Compliance Question of the Week

In today’s banking environment as soon as one big new regulation is implemented another pops up. Our compliance resources help your community bank stay one step ahead of the regulators.

Regulations and Guidance

Compliance Question of the Week

Question: An employee has recently sought accommodations based on migraines stating it is covered under Americans with Disabilities Act. What is considered a disability under ADA?


In general, the ADA defines disability to include in part, “a physical or mental impairment that substantially limits one or more major life activities of such individual” (The complete definition should be consulted to ensure proper context.)

When making such a determination, ensure that proper consultation by qualified individuals is sought e.g., bank’s HR, legal counsel, etc.

Reference: Americans with Disabilities Act of 1990 (ADA), including changes made by the ADA Amendments Act of 2008 (P.L. 110-325): Title 42 Chapter 126 section 12101 “definition of disability”.

Question: What are the record retention requirements under the E-Sign Act?


Under the E-Sign Act, if a financial institution is legally required to maintain copies of a contract or other records of a transaction, the institution may rely on an electronic record of the information that accurately reflects the information in the contract or other record, and that remains accessible to all persons who are legally entitled to access the information in a form that can later be reproduced.

Reference: Fed. Consumer Compliance Outlook, 4th Quarter 2009; 15 U.S.C. 7001(d).

Question: What is definition of affirmative consent under CAN-SPAM?


The term "affirmative consent", when used with respect to a commercial electronic mail message, means that

(A) the recipient expressly consented to receive the message, either in response to a clear and conspicuous request for such consent or at the recipient's own initiative; and

(B) if the message is from a party other than the party to which the recipient communicated such consent, the recipient was given clear and conspicuous notice at the time the consent was communicated that the recipient's electronic mail address could be transferred to such other party for the purpose of initiating commercial electronic mail messages.

Reference: Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) 15 USC 7701.

Question: Under the Homeowners Protection Act, when must unearned premiums be returned for cancelled insurance?


Unearned premiums must be returned not later than 45 days after the termination or cancellation of a private mortgage insurance requirement under this section, all unearned premiums for private mortgage insurance shall be returned to the mortgagor by the servicer.

Reference: Homeowners Protection Act 12 USC 4902(f)

Question: Under the Service Members Civil Relief Act, how does a servicemember request relief?


The servicemember must provide a written notice to the creditor and a copy of the military orders calling the servicemember to military service and any orders further extending military service, not later than 180 days after the date of the servicemember's termination or release from military service. 

Reference: Section 207(b) ; 50 USC 527.  


Q&A Archives


Regulation R states relationship compensation is any compensation the bank receives attributable to a trust or fiduciary account that consists of:

  • An administration fee
  • An annual fee
  • A fee based on a percentage of assets under management
  • A flat or capped per order processing fee
  • Any combination of such fees
Reference: Regulation R: 12 CFR 218.721(a)(2)


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