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e-CFR
Data is current as of April 7, 2008

Title 12:
Banks and Banking

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PART 557—DEPOSITS

Section Contents

Subpart
A—General
§ 557.1   What
does this part do?

Subpart
B—Deposit Activities of Federal Savings
Associations
§ 557.10   What
authorities govern the issuance of deposit accounts by a federal savings
association?
§ 557.11   To
what extent does Federal law preempt deposit-related State
laws?
§ 557.12   What
are some examples of preempted state laws affecting
deposits?
§ 557.13   What
State laws affecting deposits are not preempted?
§ 557.14   What
interest rate may I pay on savings accounts?
§ 557.15   Who
owns a deposit account?

Subpart
C—Deposit Activities of All Savings
Associations
§ 557.20   What
records should I maintain on deposit activities?

Authority:   12 U.S.C. 1462a, 1463,
1464.

Source:   62 FR 54764, Oct. 22, 1997,
unless otherwise noted.

Subpart A—General

top

§ 557.1   What does this part do?

top

This part applies to the deposit activities of savings associations. If
you are a federal savings association, subpart B of this part applies to
your deposit activities. Subpart C of this part applies to the deposit
activities of all federal and state-chartered savings associations.

Subpart B—Deposit Activities of Federal Savings
Associations

top

§ 557.10   What authorities govern the issuance of
deposit accounts by a federal savings association?

top

A federal savings association (“you”) may raise funds through accounts
and may issue evidence of accounts under section 5(b)(1) of the HOLA (12
U.S.C. 1464(b)(1)), your charter, and this part. Additionally, 12 CFR
parts 204 and 230 apply to your deposit activities.

§ 557.11   To what extent does Federal law preempt
deposit-related State laws?

top

(a) Under sections 4(a), 5(a), and 5(b) of the HOLA, 12 U.S.C. 1463(a),
1464(a), and 1464(b), OTS is authorized to promulgate regulations that
preempt state laws affecting the operations of federal savings
associations when appropriate to:

(1) Facilitate the safe and sound operations of federal savings
associations;

(2) Enable federal savings associations to operate according to the
best thrift institutions practices in the United States; or

(3) Further other purposes of HOLA.

(b) To further these purposes without undue regulatory duplication and
burden, OTS hereby occupies the entire field of federal savings
associations' deposit-related regulations. OTS intends to give federal
savings associations maximum flexibility to exercise deposit-related
powers according to a uniform federal scheme of regulation. Federal
savings associations may exercise deposit-related powers as authorized
under federal law, including this part, without regard to state laws
purporting to regulate or otherwise affect deposit activities, except to
the extent provided in §557.13. State law includes any statute,
regulation, ruling, order, or judicial decision.

[62 FR 54764, Oct. 22, 1997, as amended at 63 FR 71212, Dec. 24, 1998;
64 FR 69184, Dec. 10, 1999; 67 FR 78152, Dec. 23, 2002]

§ 557.12   What are some examples of preempted
state laws affecting deposits?

top

The OTS preempts state laws that purport to impose requirements
governing the following:

(a) Abandoned and dormant accounts;

(b) Checking accounts;

(c) Disclosure requirements;

(d) Funds availability;

(e) Savings account orders of withdrawal;

(f) Service charges and fees;

(g) State licensing or registration requirements; and

(h) Special purpose savings services.

§ 557.13   What State laws affecting deposits are
not preempted?

top

(a) The OTS has not preempted the following types of state law, to the
extent that the law only incidentally affects your deposit-related
activities or is otherwise consistent with the purposes of §557.11:

(1) Contract and commercial law;

(2) Tort law; and

(3) Criminal law.

(b) The OTS will not preempt any other state law if the OTS, upon
review, finds that the law:

(1) Furthers a vital state interest; and

(2) Either only incidentally affects your deposit-related activities or
is not otherwise contrary to the purposes expressed in §557.11.

§ 557.14   What interest rate may I pay on savings
accounts?

top

(a) You may pay interest at any rate or anticipated rate of return on
savings accounts, either in deposit or in share form, as provided in your
charter and the account's terms.

(b) You may pay fixed or variable rates. If you pay a variable rate,
you must base it on a schedule, index, or formula that you specify in the
account's terms.

§ 557.15   Who owns a deposit account?

top

You may treat the holder of record as the account owner, even if you
receive contrary notice, until you transfer the account on your
records.

Subpart C—Deposit Activities of All Savings Associations

top

§ 557.20   What records should I maintain on
deposit activities?

top

All federal and state chartered savings associations (“you”) should
establish and maintain deposit documentation practices and records that
demonstrate that you appropriately administer and monitor deposit-related
activities. Your records should adequately evidence ownership, balances,
and all transactions involving each account. You may maintain records on
deposit activities in any format that is consistent with standard business
practices.

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