Appendix B to Part 37 - Long Form Disclosures
12:1.0.1.1.34.0.28.9.26 : Appendix B
Appendix B to Part 37 - Long Form Disclosures • This product is
optional
Your purchase of [PRODUCT NAME] is optional. Whether or not you
purchase [PRODUCT NAME] will not affect your application for credit
or the terms of any existing credit agreement you have with the
bank.
• Explanation of debt suspension agreement [Applicable if the
contract has a debt suspension feature]
If [PRODUCT NAME] is activated, your duty to pay the loan
principal and interest to the bank is only suspended. You must
fully repay the loan after the period of suspension has expired.
[If applicable]: This includes interest accumulated during the
period of suspension.
• Amount of fee
[For closed-end credit]: The total fee for [PRODUCT NAME] is
__.
[For open-end credit, either:] (1) The monthly fee for [PRODUCT
NAME] is based on your account balance each month multiplied by the
unit-cost, which is ___; or (2) The formula used to compute
the fee is _____].
• 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] payments. 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 have the option to purchase [PRODUCT NAME] that includes a
refund of the unearned portion of the fee if you terminate the
contract or prepay the loan in full prior to the scheduled
termination date. Prices of refund and no-refund products may
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]
[Either:] (1) You may cancel [PRODUCT NAME] at any time and
receive a refund; or (2) You may cancel [PRODUCT NAME] within __
days and receive a full refund; or (3) If you cancel [PRODUCT NAME]
you will not receive a refund.
• Use of card or credit line restricted [Applicable if the contract
restricts use of card or credit line when customer activates
protection]
If [PRODUCT NAME] is activated, you will be unable to incur
additional charges on the credit card or use the credit line.
• Termination of [PRODUCT NAME]
[Either]: (1) You have no right to cancel [PRODUCT NAME];
or (2) You have the right to cancel [PRODUCT NAME] in the
following circumstances: _____.
[And either]: (1) The bank has no right to cancel [PRODUCT
NAME]; or (2)The bank has the right to cancel [PRODUCT NAME]
in the following circumstances: _____.
• Eligibility requirements, conditions, and exclusions
There are eligibility requirements, conditions, and exclusions
that could prevent you from receiving benefits under [PRODUCT
NAME].
[Either]: (1) The following is a summary of the eligibility
requirements, conditions, and exclusions. [The bank provides a
summary of any eligibility requirements, conditions, and
exclusions]; or (2) You may find a complete explanation of
the eligibility requirements, conditions, and exclusions in
paragraphs ___ of the [PRODUCT NAME] agreement.