[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR707.3]



[Page 436]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 707_TRUTH IN SAVINGS--Table of Contents

 

Sec. 707.3  General disclosure requirements.



    (a) Form. Credit unions must make the disclosures required by 

Sec. Sec. 707.4 through 707.6 and Sec. 707.10 of this part, as 

applicable, clearly and conspicuously, in writing, and in a form the 

member or potential member may keep. Disclosures for each account 

offered by a credit union may be presented separately or combined with 

disclosures for the credit union's other accounts, as long as it is 

clear which disclosures are applicable to the member's account.

    (b) General. The disclosures shall reflect the terms of the legal 

obligation between the member and the credit union. Disclosures may be 

made in languages other than English, provided the disclosures are 

available in English upon request.

    (c) Relation to Regulation E (12 CFR part 205). Disclosures required 

by and provided in accordance with the Electronic Fund Transfer Act (15 

U.S.C. 1601) and its implementing Regulation E (12 CFR part 205) that 

are also required by this part may be substituted for the disclosures 

required by this part.

    (d) Multiple members. If an account is held by more than one member, 

disclosures may be made to any one of the members.

    (e) Oral responses to inquiries. In an oral response to a member or 

potential member's inquiry about dividend rates payable on its accounts, 

the credit union shall state the annual percentage yield. The dividend 

rate may be stated in addition to the annual percentage yield. No other 

rate may be stated. In stating a dividend rate and annual percentage 

yield, a credit union shall:

    (1) For dividend-bearing accounts other than term share accounts, 

specify a dividend rate and annual percentage yield as of the last 

dividend declaration date. In the event that disclosures of a dividend 

rate and annual percentage yield as of the last dividend declaration 

date might be inaccurate because of known or contemplated dividend rate 

changes, the credit union may disclose the prospective dividend rate and 

prospective annual percentage yield. Such prospective dividend rate and 

prospective annual percentage yield may be disclosed either in lieu of, 

or in addition to, the dividend rate and annual percentage yield as of 

the last dividend declaration date.

    (2) For interest-bearing accounts and for dividend-bearing term 

share accounts, specify an interest (dividend) rate and annual 

percentage yield that were offered within the most recent seven calendar 

days; state that the rate and yield are accurate as of an identified 

date; and provide a telephone number members may call to obtain current 

rate information.

    (f) Rounding and accuracy rules for rates and yields--(1) Rounding. 

The annual percentage yield, the annual percentage yield earned, and the 

dividend rate shall be rounded to the nearest one-hundredth of one 

percentage point (.01%) and expressed to two decimal places. For account 

disclosures, the dividend rate may be expressed to more than two decimal 

places.

    (2) Accuracy. The annual percentage yield (and the annual percentage 

yield earned) will be considered accurate if not more than one-twentieth 

of one percentage point (.05%) above or below the annual percentage 

yield (and the annual percentage yield earned) determined in accordance 

with the rules in appendix A of this part.

    (g) Electronic communication. For rules governing the electronic 

delivery of disclosures, including the definition of electronic 

communication, see Sec. 707.10.



(Approved by the Office of Management and Budget under control number 

3133-0134)



[58 FR 50445, Sept. 27, 1993, as amended at 61 FR 114, Jan. 3, 1996; 66 

FR 33162, June 21, 2001]