Disclosure (Banking) Law and Legal Definition
Disclosure is the act of revealing a fact. In financial statements information disclosure is usually provided in footnote as attachment. Disclosure explains financial position and operating result of an institution. Federal and state laws require banks to provide information on credit terms to customers. Bank disclosure information means information extracted from the key information summaries disclosed by registered banks. Moreover, all consumer and residential mortgagors requires disclosure. Generally, banks are required to disclose the following items:
- finance charges;
- method of interest rate computation; and
- minimum monthly payment.
When a dispute arises in billing, procedure adopted for finding the error must be included in the disclosure. When a bank refuses to provide a consumer loan, the disclosure must include the reason for rejecting the application. Full disclosure requires disclosure of all material facts related to a transaction.
Legal Definition list
Related Legal Terms
- Abstraction [Banking]
- Accelerated Disclosure
- Accommodation Maker(Banking)
- Account [Banks & Banking]
- Acting in Concert [Banks & Banking]
- Adequate Disclosure
- Affiliate [Banks & Banking]
- Alternative Mortgage Transaction [Banks & Banking]
- Application for a Deposit Facility [Banks & Banking]
- Appropriate Federal Banking Agency
