Disclosure Requirements for Depository Institutions Lacking Federal Deposit Insurance (Regulation I), 78126-78130 [2011-31732]

Agencies

• BUREAU OF CONSUMER FINANCIAL PROTECTION

[Federal Register Volume 76, Number 242 (Friday, December 16, 2011)]
[Rules and Regulations]
[Pages 78126-78130]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31732]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1009

[Docket No. CFPB-2011-0024]
RIN 3170-AA06


Disclosure Requirements for Depository Institutions Lacking 
Federal Deposit Insurance (Regulation I)

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Interim final rule with request for public comment.

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SUMMARY: Title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act) transferred rulemaking authority for a 
number of consumer financial protection laws from seven Federal 
agencies to the Bureau of Consumer Financial Protection (Bureau) as of 
July 21, 2011. The Bureau is in the process of republishing the 
regulations implementing those laws with technical and conforming 
changes to reflect the transfer of authority and certain other changes 
made by the Dodd-Frank Act. In light of the transfer of the Federal 
Trade Commission's (Commission's) rulemaking authority for section 
43(b)-(f) of the Federal Deposit Insurance Act (FDIA) to the Bureau, 
the Bureau is publishing for public comment an interim final rule 
establishing a new Regulation I (Disclosure Requirements for Depository 
Institutions Lacking Federal Deposit Insurance). This interim final 
rule does not impose any new substantive obligations on persons subject 
to the existing regulations, previously published by the Commission.

DATES: This interim final rule is effective December 30, 2011. Comments 
must be received on or before February 14, 2012.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2011-
0024 or RIN 3170-AA06, by any of the following methods:
     Electronic: https://www.regulations.gov. Follow the 
instructions for submitting comments.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1500 Pennsylvania Avenue NW., 
(Attn: 1801 L Street), Washington, DC 20220.
     Hand Delivery/Courier in Lieu of Mail: Monica Jackson, 
Office of the Executive Secretary, Bureau of Consumer Financial 
Protection, 1700 G Street NW., Washington, DC 20006.
    All submissions must include the agency name and docket number or 
Regulatory Information Number (RIN) for this rulemaking. In general, 
all comments received will be posted without change to https://www.regulations.gov. In addition, comments will be available for public 
inspection and copying at 1700 G Street NW., Washington, DC 20006, on 
official business days between the hours of 10 a.m. and 5 p.m. Eastern 
Time. You can make an appointment to inspect the documents by 
telephoning (202) 435-7275.
    All comments, including attachments and other supporting materials, 
will become part of the public record and subject to public disclosure. 
Sensitive personal information, such as account numbers or social 
security numbers, should not be included. Comments will not be edited 
to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Krista Ayoub or Jane Gao, Office of 
Regulations, at (202) 435-7700.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Federal Deposit Insurance Act (FDIA),\1\ among other things, 
establishes the Federal Deposit Insurance Corporation which must insure 
the deposits of banks and savings associations entitled to the benefits 
of insurance under the FDIA. Not all depository institutions are 
required to maintain Federal deposit insurance. The FDIA requires that 
depository institutions lacking Federal deposit insurance make certain 
insurance-related disclosures in periodic statements, account records, 
locations where deposits are normally received, and advertising.\2\ The 
FDIA also requires such depository institutions to obtain a written 
acknowledgment from depositors regarding the institution's lack of 
Federal deposit insurance.\3\ Prior to July 21, 2011, the FDIA required 
that the Federal Trade Commission (Commission), by regulation or order, 
prescribe the manner and content of these disclosures.
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    \1\ 12 U.S.C. 1811 et seq.
    \2\ 12 U.S.C. 1831t.
    \3\ Id.
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    Historically, the disclosure requirements required by the FDIA for 
depository institutions lacking Federal deposit insurance have been 
implemented by the Commission in 16 CFR Part 320. The Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act) \4\ amended 
a number of consumer financial protection laws, including the FDIA. In 
addition to various substantive amendments, the Dodd-Frank Act 
transferred rulemaking authority for implementing the disclosure 
requirements for depository institutions lacking Federal deposit 
insurance, as described above, to the Bureau of Consumer Financial 
Protection (Bureau), effective July 21, 2011.\5\ See sections 1061 and 
1090 of the Dodd-Frank Act. Pursuant to the Dodd-Frank Act and the 
FDIA, as amended, the Bureau is publishing for public comment an 
interim final rule establishing a new Regulation I (Disclosure 
Requirements for Depository Institutions Lacking Federal Deposit 
Insurance), 12 CFR Part 1009, implementing the disclosure requirements 
in the FDIA for depository institutions lacking Federal deposit 
insurance.
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    \4\ Public Law 111-203,124 Stat. 1376 (2010).
    \5\ Dodd-Frank section 1029 generally excludes from this 
transfer of authority, subject to certain exceptions, any rulemaking 
authority over a motor vehicle dealer that is predominantly engaged 
in the sale and servicing of motor vehicles, the leasing and 
servicing of motor vehicles, or both.
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II. Summary of the Interim Final Rule

