§ 4302. — Disclosure of interest rates and terms of accounts.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4302]
TITLE 12--BANKS AND BANKING
CHAPTER 44--TRUTH IN SAVINGS
Sec. 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.
(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.)
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.
