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02 DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 BUREAU OF FINANCIAL INSTITUTIONS
On July 1, 1981, the Bureau of Financial Institutions promulgated a regulation governing deposit account charges. The focus of the 1981 regulation, which became Regulation 18, was to advance disclosure of deposit and share account charges. In 1987, Regulation 18 was revised to incorporate state requirements for disclosing policies governing funds availability. Since then, Regulation 18 has been amended again to recognize the changes that have occurred on the federal level with respect to funds availability and truth in savings, including the adoption of truth-in-savings regulations for credit unions (12 CFR Part 707).
This promulgation repeals and replaces Regulation 18. It conforms Regulation 18 to federal regulations, specifically, by incorporating by reference Federal Regulation CC (12 CFR Part 229, January 1, 2012), Federal Regulation DD (12 CFR Part 230, January 1, 2012), and National Credit Union Administration Board provisions (12 CFR Part 707, January 1, 2012), which include the amendments that have been made to those federal regulations since this rule was last promulgated. Those amendments include: disclosure practices related to overdraft services, including balances disclosed to consumers through automated systems in Federal Regulation DD, by 74 FR 5584; the addition of Subpart D of Federal Regulation CC relating to substitute checks, by 69 FR 47290; and the restructuring of check-processing operations within the Federal Reserve System into a single check-processing region so that generally there are no longer any checks that are defined as “non-local” in Federal Regulation CC, by 75 FR 219.
This promulgation also repeals specific references to electronic notices and disclosures because the federal regulations that are being incorporated by reference already provide that such notices and disclosures may be provided in electronic form.
Finally, this promulgation excepts the definition of “business day” in federal regulations to the extent that this definition differs from the definition of “business days” in Section 145 of Title 9-B MRSA and excepts the enforcement and liability provisions in federal regulations because the enforcement and liability provisions in Chapters 22, 23 and 24 of Title 9-B MRSA will be used when administering this Regulation 18.
Title 9-B MRSA Section 242(1) gives the Superintendent authority to adopt rules defining, limiting or proscribing advertising that is false, misleading or deceptive.
The purpose of this Regulation 18 is to conform it to up-to-date federal regulations. Its purpose is also to repeal the funds availability requirements for non-transaction accounts and the disclosure requirements for non-consumer accounts. Furthermore, this promulgation repeals references to electronic notices and disclosures because the federal regulations that are being incorporated already provide for such notices and disclosures.
"Financial institution" means a financial institution authorized to do business as defined in Title 9-B MRSA Section 131(17-A).
The following provisions of Federal Regulation CC are not adopted:
C. Truth in Savings
Financial institutions and credit unions shall comply with the provisions of Federal Regulation DD (12 CFR, Part 230 (January 1, 2012) and National Credit Union Administration Board, Truth in Savings provisions (12 CFR Part 707 (January 1, 2012)) including all their appendices which are incorporated herein by reference.
The following provisions of Federal Regulation DD and 12 CFR Part 707 are not adopted:
D. Complaint Resolution Procedure
Copies of 12 CFR Part 229, 12 CFR Part 230, and 12 CFR Part 707 may be obtained at cost from the Bureau of Financial Institutions, the Federal Reserve Bank of Boston, 600 Atlantic Avenue, Boston, MA 02106 tel. (617)973-3000, or the National Credit Union Administration, Region 1, 9 Washington Square, Washington Avenue Extension, Albany, NY 12208 tel. (518)862-7400. In addition, copies may be obtained via the Internet at http://www.federalreserve.gov/Regulations/RegRef.htm#cc
For the purposes of Subpart IV(C) of this regulation, “schedule of account charges" means a listing of fees and charges relating to the maintenance and operation of an account which may be imposed by the financial institution or credit union on its account holder for using an account of a financial institution or credit union. It does not include a listing of fees for ancillary services such as safe deposit boxes, traveler's checks, night deposit bags, check printing, fax fees, photocopies or similar charges not directly related to the maintenance or operation of an account.
Last Updated: March 20, 2012
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