Current through Register Vol. 46, No. 12, March 20, 2024
(a) Each banking organization shall provide
to any potential depositor upon request, and to any depositor at the time of
the first deposit of funds into a savings or time deposit account, the
information required by this Part. In the case of an account opened by mail,
such information shall be provided, by mail or in person, when the depositor
receives acknowledgment of the opening of the account.
(b) In order to notify existing depositors of
the availability of the disclosure information required by this Part, each
banking organization shall either:
(1)
prominently post a notice in the lobby of each office of the banking
organization located in the State of New York (other than electronic
branches);
(2) periodically
prominently include a notice in existing advertising or in separate
advertising; or
(3) mail a notice
to each depositor.
(c)
(1) In all future advertising which solicits
savings or time deposit accounts, each banking organization shall include a
prominently placed notice which shall state that further information about the
account may be obtained at any branch of the banking organization or by calling
a specified person or department of the banking organization.
(2) Paragraph (1) of this subdivision shall
not apply to radio advertisements.
(d)
(1) Not
more than 10 business days after a banking organization adopts any change in
the following, which is less favorable to the depositor:
(i) annual interest rate;
(ii) annual percentage yield;
(iii) periodic percentage rate;
(iv) compounding period;
(v) the frequency of crediting
interest;
(vi) grace periods
mandated by any regulatory authority; or
(vii) minimum balance requirements mandated
by any regulatory authority;
the banking organization shall notify in writing each
depositor affected by such change.
(2) Not less than 30 days before a banking
organization adopts any change (unless such change is mandated by any
regulatory authority) in the grace periods or minimum balance requirements of a
savings account, which is less favorable to a depositor, the banking
organization shall notify in writing each depositor affected by such change. As
to such existing accounts, no such change in the minimum balance requirements
or grace periods shall become effective prior to the commencement of an
interest or dividend period.
(3)
When notice of maturity for a time account is sent to the depositor, the
banking organization shall include a statement of any changes in the annual
interest rate, annual percentage yield, periodic percentage rate, the
compounding period and frequency of crediting interest on a new time deposit
having substantially the same terms.
(4) The provisions of paragraphs (1) through
(3) of this subdivision do not apply to a savings or time account which is
offered at a rate which varies in accordance with market interest rates as long
as the underlying formula is not changed by the banking organization (e.g.,
"money market certificates").
(5)
Not less than 30 days before a banking organization elects to convert a
passbook or statement savings account paying a fixed annual rate of interest to
a savings account paying a variable rate of interest, the banking organization
shall notify in writing each depositor affected by such change. The notice
shall clearly describe the change including the banking organization's method
of fixing the rate thereafter. The banking organization shall also prominently
display a notice describing the change in the lobby of each branch for the 30-
day period prior to the change and shall keep such notice posted for a minimum
of three months after the change becomes effective. As to existing savings
accounts, no such change shall become effective prior to the commencement of an
interest period. In the event the savings account is a statement savings
account, then the banking organization shall also comply with the notification
provisions of section
13.7(d)
of this Part.
(e)
Written notice of the date on which a time deposit with a term of one year or
longer will mature shall be furnished to each depositor not less than 14 and
not more than 30 days prior to the expiration of the term of the time
deposit.
