We're Merging: Advice For Change In Term Notices

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Question:

We are in the process of a merger and I need to prepare changeinterm notices. The only information that I am able to find is to follow the guidelines for writing Regulation DD account disclosures. We are on a platform system. I understand that I must describe the change clearly and conspicuously. Would you be able to provide me with an example or information that I can reference?

Answer:

The appendix to Regulation DD contains examples. Banks that use the model language correctly are protected from liability. You are therefore safest using the model language that accurately describes your terms. As for clear and conspicuous, the standard is best described in the privacy regulations. Something that is clear and conspicuous is a disclosure that the consumer is likely to see, read and understand. Test disclosures on your tellers to see if they meet the standard.

First published on BankersOnline.com 3/19/01