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6000 - Consumer Protection



FDIC IMPROVEMENT ACT OF 1991

Subtitle F—Truth in Savings

SEC. 261. SHORT TITLE.

This subtitle may be cited as the "Truth in Savings Act".

[Codified to 12 U.S.C. 4301 note]

[Source:  Section 261 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2334), effective December 19, 1991]

SEC. 262. FINDINGS AND PURPOSE.

(a)  FINDINGS.--The Congress hereby finds that economic stability would be enhanced, competition between depository institutions would be improved, and the ability of the consumer to make informed decisions regarding deposit accounts, and to verify accounts, would be strengthened if there was uniformity in the disclosure of terms and conditions on which interest is paid and fees are assessed in connection with such accounts.

[Codified to 12 U.S.C. 4301(a)]

[Source:  Section 262(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2334), effective December 19, 1991]

(b)  PURPOSE.--It is the purpose of this subtitle to require the clear and uniform disclosure of--

(1)  the rates of interest which are payable on deposit accounts by depository institutions; and

(2)  the fees that are assessable against deposit accounts, so that consumers can make a meaningful comparison between the competing claims of depository institutions with regard to deposit accounts.

[Codified to 12 U.S.C. 4301(b)]

[Source:  Section 262(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2334), effective December 19, 1991]

SEC. 263. DISCLOSURE OF INTEREST RATES AND TERMS OF ACCOUNTS.

(a)  IN GENERAL.--Except as provided in subsection (b) and (c), each advertisement, announcement, or solicitation initiated by any depository institution or deposit broker relating to any demand or interest-bearing account offered by an insured depository institution which includes any reference to a specific rate of interest payable on amounts deposited in such account, or to a specific yield or rate of earnings on amounts so deposited, shall state the following information, to the extent applicable, in a clear and conspicuous manner:

(1)  The annual percentage yield.

(2)  The period during which such annual percentage yield is in effect.

(3)  All minimum account balance and time requirements which must be met in order to earn the advertised yield (and, in the case of accounts for which more than 1 yield is stated, each annual percentage yield and the account minimum balance requirement associated with each such yield shall be in close proximity and have equal prominence).

(4)  The minimum amount of the initial deposit which is required to open the account in order to obtain the yield advertised, if such minimum amount is greater than the minimum balance necessary to earn the advertised yield.

(5)  A statement that regular fees or other conditions could reduce the yield.

(6)  A statement that an interest penalty is required for early withdrawal.

[Codified to 12 U.S.C. 4302(a)]

[Source:  Section 263(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2334), effective December 19, 1991; as amended by section 957(a)(1) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3896), effective October 28, 1992]

(b)  BROADCAST AND ELECTRONIC MEDIA AND OUTDOOR ADVERTISING EXCEPTION.--The Bureau may, by regulation, exempt advertisements, announcements, or solicitations made by any broadcast or electronic medium or outdoor advertising display not on the premises of the depository institution from any disclosure requirements described in paragraph (4) or (5) of subsection (a) if the Board finds that any such disclosure would be unnecessarily burdensome.

[Codified to 12 U.S.C. 4302(b)]

[Source:  Section 263(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

(c)  DISCLOSURE REQUIRED FOR ON-PREMISES DISPLAYS.--

The disclosure requirements contained in this section shall not apply to any sign (including a rate board) disclosing a rate or rates of interest which is displayed on the premises of the depository institution if such sign contains--

(1)  the accompanying annual percentage yield; and

(2)  a statement that the consumer should request further information from an employee of the depository institution concerning the fees and terms applicable to the advertised account.

[Codified to 12 U.S.C. 4302(c)]

[Source:  Section 263(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991; as added by section 957(a)(3) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3896), effective October 28, 1992; section 2604(b) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--471), effective September 30, 1996]

(d)  MISLEADING DESCRIPTIONS OF FREE OR NO-COST ACCOUNTS PROHIBITED.--No advertisement, announcement, or solicitation made by any depository institution or deposit broker may refer to or describe an account as a free or no-cost account (or words of similar meaning) if--

(1)  in order to avoid fees or service charges for any period--

(A)  a minimum balance must be maintained in the account during such period; or

(B)  the number of transactions during such period may not exceed a maximum number; or

(2)  any regular service or transaction fee is imposed.

