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#45162 - 11/22/02 05:54 PM AL- Early Withdrawal Penalities
Anonymous
Unregistered

Based on state law is there a minimum and max that can be charged for a early withdrawal penalty on CDs? Do we have to charge a early withdrawal penalty or is it optional?

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#45163 - 11/22/02 11:42 PM Re: AL- Early Withdrawal Penalties
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I don't know about AL state law, but Federal law - Reg D - requires you to charge a 7 day early withdrawal penalty during the first 6 days, or else it is not a time account. I don't think AL state law can change this.
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David Dickinson
http://www.bankerscompliance.com

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#45164 - 12/06/02 10:51 PM Re: AL- Early Withdrawal Penalties
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
I never heard of a state law dealing with early withdrawal penalties.
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#45165 - 12/09/02 04:03 PM Re: AL- Early Withdrawal Penalities
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
As to Reg. D, look at 204.2(C)(1) and footnote 1. Imposing a penalty in the first 6 days has only a few exceptions. After that you may opt to waive it for many reasons.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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