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applicable) and any other required periodic payments or pre- miums. ‘‘(5) The fact that, if the consumer chooses to terminate the account in the future, the consumer will become responsible for the payment of all taxes, hazard insurance, and flood insur- ance, if applicable, as well as any other required periodic pay- ments or premiums on the property unless a new escrow or impound account is established. ‘‘(6) Such other information as the Board determines nec- essary for the protection of the consumer. ‘‘(i) DEFINITIONS.—For purposes of this section, the following definitions shall apply: ‘‘(1) FLOOD INSURANCE.—The term ‘flood insurance’ means flood insurance coverage provided under the national flood insurance program pursuant to the National Flood Insurance Act of 1968. ‘‘(2) HAZARD INSURANCE.—The term ‘hazard insurance’ shall have the same meaning as provided for ‘hazard insurance’, ‘casualty insurance’, ‘homeowner’s insurance’, or other similar term under the law of the State where the real property securing the consumer credit transaction is located.’’. (b) EXEMPTIONS AND MODIFICATIONS.—The Board may prescribe 15 USC 1639d rules that revise, add to, or subtract from the criteria of section note. 129D(b) of the Truth in Lending Act if the Board determines that such rules are in the interest of consumers and in the public interest. (c) CLERICAL AMENDMENT.—The table of sections for chapter 2 of the Truth in Lending Act is amended by inserting after the item relating to section 129C (as added by section 1411) the fol- lowing new item:

‘‘129D. Escrow or impound accounts relating to certain consumer credit trans- actions.’’.

SEC. 1462. DISCLOSURE NOTICE REQUIRED FOR CONSUMERS WHO 15 USC 1639d. WAIVE ESCROW SERVICES. Section 129D of the Truth in Lending Act (as added by section 1461) is amended by adding at the end the following new subsection: ‘‘(j) DISCLOSURE NOTICE REQUIRED FOR CONSUMERS WHO WAIVE ESCROW SERVICES.— ‘‘(1) IN GENERAL.—If— ‘‘(A) an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to real property securing a con- sumer credit transaction is not established in connection with the transaction; or ‘‘(B) a consumer chooses, and provides written notice to the creditor or servicer of such choice, at any time after such an account is established in connection with any such transaction and in accordance with any statute, regulation, or contractual agreement, to close such account, the creditor or servicer shall provide a timely and clearly writ- ten disclosure to the consumer that advises the consumer of the responsibilities of the consumer and implications for the LAWS consumer in the absence of any such account. ‘‘(2) DISCLOSURE REQUIREMENTS.—Any disclosure provided to a consumer under paragraph (1) shall include the following:PUBLIC with on anorris VerDate Nov 24 2008 04:10 Sep 04, 2010 Jkt 089139 PO 00203 Frm 00807 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203