Document ID: chunk:federal_register_of_legislation:F2024C00640:body:0:p4
Version: federal_register_of_legislation:F2024C00640
Segment Type: other
Provision Reference: 
Character Range: 7882–10836

depositor may incur a fee or a reduction in the return generated for the depositor;

                  (viii) a statement that the depositor gave consent for the funds to roll over into the new product; and

             (c) each time funds are rolled over in accordance with the consent, give a notice to the depositor in accordance with subsection (7AF) by no later than one business day after the maturity date of the product (or two business days after the maturity date if the maturity date is not a business day) of the following information and statements:

                  (i) a statement that the depositor has the benefit of a grace period and details of the days on which the grace period begins and ends;

                  (ii) information about the depositor's rights during the grace period;

                  (iii) the interest rate that applies to the new product;

                  (iv) a statement that a higher interest rate may be available from the ADI for another basic deposit product with a comparable term;

                  (v)    information that if the depositor wishes to withdraw or transfer their funds after the grace period, the ADI has the discretion to delay withdrawal or transfer of the funds until the end of a notice period (but not beyond the maturity date for the new product);

                  (vi) information about the duration of the notice period and a statement that the depositor may incur a fee or a reduction in the return generated for the depositor;

                  (vii) information about any reduction in the return generated for the depositor and any fees applicable for withdrawal or transfer of funds standing to the credit of the new product after the expiration of the grace period.

        How information and statements must be given

        (7AD)  Information referred to in subsection (7AB) must be given to the depositor:

             (a) orally; or

             (b) in a document containing the governing terms of the product; or

             (c) in a one page document which contains the information but nothing more.

        (7AE) If the ADI gives the depositor the information in a document referred to in paragraph (7AD)(b), the ADI must obtain a written acknowledgement from the depositor, in immediate proximity to where the information is stated, that the depositor has read the information.

        (7AF) Information and statements referred to in subsection (7AB) or paragraph (7AC)(b) or (c):

             (a) must be worded and presented in a clear, concise and effective manner; and

             (b) must be:

                  (i) given to the depositor, or the depositor's agent, personally; or

                  (ii) sent to the depositor, or the depositor's agent at an address (including an electronic address) or fax number nominated by the person or the agent; and

             (c) may be in printed or electronic form or, in the case of information