[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR716.5]

[Page 572-573]
 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION
 
PART 716_PRIVACY OF CONSUMER FINANCIAL INFORMATION--Table of Contents
 
                  Subpart A_Privacy and Opt Out Notices
 
Sec. 716.5  Annual privacy notice to members required.

    (a)(1) General rule. You must provide a clear and conspicuous notice 
to members that accurately reflects your privacy policies and practices 
not less than annually during the continuation of the member 
relationship. Annually means at least once in any period of 12 
consecutive months during which that relationship exists. You may define 
the 12-consecutive-month period, but you must apply it to the member on 
a consistent basis.
    (2) Example. You provide a notice annually if you define the 12-
consecutive-month period as a calendar year and provide the annual 
notice to the member once in each calendar year following the calendar 
year in which you provide the initial notice. For example, if a member 
opens an account on any day of year one, you must provide an annual 
notice to that member by December 31 of year two.
    (b) (1) Termination of member relationship. You are not required to 
provide an annual notice to a former member.
    (2) Examples. Your member becomes your former member when:
    (i) An individual is no longer your member as defined in your 
bylaws;
    (ii) In the case of a nonmember's share or share draft account, the 
account is inactive under the credit union's policies;
    (iii) In the case of a nonmember's closed-end loan, the loan is paid 
in full, you charge off the loan, or you sell the loan without retaining 
servicing rights;
    (iv) In the case of a credit card relationship or other open-end 
credit relationship with a nonmember, you no longer provide any 
statements or notices to the nonmember concerning that relationship or 
you sell the credit

[[Page 573]]

card receivables without retaining servicing rights; or
    (v) You have not communicated with the nonmember about the 
relationship for a period of twelve consecutive months, other than to 
provide annual privacy notices or promotional material.
    (c) Delivery. When you are required to deliver an annual privacy 
notice by this section, you must deliver it according to the methods in 
Sec. 716.9.