PRIA, Government Policy, Made Personal

Summary

Banks and similar institutions must give the required account schedule to anyone who asks. They must give it to a potential customer before opening an account or providing a service. For time deposits that renew automatically and have a maturity longer than 30 days, the depositor must get the schedule at least 30 days before maturity. If an account is opened and the depositor is not physically present and never got the schedule before, the institution must mail it to the depositor’s address on file within 10 days of the first deposit. If a disclosed term changes in a way that lowers the yield or hurts holders, the bank must mail notice and a description of the change to affected holders at least 30 days before it starts. If an account is opened by more than one person or for an organization, giving the schedule to one of the account holders or one representative meets the rule. For accounts that get statements at least every three months, the first regular statement mailed after the six-month period that starts when the Bureau publishes its final rules must include a notice that the account holder has the right to request an account schedule showing the terms, charges, and interest rates, and that they may want to request it.

Title 12, §4305

Banks and Banking, Source: USLM XML via OLRC

(a)In general

A schedule required under section 4303 of this title for an appropriate account shall be—

(1)made available to any person upon request;

(2)provided to any potential customer before an account is opened or a service is rendered; and

(3)provided to the depositor, in the case of any time deposit which has a maturity of more than 30 days is renewable at maturity without notice from the depositor, at least 30 days before the date of maturity.

(b)Distribution in case of certain initial deposits

If—

(1)a depositor is not physically present at an office of a depository institution at the time an initial deposit is accepted with respect to an account established by or for such person; and

(2)the schedule required under section 4303(a) of this title has not been furnished previously to such depositor,

the depository institution shall mail the schedule to the depositor at the address shown on the records of the depository institution for such account no later than 10 days after the date of the initial deposit.

(c)Distribution of notice of certain changes

If—

(1)any change is made in any term or condition which is required to be disclosed in the schedule required under section 4303(a) of this title with respect to any account; and

(2)the change may reduce the yield or adversely affect any holder of the account,

all account holders who may be affected by such change shall be notified and provided with a description of the change by mail at least 30 days before the change takes effect.

(d)Distribution in case of accounts established by more than 1 individual or by a group

If an account is established by more than 1 individual or for a person other than an individual, any distribution described in this section with respect to such account meets the requirements of this section if the distribution is made to 1 of the individuals who established the account or 1 individual representative of the person on whose behalf such account was established.

(e)Notice to account holders as of effective date of regulations

For any account for which the depository institution delivers an account statement on a quarterly or more frequent basis, the depository institution shall include on or with the first regularly scheduled mailing sent after the end of the 6-month period beginning on the date of publication of regulations issued by the Bureau in final form, a statement that the account holder has the right to request an account schedule containing the terms, charges, and interest rates of the account, and that the account holder may wish to request such an account schedule.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (e). Pub. L. 111–203 substituted “Bureau” for “Board”. 1996—Subsec. (a)(3). Pub. L. 104–208 inserted “has a maturity of more than 30 days” after “deposit which”. 1992—Subsec. (e). Pub. L. 102–550 substituted “on or with the first regularly scheduled mailing sent after the end of the 6-month period beginning on the date of publication” for “on or with any regularly scheduled mailing posted or delivered within 180 days after publication”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

of 1992 AmendmentAmendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title.

§4305 Distribution of Schedules

Summary

Title 12, §4305

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata