-CITE-

12 USC CHAPTER 44 - TRUTH IN SAVINGS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

.

-HEAD-

CHAPTER 44 - TRUTH IN SAVINGS

-MISC1-

Sec.

4301. Findings and purpose.

(a) Findings.

(b) Purpose.

4302. Disclosure of interest rates and terms of accounts.

(a) In general.

(b) Broadcast and electronic media and outdoor

advertising exception.

(c) Disclosure required for on-premises displays.

(d) Misleading descriptions of free or no-cost

accounts prohibited.

(e) Misleading or inaccurate advertisements, etc.,

prohibited.

4303. Account schedule.

(a) In general.

(b) Information on fees and charges.

(c) Information on interest rates.

(d) Other information.

(e) Style and format.

4304. Disclosure requirements for certain accounts.

4305. Distribution of schedules.

(a) In general.

(b) Distribution in case of certain initial deposits.

(c) Distribution of notice of certain changes.

(d) Distribution in case of accounts established by

more than 1 individual or by a group.

(e) Notice to account holders as of effective date of

regulations.

4306. Payment of interest.

(a) Calculated on full amount of principal.

(b) No particular method of compounding interest

required.

(c) Date by which interest must accrue.

4307. Periodic statements.

4308. Regulations.

(a) In general.

(b) Model forms and clauses.

4309. Administrative enforcement.

(a) In general.

(b) Additional enforcement powers.

(c) Regulations by agencies other than the Board.

4310. Repealed.

4311. Credit unions.

(a) In general.

(b) Regulations prescribed by NCUA.

4312. Effect on State law.

4313. Definitions.

-CITE-

12 USC Sec. 4301 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4301. Findings and purpose

-STATUTE-

(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.

(b) Purpose

It is the purpose of this chapter 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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 262, Dec. 19, 1991, 105 Stat.

2334.)

-MISC1-

SHORT TITLE

Section 261 of Pub. L. 102-242 provided that: ''This subtitle

(subtitle F (Sec. 261-274) of title II of Pub. L. 102-242, enacting

this chapter) may be cited as the 'Truth in Savings Act'.''

SEPARABILITY

If any provision of Pub. L. 102-242 or any application of any

provision thereof to any person or circumstance is held invalid,

the remainder of Pub. L. 102-242 and the application of any

remaining provision of such Act to any other person or circumstance

not to be affected by such holding, see section 481 of Pub. L.

102-242, set out as a note under section 1811 of this title.

-CITE-

12 USC Sec. 4302 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4302. Disclosure of interest rates and terms of accounts

-STATUTE-

(a) In general

Except as provided in subsections (b) and (c) of this section,

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.

(b) Broadcast and electronic media and outdoor advertising

exception

The Board 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) of this section if the

Board finds that any such disclosure would be unnecessarily

burdensome.

(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.

(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.

(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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 263, Dec. 19, 1991, 105 Stat.

2334; Pub. L. 102-550, title IX, Sec. 957(a), Oct. 28, 1992, 106

Stat. 3896; Pub. L. 104-208, div. A, title II, Sec. 2604(b), Sept.

30, 1996, 110 Stat. 3009-471.)

-MISC1-

AMENDMENTS

1996 - Subsec. (c). Pub. L. 104-208 redesignated par. (1) as

entire subsec. (c) and subpars. (A) and (B) of former par. (1) as

pars. (1) and (2), respectively, and struck out former par. (1)

heading and heading and text of former par. (2). Text of former

par. (2) read as follows: ''For purposes of paragraph (1), a sign

shall only be considered to be displayed on the premises of a

depository institution if the sign is designed to be viewed only

from the interior of the premises of the depository institution.''

1992 - Subsec. (a). Pub. L. 102-550, Sec. 957(a)(1), substituted

''subsections (b) and (c)'' for ''subsection (b)''.

Subsecs. (c) to (e). Pub. L. 102-550, Sec. 957(a)(2), (3), added

subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and

(e), respectively.

-CITE-

12 USC Sec. 4303 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4303. Account schedule

-STATUTE-

(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 Board shall prescribe. The Board 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.

(b) Information on fees and charges

The schedule required under subsection (a) of this section 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.

(c) Information on interest rates

The schedule required under subsection (a) of this section 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.

(d) Other information

The schedule required under subsection (a) of this section shall

include such other disclosures as the Board 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.

(e) Style and format

Schedules required under subsection (a) of this section 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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 264, Dec. 19, 1991, 105 Stat.

2335.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4305 of this title.

-CITE-

12 USC Sec. 4304 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4304. Disclosure requirements for certain accounts

-STATUTE-

The Board shall require, in regulations which the Board shall

prescribe, such modification in the disclosure requirements under

this chapter relating to annual percentage yield as may be

necessary to carry out the purposes of this chapter 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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 265, Dec. 19, 1991, 105 Stat.

2336; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(A), Oct. 28,

1992, 106 Stat. 4084.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 made technical amendment to references to

''this chapter'' wherever appearing to reflect correction of

corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-CITE-

12 USC Sec. 4305 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4305. Distribution of schedules

-STATUTE-

(a) In general

A schedule required under section 4303 of this title 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 (FOOTNOTE 1) is

renewable at maturity without notice from the depositor, at least

30 days before the date of maturity.

(FOOTNOTE 1) So in original. Probably should be followed by

''and''.

(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 4303(a) of this title

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.

(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

4303(a) of this title 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.

(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.

(e) Notice to account holders as of 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 the first regularly

scheduled mailing sent after the end of the 6-month period

beginning on the date of publication of regulations issued by the

Board 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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 266, Dec. 19, 1991, 105 Stat.

2337; Pub. L. 102-550, title XVI, Sec. 1604(e)(1), Oct. 28, 1992,

106 Stat. 4084; Pub. L. 104-208, div. A, title II, Sec. 2604(d),

Sept. 30, 1996, 110 Stat. 3009-471.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a)(3). Pub. L. 104-208 inserted ''has a maturity

of more than 30 days'' after ''deposit which''.

1992 - Subsec. (e). Pub. L. 102-550 substituted ''on or with the

first regularly scheduled mailing sent after the end of the 6-month

period beginning on the date of publication'' for ''on or with any

regularly scheduled mailing posted or delivered within 180 days

after publication''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-CITE-

12 USC Sec. 4306 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4306. Payment of interest

-STATUTE-

(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 chapter.

(b) No particular method of compounding interest required

Subsection (a) of this section shall not be construed as

prohibiting or requiring the use of any particular method of

compounding or crediting of interest.

(c) Date by which interest must accrue

Interest on accounts that are subject to this chapter shall begin

to accrue not later than the business day specified for

interest-bearing accounts in section 4005 of this title, subject to

subsections (b) and (c) of such section.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 267, Dec. 19, 1991, 105 Stat.

2338; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(B), (C), Oct. 28,

1992, 106 Stat. 4084.)

-MISC1-

AMENDMENTS

1992 - Subsecs. (a), (c). Pub. L. 102-550 made technical

amendment to references to ''this chapter'' to reflect correction

of corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-CITE-

12 USC Sec. 4307 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4307. Periodic statements

-STATUTE-

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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 268, Dec. 19, 1991, 105 Stat.

2338.)

-CITE-

12 USC Sec. 4308 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4308. Regulations

-STATUTE-

(a) In general

(1) Regulations required

Before the end of the 9-month period beginning on December 19,

1991, the Board, after consultation with each agency referred to

in section 4309(a) of this title and public notice and

opportunity for comment, shall prescribe regulations to carry out

the purpose and provisions of this chapter.

(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 Board, are necessary or

proper to carry out the purposes of this chapter, to prevent

circumvention or evasion of the requirements of this chapter, or

to facilitate compliance with the requirements of this chapter.

(4) Date of applicability

The provisions of this chapter shall not apply with respect to

any depository institution before the effective date of

regulations prescribed by the Board under this subsection (or by

the National Credit Union Administration Board under section

4311(b) (FOOTNOTE 1) of this title, in the case of any depository

institution described in clause (iv) of section 461(b)(1)(A) of

this title).

(FOOTNOTE 1) See References in Text note below.

(b) Model forms and clauses

(1) In general

The Board shall publish model forms and clauses for common

disclosures to facilitate compliance with this chapter. In

devising such forms, the Board 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 chapter may be construed to require a

depository institution to use any such model form or clause

prescribed by the Board under this subsection. A depository

institution shall be deemed to be in compliance with the

disclosure provisions of this chapter if the depository

institution -

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

the Board; or

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

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

chapter; 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

Board after duly given notice in the Federal Register and an

opportunity for public comment in accordance with section 553 of

title 5.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 269, Dec. 19, 1991, 105 Stat.

2338; Pub. L. 102-550, title IX, Sec. 957(b), title XVI, Sec.

1604(e)(2)(D)-(H), Oct. 28, 1992, 106 Stat. 3897, 4084.)

-REFTEXT-

REFERENCES IN TEXT

Section 4311(b) of this title, referred to in subsec. (a)(4), was

in the original ''section 12(b)'', probably meaning section 12(b)

of Pub. L. 102-242, and was translated as meaning section 272(b) of

Pub. L. 102-242, to reflect the probable intent of Congress.

-MISC2-

AMENDMENTS

1992 - Pub. L. 102-550, Sec. 1604(e)(2)(D)-(H), made technical

amendment to references to ''this chapter'' wherever appearing to

reflect correction of corresponding provision of original act.

Subsec. (a)(2). Pub. L. 102-550, Sec. 957(b), substituted ''9

months'' for ''6 months''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 1604 of Pub. L. 102-550 effective as if

included in the Federal Deposit Insurance Corporation Improvement

Act of 1991, Pub. L. 102-242, as of Dec. 19, 1991, see section

1609(a) of Pub. L. 102-550, set out as a note under section 191 of

this title.

-CITE-

12 USC Sec. 4309 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4309. Administrative enforcement

-STATUTE-

(a) In general

Compliance with the requirements imposed under this chapter shall

be enforced under -

(1) section 8 of the Federal Deposit Insurance Act (12 U.S.C.

1818) -

(A) by the appropriate Federal banking agency (as defined in

section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.

1813(q))) in the case of insured depository institutions (as

defined in section 3(c)(2) of such Act (12 U.S.C. 1813(c)(2)));

(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 (12

U.S.C. 461(b)(1)(A)) which are not insured depository

institutions (as defined in section 3(c)(2) of the Federal

Deposit Insurance Act (12 U.S.C. 1813(c)(2))); 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 (12

U.S.C. 461(b)(1)(A)) which are not insured depository

institutions (as defined in section 3(c)(2) of the Federal

Deposit Insurance Act (12 U.S.C. 1813(c)(2))); and

(2) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), 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 (12 U.S.C. 461(b)(1)(A)).

(b) Additional enforcement powers

(1) Violation of this chapter treated as violation of other Acts

For purposes of the exercise by any agency referred to in

subsection (a) of this section of such agency's powers under any

Act referred to in such subsection, a violation of a requirement

imposed under this chapter 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) of this section 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 chapter, any other authority

conferred on such agency by law.

(c) Regulations by agencies other than the Board

The authority of the Board to issue regulations under this

chapter does not impair the authority of any other agency referred

to in subsection (a) of this section to make rules regarding its

own procedures in enforcing compliance with the requirements

imposed under this chapter.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 270, Dec. 19, 1991, 105 Stat.

2339; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(I)-(K), (3), (4),

Oct. 28, 1992, 106 Stat. 4084.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Credit Union Act, referred to in subsec. (a)(2), is

act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is

classified generally to chapter 14 (Sec. 1751 et seq.) of this

title. For complete classification of this Act to the Code, see

section 1751 of this title and Tables.

-MISC2-

AMENDMENTS

1992 - Pub. L. 102-550 made technical amendment to references to

''this chapter'' wherever appearing to reflect correction of

corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4308 of this title.

-CITE-

12 USC Sec. 4310 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4310. Repealed. Pub. L. 104-208, div. A, title II, Sec.

2604(a), Sept. 30, 1996, 110 Stat. 3009-470

-MISC1-

Section, Pub. L. 102-242, title II, Sec. 271, Dec. 19, 1991, 105

Stat. 2340; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(L)-(O),

Oct. 28, 1992, 106 Stat. 4084, related to civil liability for

depository institutions which failed to comply with any

requirements of chapter or regulations with respect to account

holders.

