United States: Consumer Finance Update: Summary Of The CFPB's Third Webinar On The TILA-RESPA Integrated Disclosures

On October 1, 2014, the US Consumer Financial Protection Bureau ("CFPB") conducted the third in a series of webinars on the TILA-RESPA Integrated Disclosure Final Rule ("Rule"), providing guidance on some of the common questions that have been raised since the Rule was issued in November 2013.

In this public online event, staff from the CFPB's Office of Regulations presented prepared questions and answers regarding the Rule. The questions focused on completion of the Loan Estimate. The Loan Estimate is the disclosure that will replace the Good Faith Estimate and the initial Truth in Lending Statement for most closed-end consumer real estate loans on August 1, 2015. Some of the questions related to completion of the Closing Disclosure as well, which will replace the HUD-1 settlement statement and the final Truth in Lending Statement.

Below we have summarized the questions and answers addressed on this webinar. We have also included helpful notes below some of the answers, providing additional guidance on the Rule from our team of experts.

We also note that this guidance is informal and cannot replace the language of the Rule. In addition, this guidance is subject to change. The CFPB's introductory slide states, the information provided "does not represent legal interpretation, guidance or advice of the Bureau...and does not bind the Bureau." Significantly, many of the provisions of the Rule could be subject to civil and assignee liability under TILA. Therefore, we advise caution when relying on this unofficial form of guidance.

Richard Horn led the creation of the Rule during his tenure as Senior Counsel and Special Advisor at the CFPB.

General

Is there a required font and font size for the Loan Estimate? (1026.37(o); Comment 37-2)

There are required font sizes, but no specific font type is required for the integrated disclosures. CFPB staff noted that the preamble explains that the integrated disclosures are standard forms under §§ 1026.37(o)(3) and 1026.38(t)(5) for federally-guaranteed mortgage loans, requiring use of forms H-24 and H-25 and all of their elements, including font sizes, bolding, shading, and underscoring. The staff stated that they interpret this to require the various font sizes on the forms, but not the font type.

Can the designation "N/A" be used where no value is to be disclosed on the Loan Estimate? (Comment 37-1)

No. "N/A" cannot be used where no value is to be disclosed on the form. Generally, the Rule states that when a disclosure is not applicable, it should be deleted from the form or left blank.

Is there a required naming convention used for charges on the Loan Estimate?

No. The Rule did not prescribe a uniform naming convention for fees, or a standard list of fee names. But some specific types of charges must be disclosed in certain ways. The CFPB provided the example of points paid to lower the interest rate, which are disclosed under § 1026.37(f)(1)(i) in the first line of Origination Charges in a specific manner, as shown on Form H-24. Another example provided was that title insurance services disclosed under § 1026.37(f)(2) and (3) are required to include the prefix "Title -."

Does the creditor have to disclose an itemization of the amount financed with the Loan Estimate?

No. A creditor would not disclose an itemization of the amount financed with the Loan Estimate. The Itemization of Amount Financed, which may be required under § 1026.18(c), is not required to be provided either with the Loan Estimate or the Closing Disclosure for transactions covered by the Rule. The CFPB staff noted that for the Closing Disclosure, § 1026.38(o)(3) requires only the Amount Financed to be disclosed, calculated in accordance with § 1026.18(b). The CFPB staff also noted that some disclosures are not disclosed on the Loan Estimate, such as the Amount Financed and Finance Charge, but are disclosed on the Closing Disclosure.

Header (§ 1026.37(a))

When the Sale Price of the property is not yet known, does the creditor disclose a label other than "Sale Price" for the Sale Price on the Loan Estimate? (1026.37(a)(7))

No. For transactions with a seller, § 1026.37(a)(7) requires the label to state "Sale Price." For transactions without a seller, the creditor is required to disclose the estimated value of the property using the label "Prop. Value."

[Note: The Rule requires the label for transactions without sellers to be "Est. Prop. Value." This is because § 1026.37(o) requires lenders to incorporate "estimated" labels if they are included on Form H-24, even if the Rule does not include the estimated label in the regulatory text.]

