---
kind: "range"
citation: "12 C.F.R. §§ 707.4–707.6"
title: "12"
from: "707.4"
to: "707.6"
count: 3
url: "https://uscodex.org/cfr/12/707.4..707.6"
---

# §707.4. Account disclosures.

- (a) **Delivery of account disclosures—**
  - (1) **Account opening—**
    - (i) **General.** A credit union must provide account disclosures to a member or potential member before an account is opened or a service is provided, whichever is earlier. A credit union is deemed to have provided a service when a fee required to be disclosed is assessed. Except as provided in [paragraph (a)(1)(ii)](#a-1-ii) of this section, if a member or potential member is not present at the credit union when the account is opened or the service is provided and has not already received the disclosures, the credit union must mail or deliver the disclosures no later than 10 business days after the account is opened or the service is provided, whichever is earlier.
    - (ii) **Timing of electronic disclosures.** If a member or potential member who is not present at the credit union uses electronic means, for example, an internet Web site, to open an account or request a service, the disclosures required under [paragraph (a)(1)](#a-1) of this section must be provided before the account is opened or the service is provided.
  - (2) **Requests.**
    - (i) A credit union must provide account disclosures to a member or potential member upon request. If a member or potential member who is not present at the credit union makes a request, the credit union must mail or deliver the disclosures within a reasonable time after it receives the request and may provide the disclosures in paper form or electronically if the member or potential member agrees.
    - (ii) **In providing disclosures upon request, the credit union may—**
      - (A) **Specify rates as follows—** (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 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; and

      - (B) **State the maturity of a term share account as either a term or a date.**
- (b) **Content of account disclosures.** Account disclosures shall include the following, as applicable:
  - (1) **Rate information—**
    - (i) **Annual percentage yield and dividend rate.**
      - (A) For interest-bearing accounts and for dividend-bearing term share accounts, the “annual percentage yield” and the “interest rate” (“dividend rate”), using those terms, and for fixed-rate accounts the period of time the interest (dividend) rate will be in effect.
      - (B) For dividend-bearing accounts other than term share accounts, a credit union shall specify a dividend rate and annual percentage yield (using those terms) 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.
    - (ii) **Variable rates.** For variable-rate accounts:
      - (A) The fact that the dividend rate and annual percentage yield may change;
      - (B) How the dividend rate is determined;
      - (C) The frequency with which the dividend rate may change; and
      - (D) Any limitation on the amount the dividend rate may change.
  - (2) **Compounding and crediting—**
    - (i) **Frequency.** The frequency with which dividends are compounded and credited, and the dividend period for dividend-bearing accounts.
    - (ii) **Effect of closing an account.** If members will forfeit dividends if they close an account before accrued dividends are credited, a statement that the dividends will not be paid in such cases.
  - (3) **Balance information—**
    - (i) **Minimum balance requirements.** Any minimum balance required to:
      - (A) Open the account;
      - (B) Avoid the imposition of a fee; or
      - (C) **Obtain the annual percentage yield disclosed.**
    - (ii) **Balance computation method.** An explanation of the balance computation method specified in [§ 707.7](/cfr/12/707.7.md), used to calculate dividends on the account.
    - (iii) **When dividends begin to accrue.** A statement of when dividends begin to accrue on noncash deposits.
  - (4) **Fees.** The amount of any fee that may be imposed in connection with the account (or an explanation of how the fee will be determined) and the conditions under which the fee may be imposed.
  - (5) **Transaction limitations.** Any limitations on the number or dollar amount of withdrawals or deposits.
  - (6) **Features of term share accounts.** For term share accounts:
    - (i) **Time requirements.** The maturity date.
    - (ii) **Early withdrawal penalties.** A statement that a penalty will be imposed for early withdrawal, how it is calculated, and the conditions for its assessment.
    - (iii) **Withdrawal of dividends prior to maturity.** If compounding occurs and dividends may be withdrawn prior to maturity, a statement that the annual percentage yield assumes dividends remain in the account until maturity and that a withdrawal will reduce earnings. For accounts with a stated maturity greater than 1 year that do not compound dividends on an annual or more frequent basis, that require dividend payouts at least annually, and that disclose an APY determined in accordance with section E of appendix A of this part, a statement that dividends cannot remain on account and that payout of dividends is mandatory.
    - (iv) **Renewal policies.** A statement of whether or not the account will renew automatically at maturity. If it will, a statement of whether or not a grace period will be provided and, if so, the length of that period must be stated. If the account will not renew automatically, a statement of whether dividends will be paid after maturity if the member does not renew the account must be stated.
  - (7) **Bonuses.** The amount or type of any bonus, when the bonus will be provided, and any minimum balance and time requirements to obtain the bonus.
  - (8) **Nature of dividends.** For accounts earning dividends, other than term share accounts, a statement that dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.
- (c) **Notice to existing account holders—**
  - (1) **Notice of availability of disclosures.** Credit unions shall provide a notice to members who receive periodic statements and who hold existing accounts of the type offered by the credit union on January 1, 1995. The notice shall be included on or with the first periodic statement sent after January 1, 1995 (or on or with the first periodic statement for a statement cycle beginning on or after that date). The notice shall state that the members may request account disclosures containing terms, fees, and rate information for the account. In responding to such a request, credit unions shall provide disclosures in accordance with [paragraph (a)(2)](#a-2) of this section.
  - (2) **Alternative to notice.** As an alternative to the notice described in [paragraph (c)(1)](#c-1) of this section, credit unions may provide account disclosures to members. The disclosures may be provided either with a periodic statement or separately, but must be sent no later than when the periodic statement described in [paragraph (c)(1)](#c-1) of this section is sent.

