Do we have to pay accrued interest when someone closes a CD or do we have the option to choose to pay or not?

From the commentary:

3. Closed accounts. Subject to state or other law, an institution may choose not to pay accrued interest if consumers close an account prior to the date accrued interest is credited, as long as the institution has disclosed that fact.

If your disclosure says you will not pay accrued interest in the event of account closure, you do not have to. If your disclosure is silent on the issue, you must.

Thanks.