Special rule for electronic election. The affirmative election and acknowl- edgment may be made electronically in a manner consistent with the require- ments of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et seq.
Special rule for electronic election. The affirmative election and acknowl- edgment may be made electronically in a manner consistent with the require- ments of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et seq. [67 FR 58976, Sept. 19, 2002, as amended at 00 XX 00000, Xxx. 24, 2008] § 37.8 Safety and soundness require- ments. A national bank must manage the risks associated with debt cancellation contracts and debt suspension agree- ments in accordance with safe and sound banking principles. Accordingly, a national bank must establish and maintain effective risk management and control processes over its debt can- cellation contracts and debt suspension agreements. Such processes include ap- propriate recognition and financial re- porting of income, expenses, assets and liabilities, and appropriate treatment of all expected and unexpected losses associated with the products. A bank also should assess the adequacy of its internal control and risk mitigation activities in view of the nature and scope of its debt cancellation contract and debt suspension agreement pro- grams. APPENDIX A TO PART 37—SHORT FORM DISCLOSURES • This product is optional Your purchase of [PRODUCT NAME] is op- tional. Whether or not you purchase [PROD- UCT NAME] will not affect your application for credit or the terms of any existing credit agreement you have with the bank. • Lump sum payment of fee [Applicable if a bank offers the option to pay the fee in a single payment] [Prohibited where the debt subject to the contract is a residential mortgage loan] You may choose to pay the fee in a single lump sum or in [monthly/quarterly] pay- ments. Adding the lump sum of the fee to the amount you borrow will increase the cost of [PRODUCT NAME]. • Lump sum payment of fee with no refund [Applicable if a bank offers the option to pay the fee in a single payment for a no-refund DCC] [Prohibited where the debt subject to the contract is a residential mortgage loan] You may choose [PRODUCT NAME] with a refund provision or without a refund provi- sion. Prices of refund and no-refund products are likely to differ. • Refund of fee paid in lump sum [Applicable where the customer pays the fee in a single payment and the fee is added to the amount borrowed] [Prohibited where the debt subject to the contract is a residential mortgage loan]
