Vol. 76 Wednesday, No. 245 December 21, 2011

Part II

Bureau of Consumer Financial Protection

12 CFR Part 1030 Truth in Savings (Regulation DD); Interim Final Rule

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BUREAU OF CONSUMER FINANCIAL comments will be available for public Dodd-Frank Act and TISA, as amended, PROTECTION inspection and copying at 1700 G Street the Bureau is publishing for public NW., Washington, DC 20006, on official comment an interim final rule 12 CFR Part 1030 business days between the hours of 10 establishing a new Regulation DD (Truth [Docket No. CFPB–2011–0032] a.m. and 5 p.m. Eastern Time. You can in Savings), 12 CFR Part 1030, make an appointment to inspect the implementing TISA. RIN 3170–AA06 documents by telephoning (202) 435– II. Summary of the Interim Final Rule 7275. Truth in Savings (Regulation DD) All comments, including attachments A. General AGENCY: Bureau of Consumer Financial and other supporting materials, will The interim final rule substantially Protection. become part of the public record and duplicates the Board’s Regulation DD as ACTION: Interim final rule with request subject to public disclosure. Sensitive the Bureau’s new Regulation DD, 12 for public comment. personal information, such as account CFR part 1030, making only certain non- numbers or social security numbers, substantive, technical, formatting, and SUMMARY: Title X of the Dodd-Frank should not be included. Comments will stylistic changes. To minimize any Wall Street Reform and Consumer not be edited to remove any identifying potential confusion, the Bureau is Protection Act (Dodd-Frank Act) or contact information. preserving where possible past transferred rulemaking authority for a FOR FURTHER INFORMATION CONTACT: numbering systems by republishing number of consumer financial Krista Ayoub or Stephen Shin, Office of regulations with Bureau part numbers protection laws from seven federal Regulations, at (202) 435–7700. that correspond to regulations in agencies to the Bureau of Consumer SUPPLEMENTARY INFORMATION: existence prior to the transfer of Financial Protection (Bureau) as of July rulemaking authority. For example, 21, 2011. The Bureau is in the process I. Background while this interim final rule generally of republishing the regulations Congress enacted the Truth in Savings incorporates the Board’s existing implementing those laws with technical Act (TISA), 12 U.S.C. 4301 et seq., based regulatory text, appendices (including and conforming changes to reflect the on findings that economic stability model forms and clauses), and transfer of authority and certain other would be enhanced, competition supplements, as amended,3 the rule has changes made by the Dodd-Frank Act. between depository institutions would been edited as necessary to reflect In light of the transfer of the Board of be improved, and consumers’ ability to nomenclature and other technical Governors of the Federal Reserve make informed decisions regarding amendments required by the Dodd- System’s (Board’s) rulemaking authority deposit accounts would be strengthened Frank Act. Notably, this interim final for the Truth in Savings Act (TISA) to if there was uniformity in the disclosure rule does not impose any new the Bureau, the Bureau is publishing for of interest rates and fees. The purpose substantive obligations on regulated public comment an interim final rule of the act and regulation is to assist entities. establishing a new Regulation DD (Truth consumers in comparing deposit B. Specific Changes in Savings). This interim final rule does accounts offered by depository not impose any new substantive institutions, principally through the In addition to the changes described obligations on persons subject to the disclosure of fees, the annual percentage above, the Bureau is making certain existing Regulation DD, previously yield, the interest rate, and other nomenclature and other non-substantive published by the Board. account terms. Historically, TISA has changes for clarity and consistency. For DATES: This interim final rule is been implemented in Regulation DD of example, references to the Board and its effective December 30, 2011. Comments the Board of Governors of the Federal administrative structure have been must be received on or before February Reserve System (Board), 12 CFR part replaced with references to the Bureau. 21, 2012. 230, and, with respect to credit unions, Conforming edits have been made to ADDRESSES: You may submit comments, by regulations of the National Credit internal cross-references and addresses identified by Docket No. CFPB–2011– Union Administration (NCUA), 12 CFR for filing applications and notices. In 0032 or RIN 3170–AA06, by any of the part 707. The Dodd-Frank Wall Street addition, edits to subheadings and following methods: Reform and Consumer Protection Act numbering have been made for • Electronic: http:// (Dodd-Frank Act) 1 amended a number consistency and to fix typographical www.regulations.gov. Follow the of consumer financial protection laws, errors. Footnotes have been moved to instructions for submitting comments. including TISA. In addition to various the text of the regulation or • Mail: Monica Jackson, Office of the substantive amendments, the Dodd- commentary, as appropriate. Executive Secretary, Bureau of Frank Act transferred the Board’s III. Legal Authority Consumer Financial Protection, 1500 rulemaking authority for TISA to the Pennsylvania Avenue NW., (Attn: 1801 Bureau of Consumer Financial A. Rulemaking Authority L Street), Washington, DC 20220. Protection (Bureau), effective July 21, The Bureau is issuing this interim • Hand Delivery/Courier in Lieu of 2011.2 See sections 1061 and 1100B of final rule pursuant to its authority under Mail: Monica Jackson, Office of the the Dodd-Frank Act. Pursuant to the TISA and the Dodd-Frank Act. Effective Executive Secretary, Bureau of July 21, 2011, section 1061 of the Dodd- Consumer Financial Protection, 1700 G 1 Public Law 111–203, 124 Stat. 1376 (2010). Frank Act transferred to the Bureau the Street NW., Washington, DC 20006. 2 Dodd-Frank section 1029 generally excludes ‘‘consumer financial protection from this transfer of authority, subject to certain All submissions must include the exceptions, any rulemaking authority over a motor functions’’ previously vested in certain agency name and docket number or vehicle dealer that is predominantly engaged in the other federal agencies. The term Regulatory Information Number (RIN) sale and servicing of motor vehicles, the leasing and ‘‘consumer financial protection for this rulemaking. In general, all servicing of motor vehicles, or both. Further, Dodd- function’’ is defined to include ‘‘all Frank section 1100B did not grant the Bureau TISA comments received will be posted rulemaking authority over credit unions or repeal authority to prescribe rules or issue without change to http:// the NCUA’s TISA rulemaking authority over credit www.regulations.gov. In addition, unions under 12 U.S.C. 4311. 3 See 76 FR 42020 (July 18, 2011).

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orders or guidelines pursuant to any the Dodd-Frank Act’s transfer of TISA In addition, delaying the effective Federal consumer financial law, authority from the Board to the Bureau, date of the interim final rule for 30 days including performing appropriate relate to agency organization, procedure, would provide no practical benefit to functions to promulgate and review and practice and are thus exempt from regulated entities in this context and in such rules, orders, and guidelines.’’ 4 the APA’s notice-and-comment fact could operate to their detriment. As TISA is a federal consumer financial requirements. discussed above, the interim final rule law.5 Accordingly, effective July 21, The Bureau’s good cause findings are published today does not impose any 2011, the authority of the Board to issue based on the following considerations. new, substantive obligations on regulations pursuant to TISA transferred As an initial matter, the Board’s existing regulated entities. Instead, the rule to the Bureau.6 regulation was a result of notice-and- makes only non-substantive, technical The TISA, as amended, authorizes the comment rulemaking to the extent changes to the existing text of the Bureau to issue regulations to carry out required. Moreover, the interim final regulation. Thus, regulated entities that the provisions of TISA.7 These rule published today does not impose are already in compliance with the regulations may contain such any new, substantive obligations on existing rules will not need to modify classifications, differentiations, or other regulated entities. Rather, the interim business practices as a result of this provisions, and may provide for such final rule makes only non-substantive, rule. adjustments and exceptions for any technical changes to the existing text of the regulation, such as renumbering, C. Section 1022(b)(2) of the Dodd-Frank class of transactions, that in the Act Bureau’s judgment are necessary or changing internal cross-references, proper to effectuate the purpose of replacing appropriate nomenclature to In developing the interim final rule, TISA, facilitate compliance with TISA, reflect the transfer of authority to the the Bureau has conducted an analysis of 13 or prevent circumvention or evasion of Bureau, and changing the address for potential benefits, costs, and impacts. TISA.8 filing applications and notices. Given The Bureau believes that the interim the technical nature of these changes, final rule will benefit consumers and B. Authority To Issue an Interim Final and the fact that the interim final rule covered persons by updating and Rule Without Prior Notice and Comment does not impose any additional recodifying Regulation DD to reflect the The Administrative Procedure Act substantive requirements on covered transfer of authority to the Bureau and (APA) 9 generally requires public notice entities, an opportunity for prior public certain other changes mandated by the and an opportunity to comment before comment is unnecessary. In addition, Dodd-Frank Act. This will help promulgation of regulations.10 The APA recodifying the Board’s regulations to facilitate compliance with TISA and its provides exceptions to notice-and- reflect the transfer of authority to the implementing regulations and help comment procedures, however, where Bureau will help facilitate compliance reduce any uncertainty regarding the an agency for good cause finds that such with TISA and its implementing applicable regulatory framework. The procedures are impracticable, regulation, and the new regulations will interim final rule will not impose any unnecessary, or contrary to the public help reduce uncertainty regarding the new substantive obligations on interest or when a rulemaking relates to applicable regulatory framework. Using consumers or covered persons and is agency organization, procedure, and notice-and comment procedures would not expected to have any impact on practice.11 The Bureau finds that there delay this process and thus be contrary consumers’ access to consumer financial is good cause to conclude that providing to the public interest. products and services. notice and opportunity for comment The APA generally requires that rules Although not required by the interim would be unnecessary and contrary to be published not less than 30 days final rule, depository institutions may the public interest under these before their effective dates. See 5 U.S.C. incur some costs in updating circumstances. In addition, substantially 553(d). As with the notice and comment compliance manuals and related all the changes made by this interim requirement, however, the APA allows materials to reflect the new numbering final rule, which were necessitated by an exception when ‘‘otherwise provided and other technical changes reflected in by the agency for good cause found and the new Regulation DD. The Bureau has 4 Public Law 111–203, section 1061(a)(1). published with the rule.’’ 5 U.S.C. worked to reduce any such burden by Effective on the designated transfer date, July 21, 553(d)(3). The Bureau finds that there is preserving the existing numbering to the 2011, the Bureau was also granted ‘‘all powers and good cause for providing less than 30 extent possible and believes that such duties’’ vested in each of the federal agencies, days notice here. A delayed effective costs will likely be minimal. These relating to the consumer financial protection functions, on the day before the designated transfer date would harm consumers and date. Until this and other interim final rules take regulated entities by needlessly 13 Section 1022(b)(2)(A) of the Dodd-Frank Act effect, existing regulations for which rulemaking perpetuating discrepancies between the addresses the consideration of the potential benefits authority transferred to the Bureau continue to amended statutory text and the and costs of regulation to consumers and covered govern persons covered by this rule. See 76 FR persons, including the potential reduction of access 43569 (July 21, 2011). See also footnote 2, supra. implementing regulation, thereby by consumers to consumer financial products or 5 Public Law 111–203, section 1002(14) (defining hindering compliance and prolonging services; the impact on depository institutions and ‘‘Federal consumer financial law’’ to include the uncertainty regarding the applicable credit unions with $10 billion or less in total assets ‘‘enumerated consumer laws’’); id. section 1002(12) regulatory framework.12 as described in section 1026 of the Dodd-Frank Act; (defining ‘‘enumerated consumer laws’’ to include and the impact on consumers in rural areas. Section TISA). 1022(b)(2)(B) requires that the Bureau ‘‘consult with 12 6 Section 1066 of the Dodd-Frank Act grants the This interim final rule is one of 14 companion the appropriate prudential regulators or other Secretary of the Treasury interim authority to rulemakings that together restate and recodify the Federal agencies prior to proposing a rule and perform certain functions of the Bureau. Pursuant implementing regulations under 14 existing during the comment process regarding consistency to that authority, Treasury is publishing this interim consumer financial laws (part III.C, below, lists the with prudential, market, or systemic objectives final rule on behalf of the Bureau. 14 laws involved). In the interest of proper administered by such agencies.’’ The manner and coordination of this overall regulatory framework, extent to which these provisions apply to interim 7 Id. Section 1100B(1); 12 U.S.C. 4302–4304, which includes numerous cross-references among final rules and to benefits, costs, and impacts that 4308. some of the regulations, the Bureau is establishing are compelled by statutory changes rather than 8 Id. the same effective date of December 30, 2011 for discretionary Bureau action is unclear. 9 5 U.S.C. 551 et seq. those rules published on or before that date and Nevertheless, to inform this rulemaking more fully, 10 5 U.S.C. 553(b), (c). making those published thereafter (if any) effective the Bureau performed the described analyses and 11 5 U.S.C. 553(b)(3)(A), (B). immediately. consultations.