If a loan product consists of a combination of two product types – e.g. a step rate for a set period of time, followed by an adjustable rate for the remaining term of the loan – how is the product to be described? Should it be described as an Adjustable Rate loan or as a Step Rate loan? (1026.37(a)(10))

A creditor is required under § 1026.37(a)(10) to choose only one product type from the following: Step Rate, Adjustable Rate, or Fixed Rate. If a loan has both a Step Rate and an Adjustable Rate period, it must be disclosed as Adjustable Rate. The hybrid loan would fall under the definition of "Adjustable Rate" because even though some of the interest rate changes during the step periods are known, it has an adjustable rate period during which the interest rate that will apply is not known at consummation.

Is the mailing address for each Applicant the U.S. postal mailing address or can it be some other type of address? (1026.37(a)(5))

The mailing address disclosed in this section must be the applicant's U.S. postal mailing address. No other type of address, such as an applicant's email address, may be used instead.

Brokered Transactions

If a broker is issuing a Loan Estimate but does not know the creditor, may the broker put its name in place of the creditor's? (1026.37(a)(3))

No. Section 1026.37(a)(3) requires the creditor's name. The Rule requires the broker to conduct a good faith effort to disclose the creditor's name. But if it is not known, the broker may leave this part of the disclosure blank. But the broker cannot put its own name in that section, because the Rule does not instruct the broker to substitute its name for the creditor's. See comment 37(a)(3)-2.

Section 1026.37(a)(12) indicates the creditor must disclose a unique loan ID number. If the creditor is unknown, is the broker required to generate and disclose a unique ID number?

No. A broker would not be required to generate and disclose its own unique loan ID number Assuming the creditor's Loan ID# is not reasonably available to the broker, the loan ID number could be left blank. As Comment 37(a)-1 states, the Loan ID# must be a unique alphanumeric identifier determined by the creditor. The creditor can outsource this function and allow brokers to generate and assign loan ID numbers on their behalf. Creditors could also provide unique loan ID numbers to brokers in advance of the disclosures to use on the LE. In those circumstances, the loan ID number would be reasonably available to the broker and would be required to be disclosed on the LE. However, where a creditor hasn't been determined, and the broker does not have any loan ID number based on the best information reasonably available, it can be left blank. The CFPB staff states that this is consistent with comment 37(a)(3)-1, which states that the creditor's name can be left blank if unknown. The staff also states that this is consistent with comment 37-1.

What about after the creditor is known? Is the creditor required to disclose its own unique loan ID once there is a creditor for the loan?

Yes. A creditor would be required to disclose the loan ID number on any subsequent disclosures it provides, such as revised Loan Estimates or the Closing Disclosure. The creditor is ultimately responsible for the disclosures.

Loan Terms (1026.37(b))

What interest rate should be disclosed where the initial interest rate is calculated using a different formula than that used for subsequent rate adjustments? (1026.37(b)(2))

The creditor should disclose the initial interest rate. Section 1026.37(b)(2) requires disclosure of the interest rate applicable at the date of consummation. A different calculation is only used when the initial interest rate is not known at the time the Loan Estimate is completed. Preamble to § 1026.37(b)(2) discusses multiple interest rates applying to different portions of a loan's principal balance in a precomputed transaction, and could be read to imply that the disclosure required would be one interest rate that is a composite of the different interest rates that apply to the loan's principal balance. However, the rule is clear that disclosure requires is the initial interest rate that will be applicable to the transaction at consummation.

[Note: The guidance in the Rule's preamble about precomputed transactions was provided in response to a public comment requesting guidance on how to disclose precomputed interest rates, add-on interest rates, discount rates, and split interest rates (where the interest rates are precomputed based on different rates applying to different portions of the precomputed loan amount). Please let us know if you would like guidance on these types of products.]

How does a creditor disclose items in the Loan Terms table where the applicable dates for changes to interest rate, periodic payments, balloon payments, or prepayment penalties are not in whole years? (1026.37(b)(8) and .37(a)(10))

The CFPB staff stated that these time periods are disclosed all in whole years, except when there are fewer than 24 months in that time period, in which case they are disclosed in whole months with "mo."