EFFECTIVE DATE OF REPEAL

Pub. L. 104-208, div. A, title II, Sec. 2604(a), Sept. 30, 1996,

110 Stat. 3009-470, provided that: ''Effective as of the end of the

5-year period beginning on the date of the enactment of this Act

(Sept. 30, 1996), section 271 of the Truth in Savings Act (12

U.S.C. 4310) is repealed.''

-CITE-

12 USC Sec. 4311 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4311. Credit unions

-STATUTE-

(a) In general

No regulation prescribed by the Board under this chapter shall

apply directly with respect to any depository institution described

in clause (iv) of section 461(b)(1)(A) of this title.

(b) Regulations prescribed by NCUA

Within 90 days of the effective date of any regulation prescribed

by the Board under this chapter, the National Credit Union

Administration Board shall prescribe a regulation substantially

similar to the regulation prescribed by the Board taking into

account the unique nature of credit unions and the limitations

under which they may pay dividends on member accounts.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 272, Dec. 19, 1991, 105 Stat.

2342; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(P), (Q), Oct. 28,

1992, 106 Stat. 4084.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 made technical amendment to references to

''this chapter'' wherever appearing to reflect correction of

corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4308 of this title.

-CITE-

12 USC Sec. 4312 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4312. Effect on State law

-STATUTE-

The provisions of this chapter 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

chapter, and then only to the extent of the inconsistency. The

Board may determine whether such inconsistencies exist.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 273, Dec. 19, 1991, 105 Stat.

2342; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(R), Oct. 28,

1992, 106 Stat. 4084.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 made technical amendment to references to

''this chapter'' wherever appearing to reflect correction of

corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-CITE-

12 USC Sec. 4313 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 44 - TRUTH IN SAVINGS

-HEAD-

Sec. 4313. Definitions

-STATUTE-

For the purposes of this chapter -

(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 consumer 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 Board 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) Board

The term ''Board'' means the Board of Governors of the Federal

Reserve System.

(5) Deposit broker

The term ''deposit broker'' -

(A) has the meaning given to such term in section 1831f(f)(1)

(FOOTNOTE 1) of this title; and

(FOOTNOTE 1) See References in Text note below.

(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 461(b)(1)(A) of this

title, but does not include any nonautomated credit union that

was not required to comply with the requirements of this chapter

(FOOTNOTE 1) as of September 30, 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.

-SOURCE-

(Pub. L. 102-242, title II, Sec. 274, Dec. 19, 1991, 105 Stat.

2342; Pub. L. 102-550, title XVI, Sec. 1604(e)(2)(S), Oct. 28,

1992, 106 Stat. 4084; Pub. L. 103-325, title III, Sec. 332, Sept.

23, 1994, 108 Stat. 2232; Pub. L. 104-208, div. A, title II, Sec.

2604(c), Sept. 30, 1996, 110 Stat. 3009-471.)

-REFTEXT-

REFERENCES IN TEXT

Section 1831f(f)(1) of this title, referred to in par. (5)(A),

was redesignated section 1831f(g)(1) of this title by Pub. L.

102-242, title III, Sec. 301(a)(4), Dec. 19, 1991, 105 Stat. 2344.

This chapter, referred to in par. (6), was in the original ''this

title'', and was translated as meaning ''this subtitle'', which is

subtitle F of title II of Pub. L. 102-242, Dec. 19, 1991, 105 Stat.

2334, which enacted this chapter, to reflect the probable intent of

Congress.

-MISC2-

AMENDMENTS

1996 - Par. (6). Pub. L. 104-208 inserted before period at end

'', but does not include any nonautomated credit union that was not

required to comply with the requirements of this chapter as of

September 30, 1996, pursuant to the determination of the National

Credit Union Administration Board''.

1994 - Par. (1). Pub. L. 103-325 amended par. (1) generally.

Prior to amendment, par. (1) read as follows: ''The term 'account'

means any account offered to 1 or more individuals or an

unincorporated nonbusiness association of individuals by a

depository institution into which a customer deposits funds,

including demand accounts, time accounts, negotiable order of

withdrawal accounts, and share draft accounts.''

1992 - Pub. L. 102-550 made technical amendment to reference to

''this chapter'' in introductory provisions to reflect correction

of corresponding provision of original act.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 effective as if included in the

Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.

L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.

102-550, set out as a note under section 191 of this title.

-CITE-