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changes could be handled in the short issues raised by the rule. The Bureau is Reduction Act (PRA), which have been term by providing a short, standalone also seeking comment in response to a previously approved by OMB, and the summary alerting users to the changes notice published at 76 FR 75825 (Dec. ongoing PRA burden for which is and in the long term could be combined 5, 2011) concerning its efforts to identify unchanged by this rule. There are no with other updates at the creditor’s priorities for streamlining regulations new information collection convenience. The Bureau intends to that it has inherited from other federal requirements in this interim final rule. continue investigating the possible costs agencies to address provisions that are The Bureau’s OMB control number for to affected entities of updating manuals outdated, unduly burdensome, or this information collection is: 3170– and related materials to reflect these unnecessary. 0004. changes and solicits comments on this V. Regulatory Flexibility Act List of Subjects in 12 CFR Part 1030 and other issues discussed in this section. The Regulatory Flexibility Act (RFA), Advertising, Banks, Banking, The interim final rule will have no as amended by the Small Business Consumer protection, National banks, unique impact on depository Regulatory Enforcement Fairness Act of Reporting and recordkeeping institutions or credit unions with $10 1996, requires each agency to consider requirements, Savings associations, billion or less in assets as described in the potential impact of its regulations on Truth in savings. section 1026(a) of the Dodd-Frank Act. small entities, including small Authority and Issuance Also, the interim final rule will have no businesses, small governmental units, unique impact on rural consumers. and small not-for-profit organizations.16 For the reasons set forth above, the In undertaking the process of The RFA generally requires an agency to Bureau of Consumer Financial recodifying Regulation DD, as well as conduct an initial regulatory flexibility Protection adds Part 1030 to Chapter X regulations implementing thirteen other analysis (IRFA) and a final regulatory in Title 12 of the Code of Federal existing consumer financial laws, 14 the flexibility analysis (FRFA) of any rule Regulations to read as follows: subject to notice-and-comment Bureau consulted the Federal Deposit PART 1030—TRUTH IN SAVINGS rulemaking requirements, unless the Insurance Corporation, the Office of the (REGULATION DD) Comptroller of the Currency, the agency certifies that the rule will not National Credit Union Administration, have a significant economic impact on Sec. the Board of Governors of the Federal a substantial number of small entities.17 1030.1 Authority, purpose, coverage, and Reserve System, the Federal Trade The Bureau also is subject to certain effect on state laws. Commission, and the Department of additional procedures under the RFA 1030.2 Definitions. Housing and Urban Development, involving the convening of a panel to 1030.3 General disclosure requirements. 1030.4 Account disclosures. including with respect to consistency consult with small business 1030.5 Subsequent disclosures. with any prudential, market, or systemic representatives prior to proposing a rule 1030.6 Periodic statement disclosures. objectives that may be administered by for which an IRFA is required.18 1030.7 Payment of interest. such agencies.15 The Bureau also has The IRFA and FRFA requirements 1030.8 Advertising. consulted with the Office of described above apply only where a 1030.9 Enforcement and record retention. Management and Budget for technical notice of proposed rulemaking is 1030.10 [Reserved] assistance. The Bureau expects to have required,19 and the panel requirement 1030.11 Additional disclosure requirements further consultations with the applies only when a rulemaking for overdraft services. requires an IRFA.20 As discussed above Appendix A to Part 1030—Annual appropriate federal agencies during the Percentage Yield Calculation comment period. in part III, a notice of proposed Appendix B to Part 1030—Model Clauses rulemaking is not required for this IV. Request for Comment and Sample Forms rulemaking. Appendix C to Part 1030—Effect on State Although notice and comment In addition, as discussed above, this Laws rulemaking procedures are not required, interim final rule has only a minor Appendix D to Part 1030—Issuance of the Bureau invites comments on this impact on entities subject to Regulation Official Interpretations notice. Commenters are specifically DD. The rule imposes no new, Supplement I to Part 1030—Official encouraged to identify any technical substantive obligations on depository Interpretations institutions. Accordingly, the Authority: 12 U.S.C. 4302–4304, 4308, 14 The fourteen laws implemented by this and its undersigned certifies that this interim 5512, 5581. companion rulemakings are: The Consumer Leasing final rule will not have a significant Act, the Electronic Fund Transfer Act (except with § 1030.1 Authority, purpose, coverage, and respect to section 920 of that Act), the Equal Credit economic impact on a substantial effect on state laws. Opportunity Act, the Fair Credit Reporting Act number of small entities. (a) Authority. This part, known as (except with respect to sections 615(e) and 628 of that act), the Fair Debt Collection Practices Act, VI. Paperwork Reduction Act Regulation DD, is issued by the Bureau Subsections (b) through (f) of section 43 of the The Bureau may not conduct or of Consumer Financial Protection to Federal Deposit Insurance Act, sections 502 through sponsor, and a respondent is not implement the Truth in Savings Act of 509 of the Gramm-Leach-Bliley Act (except for 1991 (the act), contained in the Federal section 505 as it applies to section 501(b)), the required to respond to, an information Home Mortgage Disclosure Act, the Real Estate collection unless it displays a currently Deposit Insurance Corporation Settlement Procedures Act, the S.A.F.E. Mortgage valid Office of Management and Budget Improvement Act of 1991 (12 U.S.C. Licensing Act, the Truth in Lending Act, the Truth (OMB) control number. This rule 3201 et seq., Public Law 102–242, 105 in Savings Act, section 626 of the Omnibus Stat. 2236), as amended by Title X, Appropriations Act, 2009, and the Interstate Land contains information collection Sales Full Disclosure Act. requirements under the Paperwork section 1100B of the Dodd-Frank Wall 15 In light of the technical but voluminous nature Street Reform and Consumer Protection of this recodification project, the Bureau focused 16 5 U.S.C. 601 et seq. Act (Pub. L. 111–203, 124 Stat. 1376). the consultation process on a representative sample 17 Information-collection requirements of the recodified regulations, while making 5 U.S.C. 603, 604. information on the other regulations available. The 18 5 U.S.C. 609. contained in this part have been Bureau expects to conduct differently its future 19 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b)(B). approved by the Office of Management consultations regarding substantive rulemakings. 20 5 U.S.C. 609(b). and Budget under the provisions of 44

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U.S.C. 3501 et seq. and have been (f) Bonus means a premium, gift, which the institution records assigned OMB No. 3170–0004. award, or other consideration worth transactions on the account. (b) Purpose. The purpose of this part more than $10 (whether in the form of (q) Periodic statement means a is to enable consumers to make cash, credit, merchandise, or any statement setting forth information informed decisions about accounts at equivalent) given or offered to a about an account (other than a time depository institutions. This part consumer during a year in exchange for account or passbook savings account) requires depository institutions to opening, maintaining, renewing, or that is provided to a consumer on a provide disclosures so that consumers increasing an account balance. The term regular basis four or more times a year. can make meaningful comparisons does not include interest, other (r) State means a state, the District of among depository institutions. consideration worth $10 or less given Columbia, the commonwealth of Puerto (c) Coverage. This part applies to during a year, the waiver or reduction Rico, and any territory or possession of depository institutions except for credit of a fee, or the absorption of expenses. the United States. unions. In addition, the advertising (g) Business day means a calendar day (s) Stepped-rate account means an rules in § 1030.8 of this part apply to other than a Saturday, a Sunday, or any account that has two or more interest any person who advertises an account of the legal public holidays specified in rates that take effect in succeeding offered by a depository institution, 5 U.S.C. 6103(a). periods and are known when the including deposit brokers. (h) Consumer means a natural person account is opened. (d) Effect on state laws. State law who holds an account primarily for (t) Tiered-rate account means an requirements that are inconsistent with personal, family, or household account that has two or more interest the requirements of the act and this part purposes, or to whom such an account rates that are applicable to specified are preempted to the extent of the is offered. The term does not include a balance levels. inconsistency. Additional information natural person who holds an account for (u) Time account means an account on inconsistent state laws and the another in a professional capacity. with a maturity of at least seven days in (i) Daily balance method means the procedures for requesting a preemption which the consumer generally does not application of a daily periodic rate to determination from the Bureau are set have a right to make withdrawals for six the full amount of principal in the forth in appendix C of this part. days after the account is opened, unless account each day. § 1030.2 Definitions. (j) Depository institution and the deposit is subject to an early For purposes of this part, the institution mean an institution defined withdrawal penalty of at least seven following definitions apply: in section 19(b)(1)(A)(i) through (vi) of days’ interest on amounts withdrawn. (a) Account means a deposit account the Federal Reserve Act (12 U.S.C. 461), (v) Variable-rate account means an at a depository institution that is held except credit unions defined in section account in which the interest rate may by or offered to a consumer. It includes 19(b)(1)(A)(iv). change after the account is opened, time, demand, savings, and negotiable (k) Deposit broker means any person unless the institution contracts to give at order of withdrawal accounts. For who is a deposit broker as defined in least 30 calendar days advance written purposes of the advertising section 29(g) of the Federal Deposit notice of rate decreases. requirements in § 1030.8 of this part, the Insurance Act (12 U.S.C. 1831f(g)). § 1030.3 General disclosure requirements. term also includes an account at a (l) Fixed-rate account means an depository institution that is held by or account for which the institution (a) Form. Depository institutions shall on behalf of a deposit broker, if any contracts to give at least 30 calendar make the disclosures required by interest in the account is held by or days advance written notice of §§ 1030.4 through 1030.6 of this part, as offered to a consumer. decreases in the interest rate. applicable, clearly and conspicuously, (b) Advertisement means a (m) Grace period means a period in writing, and in a form the consumer commercial message, appearing in any following the maturity of an may keep. The disclosures required by medium, that promotes directly or automatically renewing time account this part may be provided to the indirectly: during which the consumer may consumer in electronic form, subject to (1) The availability or terms of, or a withdraw funds without being assessed compliance with the consumer consent deposit in, a new account; and a penalty. and other applicable provisions of the (2) For purposes of §§ 1030.8(a) and (n) Interest means any payment to a Electronic Signatures in Global and 1030.11 of this part, the terms of, or a consumer or to an account for the use National Commerce Act (E-Sign Act) (15 deposit in, a new or existing account. of funds in an account, calculated by U.S.C. 7001 et seq.). The disclosures (c) Annual percentage yield means a application of a periodic rate to the required by §§ 1030.4(a)(2) and 1030.8 percentage rate reflecting the total balance. The term does not include the may be provided to the consumer in amount of interest paid on an account, payment of a bonus or other electronic form without regard to the based on the interest rate and the consideration worth $10 or less given consumer consent or other provisions of frequency of compounding for a 365-day during a year, the waiver or reduction the E–Sign Act in the circumstances set period and calculated according to the of a fee, or the absorption of expenses. forth in those sections. Disclosures for rules in appendix A of this part. (o) Interest rate means the annual rate each account offered by an institution (d) Average daily balance method of interest paid on an account which may be presented separately or means the application of a periodic rate does not reflect compounding. For the combined with disclosures for the to the average daily balance in the purposes of the account disclosures in institution’s other accounts, as long as it account for the period. The average § 1030.4(b)(1)(i) of this part, the interest is clear which disclosures are applicable daily balance is determined by adding rate may, but need not, be referred to as to the consumer’s account. the full amount of principal in the the ‘‘annual percentage rate’’ in addition (b) General. The disclosures shall account for each day of the period and to being referred to as the ‘‘interest reflect the terms of the legal obligation dividing that figure by the number of rate.’’ of the account agreement between the days in the period. (p) Passbook savings account means a consumer and the depository (e) Bureau means the Bureau of savings account in which the consumer institution. Disclosures may be made in Consumer Financial Protection. retains a book or other document in languages other than English, provided

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the disclosures are available in English before the account is opened or the (4) Fees. The amount of any fee that upon request. service is provided. may be imposed in connection with the (c) Relation to Regulation E (12 CFR (2) Requests. (i) A depository account (or an explanation of how the Part 1005). Disclosures required by and institution shall provide account fee will be determined) and the provided in accordance with the disclosures to a consumer upon request. conditions under which the fee may be Electronic Fund Transfer Act (15 U.S.C. If a consumer who is not present at the imposed. 1693 et seq.) and its implementing institution makes a request, the (5) Transaction limitations. Any Regulation E (12 CFR Part 1005) that are institution shall mail or deliver the limitations on the number or dollar also required by this part may be disclosures within a reasonable time amount of withdrawals or deposits. substituted for the disclosures required after it receives the request and may (6) Features of time accounts. For by this part. provide the disclosures in paper form, time accounts: (d) Multiple consumers. If an account or electronically if the consumer agrees. (i) Time requirements. The maturity is held by more than one consumer, (ii) In providing disclosures upon date. disclosures may be made to any one of request, the institution may: (ii) Early withdrawal penalties. A the consumers. (A) Specify an interest rate and statement that a penalty will or may be (e) Oral response to inquiries. In an annual percentage yield that were imposed for early withdrawal, how it is oral response to a consumer’s inquiry offered within the most recent seven calculated, and the conditions for its about interest rates payable on its calendar days; state that the rate and assessment. accounts, the depository institution yield are accurate as of an identified (iii) Withdrawal of interest prior to shall state the annual percentage yield. date; and provide a telephone number maturity. If compounding occurs during The interest rate may be stated in consumers may call to obtain current the term and interest may be withdrawn addition to the annual percentage yield. rate information. prior to maturity, a statement that the No other rate may be stated. (B) State the maturity of a time annual percentage yield assumes (f) Rounding and accuracy rules for account as a term rather than a date. interest remains on deposit until rates and yields. (1) Rounding. The (b) Content of account disclosures. maturity and that a withdrawal will annual percentage yield, the annual Account disclosures shall include the reduce earnings. For accounts with a percentage yield earned, and the interest following, as applicable: stated maturity greater than one year rate shall be rounded to the nearest one- (1) Rate information. (i) Annual that do not compound interest on an hundredth of one percentage point percentage yield and interest rate. The annual or more frequent basis, that (.01%) and expressed to two decimal ‘‘annual percentage yield’’ and the require interest payouts at least places. For account disclosures, the ‘‘interest rate,’’ using those terms, and annually, and that disclose an APY interest rate may be expressed to more for fixed-rate accounts the period of determined in accordance with section than two decimal places. time the interest rate will be in effect. E of Appendix A of this part, a (2) Accuracy. The annual percentage (ii) Variable rates. For variable-rate statement that interest cannot remain on yield (and the annual percentage yield accounts: deposit and that payout of interest is earned) will be considered accurate if (A) The fact that the interest rate and mandatory. not more than one-twentieth of one annual percentage yield may change; (iv) Renewal policies. A statement of (B) How the interest rate is percentage point (.05%) above or below whether or not the account will renew determined; automatically at maturity. If it will, a the annual percentage yield (and the (C) The frequency with which the annual percentage yield earned) statement of whether or not a grace interest rate may change; and period will be provided and, if so, the determined in accordance with the rules (D) Any limitation on the amount the in Appendix A of this part. length of that period must be stated. If interest rate may change. the account will not renew (2) Compounding and crediting. (i) § 1030.4 Account disclosures. automatically, a statement of whether Frequency. The frequency with which (a) Delivery of account disclosures. (1) interest will be paid after maturity if the Account opening. (i) General. A interest is compounded and credited. (ii) Effect of closing an account. If consumer does not renew the account depository institution shall provide consumers will forfeit interest if they must be stated. account disclosures to a consumer (7) Bonuses. The amount or type of close the account before accrued interest before an account is opened or a service any bonus, when the bonus will be is credited, a statement that interest will is provided, whichever is earlier. An provided, and any minimum balance not be paid in such cases. institution is deemed to have provided (3) Balance information. (i) Minimum and time requirements to obtain the a service when a fee required to be balance requirements. (A) Any bonus. (c) Notice to existing account holders. disclosed is assessed. Except as minimum balance required to: provided in paragraph (a)(1)(ii) of this (1) Open the account; (1) Notice of availability of disclosures. section, if the consumer is not present (2) Avoid the imposition of a fee; or Depository institutions shall provide a at the institution when the account is (3) Obtain the annual percentage yield notice to consumers who receive opened or the service is provided and disclosed. periodic statements and who hold has not already received the disclosures, (B) Except for the balance to open the existing accounts of the type offered by the institution shall mail or deliver the account, the disclosure shall state how the institution on June 21, 1993. The disclosures no later than 10 business the balance is determined for these notice shall be included on or with the days after the account is opened or the purposes. first periodic statement sent on or after service is provided, whichever is earlier. (ii) Balance computation method. An June 21, 1993 (or on or with the first (ii) Timing of electronic disclosures. If explanation of the balance computation periodic statement for a statement cycle a consumer who is not present at the method specified in § 1030.7 of this part beginning on or after that date). The institution uses electronic means (for used to calculate interest on the notice shall state that consumers may example, an Internet Web site) to open account. request account disclosures containing an account or request a service, the (iii) When interest begins to accrue. A terms, fees, and rate information for disclosures required under paragraph statement of when interest begins to their account. In responding to such a (a)(1) of this section must be provided accrue on noncash deposits. request, institutions shall provide