A. General

    The interim final rule substantially duplicates the Commission's 
rule in 16 CFR Part 320 as the Bureau's new Regulation I, 12 CFR Part 
1009, making only certain non-substantive, technical, formatting, and 
stylistic changes. To minimize any potential confusion, other than 
republishing the Commission's existing rule in 16 CFR Part 320 with the 
Bureau's part number, the Bureau is preserving where possible the 
numbering the Commission used in its existing rule. Additionally, while 
this interim final rule generally incorporates the Commission's 
existing regulatory

[[Page 78127]]

text, the rule has been edited as necessary to reflect nomenclature and 
other technical amendments required by the Dodd-Frank Act. Notably, 
this interim final rule does not impose any new substantive obligations 
on regulated entities.

B. Specific Changes

    A paragraph that was not enumerated in the Commission's rule (16 
CFR 320.5) is enumerated as paragraph (c)(2) in Sec.  1009.5, and other 
provisions in Sec.  1009.5 are renumbered accordingly. In Sec.  1009.7, 
the provision specifying enforcement authority for the requirements set 
forth in Regulation I is revised from that in the Commission's rule (16 
CFR 320.7) to reflect changes made to the enforcement authority by the 
Dodd-Frank Act. In addition, references to the Commission and its 
administrative structure have been replaced with references to the 
Bureau. Conforming edits have been made to internal cross-references. 
Conforming edits have also been made to reflect the scope of the 
Bureau's authority pursuant to the FDIA to issue implementing 
regulations for disclosures required of depository institutions lacking 
Federal deposit insurance, as amended by the Dodd-Frank Act.

III. Legal Authority

A. Rulemaking Authority

    The Bureau is issuing this interim final rule pursuant to its 
authority under the FDIA and the Dodd-Frank Act. Effective July 21, 
2011, section 1061 of the Dodd-Frank Act transferred to the Bureau all 
of the Commission's authority under an enumerated consumer law to 
prescribe rules, issues guidelines, conduct studies, or issue 
reports.\6\ Section 43(b)-(f) of the FDIA is an enumerated consumer 
law.\7\ Accordingly, effective July 21, 2011, the authority of the 
Commission to issue regulations pursuant to section 43(b)-(f) of the 
FDIA transferred to the Bureau.\8\
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    \6\ Public Law 111-203, section 1061(b)(5).
    \7\ Id. Section 1002(12)(I) (defining ``enumerated consumer 
laws'' to include section 43(b)-(f) of the FDIA).
    \8\ Section 1066 of the Dodd-Frank Act grants the Secretary of 
the Treasury interim authority to perform certain functions of the 
Bureau. Pursuant to that authority, Treasury is publishing this 
interim final rule on behalf of the Bureau. Until this and other 
interim final rules take effect, existing regulations for which 
rulemaking authority transferred to the Bureau continue to govern 
persons covered by this rule. See 76 FR 43569 (July 21, 2011).
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    Section 43(c) of the FDIA, as amended, provides that the Bureau, by 
regulation or order, must prescribe the manner and content of 
disclosures required under section 43 of the FDIA that must be given by 
depository institutions lacking Federal depository insurance.\9\ In 
addition, section 43(d) of the FDIA, as amended, authorizes the Bureau, 
by regulation or order, to make exceptions to certain disclosure 
requirements set forth in section 43(b) of the FDIA for any depository 
institution that, within the United States, does not receive initial 
deposits of less than an amount equal to the standard maximum deposit 
insurance amount from individuals who are citizens or residents of the 
United States, other than money received in connection with any draft 
or similar instrument issued to transmit money.\10\
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    \9\ Public Law 111-203, section 1090(2)(A); 12 U.S.C. 1831t(c).
    \10\ Id. section 1090(2)(B); 12 U.S.C. 1831t(d).
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B. Authority To Issue an Interim Final Rule Without Prior Notice and 
Comment

