§ 1831t.
(b)
Disclosure required
Any depository institution lacking Federal deposit insurance shall, within the United States, do the following:
(1)
Periodic statements; account records
Include conspicuously in all periodic statements of account, on each signature card, and on each passbook, certificate of deposit, or share certificate.
1
So in original. The period probably should not appear.
a notice that the institution is not federally insured, and that if the institution fails, the Federal Government does not guarantee that depositors will get back their money.
(2)
Advertising; premises
(B)
Exceptions
The following need not include a notice that the institution is not federally insured:
(i)
Any sign, document, or other item that contains the name of the depository institution, its logo, or its contact information, but only if the sign, document, or item does not include any information about the institution’s products or services or information otherwise promoting the institution.
(ii)
Small utilitarian items that do not mention deposit products or insurance if inclusion of the notice would be impractical.
(3)
Acknowledgment of disclosure
(A)
New depositors obtained other than through a conversion or merger
With respect to any depositor who was not a depositor at the depository institution before October 13, 2006, and who is not a depositor as described in subparagraph (B), receive any deposit for the account of such depositor only if the depositor has signed a written acknowledgement that—
(i)
the institution is not federally insured; and
(ii)
if the institution fails, the Federal Government does not guarantee that the depositor will get back the depositor’s money.
(B)
New depositors obtained through a conversion or merger
With respect to a depositor at a federally insured depository institution that converts to, or merges into, a depository institution lacking federal insurance after October 13, 2006, receive any deposit for the account of such depositor only if—
(i)
the depositor has signed a written acknowledgement described in subparagraph (A); or
(ii)
the institution makes an attempt, as described in subparagraph (D) and sent by mail no later than 45 days after the effective date of the conversion or merger, to obtain the acknowledgment.
(C)
Current depositors
Receive any deposit after October 13, 2006, for the account of any depositor who was a depositor on that date only if—
(i)
the depositor has signed a written acknowledgement described in subparagraph (A); or
(ii)
the institution has complied with the provisions of subparagraph (E) which are applicable as of the date of the deposit.
(D)
Alternative provision of notice to new depositors obtained through a conversion or merger
(i)
2
So in original. No cl. (ii) has been enacted.
In general
Transmit to each depositor who has not signed a written acknowledgement described in subparagraph (A)—
(I)
a conspicuous card containing the information described in clauses (i) and (ii) of subparagraph (A), and a line for the signature of the depositor; and
(II)
accompanying materials requesting the depositor to sign the card, and return the signed card to the institution.
(E)
Alternative provision of notice to current depositors
(i)
In general
Transmit to each depositor who was a depositor before October 13, 2006, and has not signed a written acknowledgement described in subparagraph (A)—
(I)
a conspicuous card containing the information described in clauses (i) and (ii) of subparagraph (A), and a line for the signature of the depositor; and
(II)
accompanying materials requesting the depositor to sign the card, and return the signed card to the institution.
(ii)
Manner and timing of notice
(I)
First notice
Make the transmission described in clause (i) via mail not later than three months after October 13, 2006.
(II)
Second notice
Make a second transmission described in clause (i) via mail not less than 30 days and not more than three months after a transmission to the depositor in accordance with subclause (I), if the institution has not, by the date of such mailing, received from the depositor a card referred to in clause (i) which has been signed by the depositor.
(c)
Manner and content of disclosure
To ensure that current and prospective customers understand the risks involved in foregoing Federal deposit insurance, the Bureau, by regulation or order, shall prescribe the manner and content of disclosure required under this section, which shall be presented in such format and in such type size and manner as to be simple and easy to understand.
(d)
Exceptions for institutions not receiving retail deposits
The Bureau may, by regulation or order, make exceptions to subsection (b) for any depository institution that, within the United States, does not receive initial deposits of less than an amount equal to the standard maximum deposit insurance amount from individuals who are citizens or residents of the United States, other than money received in connection with any draft or similar instrument issued to transmit money.
(e)
Definitions
For purposes of this section:
(1)
Appropriate supervisor
The “appropriate supervisor” of a depository institution means the agency primarily responsible for supervising the institution.
(2)
Depository institution
The term “depository institution” includes—
(B)
any entity that, as determined by the Bureau—
(i)
is engaged in the business of receiving deposits; and
(ii)
could reasonably be mistaken for a depository institution by the entity’s current or prospective customers.
(3)
Lacking Federal deposit insurance
A depository institution lacks Federal deposit insurance if the institution is not either—
(A)
an insured depository institution; or
(B)
an insured credit union, as defined in section 101 of the Federal Credit Union Act [
12 U.S.C. 1752].
(4)
Private deposit insurer
The term “private deposit insurer” means any entity insuring the deposits of any depository institution lacking Federal deposit insurance.
(5)
Bureau
The term “Bureau” means the Bureau of Consumer Financial Protection.
([Sept. 21, 1950, ch. 967, § 2][43], formerly § 2[40], as added [Pub. L. 102–242, title I, § 151(a)(1)], Dec. 19, 1991, [105 Stat. 2282]; renumbered § 2[43], [Pub. L. 102–550, title XVI] § 1602(b), Oct. 28, 1992, [106 Stat. 4078]; amended [Pub. L. 103–325, title III, § 340(a)], Sept. 23, 1994, [108 Stat. 2237]; [Pub. L. 109–173, § 2(c)(3)], Feb. 15, 2006, [119 Stat. 3602]; [Pub. L. 109–351, title V, § 505], Oct. 13, 2006, [120 Stat. 1975]; [Pub. L. 111–203, title X, § 1090(2)], July 21, 2010, [124 Stat. 2094]; [Pub. L. 114–94, div. G, title LXXXII, § 82001(b)], Dec. 4, 2015, [129 Stat. 1796].)