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disclosures in accordance with yield that will be paid for the new (5) Aggregate fee disclosure. If paragraph (a)(2) of this section. account. applicable, the total overdraft and (2) Alternative to notice. As an (2) Maturities of one year or less but returned item fees required to be alternative to the notice described in longer than one month. If the maturity disclosed by § 1030.11(a). paragraph (c)(1) of this section, is one year or less but longer than one (b) Special rule for average daily institutions may provide account month, the institution shall either: balance method. In making the disclosures to consumers. The (i) Provide disclosures as set forth in disclosures described in paragraph (a) of disclosures may be provided either with paragraph (b)(1) of this section; or this section, institutions that use the a periodic statement or separately, but (ii) Disclose to the consumer: average daily balance method and that must be sent no later than when the (A) The date the existing account calculate interest for a period other than periodic statement described in matures and the new maturity date if the statement period shall calculate and paragraph (c)(1) is sent. the account is renewed; disclose the annual percentage yield (B) The interest rate and the annual earned and amount of interest earned § 1030.5 Subsequent disclosures. percentage yield for the new account if based on that period rather than the (a) Change in terms. (1) Advance they are known (or that those rates have statement period. The information in notice required. A depository institution not yet been determined, the date when paragraph (a)(4) of this section shall be shall give advance notice to affected they will be determined, and a stated for that period as well as for the consumers of any change in a term telephone number the consumer may statement period. required to be disclosed under call to obtain the interest rate and the § 1030.4(b) of this part if the change may annual percentage yield that will be § 1030.7 Payment of interest. reduce the annual percentage yield or paid for the new account); and (a) Permissible methods. (1) Balance adversely affect the consumer. The (C) Any difference in the terms of the on which interest is calculated. notice shall include the effective date of new account as compared to the terms Institutions shall calculate interest on the change. The notice shall be mailed required to be disclosed under the full amount of principal in an or delivered at least 30 calendar days § 1030.4(b) of this part for the existing account for each day by use of either the before the effective date of the change. account. daily balance method or the average (2) No notice required. No notice (c) Notice before maturity for time daily balance method. Institutions shall under this section is required for: accounts longer than one year that do calculate interest by use of a daily rate (i) Variable-rate changes. Changes in not renew automatically. For time of at least 1/365 of the interest rate. In the interest rate and corresponding accounts with a maturity longer than a leap year a daily rate of 1/366 of the changes in the annual percentage yield one year that do not renew interest rate may be used. in variable-rate accounts. automatically at maturity, institutions (2) Determination of minimum (ii) Check printing fees. Changes in shall disclose to consumers the maturity balance to earn interest. An institution fees assessed for check printing. date and whether interest will be paid shall use the same method to determine after maturity. The disclosures shall be (iii) Short-term time accounts. any minimum balance required to earn mailed or delivered at least 10 calendar Changes in any term for time accounts interest as it uses to determine the days before maturity of the existing with maturities of one month or less. balance on which interest is calculated. account. (b) Notice before maturity for time An institution may use an additional accounts longer than one month that § 1030.6 Periodic statement disclosures. method that is unequivocally beneficial renew automatically. For time accounts (a) General rule. If a depository to the consumer. with a maturity longer than one month institution mails or delivers a periodic (b) Compounding and crediting that renew automatically at maturity, statement, the statement shall include policies. This section does not require institutions shall provide the the following disclosures: institutions to compound or credit disclosures described below before (1) Annual percentage yield earned. interest at any particular frequency. maturity. The disclosures shall be The ‘‘annual percentage yield earned’’ (c) Date interest begins to accrue. mailed or delivered at least 30 calendar during the statement period, using that Interest shall begin to accrue not later days before maturity of the existing term, calculated according to the rules than the business day specified for account. Alternatively, the disclosures in Appendix A of this part. interest-bearing accounts in section 606 may be mailed or delivered at least 20 (2) Amount of interest. The dollar of the Expedited Funds Availability Act calendar days before the end of the amount of interest earned during the (12 U.S.C. 4005 et seq.) and the Board grace period on the existing account, statement period. of Governors of the Federal Reserve provided a grace period of at least five (3) Fees imposed. Fees required to be System’s implementing Regulation CC calendar days is allowed. disclosed under § 1030.4(b)(4) of this (12 CFR part 229). Interest shall accrue (1) Maturities of longer than one year. part that were debited to the account until the day funds are withdrawn. If the maturity is longer than one year, during the statement period. The fees § 1030.8 Advertising. the institution shall provide account shall be itemized by type and dollar disclosures set forth in § 1030.4(b) of amounts. Except as provided in (a) Misleading or inaccurate this part for the new account, along with § 1030.11(a)(1) of this part, when fees of advertisements. An advertisement shall the date the existing account matures. If the same type are imposed more than not: the interest rate and annual percentage once in a statement period, a depository (1) Be misleading or inaccurate or yield that will be paid for the new institution may itemize each fee misrepresent a depository institution’s account are unknown when disclosures separately or group the fees together and deposit contract; or are provided, the institution shall state disclose a total dollar amount for all fees (2) Refer to or describe an account as that those rates have not yet been of that type. ‘‘free’’ or ‘‘no cost’’ (or contain a similar determined, the date when they will be (4) Length of period. The total number term) if any maintenance or activity fee determined, and a telephone number of days in the statement period, or the may be imposed on the account. The consumers may call to obtain the beginning and ending dates of the word ‘‘profit’’ shall not be used in interest rate and the annual percentage period. referring to interest paid on an account.

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(b) Permissible rates. If an information, to the extent applicable, enforcing this part may require advertisement states a rate of return, it clearly and conspicuously: depository institutions under their shall state the rate as an ‘‘annual (1) The ‘‘annual percentage yield,’’ jurisdiction to retain records for a longer percentage yield’’ using that term. (The using that term; period if necessary to carry out their abbreviation ‘‘APY’’ may be used (2) The time requirement to obtain the enforcement responsibilities under provided the term ‘‘annual percentage bonus; section 270 of the act. yield’’ is stated at least once in the (3) The minimum balance required to advertisement.) The advertisement shall obtain the bonus; § 1030.10 [Reserved] not state any other rate, except that the (4) The minimum balance required to § 1030.11 Additional disclosure ‘‘interest rate,’’ using that term, may be open the account, if it is greater than the requirements for overdraft services. stated in conjunction with, but not more minimum balance necessary to obtain (a) Disclosure of total fees on periodic conspicuously than, the annual the bonus; and statements. (1) General. A depository percentage yield to which it relates. (5) When the bonus will be provided. institution must separately disclose on (e) Exemption for certain (c) When additional disclosures are each periodic statement, as applicable: advertisements. (1) Certain media. If an required. Except as provided in (i) The total dollar amount for all fees advertisement is made through one of paragraph (e) of this section, if the or charges imposed on the account for the following media, it need not contain annual percentage yield is stated in an paying checks or other items when there the information in paragraphs (c)(1), advertisement, the advertisement shall are insufficient or unavailable funds and (c)(2), (c)(4), (c)(5), (c)(6)(ii), (d)(4), and state the following information, to the the account becomes overdrawn, using (d)(5) of this section: extent applicable, clearly and the term ‘‘Total Overdraft Fees;’’ and (i) Broadcast or electronic media, such conspicuously: (ii) The total dollar amount for all fees as television or radio; (1) Variable rates. For variable-rate or charges imposed on the account for (ii) Outdoor media, such as billboards; accounts, a statement that the rate may returning items unpaid. or change after the account is opened. (2) Totals required. The disclosures (2) Time annual percentage yield is (iii) Telephone response machines. (2) Indoor signs. (i) Signs inside the required by paragraph (a)(1) of this offered. The period of time the annual section must be provided for the percentage yield will be offered, or a premises of a depository institution (or the premises of a deposit broker) are not statement period and for the calendar statement that the annual percentage year-to-date; yield is accurate as of a specified date. subject to paragraphs (b), (c), (d) or (e)(1) of this section. (3) Format requirements. The (3) Minimum balance. The minimum aggregate fee disclosures required by balance required to obtain the (ii) If a sign exempt by paragraph (e)(2) of this section states a rate of paragraph (a) of this section must be advertised annual percentage yield. For disclosed in close proximity to fees tiered-rate accounts, the minimum return, it shall: (A) State the rate as an ‘‘annual identified under § 1030.6(a)(3), using a balance required for each tier shall be format substantially similar to Sample stated in close proximity and with equal percentage yield,’’ using that term or the term ‘‘APY.’’ The sign shall not state Form B–10 in Appendix B to this part. prominence to the applicable annual (b) Advertising disclosures for percentage yield. any other rate, except that the interest rate may be stated in conjunction with overdraft services. (1) Disclosures. (4) Minimum opening deposit. The the annual percentage yield to which it Except as provided in paragraphs (b)(2) minimum deposit required to open the relates. through (4) of this section, any account, if it is greater than the (B) Contain a statement advising advertisement promoting the payment minimum balance necessary to obtain consumers to contact an employee for of overdrafts shall disclose in a clear the advertised annual percentage yield. further information about applicable and conspicuous manner: (5) Effect of fees. A statement that fees fees and terms. (i) The fee or fees for the payment of could reduce the earnings on the (f) Additional disclosures in each overdraft; account. connection with the payment of (ii) The categories of transactions for (6) Features of time accounts. For overdrafts. Institutions that promote the which a fee for paying an overdraft may time accounts: payment of overdrafts in an be imposed; (i) Time requirements. The term of the advertisement shall include in the (iii) The time period by which the account. advertisement the disclosures required consumer must repay or cover any (ii) Early withdrawal penalties: A by § 1030.11(b) of this part. overdraft; and statement that a penalty will or may be (iv) The circumstances under which imposed for early withdrawal. § 1030.9 Enforcement and record the institution will not pay an overdraft. (iii) Required interest payouts. For retention. (2) Communications about the noncompounding time accounts with a (a) Administrative enforcement. payment of overdrafts not subject to stated maturity greater than one year Section 270 of the act (12 U.S.C. 4309) additional advertising disclosures. that do not compound interest on an contains the provisions relating to Paragraph (b)(1) of this section does not annual or more frequent basis, that administrative sanctions for failure to apply to: require interest payouts at least comply with the requirements of the act (i) An advertisement promoting a annually, and that disclose an APY and this part. Compliance is enforced by service where the institution’s payment determined in accordance with section the agencies listed in that section. of overdrafts will be agreed upon in E of Appendix A of this part, a (b) [Reserved] writing and subject to Regulation Z (12 statement that interest cannot remain on (c) Record retention. A depository CFR Part 1026); deposit and that payout of interest is institution shall retain evidence of (ii) A communication by an mandatory. compliance with this part for a institution about the payment of (d) Bonuses. Except as provided in minimum of two years after the date overdrafts in response to a consumer- paragraph (e) of this section, if a bonus disclosures are required to be made or initiated inquiry about deposit accounts is stated in an advertisement, the action is required to be taken. The or overdrafts. Providing information advertisement shall state the following administrative agencies responsible for about the payment of overdrafts in

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response to a balance inquiry made subject to Regulation Z (12 CFR part offered in multiples of months, institutions through an automated system, such as a 1026), or a service to transfer funds from may base the number of days on either the telephone response machine, ATM, or another account of the consumer. The actual number of days during the applicable an institution’s Internet site, is not a institution may, at its option, disclose period, or the number of days that would occur for any actual sequence of that many response to a consumer-initiated inquiry additional account balances that include calendar months. If institutions choose to use for purposes of this paragraph; such additional amounts, if the the latter rule, they must use the same (iii) An advertisement made through institution prominently state s that any number of days to calculate the dollar broadcast or electronic media, such as such balance includes such additional amount of interest earned on the account that television or radio; amounts and, if applicable, that is used in the annual percentage yield (iv) An advertisement made on additional amounts are not available for formula (where ‘‘Interest’’ is divided by outdoor media, such as billboards; all transactions. ‘‘Principal’’). (v) An ATM receipt; The annual percentage yield is calculated (vi) An in-person discussion with a Appendix A to Part 1030—Annual by use of the following general formula consumer; Percentage Yield Calculation (‘‘APY’’ is used for convenience in the formulas): (vii) Disclosures required by federal or The annual percentage yield measures the APY = 100 [(1 + Interest/Principal)(365/Days other applicable law; total amount of interest paid on an account in term)¥1] (viii) Information included on a based on the interest rate and the frequency periodic statement or a notice informing of compounding. The annual percentage ‘‘Principal’’ is the amount of funds a consumer about a specific overdrawn yield reflects only interest and does not assumed to have been deposited at the beginning of the account. item or the amount the account is include the value of any bonus (or other consideration worth $10 or less) that may be ‘‘Interest’’ is the total dollar amount of overdrawn; interest earned on the Principal for the term (ix) A term in a deposit account provided to the consumer to open, maintain, increase or renew an account. Interest or of the account. agreement discussing the institution’s other earnings are not to be included in the ‘‘Days in term’’ is the actual number of right to pay overdrafts; annual percentage yield if such amounts are days in the term of the account. When the (x) A notice provided to a consumer, determined by circumstances that may or ‘‘days in term’’ is 365 (that is, where the such as at an ATM, that completing a may not occur in the future. The annual stated maturity is 365 days or where the requested transaction may trigger a fee percentage yield is expressed as an account does not have a stated maturity), the for overdrawing an account, or a general annualized rate, based on a 365-day year. annual percentage yield can be calculated by Institutions may calculate the annual use of the following simple formula: notice that items overdrawing an APY=100 (Interest/Principal) account may trigger a fee; percentage yield based on a 365-day or a 366- (xi) Informational or educational day year in a leap year. Part I of this Examples appendix discusses the annual percentage materials concerning the payment of (1) If an institution pays $61.68 in interest yield calculations for account disclosures for a 365-day year on $1,000 deposited into overdrafts if the materials do not and advertisements, while Part II discusses specifically describe the institution’s a NOW account, using the general formula annual percentage yield earned calculations above, the annual percentage yield is 6.17%: overdraft service; or for periodic statements. ¥ (xii) An opt-out or opt-in notice APY = 100 [(1 + 61.68/1,000) (365/365) 1] Part I. Annual Percentage Yield for Account APY = 6.17% regarding the institution’s payment of Disclosures and Advertising Purposes overdrafts or provision of discretionary Or, using the simple formula above (since, as an account without a stated term, the term overdraft services. In general, the annual percentage yield for account disclosures under §§ 1030.4 and is deemed to be 365 days): (3) Exception for ATM screens and 1030.5 and for advertising under § 1030.8 is telephone response machines. The APY = 100 (61.68/1,000) an annualized rate that reflects the APY = 6.17% disclosures described in paragraphs relationship between the amount of interest (b)(1)(ii) and (iv) of this section are not (2) If an institution pays $30.37 in interest that would be earned by the consumer for the on a $1,000 six-month certificate of deposit required in connection with any term of the account and the amount of (where the six-month period used by the principal used to calculate that interest. advertisement made on an ATM screen institution contains 182 days), using the Special rules apply to accounts with tiered or using a telephone response machine. general formula above, the annual percentage and stepped interest rates, and to certain time (4) Exception for indoor signs. yield is 6.18%: accounts with a stated maturity greater than Paragraph (b)(1) of this section does not ¥ one year. APY = 100 [(1 + 30.37/1,000) (365/182) 1] apply to advertisements for the payment APY = 6.18% of overdrafts on indoor signs as A. General Rules described by § 1030.8(e)(2) of this part, Except as provided in Part I.E. of this B. Stepped-Rate Accounts (Different Rates provided that the sign contains a clear appendix, the annual percentage yield shall Apply in Succeeding Periods) and conspicuous statement that fees be calculated by the formula shown below. For accounts with two or more interest may apply and that consumers should Institutions shall calculate the annual rates applied in succeeding periods (where contact an employee for further percentage yield based on the actual number the rates are known at the time the account of days in the term of the account. For is opened), an institution shall assume each information about applicable fees and accounts without a stated maturity date (such interest rate is in effect for the length of time terms. For purposes of this paragraph as a typical savings or transaction account), provided for in the deposit contract. (b)(4), an indoor sign does not include the calculation shall be based on an assumed Examples an ATM screen. term of 365 days. In determining the total (c) Disclosure of account balances. If interest figure to be used in the formula, (1) If an institution offers a $1,000 6-month an institution discloses balance institutions shall assume that all principal certificate of deposit on which it pays a 5% information to a consumer through an and interest remain on deposit for the entire interest rate, compounded daily, for the first term and that no other transactions (deposits three months (which contain 91 days), and a automated system, the balance may not 5.5% interest rate, compounded daily, for the include additional amounts that the or withdrawals) occur during the term. This assumption shall not be used if an institution next three months (which contain 92 days), institution may provide to cover an item requires, as a condition of the account, that the total interest for six months is $26.68 when there are insufficient or consumers withdraw interest during the and, using the general formula above, the unavailable funds in the consumer’s term. In such a case, the interest (and annual annual percentage yield is 5.39%: account, whether under a service percentage yield calculation) shall reflect that APY = 100 [(1 + 26.68/1,000) (365/183) ¥ 1] provided in its discretion, a service requirement. For time accounts that are APY = 5.39%

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(2) If an institution offers a $1,000 two-year be calculated like a stepped-rate account. been in effect when the account was opened certificate of deposit on which it pays a 6% Thus, an institution shall assume that: (1) was 5%, the total interest for a 365-day year interest rate, compounded daily, for the first The introductory interest rate is in effect for for a $1,000 deposit is $56.52 (based on 91 year, and a 6.5% interest rate, compounded the length of time provided for in the deposit days at 7% followed by 274 days at 5%). daily, for the next year, the total interest for contract; and (2) the variable interest rate that Using the simple formula, the annual two years is $133.13, and, using the general would have been in effect when the account percentage yield is 5.65%: formula above, the annual percentage yield is is opened or advertised (but for the APY = 100 (56.52/1,000) 6.45%: introductory rate) is in effect for the APY = 5.65% APY = 100 [(1 + 133.13/1,000) (365/730) ¥ remainder of the year. If the variable rate is D. Tiered-Rate Accounts (Different Rates 1] tied to an index, the index-based rate in Apply to Specified Balance Levels) APY = 6.45% effect at the time of disclosure must be used for the remainder of the year. If the rate is For accounts in which two or more interest C. Variable-Rate Accounts not tied to an index, the rate in effect for rates paid on the account are applicable to For variable-rate accounts without an existing consumers holding the same account specified balance levels, the institution must introductory premium or discounted rate, an (who are not receiving the introductory calculate the annual percentage yield in institution must base the calculation only on interest rate) must be used for the remainder accordance with the method described below the initial interest rate in effect when the of the year. that it uses to calculate interest. In all cases, account is opened (or advertised), and For example, if an institution offers an an annual percentage yield (or a range of assume that this rate will not change during account on which it pays a 7% interest rate, annual percentage yields, if appropriate) the year. compounded daily, for the first three months must be disclosed for each balance tier. Variable-rate accounts with an (which, for example, contain 91 days), while For purposes of the examples discussed introductory premium (or discount) rate must the variable interest rate that would have below, assume the following:

Interest rate (percent) Deposit balance required to earn rate

5.25 ...... Up to but not exceeding $2,500. 5.50 ...... Above $2,500 but not exceeding $15,000. 5.75 ...... Above $15,000.

