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Disclosing Actual CD Penalties

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Question: 
What is required on a CD Partial/Early Redemption Form? The penalty we assess on CD withdrawals has been disclosed on the CD disclosures given in accordance with TISA. When a customer requests a partial/early redemption, most deposit documentation systems will generate a form for the customer to sign. In relation to the form, are we required to disclose the amount of the penalty that will be assessed? For example: A customer withdraws $10,000 and the penalty is $100. Is it acceptable for the partial redemption form to only disclose the gross withdrawal amount of $10,000? - Or - Are we required to show full itemization of the gross amount, less the penalty, and the net amount paid to the customer ( In my example, $10,000, less a penalty of $100, yields a net of $9,900 to be distributed?
Answer: 

Since this is not a required form to be delivered by regulation, ask the attorney that drafted this form for your use.

First published on 04/16/2023

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