Change of Terms Notice When Customer Requests

If the account rolls over with a customer-initiated change, the subsequent disclosure rules of Section 230.5 apply. If the customer requests a change in term, the renewed CD is treated as a new account, and disclosures must be made under Section 230.4. If the disclosures under Section 230.4 have already been given, a change in terms disclosure including only the changed information (in this case, the term) should be delivered. [Reference to Commentary, Section 230.5].

First published on BankersOnline.com 8/16/04