# §707.5. Subsequent disclosures.

- (a) **Change in terms—**
  - (1) **Advance notice required.** A credit union shall give advance notice to affected members of any change in a term required to be disclosed under [§ 707.4(b)](/cfr/12/707.4.md?p=b), if the change may reduce the annual percentage yield or adversely affect the member. The notice shall include the effective date of the change. The notice shall be mailed or delivered at least 30 calendar days before the effective date of the change.
  - (2) **No notice required.** No notice under this section is required for:
    - (i) **Variable-rate changes.** Changes in the dividend rate and corresponding changes in the annual percentage yield in variable-rate accounts.
    - (ii) **Share draft and check printing fees.** Changes in fees for check printing.
    - (iii) **Short-term term share accounts.** Changes in any term for term share accounts with maturities of one month or less.
- (b) **Notice before maturity for term share accounts longer than one month that renew automatically.** For term share accounts with a maturity longer than one month that renew automatically at maturity, credit unions shall provide the disclosures described below before maturity. The disclosures shall be mailed or delivered at least 30 calendar days before maturity of the existing account. Alternatively, the disclosures may be mailed or delivered at least 20 calendar days before the end of the grace period on the existing account, provided a grace period of at least five calendar days is allowed.
  - (1) **Maturities of longer than one year.** If the maturity is longer than one year, the credit union shall provide account disclosures set forth in [§ 707.4(b)](/cfr/12/707.4.md?p=b) for the new account, along with the date the existing account matures. If the dividend rate and annual percentage yield that will be paid for the new account are unknown when disclosures are provided, the credit union shall state that those rates have not yet been determined, the date when they will be determined, and a telephone number members may call to obtain the dividend rate and the annual percentage yield that will be paid for the new account.
  - (2) **Maturities of one year or less but longer than one month.** If the maturity is one year or less but longer than one month, the credit union shall either:
    - (i) Provide disclosures as set forth in [paragraph (b)(1)](#b-1) of this section; or
    - (ii) **Disclose to the member—**
      - (A) The date the existing account matures and the new maturity date if the account is renewed;
      - (B) The dividend rate and the annual percentage yield for the new account if they are known (or that those rates have not yet been determined, the date when they will be determined, and a telephone number the member may call to obtain the dividend rate and the annual percentage yield that will be paid for the new account); and
      - (C) Any difference in the terms of the new account as compared to the terms required to be disclosed under [§ 707.4(b)](/cfr/12/707.4.md?p=b) for the existing account.
- (c) **Notice before maturity for term share accounts longer than one year that do not renew automatically.** For term share accounts with a maturity longer than one year that do not renew automatically at maturity, credit unions shall disclose to members the maturity date and whether dividends will be paid after maturity. The disclosures shall be mailed or delivered at least 10 calendar days before maturity of the existing account.

# §707.6. Periodic statement disclosures.

- (a) **Rule when statement and crediting periods vary.** In making the disclosures described in [paragraph (b)](#b) of this section, credit unions that calculate and credit dividends for a period other than the statement period, such as the dividend period, may calculate and disclose the annual percentage yield earned and amount of dividends earned based on that period rather than the statement period. The information in [paragraph (b)(4)](#b-4) shall be stated for that period as well as for the statement period.
- (b) **Statement disclosures.** If a credit union mails or delivers a periodic statement, the statement shall include the following disclosures:
  - (1) **Annual percentage yield earned.** The “annual percentage yield earned,” using that term as calculated according to the rules in appendix A of this part.
  - (2) **Amount of dividends.** The dollar amount of dividends earned (accrued or paid and credited) on the account. The dollar amount of any extraordinary dividends earned during the statement period shall be shown as a separate figure.
  - (3) **Fees imposed.** Fees required to be disclosed under [§ 707.4(b)(4)](/cfr/12/707.4.md?p=b-4) of this part that were debited from the account during the statement period. The fees must be itemized by type and dollar amounts. Except as provided in [§ 707.11(a)(1)](/cfr/12/707.11.md?p=a-1) of this part, when fees of the same type are imposed more than once in a statement period, a credit union may itemize each fee separately or group the fees together and disclose a total dollar amount for all fees of that type.
  - (4) **Length of period.** The total number of days in the statement period, or the beginning and ending dates of the period.
  - (5) **Aggregate fee disclosure.** If applicable, the total overdraft and returned item fees required to be disclosed by [§ 707.11(a)](/cfr/12/707.11.md?p=a).