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U.S. Code as of:
01/19/04
Section 4302. Disclosure of interest rates and terms of accounts
(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.
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