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#1528332 - 03/29/11 06:06 PM CD Disclosures
dickr Offline
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dickr
Joined: Feb 2010
Posts: 356
Middlesex Cty NJ
We've never offered a CD for longer than one year, but will soon start. I know the disclosure requirements are different when the term is more than a year - Is the pre-maturity notice also different, or is it just the renewal notice? If I remember correctly, maturities over one year need to be re-disclosed as though it was a new CD. I can't find a reference in the Reg. Thanks.
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Operations Compliance
#1528722 - 03/30/11 01:57 PM Re: CD Disclosures dickr
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
Yes, a full disclosure is required at maturity. We were able to automate our disclosure using the notices in our system (JHA Silverlake). For other banks, were matched a generic disclosure with the maturity notice.

You're looking for Reg DD 230.5
(1) Maturities of longer than one year. If the maturity is longer than one year, the institution shall provide account disclosures set forth in Sec. 230.4(b) of this part for the new account, along with the date the existing account matures. If the interest rate and annual percentage yield that will be paid for the new account are unknown when disclosures are provided, the institution shall state that those rates have not yet been determined, the date when they will be determined, and a telephone number consumers may call to obtain the interest rate and the annual percentage yield that will be paid for the new account.
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#1528768 - 03/30/11 02:29 PM Re: CD Disclosures BrendaC
dickr Offline
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dickr
Joined: Feb 2010
Posts: 356
Middlesex Cty NJ
So the 'pre-maturity' notice is the same, yes?
Our renewal notice currently has Rate, APY, Renewal balance, New Maturity Date, and Term - anything additional needed for terms of more than a year?
_________________________
Lord,give me patience - and I want it NOW!!!

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