Utah Admin. Code R331-25-5 - Affirmative Election to Purchase and Acknowledgment of Receipt of Disclosures
(1)
Affirmative election and acknowledgment of receipt of disclosures. Before
entering into an agreement the depository institution must obtain a customer's
written affirmative election to purchase an agreement and written
acknowledgment of receipt of the disclosures required by
R331-25-4(2).
The election and acknowledgment information must be conspicuous, simple,
direct, readily understandable, and designed to call attention to their
significance. The election and acknowledgment satisfy these standards if they
conform with the requirements in
R331-25-4(2)
of this rule.
(2) Telephone
solicitations: If the sale of an agreement occurs by telephone, the customer's
affirmative election to purchase may be made orally, provided the depository
institution:
(a) Maintains sufficient
documentation to show that the customer received the short form disclosures and
then affirmatively elected to purchase the agreement;
(b) Mails the affirmative written election
and written acknowledgment, together with the long form disclosures required by
this subsection, to the customer within 3 business days after the telephone
solicitation, and maintains sufficient documentation to show it made reasonable
efforts to obtain the documents from the customer; and
(c) Permits the customer to cancel the
purchase of the agreement without penalty within 30 days after the depository
institution has mailed the long form disclosures to the customer.
(3) Solicitations using written
mail inserts or ''take one'' applications: If the agreement is solicited
through written materials such as mail inserts or ''take one'' applications and
the depository institution provides only the short form disclosures in the
written materials, then the depository institution shall mail the
acknowledgment of receipt of disclosures, together with the long form
disclosures required by this subsection, to the customer within 3 business
days, beginning on the first business day after the customer contacts the
depository institution or otherwise responds to the solicitation. The
depository institution may not obligate the customer to pay for the agreement
until after the depository institution has received the customer's written
acknowledgment of receipt of disclosures unless the depository institution:
(a) Maintains sufficient documentation to
show that the depository institution provided the acknowledgment of receipt of
disclosures to the customer as required by this subsection;
(b) Maintains sufficient documentation to
show that the depository institution made reasonable efforts to obtain from the
customer a written acknowledgment of receipt of the long form disclosures;
and
(c) Permits the customer to
cancel the purchase of the agreement without penalty within 30 days after the
depository institution has mailed the long form disclosures to the
customer.
(4) Electronic
election: The affirmative election and acknowledgment may be made
electronically in a manner consistent with the requirements of the Electronic
Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et
seq.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.