Effective Date Note: At 61 FR 69025, Dec. 31, 1996, Sec. 204.2 was amended
as follows, effective Apr. 1, 1997: Footnote 1 introductory text was amended
by removing ``before maturity'' and adding in its place ``during the period
when an early withdrawal penalty would otherwise be required under this
part'', removing ``the'' after ``imposing'' and adding in its place ``an'',
and removing ``penalties'' and adding in its place ``penalty''; footnotes
2, 6, and 9 were removed and footnotes 3 through 5, 7, 8, and 10 through
12 were redesignated as footnotes 2 through 9, respectively; newly redesignated
footnote 7 was amended by removing ``(1) that were acquired before October
7, 1979, or (2)'' and newly redesignated footnote 8 was amended by revising
``Footnote 10'' to read ``footnote 7''; paragraph (f)(1)(iii) was revised;
paragraph (f)(1)(iv) was removed and paragraph (f)(1)(v) was redesignated
as paragraph (f)(1)(iv); paragraph (f)(3) was removed; and in paragraph
(t), footnote reference 2 was redesignated as footnote reference 9.
For the convenience of the user, the superseded text is set forth here.
We've reproduced it below:
SUPERSEDED Sec. 204.2 Definitions
(f)(1) * * *
(iii) A time deposit
that is transferable, except a time deposit originally issued before October
1, 1980, to and held by one or more natural persons, including a deposit
to the credit of a trustee or other fiduciary if the entire beneficial
interest in the deposit is held by one or more natural persons;
(iv) A time deposit
that is transferable, issued on or after October 1, 1980, to and held by
one or more natural persons, including a deposit to the credit of a trustee
or other fiduciary if the entire beneficial interest is held by one or
more natural persons. A time deposit is transferable unless it contains
a specific statement on the certificate, instrument, passbook, statement
or other form representing the account that it is not transferable. A time
deposit that contains a specific statement that it is not transferable
is not regarded as transferable even if the following transactions can
be effected: a pledge as collateral for a loan; a transaction that occurs
due to circumstances arising from death, incompetency, marriage, divorce,
attachment or otherwise by operation of law or a transfer on the books
or records of the institution; and
(3) Any nonpersonal
time deposit with a stated maturity or notice period of one and one-half
years or more that permits any early withdrawal must be subject to a minimum
early withdrawal penalty equal to at least thirty days' simple interest
on the amount withdrawn for any withdrawal that occurs more than six days
but within one and one-half years after the date of deposit. Any such account
not subject to this minimum early withdrawal penalty will be regarded as
a nonpersonal time deposit with an original maturity or notice period of
from seven days to less than one and one-half years from the date of the
deposit.9
------------------------
2 A nonpersonal time deposit with a stated maturity of one and
one-half years or more may be treated as having an original maturity of
one and one-half years or more only if it is subject to the minimum penalty
described in paragraph (f)(3) of this section.
6 [Reserved]
9 See Footnote 1 for treatment of accounts existing
on March 31, 1986 and for exceptions to the imposition of the early withdrawal
penalties imposed by this part. The penalty required by this paragraph
(f)(3) of this section and that required by paragraph (c)(1) of this section
need not be aggregated.
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