Document ID: chunk:federal_register_of_legislation:F2024C00640:body:0:p3
Version: federal_register_of_legislation:F2024C00640
Segment Type: other
Provision Reference: 
Character Range: 5380–8133

as the governing terms of the product, the ADI must:

             (a) each time funds are rolled over in accordance with the consent, give the depositor the benefit of a period (grace period) of at least 7 days, during which the depositor can withdraw or transfer the funds standing to the credit of the new product without incurring a fee or incurring a reduction in the return generated for the depositor, which begins on the day of the maturity date of the product or on the following day; and

             (b) before each time it rolls over funds in accordance with the consent, give notice to the depositor, in accordance with subsection (7AF), at least 5 business days before the maturity date of the product (or no later than it obtains the consent if the consent is obtained less than 5 business days before the maturity date) of the following information and statements:

                  (i) if the funds standing to the credit of the product will roll over into a new product which will or may have a lower interest rate—a statement to that effect;

                  (ii) if the interest rate that will apply to the new product is known at the time notice is given—that rate;

                  (iii)      if the interest rate is not known at the time notice is given—information on how and when the depositor can ascertain the interest rate for the new product;

                      Note: This requirement could be satisfied by a statement that the ADI will give the depositor a notice no later than one business day after the maturity date  (or two business days after the maturity date if the maturity date is not a business day) that will identify the interest rate applying to the new product: see subparagraph (c)(iii).

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

                  (v) a statement that there will be a grace period, the days on which the grace period will begin and end, and a description of the depositor's ability to withdraw funds during the grace period;

                  (vi)     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);

                  (vii) 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;

                  (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