Tiering Method A. Under this method, an Thus, using the simple formula, the annual Second tier. For the second tier, the institution pays on the full balance in the percentage yield for the third tier is 5.92%: institution would pay between $134.75 and account the stated interest rate that APY = 100 (1,183.61/20,000) $841.45 in interest, based on assumed corresponds to the applicable deposit tier. APY = 5.92% balances of $2,500.01 and $15,000, For example, if a consumer deposits $8,000, respectively. For $2,500.01, interest would be the institution pays the 5.50% interest rate Tiering Method B. Under this method, an figured on $2,500 at 5.25% interest rate plus on the entire $8,000. institution pays the stated interest rate only interest on $.01 at 5.50%. For the low end When this method is used to determine on that portion of the balance within the of the second tier, therefore, the annual interest, only one annual percentage yield specified tier. For example, if a consumer percentage yield is 5.39%, using the simple will apply to each tier. Within each tier, the deposits $8,000, the institution pays 5.25% formula: on $2,500 and 5.50% on $5,500 (the annual percentage yield will not vary with APY = 100 (134.75/2,500) difference between $8,000 and the first tier the amount of principal assumed to have APY = 5.39% cut-off of $2,500). been deposited. For $15,000, interest is figured on $2,500 For the interest rates and deposit balances The institution that computes interest in this manner must provide a range that shows at 5.25% interest rate plus interest on assumed above, the institution will state $12,500 at 5.50% interest rate. For the high three annual percentage yields—one the lowest and the highest annual percentage yields for each tier (other than for the first end of the second tier, the annual percentage corresponding to each balance tier. yield, using the simple formula, is 5.61%: Calculation of each annual percentage yield tier, which, like the tiers in Method A, has is similar for this type of account as for the same annual percentage yield APY = 100 (841.45/15,000) accounts with a single interest rate. Thus, the throughout). The low figure for an annual APY = 5.61% calculation is based on the total amount of percentage yield range is calculated based on Thus, the annual percentage yield range for interest that would be received by the the total amount of interest earned for a year the second tier is 5.39% to 5.61%. consumer for each tier of the account for a assuming the minimum principal required to Third tier. For the third tier, the institution year and the principal assumed to have been earn the interest rate for that tier. The high would pay $841.45 in interest on the low end deposited to earn that amount of interest. figure for an annual percentage yield range is of the third tier (a balance of $15,000.01). For First tier. Assuming daily compounding, based on the amount of interest the $15,000.01, interest would be figured on the institution will pay $53.90 in interest on institution would pay on the highest $2,500 at 5.25% interest rate, plus interest on a $1,000 deposit. Using the general formula, principal that could be deposited to earn that $12,500 at 5.50% interest rate, plus interest for the first tier, the annual percentage yield same interest rate. If the account does not on $.01 at 5.75% interest rate. For the low is 5.39%: have a limit on the maximum amount that end of the third tier, therefore, the annual APY = 100 [(1 + 53.90/1,000) (365/365) ¥ 1] can be deposited, the institution may assume percentage yield (using the simple formula) APY = 5.39% any amount. is 5.61%: For the tiering structure assumed above, Using the simple formula: APY = 100 (841.45/15,000) the institution would state a total of five APY = 5.61% APY = 100 (53.90/1,000) annual percentage yields—one figure for the APY = 5.39% Since the institution does not limit the first tier and two figures stated as a range for account balance, it may assume any Second tier. The institution will pay the other two tiers. maximum amount for the purposes of $452.29 in interest on an $8,000 deposit. First tier. Assuming daily compounding, computing the annual percentage yield for Thus, using the simple formula, the annual the institution would pay $53.90 in interest the high end of the third tier. For an assumed percentage yield for the second tier is 5.65%: on a $1,000 deposit. For this first tier, using maximum balance amount of $100,000, APY = 100 (452.29/8,000) the simple formula, the annual percentage interest would be figured on $2,500 at 5.25% APY = 5.65% yield is 5.39%: interest rate, plus interest on $12,500 at Third tier. The institution will pay APY = 100 (53.90/1,000) 5.50% interest rate, plus interest on $85,000 $1,183.61 in interest on a $20,000 deposit. APY = 5.39% at 5.75% interest rate. For the high end of the

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third tier, therefore, the annual percentage (c) Divide by the total number of days in annual percentage yield earned (using the yield, using the simple formula, is 5.87%. the term. formula above) is 6.58%: APY = 100 (5,871.79/100,000) (2) Applied to the example, the products of APY Earned = 100 [(1 + 5.25/1,000) (365/30) APY = 5.87% the interest rates and days the rates are in ¥ 1] × Thus, the annual percentage yield range effect are (5.00% 365 days) 1825, (6.00% APY Earned = 6.58% × × that would be stated for the third tier is 365 days) 2190, and (7.00% 365 days) (2) Assume an institution calculates 5.61% to 5.87%. 2555, respectively. The sum of these interest on the average daily balance for the If the assumed maximum balance amount products, 6570, is divided by 1095, the total calendar month and provides periodic is $1,000,000 instead of $100,000, the number of days in the term. The composite statements that cover the period from the institution would use $985,000 rather than interest rate and APY are both 6.00%. 16th of one month to the 15th of the next $85,000 in the last calculation. In that case, month. The account has a balance of $2,000 for the high end of the third tier the annual Part II. Annual Percentage Yield Earned for Periodic Statements September 1 through September 15 and a percentage yield, using the simple formula, is balance of $1,000 for the remaining 15 days 5.91%: The annual percentage yield earned for of September. The average daily balance for APY = 100 (59,134.22/1,000,000) periodic statements under § 1030.6(a) is an the month of September is $1,500, which APY = 5.91% annualized rate that reflects the relationship results in $6.50 in interest earned for the Thus, the annual percentage yield range between the amount of interest actually month. The annual percentage yield earned that would be stated for the third tier is earned on the consumer’s account during the for the month of September would be shown 5.61% to 5.91%. statement period and the average daily on the periodic statement covering balance in the account for the statement September 16 through October 15. The E. Time Accounts With a Stated Maturity period. Pursuant to § 1030.6(b), however, if annual percentage yield earned (using the Greater Than One Year That Pay Interest at an institution uses the average daily balance formula above) is 5.40%: Least Annually method and calculates interest for a period APY Earned = 100 [(6.50/1,500) (365/30) ¥ 1. For time accounts with a stated maturity other than the statement period, the annual 1] greater than one year that do not compound percentage yield earned shall reflect the APY Earned = 5.40% interest on an annual or more frequent basis, relationship between the amount of interest (3) Assume an institution calculates and that require the consumer to withdraw earned and the average daily balance in the interest on the average daily balance for a interest at least annually, the annual account for that other period. quarter (for example, the calendar months of percentage yield may be disclosed as equal The annual percentage yield earned shall September through November), and provides to the interest rate. be calculated by using the following formulas monthly periodic statements covering (‘‘APY Earned’’ is used for convenience in Example calendar months. The account has a balance the formulas): (1) If an institution offers a $1,000 two-year of $1,000 throughout the 30 days of certificate of deposit that does not compound A. General Formula September, a balance of $2,000 throughout and that pays out interest semi-annually by the 31 days of October, and a balance of APY Earned = 100 [(1 + Interest earned/ check or transfer at a 6.00% interest rate, the $3,000 throughout the 30 days of November. Balance) (365/Days in period) ¥ 1] annual percentage yield may be disclosed as The average daily balance for the quarter is ‘‘Balance’’ is the average daily balance in the 6.00%. $2,000, which results in $21 in interest account for the period. (2) For time accounts covered by this earned for the quarter. The annual percentage ‘‘Interest earned’’ is the actual amount of paragraph that are also stepped-rate accounts, yield earned would be shown on the periodic interest earned on the account for the the annual percentage yield may be disclosed statement for November. The annual period. as equal to the composite interest rate. percentage yield earned (using the formula ‘‘Days in period’’ is the actual number of above) is 4.28%: Example days for the period. (1) If an institution offers a $1,000 three- APY Earned = 100 [(1 + 21/2,000) (365/91) Examples ¥ year certificate of deposit that does not 1] compound and that pays out interest (1) Assume an institution calculates APY Earned = 4.28% annually by check or transfer at a 5.00% interest for the statement period (and uses interest rate for the first year, 6.00% interest either the daily balance or the average daily B. Special Formula for Use Where Periodic rate for the second year, and 7.00% interest balance method), and the account has a Statement Is Sent More Often Than the rate for the third year, the institution may balance of $1,500 for 15 days and a balance Period for Which Interest Is Compounded compute the composite interest rate and APY of $500 for the remaining 15 days of a 30- Institutions that use the daily balance as follows: day statement period. The average daily method to accrue interest and that issue (a) Multiply each interest rate by the balance for the period is $1,000. The interest periodic statements more often than the number of days it will be in effect; earned (under either balance computation period for which interest is compounded (b) Add these figures together; and method) is $5.25 during the period. The shall use the following special formula:

The following definition applies for use in Assume an institution calculates interest The account has a daily balance of $1,000 for this formula (all other terms are defined for the statement period using the daily a 30-day statement period. The interest under Part II): balance method, pays a 5.00% interest rate, earned is $4.11 for the period, and the annual ‘‘Compounding’’ is the number of days in compounded annually, and provides percentage yield earned (using the special each compounding period. periodic statements for each monthly cycle. formula above) is 5.00%:

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APY Earned = 5.00% the interest rate paid on the entire balance in (ii) Average Daily Balance Method __ your account will be % with an annual We use the average daily balance method Appendix B to Part 1030—Model __ percentage yield of %. to calculate interest on your account. This Clauses and Sample Forms • If your [daily balance/average daily method applies a periodic rate to the average __ Table of Contents balance] is $ or less, the interest rate paid daily balance in the account for the period. __ on the entire balance will be % with an The average daily balance is calculated by B–1—Model Clauses for Account Disclosures annual percentage yield of __%. (Section 1030.4(b)) adding the principal in the account for each B–2—Model Clauses for Change in Terms Tiering Method B day of the period and dividing that figure by (Section 1030.5(a)) • An interest rate of __% will be paid only the number of days in the period. B–3—Model Clauses for Pre-Maturity Notices for that portion of your [daily balance/ (e) Accrual of Interest on Noncash Deposits for Time Accounts (Section 1030.5(b)(2) average daily balance] that is greater than Interest begins to accrue no later than the and 1030.5(d)) $__. The annual percentage yield for this tier business day we receive credit for the deposit B–4—Sample Form (Multiple Accounts) will range from __% to __%, depending on of noncash items (for example, checks); or B–5—Sample Form (Now Account) the balance in the account. Interest begins to accrue on the business B–6—Sample Form (Tiered Rate Money • An interest rate of ll% will be paid day you deposit noncash items (for example, Market Account) only for that portion of your [daily balance/ checks). B–7—Sample Form (Certificate of Deposit) average daily balance] that is greater than B–8—Sample Form (Certificate of Deposit $ll. The annual percentage yield for this (f) Fees Advertisement) tier will range from ll% to ll%, B–9—Sample Form (Money Market Account The following fees may be assessed against depending on the balance in the account. your account: Advertisement) • If your [daily balance/average daily ll$ll B–10—Sample Form (Aggregate Overdraft balance] is $ll or less, the interest rate paid and Returned Item Fees) ll$ll on the entire balance will be ll% with an ll$ll annual percentage yield of ll%. B–1—Model Clauses for Account Disclosures ll(conditions for imposing fee) $ll (a) Rate Information (b) Compounding and Crediting ll% of ll. (i) Fixed-Rate Accounts (i) Frequency (g) Transaction Limitations The interest rate on your account is __% Interest will be compounded [on a ll The minimum amount you may with an annual percentage yield of __%. You basis/every (time period)]. Interest will be [withdraw/write a check for] is $ll. will be paid this rate [for (time period)/until credited to your account [on a ll basis/ You may make ll [deposits into/ (date)/for at least 30 calendar days]. every (time period)]. withdrawals from] your account each (time (ii) Variable-Rate Accounts (ii) Effect of Closing an Account period). You may not make [deposits into/ The interest rate on your account is __% If you close your account before interest is __ withdrawals from] your account until the with an annual percentage yield of %. credited, you will not receive the accrued maturity date. Your interest rate and annual percentage interest. yield may change. (h) Disclosures Relating to Time Accounts (c) Minimum Balance Requirements Determination of Rate (i) Time Requirements (i) To Open the Account The interest rate on your account is based Your account will mature on (date). ll on (name of index) [plus/minus a margin of You must deposit $ to open this Your account will mature in (time period). __ account. ]; or (ii) Early Withdrawal Penalties At our discretion, we may change the (ii) To Avoid Imposition of Fees interest rate on your account. We [will/may] impose a penalty if you A minimum balance fee of $ll will be withdraw [any/all] of the [deposited funds/ Frequency of Rate Changes imposed every (time period) if the balance in principal] before the maturity date. The fee We may change the interest rate on your the account falls below $ll any day of the imposed will equal ll days/week[s]/ account [every (time period)/at any time]. (time period). month[s] of interest; or A minimum balance fee of $ll will be Limitations on Rate Changes We [will/may] impose a penalty of $ll imposed every (time period) if the average if you withdraw [any/all] of the [deposited The interest rate for your account will daily balance for the (time period) falls below funds/principal] before the maturity date. __ never change by more than % each (time $ll. The average daily balance is If you withdraw some of your funds before period). calculated by adding the principal in the maturity, the interest rate for the remaining The interest rate will never be [less/more] account for each day of the period and funds in your account will be ll% with an __ than %; or dividing that figure by the number of days in annual percentage yield of ll%. The interest rate will never [exceed__% the period. __ (iii) Withdrawal of Interest Prior to Maturity above/drop more than % below] the (iii) To Obtain the Annual Percentage Yield interest rate initially disclosed to you. Disclosed The annual percentage yield assumes (iii) Stepped-Rate Accounts interest will remain on deposit until You must maintain a minimum balance of maturity. A withdrawal will reduce earnings. The initial interest rate for your account is $ll in the account each day to obtain the __%. You will be paid this rate [for (time disclosed annual percentage yield. (iv) Renewal Policies period)/until (date)]. After that time, the You must maintain a minimum average (1) Automatically Renewable Time Accounts interest rate for your account will be __%, daily balance of $ll to obtain the disclosed This account will automatically renew at and you will be paid this rate [for (time annual percentage yield. The average daily maturity. period)/until (date)]. The annual percentage balance is calculated by adding the principal You will have [ll calendar/business] yield for your account is __%. in the account for each day of the period and days after the maturity date to withdraw dividing that figure by the number of days in (iv) Tiered-Rate Accounts funds without penalty; or the period. Tiering Method A There is no grace period following the (d) Balance Computation Method maturity of this account to withdraw funds • If your [daily balance/average daily without penalty. balance] is $__ or more, the interest rate paid (i) Daily Balance Method on the entire balance in your account will be We use the daily balance method to (2) Non-Automatically Renewable Time __% with an annual percentage yield of __%. calculate the interest on your account. This Accounts • If your [daily balance/average daily method applies a daily periodic rate to the This account will not renew automatically balance] is more than $__, but less than $__, principal in the account each day. at maturity. If you do not renew the account,