    The Administrative Procedure Act (APA) \11\ generally requires 
public notice and an opportunity to comment before promulgation of 
substantive regulations.\12\ The APA provides exceptions to notice-and-
comment procedures, however, where an agency for good cause finds that 
such procedures are impracticable, unnecessary, or contrary to the 
public interest or when a rulemaking relates to agency organization, 
procedure, and practice.\13\ The Bureau finds that there is good cause 
to conclude that providing notice and opportunity for comment would be 
unnecessary and contrary to the public interest under these 
circumstances. In addition, substantially all the changes made by this 
interim final rule, which were necessitated by the Dodd-Frank Act's 
transfer of FDIA authority under section 43(c) and (d) from the 
Commission to the Bureau, relate to agency organization, procedure, and 
practice and are thus exempt from the APA's notice-and-comment 
requirements.
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    \11\ 5 U.S.C. 551 et seq.
    \12\ 5 U.S.C. 553(b), (c).
    \13\ 5 U.S.C. 553(b)(3)(A), (B).
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    The Bureau's good cause findings are based on the following 
considerations. As an initial matter, the Commission's existing 
regulation was a result of notice-and-comment rulemaking to the extent 
required. Moreover, the interim final rule published today does not 
impose any new, substantive obligations on regulated entities. Rather, 
the interim final rule only makes non-substantive, technical changes to 
the existing text of the regulation, such as renumbering, changing 
internal cross-references, and replacing appropriate nomenclature to 
reflect the transfer of authority to the Bureau. Given the technical 
nature of these changes, and the fact that the interim final rule does 
not impose any additional substantive requirements on covered entities, 
an opportunity for prior public comment is unnecessary. In addition, 
recodifying the Commission's regulation to reflect the transfer of 
authority to the Bureau will help facilitate compliance with FDIA and 
its implementing regulations, and the new regulations will help reduce 
uncertainty regarding the applicable regulatory framework. Using 
notice-and-comment procedures would delay this process and thus be 
contrary to the public interest.
    The APA generally requires that rules be published not less than 30 
days before their effective dates. See 5 U.S.C. 553(d). As with the 
notice and comment requirement, however, the APA allows an exception 
when ``otherwise provided by the agency for good cause found and 
published with the rule.'' 5 U.S.C. 553(d)(3). The Bureau finds that 
there is good cause for providing less than 30 days notice here. A 
delayed effective date would harm consumers and regulated entities by 
needlessly perpetuating discrepancies between the amended statutory 
text and the implementing regulation, thereby hindering compliance and 
prolonging uncertainty regarding the applicable regulatory 
framework.\14\
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    \14\ This interim final rule is one of 14 companion rulemakings 
that together restate and recodify the implementing regulations 
under 14 existing consumer financial laws (part III.C, below, lists 
the 14 laws involved). In the interest of proper coordination of 
this overall regulatory framework, which includes numerous cross-
references among some of the regulations, the Bureau is establishing 
the same effective date of December 30, 2011 for those rules 
published on or before that date and making those published 
thereafter (if any) effective immediately.
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    In addition, delaying the effective date of the interim final rule 
for 30 days would provide no practical benefit to regulated entities in 
this context and in fact could operate to their detriment. As discussed 
above, the interim final rule published today does not impose any new, 
substantive obligations on regulated entities. Instead, the rule makes 
only non-substantive, technical changes to the existing text of the 
regulation. Thus, regulated entities that are already in compliance 
with the existing rules will not need to modify business practices as a 
result of this rule.