[Codified to 12 U.S.C. 4302(d)]

[Source:  Section 263(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991; redesignated as section 263(d) by section 957(a)(2) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3896), effective October 28, 1992]

(e)  MISLEADING OR INACCURATE ADVERTISEMENTS, ETC., PROHIBITED.--No depository institution or deposit broker shall make any advertisement, announcement, or solicitation relating to a deposit account that is inaccurate or misleading or that misrepresents its deposit contracts.

[Codified to 12 U.S.C. 4302(e)]

[Source:  Section 263(d) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991; redesignated as section 263(e) by section 957(a)(2) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3896), effective October 28, 1992]

SEC. 264. ACCOUNT SCHEDULE.

(a)  IN GENERAL.--Each depository institution shall maintain a schedule of fees, charges, interest rates, and terms and conditions applicable to each class of accounts offered by the depository institution, in accordance with the requirements of this section and regulations which the Bureau shall prescribe. The Bureau shall specify, in regulations, which fees, charges, penalties, terms, conditions, and account restrictions must be included in a schedule required under this subsection. A depository institution need not include in such schedule any information not specified in such regulation.

[Codified to 12 U.S.C. 4303(a)]

[Source:  Section 264(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

(b)  INFORMATION ON FEES AND CHARGES.--The schedule required under subsection (a) with respect to any account shall contain the following information:

(1)  A description of all fees, periodic service charges, and penalties which may be charged or assessed against the account (or against the account holder in connection with such account), the amount of any such fees, charge, or penalty (or the method by which such amount will be calculated), and the conditions under which any such amount will be assessed.

(2)  All minimum balance requirements that affect fees, charges, and penalties, including a clear description of how each such minimum balance is calculated.

(3)  Any minimum amount required with respect to the initial deposit in order to open the account.

[Codified to 12 U.S.C. 4303(b)]

[Source:  Section 264(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2335), effective December 19, 1991]

(c)  INFORMATION ON INTEREST RATES.--The schedule required under subsection (a) with respect to any account shall include the following information:

(1)  Any annual percentage yield.

(2)  The period during which any such annual percentage yield will be in effect.

(3)  Any annual rate of simple interest.

(4)  The frequency with which interest will be compounded and credited.

(5)  A clear description of the method used to determine the balance on which interest is paid.

(6)  The information described in paragraphs (1) through (4) with respect to any period after the end of the period referred to in paragraph (2) (or the method for computing any information described in any such paragraph), if applicable.

(7)  Any minimum balance which must be maintained to earn the rates and obtain the yields disclosed pursuant to this subsection and a clear description of how any such minimum balance is calculated.

(8)  A clear description of any minimum time requirement which must be met in order to obtain the yields disclosed pursuant to this subsection and any information described in paragraph (1), (2), (3), or (4) that will apply if any time requirement is not met.

(9)  A statement, if applicable, that any interest which has accrued but has not been credited to an account at the time of a withdrawal from the account will not be paid by the depository institution or credited to the account by reason of such withdrawal.

(10)  Any provision or requirement relating to nonpayment of interest, including any charge or penalty for early withdrawal, and the conditions under which any such charge or penalty may be assessed.

[Codified to 12 U.S.C. 4303(c)]

[Source:  Section 264(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2336), effective December 19, 1991]


(d)  OTHER INFORMATION.--The schedule required under subsection (a) shall include such other disclosures as the Bureau may determine to be necessary to allow consumers to understand and compare accounts, including frequency of interest rate adjustments, account restrictions, and renewal policies for time accounts.