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your deposit will be placed in [an interest- B–2—Model Clauses for Change in Terms If the account renews, the new maturity bearing/a noninterest-bearing] account. On (date), the cost of (type of fee) will date will be (date). The interest rate for the renewed account (v) Required Interest Distribution increase to $ll. will be ll% with an annual percentage This account requires the distribution of On (date), the interest rate on your account yield of ll%; or interest and does not allow interest to remain will decrease to ll% with an annual The interest rate and annual percentage in the account. percentage yield of ll%. yield have not yet been determined. They On (date), the minimum [daily balance/ (i) Bonuses will be available on (date). Please call (phone average daily balance] required to avoid number) to learn the interest rate and annual You will [be paid/receive] [$lll imposition of a fee will increase to $ll. percentage yield for your new account. (description of item)] as a bonus [when you open the account/on (date) ll].s B–3—Model Clauses for Pre-Maturity (b) Non-Automatically Renewable Time You must maintain a minimum [daily Notices for Time Accounts Accounts With Maturities Longer Than One balance/average daily balance] of $ll to Year (a) Automatically Renewable Time Accounts obtain the bonus. Your account will mature on (date). With Maturities of One Year or Less But To earn the bonus, [$ll/your entire If you do not renew the account, interest Longer Than One Month principal] must remain on deposit [for (time [will/will not] be paid after maturity. period)/until (date)ll]. Your account will mature on (date). BILLING CODE 4810–AM–P

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BILLING CODE 4810–AM–C

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Appendix C to Part 1030—Effect on Section 1030.1 Authority, purpose, coverage, other than a screen viewed solely by the State Laws and effect on state laws institution’s employee. (c) Coverage iv. Messages in a newspaper, magazine, or (a) Inconsistent Requirements promotional flyer or on radio. 1. Foreign applicability. Regulation DD State law requirements that are v. Messages that are provided along with applies to all depository institutions, except inconsistent with the requirements of the act information about the consumer’s existing credit unions, that offer deposit accounts to and this part are preempted to the extent of account and that promote another account at residents (including resident aliens) of any the inconsistency. A state law is inconsistent the institution. state as defined in § 1030.2(r). Accounts held if it requires a depository institution to make 2. Other messages. Examples of messages in an institution located in a state are disclosures or take actions that contradict the that are not advertisements are: covered, even if funds are transferred requirements of the federal law. A state law i. Rate sheets in a newspaper, periodical, periodically to a location outside the United or trade journal (unless the depository is also contradictory if it requires the use of States. Accounts held in an institution the same term to represent a different amount institution, or a deposit broker offering located outside the United States are not accounts at the institution, pays a fee for or or a different meaning than the federal law, covered, even if held by a U.S. resident. requires the use of a term different from that otherwise controls publication). 2. Persons who advertise accounts. Persons ii. In-person discussions with consumers required in the federal law to describe the who advertise accounts are subject to the same item, or permits a method of calculating about the terms for a specific account. advertising rules. For example, if a deposit iii. For purposes of § 1030.8(b) of this part interest on an account different from that broker places an advertisement offering required in the federal law. through § 1030.8(e) of this part, information consumers an interest in an account at a given to consumers about existing accounts, (b) Preemption Determinations depository institution, the advertising rules such as current rates recorded on a voice- apply to the advertisement, whether the A depository institution, state, or other response machine or notices for account is to be held by the broker or directly automatically renewable time account sent interested party may request the Bureau to by the consumer. determine whether a state law requirement is before renewal. inconsistent with the federal requirements. A Section 1030.2—Definitions iv. Information about a particular transaction in an existing account. request for a determination shall be in (a) Account. v. Disclosures required by federal or other writing and addressed to the Bureau of 1. Covered accounts. Examples of accounts applicable law. Consumer Financial Protection, 1700 G Street subject to the regulation are: vi. A deposit account agreement. NW., Washington, DC 20006. Notice that the i. Interest-bearing and noninterest-bearing (f) Bonus. Bureau intends to make a determination accounts. 1. Examples. Bonuses include items of (either on request or on its own motion) will ii. Deposit accounts opened as a condition value, other than interest, offered as be published in the Federal Register, with an of obtaining a credit card. incentives to consumers, such as an offer to opportunity for public comment unless the iii. Accounts denominated in a foreign pay the final installment deposit for a Bureau finds that notice and opportunity for currency. holiday club account. Items that are not a comment would be impracticable, iv. Individual retirement accounts (IRAs) unnecessary, or contrary to the public and simplified employee pension (SEP) bonus include discount coupons for goods or interest and publishes its reasons for such accounts. services at restaurants or stores. decision. Notice of a final determination will v. Payable on death (POD) or ‘‘Totten trust’’ 2. De minimis rule. Items with a de be published in the Federal Register and accounts. minimis value of $10 or less are not bonuses. furnished to the party who made the request 2. Other accounts. Examples of accounts Institutions may rely on the valuation and to the appropriate state official. not subject to the regulation are: standard used by the Internal Revenue i. Mortgage escrow accounts for collecting Service to determine if the value of the item (c) Effect of Preemption Determinations taxes and property insurance premiums. is de minimis. Examples of items of de After the Bureau determines that a state ii. Accounts established to make periodic minimis value are: law is inconsistent, a depository institution disbursements on construction loans. i. Disability insurance premiums valued at may not make disclosures using the iii. Trust accounts opened by a trustee an amount of $10 or less per year. inconsistent term or take actions relying on pursuant to a formal written trust agreement ii. Coffee mugs, T-shirts or other the inconsistent law. (not merely declarations of trust on a merchandise with a market value of $10 or less. (d) Reversal of Determination signature card such as a ‘‘Totten trust,’’ or an IRA and SEP account). 3. Aggregation. In determining if an item The Bureau reserves the right to reverse a iv. Accounts opened by an executor in the valued at $10 or less is a bonus, institutions determination for any reason bearing on the name of a decedent’s estate. must aggregate per account per calendar year coverage or effect of state or federal law. 3. Other investments. The term ‘‘account’’ items that may be given to consumers. In Notice of reversal of a determination will be does not apply to all products of a depository making this determination, institutions published in the Federal Register and a copy institution. Examples of products not covered aggregate per account only the market value furnished to the appropriate state official. are: of items that may be given for a specific promotion. To illustrate, assume an Appendix D to Part 1030—Issuance of i. Government securities. ii. Mutual funds. institution offers in January to give Official Interpretations iii. Annuities. consumers an item valued at $7 for each Except in unusual circumstances, iv. Securities or obligations of a depository calendar quarter during the year that the interpretations will not be issued separately institution. average account balance in a negotiable order but will be incorporated in an official v. Contractual arrangements such as of withdrawal (NOW) account exceeds commentary to this part, which will be repurchase agreements, interest rate swaps, $10,000. The bonus rules are triggered, since amended periodically. No interpretations and bankers acceptances. consumers are eligible under the promotion will be issued approving depository (b) Advertisement. to receive up to $28 during the year. institutions’ forms, statements, or calculation 1. Covered messages. Advertisements However, the bonus rules are not triggered if tools or methods. include commercial messages in visual, oral, an item valued at $7 is offered to consumers or print media that invite, offer, or otherwise opening a NOW account during the month of Supplement I to Part 1030—Official announce generally to prospective customers January, even though in November the Interpretations the availability of consumer accounts—such institution introduces a new promotion that as: includes, for example, an offer to existing Introduction i. Telephone solicitations. NOW account holders for an item valued at 1. Official status. This commentary is the ii. Messages on automated teller machine $8 for maintaining an average balance of means by which the Bureau of Consumer (ATM) screens. $5,000 for the month. Financial Protection issues official iii. Messages on a computer screen in an 4. Waiver or reduction of a fee or interpretations of Regulation DD. institution’s lobby (including any printout) absorption of expenses. Bonuses do not

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include value that consumers receive through time accounts unless they also require a same time fees for electronic services (such the waiver or reduction of fees (even if the penalty of at least seven days’ interest for as for balance inquiry fees at ATMs) required fees waived exceed $10) for banking-related withdrawals during the first six days after the to be disclosed by this part but not by services such as the following: account is opened. Regulation E. i. A safe deposit box rental fee for 2. Relation to Regulation D. Regulation D iv. An institution relies on Regulation E’s consumers who open a new account. of the Board of Governors of the Federal rules regarding disclosure of limitations on ii. Fees for travelers checks for account Reserve System (12 CFR part 204) permits in the frequency and amount of electronic fund holders. limited circumstances the withdrawal of transfers, including security-related iii. Discounts on interest rates charged for funds without penalty during the first six exceptions. But any limitations on ‘‘intra- loans at the institution. days after a ‘‘time deposit’’ is opened. (See institutional transfers’’ to or from the (h) Consumer. 12 CFR 204.2(c)(1)(i).) But the fact that a consumer’s other accounts during a given 1. Professional capacity. Examples of consumer makes a withdrawal as permitted time period must be disclosed, even though accounts held by a natural person in a by Regulation D does not disqualify the intra-institutional transfers are exempt from professional capacity for another are account from being a time account for Regulation E. attorney-client trust accounts and landlord- purposes of this part. (e) Oral response to inquiries. tenant security accounts. (v) Variable-rate account. 1. Application of rule. Institutions are not 2. Other accounts. Accounts not held in a 1. General. A certificate of deposit required to provide rate information orally. professional capacity include accounts held permitting one or more rate adjustments prior 2. Relation to advertising. The advertising by an individual for a child under the to maturity at the consumer’s option is a rules do not cover an oral response to a Uniform Gifts to Minors Act. variable-rate account. question about rates. 3. Sole proprietors. Accounts held by 3. Existing accounts. This paragraph does individuals as sole proprietors are not Section 1030.3—General Disclosure not apply to oral responses about rate covered. Requirements information for existing accounts. For 4. Retirement plans. IRAs and SEP (a) Form. example, if a consumer holding a one-year accounts are consumer accounts to the extent 1. Design requirements. Disclosures must certificate of deposit (CD) requests interest that funds are invested in covered accounts. be presented in a format that allows rate information about the CD during the Keogh accounts are not subject to the consumers to readily understand the terms of term, the institution need not disclose the regulation. their account. Institutions are not required to annual percentage yield. (j) Depository institution and institution. use a particular type size or typeface, nor are (f) Rounding and accuracy rules for rates 1. Foreign institutions. Branches of foreign institutions required to state any term more and yields institutions located in the United States are conspicuously than any other term. (f)(1) Rounding. subject to the regulation if they offer deposit Disclosures may be made: 1. Permissible rounding. Examples of accounts to consumers. Edge Act and i. In any order. permissible rounding are an annual Agreement corporations, and agencies of ii. In combination with other disclosures or percentage yield calculated to be 5.644%, foreign institutions, are not depository account terms. rounded down and disclosed as 5.64%; institutions for purposes of this part. 5.645% rounded up and disclosed as 5.65%. iii. In combination with disclosures for (k) Deposit broker. (f)(2) Accuracy. other types of accounts, as long as it is clear 1. General. A deposit broker is a person 1. Annual percentage yield and annual to consumers which disclosures apply to who is in the business of placing or percentage yield earned. The tolerance for their account. facilitating the placement of deposits in an annual percentage yield and annual iv. On more than one page and on the front institution, as defined by the Federal Deposit percentage yield earned calculations is and reverse sides. Insurance Act (12 U.S.C. 29(g)). designed to accommodate inadvertent errors. v. By using inserts to a document or filling (n) Interest. Institutions may not purposely incorporate in blanks. 1. Relation to bonuses. Bonuses are not the tolerance into their calculation of yields. interest for purposes of this part. vi. On more than one document, as long as (p) Passbook savings account. the documents are provided at the same time. Section 1030.4—Account Disclosures 1. Relation to Regulation E. Passbook 2. Consistent terminology. Institutions (a) Delivery of account disclosures. savings accounts include accounts accessed must use consistent terminology to describe (a)(1) Account opening. by preauthorized electronic fund transfers to terms or features required to be disclosed. 1. New accounts. New account disclosures the account (as defined in 12 CFR 1005.2(j)), For example, if an institution describes a must be provided when: such as an account that receives direct monthly fee (regardless of account activity) i. A time account that does not deposit of social security payments. as a ‘‘monthly service fee’’ in account- automatically rollover is renewed by a Accounts permitting access by other opening disclosures, the periodic statement consumer. electronic means are not ‘‘passbook saving and change-in-term notices must use the ii. A consumer changes a term for a accounts’’ and must comply with the same terminology so that consumers can renewable time account (see comment 5(b)– requirements of § 1030.6 if statements are readily identify the fee. 5 regarding disclosure alternatives.) sent four or more times a year. (b) General. iii. An institution transfers funds from an (q) Periodic statement. 1. Specificity of legal obligation. account to open a new account not at the 1. Examples. Periodic statements do not Institutions may refer to the calendar month consumer’s request, unless the institution include: or to roughly equivalent intervals during a previously gave account disclosures and any i. Additional statements provided solely calendar year as a ‘‘month.’’ change-in-term notices for the new account. upon request. (c) Relation to Regulation E. iv. An institution accepts a deposit from a ii. General service information such as a 1. General rule. Compliance with consumer to an account that the institution quarterly newsletter or other correspondence Regulation E (12 CFR Part 1005) is deemed had deemed closed for the purpose of describing available services and products. to satisfy the disclosure requirements of this treating accrued but uncredited interest as (t) Tiered-rate account. part, such as when: forfeited interest (see comment 7(b)–3.) 1. Time accounts. Time accounts paying i. An institution changes a term that 2. Acquired accounts. New account different rates based solely on the amount of triggers a notice under Regulation E, and uses disclosures need not be given when an the initial deposit are not tiered-rate the timing and disclosure rules of Regulation institution acquires an account through an accounts. E for sending change-in-term notices. acquisition of or merger with another 2. Minimum balance requirements. A ii. Consumers add an ATM access feature institution (but see § 1030.5(a) of this part requirement to maintain a minimum balance to an account, and the institution provides regarding advance notice requirements if to earn interest does not make an account a disclosures pursuant to Regulation E, terms are changed). tiered-rate account. including disclosure of fees (see 12 CFR (a)(2) Requests. (u) Time account. 1005.7.) Paragraph (a)(2)(i). 1. Club accounts. Although club accounts iii. An institution complying with the 1. Inquiries versus requests. A response to typically have a maturity date, they are not timing rules of Regulation E discloses at the an oral inquiry (by telephone or in person)

