d - Deposits and Accounts
Section 3 - Types of Deposits Which May Be Received by Bank
Section 3a - Savings Promotion Raffles
Section 4 - Limited Access Deposit Accounts
Section 7 - Provision of Cancelled Instruments or Copies Thereof
Section 8 - Collateral or Security for Deposit of Money Received
Section 9 - Deposits From Residential Dwelling Unit Lessor Acting as Trustee for Security Deposits
Section 11 - Lost, Stolen or Destroyed Passbooks
Section 12 - Deposits of Decedents; Payment
Section 15 - Designation of Beneficiary for Pension, Profit-Sharing, Etc. Plans
Section 17 - Set Off or Recoupment by Person Indebted to Bank
Section 18 - Multiple Claimants for Deposited Funds
Section 19 - Recognition by Bank of Adverse Claimants to Deposits