12 U.S.C. § 4303 — Account schedule

submitted 35 years ago by Pub. L. 102-242 to r/title-12-BANKS-AND-BANKING · 557 words · no verdicts yet

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This section requires depository institutions to keep schedules describing account fees, charges, interest rates, terms, and conditions. It requires clear information so consumers can understand and compare accounts.

(a) In general. Each depository institution must keep a schedule for each class of account it offers. The schedule must list fees, charges, interest rates, terms, and conditions as required by this section and Bureau regulations. The Bureau’s regulations specify which fees, penalties, terms, conditions, and restrictions must be included; an institution need not include information the regulations do not require. (b) Fees and charges. For each account, the schedule must state all fees, periodic service charges, and penalties that may be charged; their amounts or calculation methods; when they apply; all minimum balances affecting them and how each balance is calculated; and any minimum opening deposit. (c) Interest rates. The schedule must state any annual percentage yield, how long it applies, any simple annual interest rate, how often interest compounds and is credited, how the interest-bearing balance is calculated, and applicable information after the stated yield period. It must state minimum balances needed for the disclosed rates or yields and how they are calculated; minimum time requirements and what applies if they are not met; whether accrued but uncredited interest is lost when money is withdrawn; and provisions about nonpayment of interest, including early-withdrawal charges or penalties and when they apply. (d) Other information. The schedule must contain other disclosures the Bureau finds necessary for consumers to understand and compare accounts, including interest-rate adjustment frequency, account restrictions, and renewal policies for time accounts. (e) Style and format. Schedules must use clear, plain language and a format that lets consumers readily understand the account terms.

the actual law source: uscode.house.gov ↗public domain

(a) In general

Each depository institution shall maintain a schedule of fees, charges, interest rates, and terms and conditions applicable to each class of accounts offered by the depository institution, in accordance with the requirements of this section and regulations which the Bureau shall prescribe. The Bureau shall specify, in regulations, which fees, charges, penalties, terms, conditions, and account restrictions must be included in a schedule required under this subsection. A depository institution need not include in such schedule any information not specified in such regulation.

(b) Information on fees and charges

The schedule required under subsection (a) with respect to any account shall contain the following information:

(1)

A description of all fees, periodic service charges, and penalties which may be charged or assessed against the account (or against the account holder in connection with such account), the amount of any such fees, charge, or penalty (or the method by which such amount will be calculated), and the conditions under which any such amount will be assessed.

(2)

All minimum balance requirements that affect fees, charges, and penalties, including a clear description of how each such minimum balance is calculated.

(3)

Any minimum amount required with respect to the initial deposit in order to open the account.

The schedule required under subsection (a) with respect to any account shall include the following information:

(1)

Any annual percentage yield.

(2)

The period during which any such annual percentage yield will be in effect.

(3)

Any annual rate of simple interest.

(4)

The frequency with which interest will be compounded and credited.

(5)

A clear description of the method used to determine the balance on which interest is paid.

(6)

The information described in paragraphs (1) through (4) with respect to any period after the end of the period referred to in paragraph (2) (or the method for computing any information described in any such paragraph), if applicable.

(7)

Any minimum balance which must be maintained to earn the rates and obtain the yields disclosed pursuant to this subsection and a clear description of how any such minimum balance is calculated.

(8)

A clear description of any minimum time requirement which must be met in order to obtain the yields disclosed pursuant to this subsection and any information described in paragraph (1), (2), (3), or (4) that will apply if any time requirement is not met.

(9)

A statement, if applicable, that any interest which has accrued but has not been credited to an account at the time of a withdrawal from the account will not be paid by the depository institution or credited to the account by reason of such withdrawal.

(10)

Any provision or requirement relating to nonpayment of interest, including any charge or penalty for early withdrawal, and the conditions under which any such charge or penalty may be assessed.

(d) Other information

The schedule required under subsection (a) shall include such other disclosures as the Bureau may determine to be necessary to allow consumers to understand and compare accounts, including frequency of interest rate adjustments, account restrictions, and renewal policies for time accounts.

(e) Style and format

Schedules required under subsection (a) shall be written in clear and plain language and be presented in a format designed to allow consumers to readily understand the terms of the accounts offered.

Source credit: (Pub. L. 102–242, title II, § 264, Dec. 19, 1991, 105 Stat. 2335; Pub. L. 111–203, title X, § 1100B(1), July 21, 2010, 124 Stat. 2109.)

history & why it existsrecord from the source credit

1991Enacted · Pub. L. 102-242 · 105 Stat. 2335
2010Amended · Pub. L. 111-203 · 124 Stat. 2109

A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-242 on 1991-12-19.

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