C. Section 1022(b)(2) of the Dodd-Frank Act

    In developing the interim final rule, the Bureau has conducted an 
analysis of

[[Page 78128]]

potential benefits, costs, and impacts.\15\ The Bureau believes that 
the interim final rule will benefit consumers and covered persons by 
updating and recodifying the Commission's rules in 16 CFR Part 320 to 
reflect the transfer of authority to the Bureau and certain other 
changes mandated by the Dodd-Frank Act. This will help facilitate 
compliance with section 43(b)-(f) of the FDIA and its implementing 
regulations and help reduce any uncertainty regarding the applicable 
regulatory framework. The interim final rule will not impose any new 
substantive obligations on consumers or covered persons and is not 
expected to have any impact on consumers' access to consumer financial 
products and services.
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    \15\ Section 1022(b)(2)(A) of the Dodd-Frank Act addresses the 
consideration of the potential benefits and costs of regulation to 
consumers and covered persons, including the potential reduction of 
access by consumers to consumer financial products or services; the 
impact on depository institutions and credit unions with $10 billion 
or less in total assets as described in section 1026 of the Dodd-
Frank Act; and the impact on consumers in rural areas. Section 
1022(b)(2)(B) requires that the Bureau ``consult with the 
appropriate prudential regulators or other Federal agencies prior to 
proposing a rule and during the comment process regarding 
consistency with prudential, market, or systemic objectives 
administered by such agencies.'' The manner and extent to which 
these provisions apply to interim final rules and to costs, 
benefits, and impacts that are compelled by statutory changes rather 
than discretionary Bureau action is unclear. Nevertheless, to inform 
this rulemaking more fully, the Bureau performed the described 
analyses and consultations.
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    Although not required by the interim final rule, covered entities 
may incur some costs in updating compliance manuals and related 
materials to reflect the new numbering and other technical changes 
reflected in the new Regulation I. The Bureau has worked to reduce any 
such burden by preserving the existing numbering to the extent possible 
and believes that such costs will likely be minimal. These changes 
could be handled in the short term by providing a short, standalone 
summary alerting users to the changes and in the long term could be 
combined with other updates at the firm's convenience. The Bureau 
intends to continue investigating the possible costs to affected 
entities of updating manuals and related materials to reflect these 
changes and solicits comments on this and other issues discussed in 
this section.
    The interim final rule will have no unique impact on depository 
institutions or credit unions with $10 billion or less in assets as 
described in section 1026(a) of the Dodd-Frank Act. Also, the interim 
final rule will have no unique impact on rural consumers.
    In undertaking the process of recodifying the Commission's rules in 
16 CFR Part 320, as well as regulations implementing thirteen other 
existing consumer financial laws,\16\ the Bureau consulted the Federal 
Deposit Insurance Corporation, the Office of the Comptroller of the 
Currency, the National Credit Union Administration, the Board of 
Governors of the Federal Reserve System, the Federal Trade Commission, 
and the Department of Housing and Urban Development, including with 
respect to consistency with any prudential, market, or systemic 
objectives that may be administered by such agencies.\17\ The Bureau 
also has consulted with the Office of Management and Budget for 
technical assistance. The Bureau expects to have further consultations 
with the appropriate Federal agencies during the comment period.
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    \16\ The fourteen laws implemented by this and its companion 
rulemakings are: the Consumer Leasing Act, the Electronic Fund 
Transfer Act (except with respect to section 920 of that Act), the 
Equal Credit Opportunity Act, the Fair Credit Reporting Act (except 
with respect to sections 615(e) and 628 of that act), the Fair Debt 
Collection Practices Act, Subsections (b) through (f) of section 43 
of the Federal Deposit Insurance Act, sections 502 through 509 of 
the Gramm-Leach-Bliley Act (except for section 505 as it applies to 
section 501(b)), the Home Mortgage Disclosure Act, the Real Estate 
Settlement Procedures Act, the S.A.F.E. Mortgage Licensing Act, the 
Truth in Lending Act, the Truth in Savings Act, section 626 of the 
Omnibus Appropriations Act, 2009, and the Interstate Land Sales Full 
Disclosure Act.
    \17\ In light of the technical but voluminous nature of this 
recodification project, the Bureau focused the consultation process 
on a representative sample of the recodified regulations, while 
making information on the other regulations available. The Bureau 
expects to conduct differently its future consultations regarding 
substantive rulemakings.
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IV. Request for Comment