[Codified to 12 U.S.C. 4303(d)]

[Source:  Section 264(d) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2336), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2010]

(e)  STYLE AND FORMAT.--Schedules required under subsection (a) shall be written in clear and plain language and be presented in a format designed to allow consumers to readily understand the terms of the accounts offered.

[Codified to 12 U.S.C. 4303(e)]

[Source:  Section 264(e) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2336), effective December 19, 1991]

SEC. 265. DISCLOSURE REQUIREMENTS FOR CERTAIN ACCOUNTS.

The Bureau shall require, in regulations which the Bureau shall prescribe, such modification in the disclosure requirements under this subtitle relating to annual percentage yield as may be necessary to carry out the purposes of this subtitle in the case of--

(1)  accounts with respect to which determination of annual percentage yield is based on an annual rate of interest that is guaranteed for a period of less than 1 year;

(2)  variable rate accounts;

(3)  accounts which, pursuant to law, do not guarantee payment of a stated rate;

(4)  multiple rate accounts; and

(5)  accounts with respect to which determination of annual percentage yield is based on an annual rate of interest that is guaranteed for a stated term.

[Codified to 12 U.S.C. 4304]

[Source:  Section 265 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2336), effective December 19, 1991; as amended by section 1604(e)(2)(A) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

SEC. 266. DISTRIBUTION OF SCHEDULES.

(a)  IN GENERAL.--A schedule required under section 264 for an appropriate account shall be--

(1)  made available to any person upon request;

(2)  provided to any potential customer before an account is opened or a service is rendered; and

(3)  provided to the depositor, in the case of any time deposit which has a maturity of more than 30 days is renewable at maturity without notice from the depositor, at least 30 days before the date of maturity.

[Codified to 12 U.S.C. 4305(a)]

[Source:  Section 266(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2337), effective December 19, 1991; section 2604(d) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--471), effective September 30, 1996]

(b)  DISTRIBUTION IN CASE OF CERTAIN INITIAL DEPOSITS.--If--

(1)  a depositor is not physically present at an office of a depository institution at the time an initial deposit is accepted with respect to an account established by or for such person; and

(2)  the schedule required under section 264(a) has not been furnished previously to such depositor, the depository institution shall mail the schedule to the depositor at the address shown on the records of the depository institution for such account no later than 10 days after the date of the initial deposit.

[Codified to 12 U.S.C. 4305(b)]

[Source:  Section 266(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2337), effective December 19, 1991]

(c)  DISTRIBUTION OF NOTICE OF CERTAIN CHANGES.--If--

(1)  any change is made in any term or condition which is required to be disclosed in the schedule required under section 264(a) with respect to any account; and

(2)  the change may reduce the yield or adversely affect any holder of the account,

all account holders who may be affected by such change shall be notified and provided with a description of the change by mail at least 30 days before the change takes effect.

[Codified to 12 U.S.C. 4305(c)]

[Source:  Section 266(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2337), effective December 19, 1991]

(d)  DISTRIBUTION IN CASE OF ACCOUNTS ESTABLISHED BY MORE THAN 1 INDIVIDUAL OR BY A GROUP.--If an account is established by more than 1 individual or for a person other than an individual, any distribution described in this section with respect to such account meets the requirements of this section if the distribution is made to 1 of the individuals who established the account or 1 individual representative of the person on whose behalf such account was established.

[Codified to 12 U.S.C. 4305(d)]

[Source:  Section 266(d) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2337), effective December 19, 1991]

(e)  NOTICE TO ACCOUNT HOLDERS AS OF THE EFFECTIVE DATE OF REGULATIONS.--For any account for which the depository institution delivers an account statement on a quarterly or more frequent basis, the depository institution shall include on or with any regularly scheduled mailing posted or delivered within 180 days after publication of regulations issued by the Bureau in final form, a statement that the account holder has the right to request an account schedule containing the terms, charges, and interest rates of the account, and that the account holder may wish to request such an account schedule.

