[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR707.3]

[Page 379-380]
 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION
 
PART 707--TRUTH IN SAVINGS--Table of Contents
 
Sec. 707.3  General disclosure requirements.

    (a) Form. Credit unions shall make the disclosures required by 
Secs. 707.4 through 707.6, as applicable, clearly and conspicuously in 
writing and in a form that the member or potential member may keep. 
Disclosures for each account offered by a credit union may be presented 
separately or they may be combined with disclosures for the credit 
union's other accounts, as long as it is clear which disclosures are 
applicable to the member's account.
    (b) General. The disclosures shall reflect the terms of the legal 
obligation between the member and the credit union. Disclosures may be 
made in languages other than English, provided the disclosures are 
available in English upon request.
    (c) Relation to Regulation E (12 CFR part 205). Disclosures required 
by and provided in accordance with the Electronic Fund Transfer Act (15 
U.S.C. 1601) and its implementing Regulation E (12 CFR part 205) that 
are also required by this part may be substituted for the disclosures 
required by this part.
    (d) Multiple members. If an account is held by more than one member, 
disclosures may be made to any one of the members.
    (e) Oral responses to inquiries. In an oral response to a member or 
potential member's inquiry about dividend rates payable on its accounts, 
the credit union shall state the annual percentage yield. The dividend 
rate may be stated in addition to the annual percentage yield. No other 
rate may be stated. In stating a dividend rate and annual percentage 
yield, a credit union shall:
    (1) For dividend-bearing accounts other than term share accounts, 
specify a dividend rate and annual percentage yield as of the last 
dividend declaration date. In the event that disclosures of a dividend 
rate and annual percentage yield as of the last dividend declaration 
date might be inaccurate because of known or contemplated dividend rate 
changes, the credit union may disclose the prospective dividend rate and 
prospective annual percentage yield. Such prospective dividend rate and 
prospective annual percentage yield may be disclosed either in lieu of, 
or in addition to, the dividend rate and annual percentage yield as of 
the last dividend declaration date.
    (2) For interest-bearing accounts and for dividend-bearing term 
share accounts, specify an interest (dividend) rate and annual 
percentage yield that were offered within the most recent seven calendar 
days; state that the rate and yield are accurate as of an identified 
date; and provide a telephone number members may call to obtain current 
rate information.
    (f) Rounding and accuracy rules for rates and yields--(1) Rounding. 
The annual percentage yield, the annual percentage yield earned, and the 
dividend rate shall be rounded to the nearest one-hundredth of one 
percentage point (.01%) and expressed to two decimal places. For account 
disclosures, the dividend rate may be expressed to more than two decimal 
places.
    (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

[[Page 380]]

annual percentage yield earned) determined in accordance with the rules 
in appendix A of this part.

(Approved by the Office of Management and Budget under control number 
3133-0134)

[58 FR 50445, Sept. 27, 1993, as amended at 61 FR 114, Jan. 3, 1996]