[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: 12CFR707.5]



[Page 439]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 707_TRUTH IN SAVINGS--Table of Contents

 

Sec. 707.5  Subsequent disclosures.



    (a) Change in terms--(1) Advance notice required. A credit union 

shall give advance notice to affected members of any change in a term 

required to be disclosed under Sec. 707.4(b), if the change may reduce 

the annual percentage yield or adversely affect the member. The notice 

shall include the effective date of the change. The notice shall be 

mailed or delivered at least 30 calendar days before the effective date 

of the change.

    (2) No notice required. No notice under this section is required 

for:

    (i) Variable-rate changes. Changes in the dividend rate and 

corresponding changes in the annual percentage yield in variable-rate 

accounts.

    (ii) Share draft and check printing fees. Changes in fees for check 

printing.

    (iii) Short-term term share accounts. Changes in any term for term 

share accounts with maturities of one month or less.

    (b) Notice before maturity for term share accounts longer than one 

month that renew automatically. For term share accounts with a maturity 

longer than one month that renew automatically at maturity, credit 

unions shall provide the disclosures described below before maturity. 

The disclosures shall be mailed or delivered at least 30 calendar days 

before maturity of the existing account. Alternatively, the disclosures 

may be mailed or delivered at least 20 calendar days before the end of 

the grace period on the existing account, provided a grace period of at 

least five calendar days is allowed.

    (1) Maturities of longer than one year. If the maturity is longer 

than one year, the credit union shall provide account disclosures set 

forth in Sec. 707.4(b) for the new account, along with the date the 

existing account matures. If the dividend rate and annual percentage 

yield that will be paid for the new account are unknown when disclosures 

are provided, the credit union shall state that those rates have not yet 

been determined, the date when they will be determined, and a telephone 

number members may call to obtain the dividend rate and the annual 

percentage yield that will be paid for the new account.

    (2) Maturities of one year or less but longer than one month. If the 

maturity is one year or less but longer than one month, the credit union 

shall either:

    (i) Provide disclosures as set forth in paragraph (b)(1) of this 

section; or

    (ii) Disclose to the member:

    (A) The date the existing account matures and the new maturity date 

if the account is renewed;

    (B) The dividend rate and the annual percentage yield for the new 

account if they are known (or that those rates have not yet been 

determined, the date when they will be determined, and a telephone 

number the member may call to obtain the dividend rate and the annual 

percentage yield that will be paid for the new account); and

    (C) Any difference in the terms of the new account as compared to 

the terms required to be disclosed under Sec. 707.4(b) for the existing 

account.

    (c) Notice before maturity for term share accounts longer than one 

year that do not renew automatically. For term share accounts with a 

maturity longer than one year that do not renew automatically at 

maturity, credit unions shall disclose to members the maturity date and 

whether dividends will be paid after maturity. The disclosures shall be 

mailed or delivered at least 10 calendar days before maturity of the 

existing account.



(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; 63 

FR 71574, Dec. 29, 1998]