    Although notice and comment rulemaking procedures are not required, 
the Bureau invites comments on this notice. Commenters are specifically 
encouraged to identify any technical issues raised by the rule. The 
Bureau is also seeking comment in response to a notice published at 76 
FR 75825 (Dec. 5, 2011) concerning its efforts to identify priorities 
for streamlining regulations that it has inherited from other Federal 
agencies to address provisions that are outdated, unduly burdensome, or 
unnecessary.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996, requires each 
agency to consider the potential impact of its regulations on small 
entities, including small businesses, small governmental units, and 
small not-for-profit organizations.\18\ The RFA generally requires an 
agency to conduct an initial regulatory flexibility analysis (IRFA) and 
a final regulatory flexibility analysis (FRFA) of any rule subject to 
notice-and-comment rulemaking requirements, unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities.\19\ The Bureau also is subject to 
certain additional procedures under the RFA involving the convening of 
a panel to consult with small business representatives prior to 
proposing a rule for which an IRFA is required.\20\
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    \18\ 5 U.S.C. 601 et seq.
    \19\ 5 U.S.C. 603, 604.
    \20\ 5 U.S.C. 609.
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    The IRFA and FRFA requirements described above apply only where a 
notice of proposed rulemaking is required,\21\ and the panel 
requirement applies only when a rulemaking requires an IRFA.\22\ As 
discussed above in part III, a notice of proposed rulemaking is not 
required for this rulemaking.
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    \21\ 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b)(B).
    \22\ 5 U.S.C. 609(b).
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    In addition, as discussed above, this interim final rule has only a 
minor impact on entities subject to Regulation I. The rule imposes no 
new, substantive obligations on covered entities. Accordingly, the 
undersigned certifies that this interim final rule will not have a 
significant economic impact on a substantial number of small entities.

VI. Paperwork Reduction Act

    At the time it adopted its existing regulation (16 CFR Part 320), 
the Commission determined that the rule's disclosures and written 
acknowledgement statements were a ``public disclosure of information 
originally supplied by the Federal Government to the recipient for the 
purpose of disclosure to the public,'' and thus did not constitute a 
collection of information for purposes of the Paperwork Reduction Act, 
44 U.S.C. 3501, et seq., as set forth in the Office of Management and 
Budget regulations.\23\ The Bureau has determined that this interim 
final rule does not impose any new recordkeeping or reporting 
requirements on covered institutions or members of the public beyond 
those already imposed by the Commission's existing regulation. 
Accordingly, this interim final rule contains no collections of 
information

[[Page 78129]]

requiring approval under 44 U.S.C. 3501, et seq.
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    \23\ 5 CFR 1320.3(c)(2); see Disclosures for Non-Federally 
Insured Depository Institutions Under the Federal Deposit Insurance 
Corporation Improvement Act (FDICIA), 75 FR 31682, 31686 (June 4, 
2010).
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List of Subjects in 12 CFR Part 1009

    Credit unions, Depository institutions, Federal Deposit Insurance 
Act, Federal Trade Commission Act, and Federal deposit insurance.

