The Initial Disclosure -When Do You Give It?

The Regulation requires that you give the disclosure to the depositor before opening the account. [12 CFR 229.17] According to the Commentary to the Regulation, this means you must give the disclosure before accepting the first deposit to the account. [Commentary, §229.17] However, if you receive a deposit by mail along with a request to open an account, you can meet the requirements by mailing the disclosure to the depositor no later than the first business day after the “banking” day you receive the deposit. [Commentary, §229.17] (A “banking” day is any day other than a Saturday, Sunday or federal legal holiday on which an institution is open for substantially all its banking functions. “Business day” is any day other than a Saturday, Sunday or federal legal holiday. [12 CFR 229.2(f) and (g)] ) Similarly, if you receive a request by telephone from a customer to open an account by transferring money from another account, you meet the disclosure requirements by mailing the disclosure no later than the first business day after the banking day you receive the request. [Commentary, §229.17] You also must give the disclosure on request to anyone who requests it, whether a customer or not. [12 CFR 229.18(d)].