§ 104.105. Rate of Interest and Early Withdrawal Penalties.

(a) If any association advertises a special rate of interest which is paid or credited, or is to be paid or credited, on one class of share or investment certificate account, or savings account, such advertising shall clearly set forth special restrictions or conditions applicable to such accounts.

(b) Any advertisement publicizing the rate of interest paid on savings accounts shall clearly state whether the association will or may impose a penalty for withdrawal from a savings account before maturity.

(c) Non-Cash Interest. Any advertisement announcing the distribution of any non-cash item (merchandise, goods or services) that is intended to be given as interest on an account in lieu of cash shall clearly and legibly disclose that the cost of such item will be a payment of interest.

HISTORY

1. Change without regulatory effect renumbering former Section 136.1 to Section 104.105 (Register 87, No. 14). For prior history, see Register 82, No. 45.

2. Amendment filed 4-13-88; operative 5-13-88 (Register 88, No. 18).

Note

Note: Authority cited: Section 8053, Financial Code. Reference: Section 6523, Financial Code.