[Codified to 12 U.S.C. 4305(e)]

[Source:  Section 266(e) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2337), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

SEC. 267. PAYMENT OF INTEREST.

(a)  CALCULATED ON FULL AMOUNT OF PRINCIPAL.--Interest on an interest-bearing account at any depository institution shall be calculated by such institution on the full amount of principal in the account for each day of the stated calculation period at the rate or rates of interest disclosed pursuant to this subtitle.

[Codified to 12 U.S.C. 4306(a)]

[Source:  Section 267(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991; as amended by section 1604(e)(2)(B) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991]


(b)  NO PARTICULAR METHOD OF COMPOUNDING INTEREST REQUIRED.--Subsection (a) shall not be construed as prohibiting or requiring the use of any particular method of compounding or crediting of interest.

[Codified to 12 U.S.C. 4306(b)]

[Source:  Section 267(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991]

(c)  DATE BY WHICH INTEREST MUST ACCRUE.--Interest on accounts that are subject to this subtitle shall begin to accrue not later than the business day specified for interest-bearing accounts in section 606 of the Expedited funds Availability Act, subject to subsections (b) and (c) of such section.

[Codified to 12 U.S.C. 4306(c)]

[Source:  Section 267(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991; as amended by section 1604(e)(2)(C) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991]

SEC. 268. PERIODIC STATEMENTS.

Each depository institution shall include on or with each periodic statement provided to each account holder at such institution a clear and conspicuous disclosure of the following information with respect to such account:

(1)  The annual percentage yield earned.

(2)  The amount of interest earned.

(3)  The amount of any fees or charges imposed.

(4)  The number of days in the reporting period.

[Codified to 12 U.S.C. 4307]

[Source:  Section 268 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991]

SEC. 269. REGULATIONS.

(a)  IN GENERAL.--

(1)  REGULATIONS REQUIRED.--Before the end of the 9-month period beginning on the date of the enactment of this subtitle, the Bureau, after consultation with each agency referred to in section 270(a) and public notice and opportunity for comment, shall prescribe regulations to carry out the purpose and provisions of this subtitle.

(2)  EFFECTIVE DATE OF REGULATIONS.--The regulations prescribed under paragraph (1) shall take effect not later than 9 months after publication in final form.

(3)  CONTENTS OF REGULATIONS.--The regulations prescribed under paragraph (1) may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for any class of accounts as, in the judgment of the Bureau, are necessary or proper to carry out the purposes of this subtitle, to prevent circumvention or evasion of the requirements of this subtitle, or to facilitate compliance with the requirements of this subtitle.

(4)  DATE OF APPLICABILITY.--The provisions of this subtitle shall not apply with respect to any depository institution before the effective date of regulations prescribed by the Bureau under this subsection (or by the National Credit Union Administration Bureau under section 12(b), in the case of any depository institution described in clause (iv) of section 19(b)(1)(A) of the Federal Reserve Act).

[Codified to 12 U.S.C. 4308(a)]

[Source:  Section 269(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991; as amended by sections 957(b) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3897), effective October 28, 1992 and 1604(e)(2)(D) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

(b)  MODEL FORMS AND CLAUSES.--

(1)  IN GENERAL.--The Bureau shall publish model forms and clauses for common disclosures to facilitate compliance with this subtitle. In devising such forms, the Bureau shall consider the use by depository institutions of data processing or similar automated machines.

(2)  USE OF FORMS AND CLAUSES DEEMED IN COMPLIANCE.--Nothing in this subtitle may be construed to require a depository institution to use any such model form or clause prescribed by the Bureau under this subsection. A depository institution shall be deemed to be in compliance with the disclosure provisions of this subtitle if the depository institution--

(A)  uses any appropriate model form or clause as published by the Bureau; or

(B)  uses any such model form or clause and changes it by--

(i)  deleting any information which is not required by this subtitle; or

(ii)  rearranging the format,

if in making such deletion or rearranging the format, the depository institution does not affect the substance, clarity, or meaningful sequence of the disclosure.

