12 C.F.R. 12 CFR--PART 205
Title 12 - Banks and Banking
Effective Date(s): July 1, 2007 5. In Supplement I to Part 205, the following amendments are made: a. Under Section 205.2—Definitions, under 2(b) Account, paragraph 2 is redesignated as paragraph 3 and a new paragraph 2 is added; b. A new Section 205.18 Requirements for Financial Institutions Offering Payroll Card Accounts is added; c. Under Appendix A—Model Disclosure Clauses and Forms, paragraph 2 is revised. * * * * * Supplement I to Part 205—Official Staff Interpretations 2(a) * * * 2(b) Account. 1. * * * 2. One-time EFT of salary-related payments. The term “payroll card account” does not include a card used for a one-time EFT of a salary-related payment, such as a bonus, or a card used solely to disburse non-salary-related payments, such as a petty cash or a travel per diem card. To the extent that one-time EFTs of salary-related payments and any other EFTs are transferred to or from a payroll card account, these transfers are EFTs covered by the act and regulation, even if the particular transfer itself does not represent wages, salary, or other employee compensation. * * * * * 18(a) Coverage. 1. Issuance of access device. Consistent with section 205.5(a), a financial institution may issue an access device only in response to an oral or written request for the device, or as a renewal or substitute for an accepted access device. A consumer is deemed to request an access device for a payroll card account when the consumer chooses to receive his or her salary through a payroll card account.
Amendment from January 10, 2006
12 CFR--PART 205
Amendment(s) published January 10, 2006, in 71 FR 1482
Section 205.2 Definitions
Section 205.18 Requirements for Institutions Offering Payroll Card Accounts
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2. Use of forms. The appendix contains model disclosure clauses for optional use by financial institutions to facilitate compliance with the disclosure requirements of sections 205.5(b)(2) and (b)(3), 205.6(a), 205.7, 205.8(b), 205.14(b)(1)(ii), 205.15(d)(1) and (d)(2), and 205.18(c)(1) and (c)(2). The use of appropriate clauses in making disclosures will protect a financial institution from liability under sections 915 and 916 of the act provided the clauses accurately reflect the institution's EFT services.
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