Authority and Issuance

0
For the reasons set forth above, the Bureau of Consumer Financial 
Protection adds part 1009 to Chapter X in Title 12 of the Code of 
Federal Regulations to read as follows:

PART 1009--DISCLOSURE REQUIREMENTS FOR DEPOSITORY INSTITUTIONS 
LACKING FEDERAL DEPOSIT INSURANCE (REGULATION I)

Sec.
1009.1 Scope.
1009.2 Definitions.
1009.3 Disclosures in periodic statements and account records.
1009.4 Disclosures in advertising and on the premises.
1009.5 Disclosure acknowledgment.
1009.6 Exception for certain depository institutions.
1009.7 Enforcement.

    Authority:  12 U.S.C. 1831t, 5512, 5581.


Sec.  1009.1  Scope.

    This part, known as Regulation I, is issued by the Bureau of 
Consumer Financial Protection. This part applies to all depository 
institutions lacking Federal deposit insurance. It requires the 
disclosure of certain insurance-related information in periodic 
statements, account records, locations where deposits are normally 
received, and advertising. This part also requires such depository 
institutions to obtain a written acknowledgment from depositors 
regarding the institution's lack of Federal deposit insurance.


Sec.  1009.2  Definitions.

    For purposes of this part:
    Depository institution means any bank or savings association as 
defined under 12 U.S.C. 1813, or any credit union organized and 
operated according to the laws of any state, the District of Columbia, 
the several territories and possessions of the United States, the 
Panama Canal Zone, or the Commonwealth of Puerto Rico, which laws 
provide for the organization of credit unions similar in principle and 
objectives to Federal credit unions.
    Lacking Federal deposit insurance means the depository institution 
is neither an insured depository institution as defined in 12 U.S.C. 
1813(c)(2), nor an insured credit union as defined in section 101 of 
the Federal Credit Union Act, 12 U.S.C. 1752.
    Standard maximum deposit insurance amount means the maximum amount 
of deposit insurance as determined under section 11(a)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)).


Sec.  1009.3  Disclosures in periodic statements and account records.

    Depository institutions lacking Federal deposit insurance must 
include a notice disclosing clearly and conspicuously that the 
institution is not federally insured, and that if the institution 
fails, the Federal Government does not guarantee that depositors will 
get back their money, in all periodic statements of account, on each 
signature card, and on each passbook, certificate of deposit, or share 
certificate. For example, a notice would comply with the requirement if 
it conspicuously stated: ``[Institution's name] is not federally 
insured. If it fails, the Federal Government does not guarantee that 
you will get your money back.'' The disclosures required by this 
section must be clear and conspicuous and presented in a simple and 
easy to understand format, type size, and manner.


Sec.  1009.4  Disclosures in advertising and on the premises.

    (a) Required disclosures. Each depository institution lacking 
Federal deposit insurance must include a clear and conspicuous notice 
disclosing that the institution is not federally insured:
    (1) At each station or window where deposits are normally received, 
its principal place of business and all its branches where it accepts 
deposits or opens accounts (excluding automated teller machines or 
point of sale terminals), and on its main internet page; and
    (2) In all advertisements except as provided in paragraph (c) of 
this section.
    (b) Format and type size. The disclosures required by this section 
must be clear and conspicuous and presented in a simple and easy to 
understand format, type size, and manner.
    (c) Exceptions. The following need not include a notice that the 
institution is not federally insured:
    (1) Any sign, document, or other item that contains the name of the 
depository institution, its logo, or its contact information, but only 
if the sign, document, or item does not include any information about 
the institution's products or services or information otherwise 
promoting the institution; and
    (2) Small utilitarian items that do not mention deposit products or 
insurance, if inclusion of the notice would be impractical.