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about rates and yields or fees does not trigger 4. Stepped-rate accounts. A single regularly sending to consumers checks that the duty to provide account disclosures. But composite annual percentage yield must be otherwise would be held by the institution. when consumers ask for written information disclosed for stepped-rate accounts. (See 2. Other fees. Institutions need not disclose about an account (whether by telephone, in Appendix A, Part I, Paragraph B.) The fees such as the following: person, or by other means), the institution interest rates and the period of time each will i. Fees for services offered to account and must provide disclosures unless the account be in effect also must be provided. When the nonaccount holders alike, such as travelers is no longer offered to the public. initial rate offered for a specified time on a checks and wire transfers (even if different 2. General requests. When responding to a variable-rate account is higher or lower than amounts are charged to account and consumer’s general request for disclosures the rate that would otherwise be paid on the nonaccount holders). about a type of account (a NOW account, for account, the calculation of the annual ii. Incidental fees, such as fees associated example), an institution that offers several percentage yield must be made as if for a with state escheat laws, garnishment or variations may provide disclosures for any stepped-rate account. (See Appendix A, Part attorneys fees, and fees for photocopying. one of them. I, Paragraph C.) 3. Amount of fees. Institutions must state 3. Timing for response. Ten business days (b)(1)(ii) Variable rates. the amount and conditions under which a fee is a reasonable time for responding to Paragraph (b)(1)(ii)(B). may be imposed. Naming and describing the requests for account information that 1. Determining interest rates. To disclose fee (such as ‘‘$4.00 monthly service fee’’) will consumers do not make in person, including how the interest rate is determined, typically satisfy these requirements. requests made by electronic means (such as institutions must: 4. Tied-accounts. Institutions must state if by electronic mail). i. Identify the index and specific margin, fees that may be assessed against an account 4. Use of electronic means. If a consumer if the interest rate is tied to an index. are tied to other accounts at the institution. who is not present at the institution makes ii. State that rate changes are within the For example, if an institution ties the fees a request for account disclosures, including institution’s discretion, if the institution does payable on a NOW account to balances held a request made by telephone, email, or via not tie changes to an index. in the NOW account and a savings account, the institution’s Web site, the institution may Paragraph (b)(1)(ii)(C). the NOW account disclosures must state that send the disclosures in paper form or, if the 1. Frequency of rate changes. An fact and explain how the fee is determined. consumer agrees, may provide the institution reserving the right to change rates 5. Fees for overdrawing an account. Under disclosures electronically, such as to an at its discretion must state the fact that rates § 1030.4(b)(4) of this part, institutions must email address that the consumer provides for may change at any time. disclose the conditions under which a fee that purpose, or on the institution’s Web site, Paragraph (b)(1)(ii)(D). may be imposed. In satisfying this without regard to the consumer consent or 1. Limitations. A floor or ceiling on rates requirement institutions must specify the other provisions of the E–Sign Act. The or on the amount the rate may decrease or categories of transactions for which an regulation does not require an institution to increase during any time period must be overdraft fee may be imposed. An exhaustive provide, nor a consumer to agree to receive, disclosed. Institutions need not disclose the list of transactions is not required. It is the disclosures required by § 1030.4(a)(2) in absence of limitations on rate changes. sufficient for an institution to state that the electronic form. (b)(2) Compounding and crediting. fee applies to overdrafts ‘‘created by check, Paragraph (a)(2)(ii)(A). (b)(2)(ii) Effect of closing an account. in-person withdrawal, ATM withdrawal, or 1. Recent rates. Institutions comply with 1. Deeming an account closed. An other electronic means,’’ as applicable. this paragraph if they disclose an interest rate institution may, subject to state or other law, Disclosing a fee ‘‘for overdraft items’’ would and annual percentage yield accurate within not be sufficient. the seven calendar days preceding the date provide in its deposit contracts the actions by they send the disclosures. consumers that will be treated as closing the (b)(5) Transaction limitations. Paragraph (a)(2)(ii)(B). account and that will result in the forfeiture 1. General rule. Examples of limitations on 1. Term. Describing the maturity of a time of accrued but uncredited interest. An the number or dollar amount of deposits or account as ‘‘1 year’’ or ‘‘6 months,’’ for example is the withdrawal of all funds from withdrawals that institutions must disclose example, illustrates a statement of the the account prior to the date that interest is are: maturity of a time account as a term rather credited. i. Limits on the number of checks that may than a date (‘‘January 10, 1995’’). (b)(3) Balance information. be written on an account within a given time (b) Content of account disclosures. (b)(3)(ii) Balance computation method. period. (b)(1) Rate information. 1. Methods and periods. Institutions may ii. Limits on withdrawals or deposits (b)(1)(i) Annual percentage yield and use different methods or periods to calculate during the term of a time account. interest rate. minimum balances for purposes of imposing iii. Limitations required by Regulation D of 1. Rate disclosures. In addition to the a fee (the daily balance for a calendar month, the Board of Governors of the Federal interest rate and annual percentage yield, for example) and accruing interest (the Reserve System (12 CFR part 204) on the institutions may disclose a periodic rate average daily balance for a statement period, number of withdrawals permitted from corresponding to the interest rate. No other for example). Each method and money market deposit accounts by check to rate or yield (such as ‘‘tax effective yield’’) is corresponding period must be disclosed. third parties each month. Institutions need permitted. If the annual percentage yield is (b)(3)(iii) When interest begins to accrue. not disclose reservations of right to require the same as the interest rate, institutions may 1. Additional information. Institutions may notices for withdrawals from accounts disclose a single figure but must use both disclose additional information such as the required by federal or state law. terms. time of day after which deposits are treated (b)(6) Features of time accounts. 2. Fixed-rate accounts. For fixed-rate time as having been received the following (b)(6)(i) Time requirements. accounts paying the opening rate until business day, and may use additional 1. ‘‘Callable’’ time accounts. In addition to maturity, institutions may disclose the period descriptive terms such as ‘‘ledger’’ or the maturity date, an institution must state of time the interest rate will be in effect by ‘‘collected’’ balances to disclose when the date or the circumstances under which it stating the maturity date. (See Appendix B, interest begins to accrue. may redeem a time account at the B–7—Sample Form.) For other fixed-rate (b)(4) Fees. institution’s option (a ‘‘callable’’ time accounts, institutions may use a date (‘‘This 1. Covered fees. The following are types of account). rate will be in effect through May 4, 1995’’) fees that must be disclosed: (b)(6)(ii) Early withdrawal penalties. or a period (‘‘This rate will be in effect for i. Maintenance fees, such as monthly 1. General. The term ‘‘penalty’’ may but at least 30 days’’). service fees. need not be used to describe the loss of 3. Tiered-rate accounts. Each interest rate, ii. Fees to open or to close an account. interest that consumers may incur for early along with the corresponding annual iii. Fees related to deposits or withdrawals, withdrawal of funds from time accounts. percentage yield for each specified balance such as fees for use of the institution’s ATMs. 2. Examples. Examples of early withdrawal level (or range of annual percentage yields, iv. Fees for special services, such as stop- penalties are: if appropriate), must be disclosed for tiered- payment fees, fees for balance inquiries or i. Monetary penalties, such as ‘‘$10.00’’ or rate accounts. (See Appendix A, Part I, verification of deposits, fees associated with ‘‘seven days’ interest plus accrued but Paragraph D.) checks returned unpaid, and fees for uncredited interest.’’

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ii. Adverse changes to terms such as a (a)(2) No notice required. 1. Subsequent account. When funds are lowering of the interest rate, annual (a)(2)(ii) Check printing fees. transferred following maturity of a percentage yield, or compounding frequency 1. Increase in fees. A notice is not required nonrollover time account, institutions need for funds remaining on deposit. for an increase in fees for printing checks (or not provide account disclosures unless a new iii. Reclamation of bonuses. deposit and withdrawal slips) even if the account is established. 3. Relation to rules for IRAs or similar institution adds some amount to the price Section 1030.6—Periodic Statement plans. Penalties imposed by the Internal charged by the vendor. Revenue Code for certain withdrawals from (b) Notice before maturity for time Disclosures IRAs or similar pension or savings plans are accounts longer than one month that renew (a) General rule. not early withdrawal penalties for purposes automatically. 1. General. Institutions are not required to of this part. 1. Maturity dates on nonbusiness days. In provide periodic statements. If they do 4. Disclosing penalties. Penalties may be determining the term of a time account, provide statements, disclosures need only be stated in months, whether institutions assess institutions may disregard the fact that the furnished to the extent applicable. For the penalty using the actual number of days term will be extended beyond the disclosed example, if no interest is earned for a during the period or using another method number of days because the disclosed statement period, institutions need not state such as a number of days that occurs in any maturity falls on a nonbusiness day. For that fact. Or, institutions may disclose ‘‘$0’’ actual sequence of the total calendar months example, a holiday or weekend may cause a interest earned and ‘‘0%’’ annual percentage involved. For example, stating ‘‘one month’s ‘‘one-year’’ time account to extend beyond yield earned. interest’’ is permissible, whether the 365 days (or 366, in a leap year) or a ‘‘one- 2. Regulation E interim statements. When institution assesses 30 days’ interest during month’’ time account to extend beyond 31 an institution provides regular quarterly the month of April, or selects a time period days. statements, and in addition provides a between 28 and 31 days for calculating the 2. Disclosing when rates will be monthly interim statement to comply with interest for all early withdrawals regardless determined. Ways to disclose when the Regulation E, the interim statement need not of when the penalty is assessed. annual percentage yield will be available comply with this section unless it states (b)(6)(iv) Renewal policies. include the use of: interest or rate information. (See 12 CFR 1. Rollover time accounts. Institutions i. A specific date, such as ‘‘October 28.’’ 1005.9(b).) offering a grace period on time accounts that ii. A date that is easily determinable, such 3. Combined statements. Institutions may automatically renew need not state whether as ‘‘the Tuesday before the maturity date provide information about an account (such interest will be paid if the funds are stated on this notice’’ or ‘‘as of the maturity as a MMDA) on the periodic statement for withdrawn during the grace period. date stated on this notice.’’ another account (such as a NOW account) 2. Nonrollover time accounts. Institutions 3. Alternative timing rule. Under the without triggering the disclosures required by paying interest on funds following the alternative timing rule, an institution offering this section, as long as: maturity of time accounts that do not renew a 10-day grace period would have to provide i. The information is limited to the account automatically need not state the rate (or the disclosures at least 10 days prior to the number, the type of account, or balance annual percentage yield) that may be paid. scheduled maturity date. information, and (See Appendix B, Model Clause B– 4. Club accounts. If consumers have agreed ii. The institution also provides a periodic 1(h)(iv)(2).) to the transfer of payments from another statement complying with this section for account to a club time account for the next each account. Section 1030.5—Subsequent Disclosures club period, the institution must comply 4. Other information. Additional (a) Change in terms. with the requirements for automatically information that may be given on or with a (a)(1) Advance notice required. renewable time accounts—even though periodic statement includes: 1. Form of notice. Institutions may provide consumers may withdraw funds from the i. Interest rates and corresponding periodic a change-in-term notice on or with a periodic club account at the end of the current club rates applied to balances during the statement or in another mailing. If an period. statement period. institution provides notice through revised 5. Renewal of a time account. In the case ii. The dollar amount of interest earned account disclosures, the changed term must of a change in terms that becomes effective year-to-date. be highlighted in some manner. For example, if a rollover time account is subsequently iii. Bonuses paid (or any de minimis institutions may note that a particular fee has renewed: consideration of $10 or less). been changed (also specifying the new i. If the change is initiated by the iv. Fees for products such as safe deposit amount) or use an accompanying letter that institution, the disclosure requirements of boxes. refers to the changed term. this paragraph apply. (Paragraph 1030.5(a) (a)(1) Annual percentage yield earned. 2. Effective date. An example of language applies if the change becomes effective prior 1. Ledger and collected balances. for disclosing the effective date of a change to the maturity of the existing time account.) Institutions that accrue interest using the is ‘‘As of November 21, 1994.’’ ii. If the change is initiated by the collected balance method may use either the 3. Terms that change upon the occurrence consumer, the account opening disclosure ledger or the collected balance in of an event. An institution offering terms that requirements of § 1030.4(b) apply. (If the determining the annual percentage yield will automatically change upon the notice required by this paragraph has been earned. occurrence of a stated event need not send provided, institutions may give new account (a)(2) Amount of interest. an advance notice of the change provided the disclosures or disclosures highlighting only 1. Accrued interest. Institutions must state institution fully describes the conditions of the new term.) the amount of interest that accrued during the change in the account opening 6. Example. If a consumer receives a the statement period, even if it was not disclosures (and sends any change-in-term prematurity notice on a one-year time credited. notices regardless of whether the changed account and requests a rollover to a six- 2. Terminology. In disclosing interest term affects that consumer’s account at that month account, the institution must provide earned for the period, institutions must use time). either account opening disclosures including the term ‘‘interest’’ or terminology such as: 4. Examples. Examples of changes not the new maturity date or, if all other terms i. ‘‘Interest paid,’’ to describe interest that requiring an advance change-in-terms notice previously disclosed in the prematurity has been credited. are: notice remain the same, only the new ii. ‘‘Interest accrued’’ or ‘‘interest earned,’’ i. The termination of employment for maturity date. to indicate that interest is not yet credited. consumers for whom account maintenance or (b)(1) Maturities of longer than one year. 3. Closed accounts. If consumers close an activity fees were waived during their 1. Highlighting changed terms. Institutions account between crediting periods and employment by the depository institution. need not highlight terms that changed since forfeits accrued interest, the institution may ii. The expiration of one year in a the last account disclosures were provided. not show any figures for interest earned or promotion described in the account opening (c) Notice before maturity for time accounts annual percentage yield earned for the period disclosures to ‘‘waive $4.00 monthly service longer than one year that do not renew (other than zero, at the institution’s option). charges for one year.’’ automatically. (a)(3) Fees imposed.

