The purpose of this policy is to set forth procedures to comply with Truth in Savings.
The credit union will use the daily balance method to compute dividends on the following accounts:
The credit union will calculate all dividends by applying a daily rate of 1/365 of its dividend rate.
Accrued but unearned dividend will be paid if a member closes any of the above accounts. Dividends on all deposits will begin to accrue from the date of deposit.
The minimum balance required to earn dividend on share accounts is as follows:
Once a member meets the minimum required balance to earn dividend, the credit union will pay dividend on the full account balance.
Disclosure forms will be clear and in written form. Disclosures for new accounts will be given when the account is opened. If the member is not present when the account is opened, a disclosure. Will be mailed to the member within 20 days.
Account disclosures will be available to any member upon request. If the credit union receives the request by telephone or letter, the disclosure will be mailed within 20 days of the request. The credit union will provide disclosures to non-members.
For dividend bearing accounts, except share certificates and IRA share certificates, the credit union will specify the annual percentage yield (APY) as the last dividend declaration date in response to rate information.
For dividend bearing share certificates and IRA share certificates, the credit union will specify the (APY) offered within the most recent seven (7) calendar days and state the rate and (APY) are accurate as of the date of the request.
The credit union will provide members advance written notice when there is any change in account terms that reduce the APY or adversely affect the member. However, a change in terms notice will not be sent for rate adjustments on variable rate accounts or changes in check printing cost.
The notice will describe the change in terms and state when it becomes effective.
The notice will be mailed at least thirty (30) calendar days before the effective date of the change.
All share certificates are considered automatically renewable, and a renewable maturity notices will be sent thirty (30) days is maturity.
The renewal notice will contain the date the existing account matures, a statement that the dividend rate and APY have not yet been determined the maturity date of the renewed account, the date when the dividend rate and APY will be set and the credit unions phone number to call for current dividend rate and APY information.
The credit unions periodic statement will include the following:
The credit union will not engage in misleading or inaccurate advertising. When rate information is advertised, the credit union will only advertise the APY.
On variable rate accounts the ad will state that the rate and APY may change after the account is opened.
The ad will state that the APY is accurate as of the last dividend period.
The ad will contain the minimum balance required to obtain the stated APY.
The ad for share certificates will state the date the APY is accurate of, and include any requirements to earn the APY.
A notice notifying all existing members as of December 31, 1994 was sent with the quarterly statements dated Dec. 31, 1994. A copy of the notice is retained in the T-I-S file.
A copy of the T-I-S disclosure will be kept on file for two (2) years. Any revised disclosure will be kept on file for two (2) years from the date of revision.
A copy of the notice notifying existing members will be kept on file for two (2) years.
Copies of periodic statements will be kept on microfiche for two (2) Years.
The Board of Directors has implemented the following controls to ensure compliance with Truth in Savings.
The credit union manager is responsible for coordinating and overseeing the T-I-S compliance measure.
The manager will follow and implement this policy.
The manager will implement procedures to accommodate any changes in T-I-S.
The manager will provide for employee training regarding T-I-S.
Disclosure forms will be routinely checked for compliance.
The data processor will be routinely checked to ensure the periodic statements comply with T-I-S.
The manager will routinely consult the staff to ensure that current and accurate rate information is disclosed.
The manager will report compliance findings to the Board of Directors.
The manager will recommend updates to this policy to the Board of Directors.