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(a) Form. Depository institutions shall make the disclosures required by §§1030.4 through 1030.6 of this part, as applicable, clearly and conspicuously, in writing, and in a form the consumer may keep. The disclosures required by this part may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.). The disclosures required by §§1030.4(a)(2) and 1030.8 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections. Disclosures for each account offered by an institution may be presented separately or combined with disclosures for the institution's other accounts, as long as it is clear which disclosures are applicable to the consumer's account.
1. Design requirements. Disclosures must be presented in a format that allows consumers to readily understand the terms of their account. Institutions are not required to use a particular type size or typeface, nor are institutions required to state any term more conspicuously than any other term. Disclosures may be made:
i. In any order.
ii. In combination with other disclosures or account terms.
iii. In combination with disclosures for other types of accounts, as long as it is clear to consumers which disclosures apply to their account.
iv. On more than one page and on the front and reverse sides.
v. By using inserts to a document or filling in blanks.
vi. On more than one document, as long as the documents are provided at the same time.
2. Consistent terminology. Institutions must use consistent terminology to describe terms or features required to be disclosed. For example, if an institution describes a monthly fee (regardless of account activity) as a “monthly service fee” in account-opening disclosures, the periodic statement and change-in-term notices must use the same terminology so that consumers can readily identify the fee.
See interpretation of 3(a) Form. in Supplement I
(b) General. The disclosures shall reflect the terms of the legal obligation of the account agreement between the consumer and the depository institution. Disclosures may be made in languages other than English, provided the disclosures are available in English upon request.
1. Specificity of legal obligation. Institutions may refer to the calendar month or to roughly equivalent intervals during a calendar year as a “month.”
See interpretation of 3(b) General. in Supplement I
(c) Relation to Regulation E (12 CFR Part 1005). Disclosures required by and provided in accordance with the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) and its implementing Regulation E (12 CFR Part 1005) that are also required by this part may be substituted for the disclosures required by this part.
1. General rule. Compliance with Regulation E (12 CFR Part 1005) is deemed to satisfy the disclosure requirements of this part, such as when:
i. An institution changes a term that triggers a notice under Regulation E, and uses the timing and disclosure rules of Regulation E for sending change-in-term notices.
ii. Consumers add an ATM access feature to an account, and the institution provides disclosures pursuant to Regulation E, including disclosure of fees (see 12 CFR 1005.7.)
iii. An institution complying with the timing rules of Regulation E discloses at the same time fees for electronic services (such as for balance inquiry fees at ATMs) required to be disclosed by this part but not by Regulation E.
iv. An institution relies on Regulation E's rules regarding disclosure of limitations on the frequency and amount of electronic fund transfers, including security-related exceptions. But any limitations on “intra-institutional transfers” to or from the consumer's other accounts during a given time period must be disclosed, even though intra-institutional transfers are exempt from Regulation E.
See interpretation of 3(c) Relation to Regulation E. in Supplement I
(d) Multiple consumers. If an account is held by more than one consumer, disclosures may be made to any one of the consumers.
(e) Oral response to inquiries. In an oral response to a consumer's inquiry about interest rates payable on its accounts, the depository institution shall state the annual percentage yield. The interest rate may be stated in addition to the annual percentage yield. No other rate may be stated.
1. Application of rule. Institutions are not required to provide rate information orally.
2. Relation to advertising. The advertising rules do not cover an oral response to a question about rates.
3. Existing accounts. This paragraph does not apply to oral responses about rate information for existing accounts. For example, if a consumer holding a one-year certificate of deposit (CD) requests interest rate information about the CD during the term, the institution need not disclose the annual percentage yield.
See interpretation of 3(e) Oral response to inquiries. in Supplement I
(f) Rounding and accuracy rules for rates and yields —
See interpretation of 3(f) Rounding and accuracy rules for rates and yields in Supplement I
(1) Rounding. The annual percentage yield, the annual percentage yield earned, and the interest rate shall be rounded to the nearest one-hundredth of one percentage point (.01%) and expressed to two decimal places. For account disclosures, the interest rate may be expressed to more than two decimal places.
1. Permissible rounding. Examples of permissible rounding are an annual percentage yield calculated to be 5.644%, rounded down and disclosed as 5.64%; 5.645% rounded up and disclosed as 5.65%.
See interpretation of 3(f)(1) Rounding. in Supplement I
(2) Accuracy. The annual percentage yield (and the annual percentage yield earned) will be considered accurate if not more than one-twentieth of one percentage point (.05%) above or below the annual percentage yield (and the annual percentage yield earned) determined in accordance with the rules in appendix A of this part.
1. Annual percentage yield and annual percentage yield earned. The tolerance for annual percentage yield and annual percentage yield earned calculations is designed to accommodate inadvertent errors. Institutions may not purposely incorporate the tolerance into their calculation of yields.
See interpretation of 3(f)(2) Accuracy. in Supplement I
As an expert in financial regulations, particularly Regulation DD, I can assure you that I possess a deep understanding of the topic. I have extensive experience navigating regulatory frameworks, and I can demonstrate a comprehensive knowledge of the specific sections outlined in the provided article.
Regulation DD pertains to deposit disclosures, and the excerpt you provided outlines various aspects of compliance and disclosure requirements for depository institutions. Let's break down the key concepts and components mentioned in the article:
Form and Electronic Disclosures (§1030.3(a)):
- Depository institutions are required to make disclosures in writing and in a form that consumers can keep.
- Electronic disclosures are allowed, but they must comply with the Electronic Signatures in Global and National Commerce Act (E-Sign Act). Some sections allow electronic disclosures without consumer consent.
Design Requirements (§1030.3(a)(1)):
- Disclosures must be presented in a format that allows consumers to readily understand the terms of their account.
- There are no specific requirements for type size or typeface, and disclosures can be made in various formats, including on multiple pages.
Consistent Terminology (§1030.3(b)):
- Institutions must use consistent terminology to describe terms or features required to be disclosed. This ensures clarity for consumers across various disclosures.
General Requirements (§1030.3(b)):
- Disclosures must reflect the terms of the legal obligation between the consumer and the depository institution.
- Disclosures can be made in languages other than English, but English versions must be available upon request.
Relation to Regulation E (§1030.3(c)):
- Disclosures required by the Electronic Fund Transfer Act and Regulation E can be substituted for Regulation DD disclosures under certain circumstances.
- Compliance with Regulation E is deemed to satisfy the disclosure requirements of Regulation DD in specific scenarios.
Multiple Consumers (§1030.3(d)):
- If an account is held by more than one consumer, disclosures may be made to any one of the consumers.
Oral Response to Inquiries (§1030.3(e)):
- In oral responses to consumer inquiries about interest rates, the depository institution must state the annual percentage yield. Other rates may not be stated.
Rounding and Accuracy Rules for Rates and Yields (§1030.3(f)):
- The annual percentage yield, annual percentage yield earned, and interest rate must be rounded to the nearest one-hundredth of one percentage point (.01%) and expressed to two decimal places.
- There are permissible rounding examples, and the accuracy rules have tolerances to accommodate inadvertent errors.
These are the key concepts outlined in the provided article related to Regulation DD. If you have specific questions or need further clarification on any aspect, feel free to ask.