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1. General. Periodic statements must state average daily balance method to calculate 1. Daily balance accounts. Institutions that fees disclosed under § 1030.4(b) that were interest on a monthly basis and that send require a minimum balance may choose not debited to the account during the statement statements on a quarterly basis may disclose to pay interest for days when the balance period, even if assessed for an earlier period. a single interest (and annual percentage yield drops below the required minimum, if they 2. Itemizing fees by type. In itemizing fees earned) figure. Alternatively, an institution use the daily balance method to calculate imposed more than once in the period, may disclose three interest and three annual interest. institutions may group fees if they are the percentage yield earned figures, one for each 2. Average daily balance accounts. same type. (See § 1030.11(a)(1) of this part month in the quarter, as long as the Institutions that require a minimum balance regarding certain fees that are required to be institution states the number of days (or may choose not to pay interest for the period grouped.) When fees of the same type are beginning and ending dates) in the interest in which the balance drops below the grouped together, the description must make period if different from the statement period. required minimum, if they use the average clear that the dollar figure represents more daily balance method to calculate interest. than a single fee, for example, ‘‘total fees for Section 1030.7—Payment of Interest 3. Beneficial method. Institutions may not checks written this period.’’ Examples of fees (a)(1) Permissible methods. require that consumers maintain both a that may not be grouped together are— 1. Prohibited calculation methods. minimum daily balance and a minimum i. Monthly maintenance and excess-activity Calculation methods that do not comply with average daily balance to earn interest, such fees. the requirement to pay interest on the full as by requiring consumers to maintain a $500 ii. ‘‘Transfer’’ fees, if different dollar amount of principal in the account each day daily balance and a prescribed average daily amounts are imposed, such as $.50 for include: balance (whether higher or lower). But an deposits and $1.00 for withdrawals. i. Paying interest on the balance in the institution could offer a minimum balance to iii. Fees for electronic fund transfers and account at the end of the period (the ‘‘ending earn interest that includes an additional fees for other services, such as balance- balance’’ method). method that is ‘‘unequivocally beneficial’’ to inquiry or maintenance fees. ii. Paying interest for the period based on consumers such as the following: An iv. Fees for paying overdrafts and fees for the lowest balance in the account for any day institution using the daily balance method to returning checks or other items unpaid. in that period (the ‘‘low balance’’ method). calculate interest and requiring a $500 3. Identifying fees. Statement details must iii. Paying interest on a percentage of the minimum daily balance could offer to pay enable consumers to identify the specific fee. balance, excluding the amount set aside for interest on the account for those days the For example: reserve requirements (the ‘‘investable minimum balance is not met as long as i. Institutions may use a code to identify balance’’ method). consumers maintain an average daily balance a particular fee if the code is explained on 2. Use of 365-day basis. Institutions may throughout the month of $400. the periodic statement or in documents apply a daily periodic rate greater than 1/365 4. Paying on full balance. Institutions must accompanying the statement. of the interest rate—such as 1/360 of the pay interest on the full balance in the ii. Institutions using debit slips may interest rate—as long as it is applied 365 days account that meets the required minimum disclose the date the fee was debited on the a year. balance. For example, if $300 is the periodic statement and show the amount and 3. Periodic interest payments. An minimum daily balance required to earn type of fee on the dated debit slip. institution can pay interest each day on the interest, and a consumer deposits $500, the 4. Relation to Regulation E. Disclosure of account and still make uniform interest institution must pay the stated interest rate fees in compliance with Regulation E payments. For example, for a one-year on the full $500 and not just on $200. complies with this section for fees related to certificate of deposit an institution could 5. Negative balances prohibited. electronic fund transfers (for example, make monthly interest payments equal to Institutions must treat a negative account totaling all electronic funds transfer fees in 1/12 of the amount of interest that will be balance as zero to determine: a single figure). earned for a 365-day period (or 11 uniform i. The daily or average daily balance on (a)(4) Length of period. monthly payments—each equal to roughly which interest will be paid. 1. General. Institutions providing the 1/12 of the total amount of interest—and one ii. Whether any minimum balance to earn beginning and ending dates of the period payment that accounts for the remainder of interest is met. must make clear whether both dates are the total amount of interest earned for the 6. Club accounts. Institutions offering club included in the period. period). accounts (such as a ‘‘holiday’’ or ‘‘vacation’’ 2. Opening or closing an account mid- 4. Leap year. Institutions may apply a daily club) cannot impose a minimum balance cycle. If an account is opened or closed rate of 1/366 or 1/365 of the interest rate for requirement for interest based on the total during the period for which a statement is 366 days in a leap year, if the account will number or dollar amount of payments sent, institutions must calculate the annual earn interest for February 29. required under the club plan. For example, percentage yield earned based on account 5. Maturity of time accounts. Institutions if a plan calls for $10 weekly payments for balances for each day the account was open. are not required to pay interest after time 50 weeks, the institution cannot set a $500 (b) Special rule for average daily balance accounts mature. (See 12 CFR Part 217, ‘‘minimum balance’’ and then pay interest method. Regulation Q of the Board of Governors of the only if the consumer has made all 50 1. Monthly statements and quarterly Federal Reserve System, for limitations on payments. compounding. This rule applies, for example, duration of interest payments.) Examples 7. Minimum balances not affecting interest. when an institution calculates interest on a include: Institutions may use the daily balance, quarterly average daily balance and sends i. During a grace period offered for an average daily balance, or any other monthly statements. In this case, the first two automatically renewable time account, if computation method to calculate minimum monthly statements would omit annual consumers decide during that period not to balance requirements not involving the percentage yield earned and interest earned renew the account. payment of interest—such as to compute figures; the third monthly statement would ii. Following the maturity of nonrollover minimum balances for assessing fees. reflect the interest earned and the annual time accounts. (b) Compounding and crediting policies. percentage yield earned for the entire quarter. iii. When the maturity date falls on a 1. General. Institutions choosing to 2. Length of the period. Institutions must holiday, and consumers must wait until the compound interest may compound or credit disclose the length of both the interest next business day to obtain the funds. interest annually, semi-annually, quarterly, calculation period and the statement period. 6. Dormant accounts. Institutions must pay monthly, daily, continuously, or on any other For example, a statement could disclose a interest on funds in an account, even if basis. statement period of April 16 through May 15 inactivity or the infrequency of transactions 2. Withdrawals prior to crediting date. If and further state that ‘‘the interest earned and would permit the institution to consider the consumers withdraw funds (without closing the annual percentage yield earned are based account to be ‘‘inactive’’ or ‘‘dormant’’ (or the account) prior to a scheduled crediting on your average daily balance for the period similar status) as defined by state or other date, institutions may delay paying the April 1 through April 30.’’ law or the account contract. accrued interest on the withdrawn amount 3. Quarterly statements and monthly (a)(2) Determination of minimum balance until the scheduled crediting date, but may compounding. Institutions that use the to earn interest. not avoid paying interest.

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3. Closed accounts. Subject to state or other maintenance or activity fee may be imposed as ‘‘free’’ or ‘‘no cost’’ (or contain a similar law, an institution may choose not to pay because it is similar to the terms ‘‘free’’ or term) even if the fee is disclosed in the accrued interest if consumers close an ‘‘no cost.’’ advertisement. account prior to the date accrued interest is 6. Specific account services. Institutions 11. Additional disclosures in connection credited, as long as the institution has may advertise a specific account service or with the payment of overdrafts. The rule in disclosed that fact. feature as free if no fee is imposed for that § 1030.3(a), providing that disclosures (c) Date interest begins to accrue. service or feature. For example, institutions required by § 1030.8 may be provided to the 1. Relation to Regulation CC. Institutions offering an account that is free of deposit or consumer in electronic form without regard may rely on the Expedited Funds Availability withdrawal fees could advertise that fact, as to E-Sign Act requirements, applies to the Act (EFAA) and Regulation CC of the Board long as the advertisement does not mislead disclosures described in § 1030.11(b), which of Governors of the Federal Reserve System consumers by implying that the account is are incorporated by reference in § 1030.8(f). (12 CFR part 229) to determine, for example, free and that no other fee (a monthly service (b) Permissible rates. when a deposit is considered made for fee, for example) may be charged. 1. Tiered-rate accounts. An advertisement purposes of interest accrual, or when interest 7. Free for limited time. If an account (or for a tiered-rate account that states an annual need not be paid on funds because a a specific account service) is free only for a percentage yield must also state the annual deposited check is later returned unpaid. limited period of time—for example, for one percentage yield for each tier, along with 2. Ledger and collected balances. year following the account opening—the corresponding minimum balance Institutions may calculate interest by using a account (or service) may be advertised as free requirements. Any interest rates stated must ‘‘ledger’’ or ‘‘collected’’ balance method, as if the time period is also stated. appear in conjunction with the applicable long as the crediting requirements of the 8. Conditions not related to deposit annual percentage yields for each tier. EFAA are met (12 CFR 229.14). accounts. Institutions may advertise accounts 2. Stepped-rate accounts. An 3. Withdrawal of principal. Institutions as ‘‘free’’ for consumers meeting conditions advertisement that states an interest rate for must accrue interest on funds until the funds not related to deposit accounts, such as the a stepped-rate account must state all the are withdrawn from the account. For consumer’s age. For example, institutions interest rates and the time period that each example, if a check is debited to an account may advertise a NOW account as ‘‘free for rate is in effect. on a Tuesday, the institution must accrue persons over 65 years old,’’ even though a 3. Representative examples. An interest on those funds through Monday. maintenance or activity fee is assessed on advertisement that states an annual Section 1030.8—Advertising accounts held by consumers 65 or younger. percentage yield for a given type of account 9. Electronic advertising. If an electronic (such as a time account for a specified term) (a) Misleading or inaccurate advertisement (such as an advertisement need not state the annual percentage yield advertisements. appearing on an Internet Web site) displays applicable to other time accounts offered by 1. General. All advertisements are subject a triggering term (such as a bonus or annual the institution or indicate that other maturity to the rule against misleading or inaccurate percentage yield) the advertisement must terms are available. In an advertisement advertisements, even though the disclosures clearly refer the consumer to the location stating that rates for an account may vary applicable to various media differ. where the additional required information depending on the amount of the initial 2. Indoor signs. An indoor sign advertising begins. For example, an advertisement that deposit or the term of a time account, an annual percentage yield is not misleading includes a bonus or annual percentage yield institutions need not list each balance level or inaccurate when: may be accompanied by a link that directly and term offered. Instead, the advertisement i. For a tiered-rate account, it also provides may: the lower dollar amount of the tier takes the consumer to the additional corresponding to the advertised annual information. i. Provide a representative example of the percentage yield. 10. Examples. Examples of advertisements annual percentage yields offered, clearly ii. For a time account, it also provides the that would ordinarily be misleading, described as such. For example, if an term required to obtain the advertised annual inaccurate, or misrepresent the deposit institution offers a $25 bonus on all time percentage yield. contract are: accounts and the annual percentage yield 3. Fees affecting ‘‘free’’ accounts. For i. Representing an overdraft service as a will vary depending on the term selected, the purposes of determining whether an account ‘‘line of credit,’’ unless the service is subject institution may provide a disclosure of the can be advertised as ‘‘free’’ or ‘‘no cost,’’ to Regulation Z, 12 CFR part 1026. annual percentage yield as follows: ‘‘For maintenance and activity fees include: ii. Representing that the institution will example, our 6-month certificate of deposit i. Any fee imposed when a minimum honor all checks or authorize payment of all currently pays a 3.15% annual percentage balance requirement is not met, or when transactions that overdraw an account, with yield.’’ consumers exceed a specified number of or without a specified dollar limit, when the ii. Indicate that various rates are available, transactions. institution retains discretion at any time not such as by stating short-term and longer-term ii. Transaction and service fees that to honor checks or authorize transactions. maturities along with the applicable annual consumers reasonably expect to be imposed iii. Representing that consumers with an percentage yields: ‘‘We offer certificates of on a regular basis. overdrawn account are allowed to maintain deposit with annual percentage yields that iii. A flat fee, such as a monthly service fee. a negative balance when the terms of the depend on the maturity you choose. For iv. Fees imposed to deposit, withdraw, or account’s overdraft service require example, our one-month CD earns a 2.75% transfer funds, including per-check or per- consumers promptly to return the deposit APY. Or, earn a 5.25% APY for a three-year transaction charges (for example, $.25 for account to a positive balance. CD.’’ each withdrawal, whether by check or in iv. Describing an institution’s overdraft (c) When additional disclosures are person). service solely as protection against bounced required. 4. Other fees. Examples of fees that are not checks when the institution also permits 1. Trigger terms. The following are maintenance or activity fees include: overdrafts for a fee for overdrawing their examples of information stated in i. Fees not required to be disclosed under accounts by other means, such as ATM advertisements that are not ‘‘trigger’’ terms: § 1030.4(b)(4). withdrawals, debit card transactions, or other i. ‘‘One, three, and five year CDs ii. Check printing fees. electronic fund transfers. available.’’ iii. Balance inquiry fees. v. Advertising an account-related service ii. ‘‘Bonus rates available.’’ iv. Stop-payment fees and fees associated for which the institution charges a fee in an iii. ‘‘1% over our current rates,’’ so long as with checks returned unpaid. advertisement that also uses the word ‘‘free’’ the rates are not determinable from the v. Fees assessed against a dormant account. or ‘‘no cost’’ (or a similar term) to describe advertisement. vi. Fees for ATM or electronic transfer the account, unless the advertisement clearly (c)(2) Time annual percentage yield is services (such as preauthorized transfers or and conspicuously indicates that there is a offered. home banking services) not required to cost associated with the service. If the fee is 1. Specified date. If an advertisement obtain an account. a maintenance or activity fee under discloses an annual percentage yield as of a 5. Similar terms. An advertisement may § 1030.8(a)(2) of this part, however, an specified date, that date must be recent in not use the term ‘‘fees waived’’ if a advertisement may not describe the account relation to the publication or broadcast

