MA Gen L ch 167b § 10 (2021)
2021 Massachusetts General Laws|Part I - Administration of the Government|Title XXII - Corporations|Chapter 167b - Electronic Branches and Electronic Fund Transfers|Section 10 - Preauthorized Transfers

Section 10. A preauthorized electronic fund transfer from a consumer's account may take place only if the consumer has authorized the transfer in writing. A copy of the authorization shall be provided to the consumer at the time of his signing.  If, under the terms of an authorization given by a consumer directly to a financial institution, the financial institution is to initiate a preauthorized electronic fund transfer from the consumer's account in that institution, without the consumer's specific instruction, the authorization shall disclose in clear and readily understandable language:  (1) the dates or time period when the preauthorized electronic fund transfer or transfers will take place;  (2) the consumer's right to revoke authorization;  (3) the procedure for revoking authorization;  (4) the limiting amount; and  (5) the consumer's right to notice of deficiency.  If, under the terms of an authorization given by a consumer directly to a financial institution, the financial institution is to initiate a preauthorized electronic fund transfer from the consumer's account in that institution, without the consumer's specific instruction, the authorization shall not exceed the limiting amount specified in the authorization, and if a preauthorized electronic fund transfer pursuant to the authorization would exceed such amount, any amount in excess of such limiting amount shall not be transferred until approved by the consumer.  Where a preauthorized electronic fund transfer from the consumer's account varies in amount from the previous transfer relating to the same authorization, or the preauthorized amount, the financial institution or the designated payee shall mail or deliver at least ten days before the scheduled transfer date, a written notice of the amount and scheduled date of transfer. If the financial institution or designated payee informs the consumer of the right to receive notice of all varying transfers, the consumer may elect to receive notice only when a transfer does not fall within a specified range of amounts or, alternatively, only when a transfer differs from the most recent transfer by more than an agreed-upon amount.  A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer.  The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.  If a financial institution refuses payment of a preauthorized electronic fund transfer because the consumer's account has insufficient funds to cover the transfer the financial institution shall mail or deliver to the consumer, on or before the next business day, notice of the financial institution's refusal to pay the transfer.