(3)  PUBLIC NOTICE AND OPPORTUNITY FOR COMMENT.--Model disclosure forms and clauses shall be adopted by the Bureau after duly given notice in the Federal Register and an opportunity for public comment in accordance with section 553 of title 5, United States Code.

[Codified to 12 U.S.C. 4308(b)]

[Source:  Section 269(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2338), effective December 19, 1991; as amended by section 1604(e)(2)(G) and (H) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2010), effective July 21, 2011]

SEC. 270. ADMINISTRATIVE ENFORCEMENT.

(a)  IN GENERAL.--Subject to subtitle B of the Consumer Financial Protection Act of 2010, compliance with the requirements imposed under this subtitle shall be enforced under--

(1)  section 8 of the Federal Deposit Insurance Act by the appropriate Federal banking agency (as defined in section 3(q) of that Act), with respect to--

(A)  insured depository institutions (as defined in section 3(c)(2) of that Act);

(B)  depository institutions described in clause (i), (ii), or (iii) of section 19(b)(1)(A) of the Federal Reserve Act which are not insured depository institutions (as defined in section 3(c)(2) of the Federal Deposit Insurance Act); and

(C)  depository institutions described in clause (v) or (vi) of section 19(b)(1)(A) of the Federal Reserve Act which are not insured depository institutions (as defined in section 3(c)(2) of the Federal Deposit Insurance Act);

(A)  by the appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act) in the case of insured depository institutions (as defined in section 3(c)(2) of such Act);

(B)  by the Federal Deposit Insurance Corporation in the case of depository institutions described in clause (i), (ii), or (iii) of section 19(b)(1)(A) of the Federal Reserve Act which are not insured depository institutions (as defined in section 3(c)(2) of the Federal Deposit Insurance Act); and

(C)  by the Director of the Office of Thrift Supervision in the case of depository institutions described in clause (v) and or (vi) of section 19(b)(1)(A) of the Federal Reserve Act which are not insured depository institutions (as defined in section 3(c)(2) of the Federal Deposit Insurance Act); and

(2)  the Federal Credit Union Act, by the National Credit Union Administration Board in the case of depository institutions described in clause (iv) of section 19(b)(1)(A) of the Federal Reserve Act; and

(3)  subtitle E of the Consumer Financial Protection Act of 2010, by the Bureau, with respect to any person subject to this subtitle.

[Codified to 12 U.S.C. 4309(a)]

[Source:  Section 270(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2339), effective December 19, 1991; as amended by section 1604(e)(2)(I) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) and (B)(2) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

(b)  ADDITIONAL ENFORCEMENT POWERS.--

(1)  VIOLATION OF THIS SUBTITLE TREATED AS VIOLATION OF OTHER ACTS.--For purposes of the exercise by any agency referred to in subsection (a) of such agency's powers under any Act referred to in such subsection, a violation of a requirement imposed under this subtitle shall be deemed to be a violation of a requirement imposed under that Act.

(2)  ENFORCEMENT AUTHORITY UNDER OTHER ACTS.--In addition to the powers of any agency referred to in subsection (a) under any provision of law specifically referred to in such subsection, each such agency may exercise, for purposes of enforcing compliance with any requirement imposed under this subtitle, any other authority conferred on such agency by law.

[Codified to 12 U.S.C. 4309(b)]

[Source:  Section 270(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2339), effective December 19, 1991; as amended by sections 1604(e)(2)(J), 1604(e)(3) and 1604(e)(4) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991]

(c)  REGULATIONS BY AGENCIES OTHER THAN THE BUREAU.--The authority of the Board to issue regulations under this subtitle does not impair the authority of any other agency referred to in subsection (a) to make rules regarding its own procedures in enforcing compliance with the requirements imposed under this subtitle.