Sec.  1009.5  Disclosure acknowledgment.

    (a) New depositors obtained other than through a conversion or 
merger. With respect to any depositor who was not a depositor at the 
depository institution on or before October 13, 2006, and who is not a 
depositor as described in paragraph (b) of this section, a depository 
institution lacking Federal deposit insurance may receive a deposit for 
the account of such depositor only if the institution has obtained the 
depositor's signed written acknowledgement that:
    (1) The institution is not federally insured; and
    (2) If the institution fails, the Federal Government does not 
guarantee that the depositor will get back the depositor's money.
    (b) New depositors obtained through a conversion or merger. With 
respect to a depositor at a federally insured depository institution 
that converts to, or merges into, a depository institution lacking 
Federal insurance after October 13, 2006, a depository institution 
lacking Federal deposit insurance may receive a deposit for the account 
of such depositor only if:
    (1) The institution has obtained the depositor's signed written 
acknowledgement described in paragraph (a) of this section; or
    (2) The institution makes an attempt, sent by mail no later than 45 
days after the effective date of the conversion or merger, to obtain 
the acknowledgment. In making such an attempt, the institution must 
transmit to each depositor who has not signed and returned a written 
acknowledgement described in paragraph (a) of this section:
    (i) A conspicuous card containing the information described in 
paragraphs (a)(1) and (2) of this section, and a line for the signature 
of the depositor; and
    (ii) Accompanying materials requesting the depositor to sign the 
card, and return the signed card to the institution.
    (c) Depositors obtained on or before October 13, 2006. (1) Any 
depository institution lacking Federal deposit insurance may receive 
any deposit after October 13, 2006, for the account of a depositor who 
was a depositor on or before that date only if:
    (i) The depositor has signed a written acknowledgement described in 
paragraph (a) of this section; or
    (ii) The institution has transmitted to the depositor:

[[Page 78130]]

    (A) A conspicuous card containing the information described in 
paragraphs (a)(1) and (2) of this section, and a line for the signature 
of the depositor; and
    (B) Accompanying materials requesting that the depositor sign the 
card, and return the signed card to the institution.
    (2) An institution described in paragraph (c)(1) of this section 
must have made the transmission described in paragraph (c)(1)(ii) of 
this section via mail not later than three months after October 13, 
2006. The institution must have made a second identical transmission 
via mail not less than 30 days, and not more than three months, after 
the first transmission to the depositor in accordance with paragraph 
(c)(1)(ii) of this section, if the institution has not, by the date of 
such mailing, received from the depositor a card referred to in 
paragraph (c)(1)(i) of this section which has been signed by the 
depositor.
    (d) Format and type size. The disclosures required by this section 
must be clear and conspicuous and presented in a simple and easy to 
understand format, type size, and manner.


Sec.  1009.6  Exception for certain depository institutions.

    The requirements of this part do not apply to any depository 
institution lacking Federal deposit insurance and located within the 
United States that does not receive initial deposits of less than an 
amount equal to the standard maximum deposit insurance amount from 
individuals who are citizens or residents of the United States, other 
than money received in connection with any draft or similar instrument 
issued to transmit money.


Sec.  1009.7  Enforcement.

    Compliance with the requirements of this part shall be enforced 
under the Consumer Financial Protection Act of 2010, Public Law 111-
203, Title X, 124 Stat. 1955, by the Bureau of Consumer Financial 
Protection, subject to subtitle B of the Consumer Financial Protection 
Act of 2010, and under the Federal Trade Commission Act, 15 U.S.C. 41 
et seq, by the Federal Trade Commission.

    Dated: October 24, 2011.
Alastair M. Fitzpayne,
Deputy Chief of Staff and Executive Secretary, Department of the 
Treasury.
[FR Doc. 2011-31732 Filed 12-15-11; 8:45 am]
BILLING CODE 4810-AM-P