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frequency of the media used, taking into ii. Retained sample disclosures for each 4. Waived fees. In some cases, an account the particular circumstances or type of account offered to consumers, such as institution may provide a statement for the production deadlines involved. For example, account-opening disclosures, copies of current period reflecting that fees imposed the printing date of a brochure printed once advertisements, and change-in-term notices; during a previous period were waived and for a deposit account promotion that will be and information regarding the interest rates credited to the account. Institutions may, but in effect for six months would be considered and annual percentage yields offered. are not required to, reflect the adjustment in ‘‘recent,’’ even though rates change during 2. Methods of retaining evidence. the total for the calendar year-to-date and in the six-month period. Rates published in a Institutions must be able to reconstruct the the applicable statement period. For daily newspaper or on television must reflect required disclosures or other actions. They example, if an institution assesses a fee in rates offered shortly before (or on) the date need not keep disclosures or other business January and refunds the fee in February, the the rates are published or broadcast. records in hard copy. Records evidencing institution could disclose a year-to-date total 2. Reference to date of publication. An compliance may be retained on microfilm, reflecting the amount credited, but it should advertisement may refer to the annual microfiche, or by other methods that not affect the total disclosed for the February percentage yield as being accurate as of the reproduce records accurately (including statement period, because the fee was not date of publication, if the date is on the computer files). assessed in the February statement period. If publication itself. For instance, an 3. Payment of interest. Institutions must an institution assesses and then waives and advertisement in a periodical may state that retain sufficient rate and balance information credits a fee within the same cycle, the a rate is ‘‘current through the date of this to permit the verification of interest paid on institution may, at its option, reflect the issue,’’ if the periodical shows the date. adjustment in the total disclosed for fees (c)(5) Effect of fees. an account, including the payment of interest on the full principal balance. imposed during the current statement period 1. Scope. This requirement applies only to and for the total for the calendar year-to-date. maintenance or activity fees described in Section 1030.10—[Reserved] Thus, if the institution assesses and waives comment 8(a). the fee in the February statement period, the (c)(6) Features of time accounts. Section 1030.11—Additional Disclosures February fee total could reflect a total net of (c)(6)(i) Time requirements. Regarding the Payment of Overdrafts the waived fee. 1. Club accounts. If a club account has a (a) Disclosure of total fees on periodic 5. Totals for the calendar year to date. maturity date but the term may vary statements. Some institutions’ statement periods do not depending on when the account is opened, (a)(1) General. coincide with the calendar month. In such institutions may use a phrase such as: ‘‘The 1. Transfer services. The overdraft services cases, the institution may disclose a calendar maturity date of this club account is covered by § 1030.11(a)(1) of this part do not year-to-date total by aggregating fees for 12 November 15; its term varies depending on include a service providing for the transfer of monthly cycles, starting with the period that when the account is opened.’’ funds from another deposit account of the begins during January and finishing with the (c)(6)(ii) Early withdrawal penalties. consumer to permit the payment of items period that begins during December. For 1. Discretionary penalties. Institutions without creating an overdraft, even if a fee is example, if statement periods begin on the imposing early withdrawal penalties on a charged for the transfer. 10th day of each month, the statement case-by-case basis may disclose that they 2. Fees for paying overdrafts. Institutions covering December 10, 2006 through January ‘‘may’’ (rather than ‘‘will’’) impose a penalty must disclose on periodic statements a total 9, 2007 may disclose the year-to-date total for if such a disclosure accurately describes the dollar amount for all fees or charges imposed fees imposed from January 10, 2006 through account terms. on the account for paying overdrafts. The January 9, 2007. Alternatively, the institution (d) Bonuses. institution must disclose separate totals for could provide a statement for the cycle 1. General reference to ‘‘bonus.’’ General the statement period and for the calendar ending January 9, 2007 showing the year-to- statements such as ‘‘bonus checking’’ or ‘‘get year-to-date. The total dollar amount for each date total for fees imposed January 1, 2006 a bonus when you open a checking account’’ of these periods includes per-item fees as through December 31, 2006. do not trigger the bonus disclosures. well as interest charges, daily or other 6. Itemization of fees. An institution may (e) Exemption for certain advertisements. periodic fees, or fees charged for maintaining itemize each fee in addition to providing the (e)(1) Certain media. an account in overdraft status, whether the disclosures required by § Paragraph (e)(1)(i). 1030.11(a)(1) of this 1. Internet advertisements. The exemption overdraft is by check, debit card transaction, part. for advertisements made through broadcast or by any other transaction type. It also (a)(3) Format requirements. or electronic media does not extend to includes fees charged when there are 1. Time period covered by periodic advertisements posted on the Internet or sent insufficient funds because previously statement disclosures. The disclosures under by email. deposited funds are subject to a hold or are § 1030.11(a) must be included on periodic Paragraph (e)(1)(iii). uncollected. It does not include fees for statements provided by an institution starting 1. Tiered-rate accounts. Solicitations for a transferring funds from another account of the first statement period that begins after tiered-rate account made through telephone the consumer to avoid an overdraft, or fees January 1, 2010. For example, if a consumer’s response machines must provide the annual charged under a service subject to Regulation statement period typically closes on the 15th percentage yields and the balance Z (12 CFR part 1026). See also comment of each month, an institution must provide requirements applicable to each tier. 11(c)–2. Under § 1030.11(a)(1)(i), the the disclosures required by § 1030.11(a)(1) on (e)(2) Indoor signs. disclosure must describe the total dollar subsequent periodic statements for that Paragraph (e)(2)(i). amount for all fees or charges imposed on the consumer beginning with the statement 1. General. Indoor signs include account for the statement period and reflecting the period from January 16, 2010 advertisements displayed on computer calendar year-to-date for paying overdrafts to February 15, 2010. screens, banners, preprinted posters, and using the term ‘‘Total Overdraft Fees.’’ This (b) Advertising disclosures for overdraft chalk or peg boards. Any advertisement requirement applies notwithstanding services. inside the premises that can be retained by comment 3(a)–2. 1. Examples of institutions promoting the a consumer (such as a brochure or a printout 3. Fees for returning items unpaid. The payment of overdrafts. A depository from a computer) is not an indoor sign. total dollar amount for all fees for returning institution would be required to include the items unpaid must include all fees charged advertising disclosures in § 1030.11(b)(1) of Section 1030.9—Enforcement and Record to the account for dishonoring or returning this part if the institution: Retention checks or other items drawn on the account. i. Promotes the institution’s policy or (c) Record retention. The institution must disclose separate totals practice of paying overdrafts (unless the 1. Evidence of required actions. Institutions for the statement period and for the calendar service would be subject to Regulation Z (12 comply with the regulation by demonstrating year-to-date. Fees imposed when deposited CFR part 1026)). This includes that they have done the following: items are returned are not included. advertisements using print media such as i. Established and maintained procedures Institutions may use terminology such as newspapers or brochures, telephone for paying interest and providing timely ‘‘returned item fee’’ or ‘‘NSF fee’’ to describe solicitations, electronic mail, or messages disclosures as required by the regulation, and fees for returning items unpaid. posted on an Internet site. (But see

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§ 1030.11(b)(2) of this part for 8. Advertising an account as ‘‘free.’’ If the by funds that may be provided by the communications that are not subject to the advertised account-related service is an institution to cover an overdraft, whether additional advertising disclosures.) overdraft service subject to the requirements pursuant to a discretionary overdraft service, ii. Includes a message on a periodic of § 1030.11(b)(1) of this part, institutions a service subject to Regulation Z (12 CFR Part statement informing the consumer of an must disclose the fee or fees for the payment 1026), or a service that transfers funds from overdraft limit or the amount of funds of each overdraft, not merely that a cost is another account held individually or jointly available for overdrafts. For example, an associated with the overdraft service, as well by the consumer, so long as the institution institution that includes a message on a as other required information. Compliance prominently states that any additional periodic statement informing the consumer with comment 8(a)–10.v. is not sufficient. balance includes these additional overdraft of a $500 overdraft limit or that the consumer (c) Disclosure of account balances. has $300 remaining on the overdraft limit, is 1. Balance that does not include additional amounts. The institution may not simply promoting an overdraft service. amounts. For purposes of the balance state, for instance, that the second balance is iii. Discloses an overdraft limit or includes disclosure requirement in § 1030.11(c), if an the consumer’s ‘‘available balance,’’ or the dollar amount of an overdraft limit in a institution discloses balance information to a contains ‘‘available funds.’’ Rather, the balance disclosed on an automated system, consumer through an automated system, it institution should provide enough such as a telephone response machine, ATM must disclose a balance that excludes any information to convey that the second screen or the institution’s Internet site. (See, funds that the institution may provide to balance includes these amounts. For however, § 1030.11(b)(3) of this part.) cover an overdraft pursuant to a discretionary example, the institution may state that the 2. Transfer services. The overdraft services overdraft service, that will be paid by the balance includes ‘‘overdraft funds.’’ Where a covered by § 1030.11(b)(1) of this part do not institution under a service subject to consumer has not opted into, or as include a service providing for the transfer of Regulation Z (12 CFR Part 1026), or that will applicable, has opted out of the institution’s funds from another deposit account of the be transferred from another account held discretionary overdraft service, any consumer to permit the payment of items individually or jointly by a consumer. The additional balance disclosed should not without creating an overdraft, even if a fee is balance may, but need not, include funds include funds that otherwise might be charged for the transfer. that are deposited in the consumer’s account, available under that service. Where a 3. Electronic media. The exception for such as from a check, that are not yet made consumer has not opted into, or as advertisements made through broadcast or available for withdrawal in accordance with applicable, has opted out of, the institution’s electronic media, such as television or radio, the funds availability rules under Regulation discretionary overdraft service for some, but does not apply to advertisements posted on CC of the Board of Governors of the Federal not all transactions (e.g. , the consumer has an institution’s Internet site, on an ATM Reserve System (12 CFR part 229). In not opted into overdraft services for ATM screen, provided on telephone response addition, the balance may, but need not, machines, or sent by electronic mail. include funds that are held by the institution and one-time debit card transactions), an 4. Fees. The fees that must be disclosed to satisfy a prior obligation of the consumer institution that includes these additional under § 1030.11(b)(1) of this part include per- (for example, to cover a hold for an ATM or overdraft funds in the second balance should item fees as well as interest charges, daily or debit card transaction that has been convey that the overdraft funds are not other periodic fees, and fees charged for authorized but for which the bank has not available for all transactions. For example, maintaining an account in overdraft status, settled). the institution could state that overdraft whether the overdraft is by check or by other 2. Retail sweep programs. In a retail sweep funds are not available for ATM and one-time means. The fees also include fees charged program, an institution establishes two (or everyday) debit card transactions. when there are insufficient funds because legally distinct subaccounts, a transaction Similarly, if funds are not available for all previously deposited funds are subject to a subaccount and a savings subaccount, which transactions pursuant to a service subject to hold or are uncollected. The fees do not together make up the consumer’s account. Regulation Z (12 CFR part 1026) or a service include fees for transferring funds from The institution allocates and transfers funds that transfers funds from another account, a another account to avoid an overdraft, or fees between the two subaccounts in order to second balance that includes such funds charged when the institution has previously maximize the balance in the savings account should also indicate this fact. agreed in writing to pay items that overdraw while complying with the monthly 4. Automated systems. The balance the account and the service is subject to limitations on transfers out of savings disclosure requirement in § 1030.11(c) Regulation Z, 12 CFR Part 1026. accounts under Regulation D of the Board of applies to any automated system through 5. Categories of transactions. An Governors of the Federal Reserve System (12 which the consumer requests a balance, exhaustive list of transactions is not required. CFR 204.2(d)(2)). Retail sweep programs are including, but not limited to, a telephone Disclosing that a fee may be imposed for generally not established for the purpose of response system, the institution’s Internet covering overdrafts ‘‘created by check, in- covering overdrafts. Rather, institutions site, or an ATM. The requirement applies person withdrawal, ATM withdrawal, or typically establish retail sweep programs by whether the institution discloses a balance other electronic means’’ would satisfy the agreement with the consumer, in order for requirements of § 1030.11(b)(1)(ii) of this part the institution to minimize its transaction through an ATM owned or operated by the where the fee may be imposed in these account reserve requirements and, in some institution or through an ATM not owned or circumstances. See comment 4(b)(4)–5 of this cases, to provide a higher interest rate than operated by the institution (including an part. the consumer would earn on a transaction ATM operated by a non-depository 6. Time period to repay. If a depository account alone. Section 1030.11(c) does not institution). If the balance is obtained at an institution reserves the right to require a require an institution to exclude from the ATM, the requirement also applies whether consumer to pay an overdraft immediately or consumer’s balance funds that may be the balance is disclosed on the ATM screen on demand instead of affording consumers a transferred from another account pursuant to or on a paper receipt. specific time period to establish a positive a retail sweep program that is established for balance in the account, an institution may such purposes and that has the following Appendix A to Part 1030—Annual comply with § 1030.11(b)(1)(iii) of this part characteristics: Percentage Yield Calculation by disclosing this fact. i. The account involved complies with Part I. Annual Percentage Yield for Account 7. Circumstances for nonpayment. An Regulation D of the Board of Governors of the Disclosures and Advertising Purposes institution must describe the circumstances Federal Reserve System (12 CFR 204.2(d)(2)); under which it will not pay an overdraft. It ii. The consumer does not have direct 1. Rounding for calculations. The is sufficient to state, as applicable: ‘‘Whether access to the non-transaction subaccount that following are examples of permissible your overdrafts will be paid is discretionary is part of the retail sweep program; and rounding for calculating interest and the and we reserve the right not to pay. For iii. The consumer’s periodic statements annual percentage yield: example, we typically do not pay overdrafts show the account balance as the combined i. The daily rate applied to a balance if your account is not in good standing, or balance in the subaccounts. carried to five or more decimal places you are not making regular deposits, or you 3. Additional balance. The institution may ii. The daily interest earned carried to five have too many overdrafts.’’ disclose additional balances supplemented or more decimal places

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Part II. Annual Percentage Yield Earned for B. Special Formula for Use Where Periodic than one account term (to obtain a bonus and Periodic Statements Statement Is Sent More Often Than the determine the annual percentage yield, for 1. Balance method. The interest figure used Period for Which Interest Is Compounded example), institutions need not repeat the in the calculation of the annual percentage 1. Statements triggered by Regulation E. requirement for each term, as long as it is yield earned may be derived from the daily Institutions may, but need not, use this clear which terms the requirement applies to. balance method or the average daily balance formula to calculate the annual percentage 6. Sample forms. The sample forms (B–4 method. The balance used in the formula for yield earned for accounts that receive through B–8) serve a purpose different from the annual percentage yield earned is the quarterly statements and are subject to the model clauses. They illustrate ways of sum of the balances for each day in the Regulation E’s rule calling for monthly adapting the model clauses to specific period divided by the number of days in the statements when an electronic fund transfer accounts. The clauses shown relate only to period. has occurred. They may do so even though the specific transactions described. 2. Negative balances prohibited. no monthly statement was issued during a Institutions must treat a negative account specific quarter. But institutions must use B–1 Model Clauses for Account Disclosures balance as zero to determine the balance on this formula for accounts that compound and B–1(h) Disclosures Relating to Time Accounts which the annual percentage yield earned is credit interest quarterly and receive monthly calculated. (See commentary to statements that, while triggered by 1. Maturity. The disclosure in Clause (h)(i) § 1030.7(a)(2).) Regulation E, comply with the provisions of stating a specific date may be used in all cases. The statement describing a time period A. General Formula § 1030.6. 2. Days in compounding period. is appropriate only when providing 1. Accrued but uncredited interest. To Institutions using the special annual disclosures in response to a consumer’s calculate the annual percentage yield earned, percentage yield earned formula must use the request. accrued but uncredited interest: actual number of days in the compounding B–2 Model Clauses for Change in Terms i. May not be included in the balance for period. statements issued at the same time or less 1. General. The second clause, describing frequently than the account’s compounding Appendix B to Part 1030—Model a future decrease in the interest rate and and crediting frequency. For example, if Clauses and Sample Forms annual percentage yield, applies to fixed-rate monthly statements are sent for an account accounts only. that compounds interest daily and credits 1. Modifications. Institutions that modify interest monthly, the balance may not be the model clauses will be deemed in B–4 Sample Form (Multiple Accounts) increased each day to reflect the effect of compliance as long as they do not delete 1. Rate sheet insert. In the rate sheet insert, daily compounding. required information or rearrange the format the calculations of the annual percentage ii. Must be included in the balance for in a way that affects the substance or clarity yield for the three-month and six-month succeeding statements if a statement is issued of the disclosures. certificates are based on 92 days and 181 more frequently than compounded interest is 2. Format. Institutions may use inserts to days respectively. All calculations in the credited on an account. For example, if a document (see Sample Form B–4) or fill-in insert assume daily compounding. monthly statements are sent for an account blanks (see Sample Forms B–5, B–6 and B– that compounds interest daily and credits 7, which use underlining to indicate terms B–6 Sample Form (Tiered-Rate Money interest quarterly, the balance for the second that have been filled in) to show current Market Account) monthly statement would include interest rates, fees, or other terms. 1. General. Sample Form B–6 uses Tiering that had accrued for the prior month. 3. Disclosures for opening accounts. The Method A (discussed in Appendix A and 2. Rounding. The interest earned figure sample forms illustrate the information that Clause (a)(iv)) to calculate interest. It gives a used to calculate the annual percentage yield must be provided to consumers when an narrative description of a tiered-rate account; account is opened, as required by earned must be rounded to two decimals and institutions may use different formats (for § 1030.4(a)(1). (See § 1030.4(a)(2), which reflect the amount actually paid. For example, a chart similar to the one in Sample states the requirements for disclosing the example, if the interest earned for a statement Form B–4), as long as all required annual percentage yield, the interest rate, and period is $20.074 and the institution pays the information for each tier is clearly presented. the maturity of a time account in responding consumer $20.07, the institution must use The form does not contain a separate $20.07 (not $20.074) to calculate the annual to a consumer’s request.) disclosure of the minimum balance required percentage yield earned. For accounts paying 4. Compliance with Regulation E. to obtain the annual percentage yield; the interest based on the daily balance method Institutions may satisfy certain requirements tiered-rate disclosure provides that that compound and credit interest quarterly, under Regulation DD with disclosures that and send monthly statements, the institution meet the requirements of Regulation E. (See information. may, but need not, round accrued interest to § 1030.3(c).) For disclosures covered by both Dated: October 24, 2011. two decimals for calculating the annual this part and Regulation E (such as the Alastair M. Fitzpayne, percentage yield earned on the first two amount of fees for ATM usage, institutions Deputy Chief of Staff and Executive Secretary, monthly statements issued during the should consult Appendix A to Regulation E Department of the Treasury. quarter. However, on the quarterly statement for appropriate model clauses. the interest earned figure must reflect the 5. Duplicate disclosures. If a requirement [FR Doc. 2011–31727 Filed 12–20–11; 8:45 am] amount actually paid. such as a minimum balance applies to more BILLING CODE 4810–AM–P

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