[Codified to 12 U.S.C. 4309(c)]

[Source:  Section 270(c) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2340), effective December 19, 1991; as amended by section 1604(e)(2)(K) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991]

SEC. 271. [Repealed]

SEC. 272. CREDIT UNIONS.

(a)  IN GENERAL.--No regulation prescribed by the Bureau under this subtitle shall apply directly with respect to any depository institution described in clause (iv) of section 19(b)(1)(A) of the Federal Reserve Act.

[Codified to 12 U.S.C. 4311(a)]

[Source:  Section 272(a) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2342), effective December 19, 1991; as amended by section 1604(e)(2)(P) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

(b)  REGULATIONS PRESCRIBED BY THE NCUA.--Within 90 days of the effective date of any regulation prescribed by the Bureau under this subtitle, the National Credit Union Administration Board shall prescribe a regulation substantially similar to the regulation prescribed by the Bureau taking into account the unique nature of credit unions and the limitations under which they may pay dividends on member accounts.

[Codified to 12 U.S.C. 4311(b)]

[Source:  Section 272(b) of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2342), effective December 19, 1991; as amended by section 1604(e)(2)(Q) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) and (B)(3) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

SEC. 273. EFFECT ON STATE LAW.

The provisions of this subtitle do not supersede any provisions of the law of any State relating to the disclosure of yields payable or terms for accounts to the extent such State law requires the disclosure of such yields or terms for accounts, except to the extent that those laws are inconsistent with the provisions of this subtitle, and then only to the extent of the inconsistency. The Bureau may determine whether such inconsistencies exist.

[Codified to 12 U.S.C. 4312]

[Source:  Section 273 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2342), effective December 19, 1991; as amended by section 1604(e)(2)(R) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 1100(B)(1) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]

SEC. 274. DEFINITIONS.

For the purposes of this subtitle--

(1)  ACCOUNT.--The term "account" means any account intended for use by and generally used by consumers primarily for personal, family, or household purposes that is offered by a depository institution into which a customer deposits funds, including demand accounts, time accounts, negotiable order of withdrawal accounts, and share draft accounts.

(2)  ANNUAL PERCENTAGE YIELD.--The term "annual percentage yield" means the total amount of interest that would be received on a $100 deposit, based on the annual rate of simple interest and the frequency of compounding for a 365-day period, expressed as a percentage calculated by a method which shall be prescribed by the Bureau in regulations.

(3)  ANNUAL RATE OF SIMPLE INTEREST.--The term "annual rate of simple interest"--

(A)  means the annualized rate of interest paid with respect to each compounding period, expressed as a percentage; and

(B)  may be referred to as the "annual percentage rate".

(4)  BUREAU.--The term "Bureau" means the Bureau of Consumer Financial Protection.

(5)  DEPOSIT BROKER.--The term "deposit broker"--

(A)  has the meaning given to such term in section 29(f)(1) of the Federal Deposit Insurance Act; and

(B)  includes any person who solicits any amount from any other person for deposit in an insured depository institution.

(6)  DEPOSITORY INSTITUTION.--The term "depository institution" has the meaning given such term in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act, but does not include any nonautomated credit union that was not required to comply with the requirements of this title as of the date of enactment of the Economic Growth and Regulatory Paperwork Reduction Act of 1996, pursuant to the determination of the National Credit Union Administration Board.

(7)  INTEREST.--The term "interest" includes dividends paid with respect to share draft accounts which are accounts within the meaning of paragraph (3).

(8)  MULTIPLE RATE ACCOUNT.--The term "multiple rate account" means any account that has 2 or more annual rates of simple interest which take effect at the same time or in succeeding periods and which are known at the time of disclosure.

[Codified to 12 U.S.C. 4313]

[Source:  Section 274 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2342), effective December 19, 1991; as amended by section 1604(e)(2)(S) of title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4084), effective December 19, 1991; section 332 of title III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2232), effective September 23, 1994; Section 2604(c) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--471), effective September 30, 1996; section 1100(B)(1) and (B)(4) of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2110), effective July 21, 2011]


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