Projected Payments (1026.37(c))

Can the amount disclosed for Estimated Taxes, Insurance & Assessments be for a time period of other than monthly? (1026.37(c)(4) and .37(o)(5))

Yes. If the transaction terms provide for other than monthly periodic payments, § 1026.37(o)(5) provides that the creditor must disclose the applicable period set out in the terms of transaction, e.g. bi-weekly.

If mortgage insurance will automatically terminate in the time period that would be included in the 4th column, how do I indicate that mortgage insurance will terminate before the end of the loan? (1026.37(c)(1)(ii))

In this situation, the automatic termination of mortgage insurance would not be disclosed. The automatic termination of mortgage insurance is only disclosed if there are three or fewer columns. If there are already four columns required to disclose changes to the periodic principal and interest payment, regardless of when the changes to the principal and interest payment occur during the loan term, the creditor would not disclose the automatic termination of mortgage insurance. Also, comment 37(c)(1)(3)-1 clarifies that mortgage insurance premiums are not disclosed as a range of payments.

Must the escrow row be shown if no escrow account is established? (1026.37(c)(2))

Yes. If no escrow account is established, the row must be disclosed, but the amount should be disclosed as zero.

Are flood insurance premiums included in Homeowner's Insurance for purposes of the Escrow disclosure and the Taxes, Insurance & Assessments disclosure on the Projected Payments table? (1026.37(c)(4))

Yes. Flood insurance is included in the Homeowner's Insurance disclosure. Section 1026.37(c)(4)(ii) defines what insurance is to be included, which are charges listed under section 1026.43(b)(8). This includes "premiums or other charges for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property, written in connection with a credit transaction," and this would include flood insurance.

Costs at Closing (1026.37(d))

Are the modifications to the Loan Estimate for transactions without a seller required? (1026.37(d) and (h))

No. The modifications for transactions without a seller under § 1026.37(d)(2) and (h)(2) are not required. They are optional. However, both of the modifications to the Costs at Closing table and the Calculating Cash to Close table (on page 2) must be used together if using the alternative Loan Estimate. See comment 37(d)(2)-1.

[Note: Also note that if a creditor elects to use the alternative Loan Estimate for a transaction without a seller, the creditor must also use the alternative Closing Disclosure. See the corresponding provisions under § 1026.38.]

Origination Charges (1026.37(f))

If a creditor charges an origination fee that is a percentage of the loan amount, but it is not a "point paid to the creditor to reduce the interest rate," may the creditor identify it as a point in some way to preserve its tax deductibility for the consumer? (1026.37(f)(1))

No. It could not. Section 1026.37(f)(1)(i) is clear that only points charged in connection with a reduction in the interest rate may be disclosed as points on the form. If there are no points charged to reduce the interest rate, the creditor leaves this row blank. The answer also relies on comment 37(f)(1)-3, which, for charges other than the points paid to reduce the interest rate, requires clear and conspicuous terminology that describes the service. The answer also relies on comment 37(f)(1)-4, which states that the creditor should leave the points line blank if there are no points paid to reduce the interest rate.

Assume the creditor will pay a Loan-Level Price Adjustment (LLPA) to the secondary market purchaser (1026.37(f)(1)). If the creditor does not charge the consumer an upfront fee, but passes the cost of the LLPA on to the consumer through interest, is the creditor required to disclose the LLPA?

No. In this scenario, the creditor is not charging the consumer an upfront fee, but capturing the LLPA through the interest rate. It would not be considered a settlement charge to disclose under § 1026.37(f).

If the creditor does charge the consumer an upfront fee, should it be disclosed as a "point" or an "origination charge"?

The answer depends on how the upfront fee is charged. If the upfront LLPA is charged at closing as a flat origination charge, then it would be itemized and labeled as an "origination charge." However, the creditor could include the cost of the LLPA in the interest rate, and then allow the borrower to pay a point to reduce the interest rate. In that case, the charge would be disclosed as a point and not a fee. See comment 37(f)(1)-5.

If the creditor offers the borrower a zero or lower point option, and the consumer chooses to pay for discount points in an amount greater than the LLPA to obtain a lower rate, may the creditor disclose the amount paid as discount points rather than an origination charge?

Yes. Creditors have some degree of flexibility in how they factor in LLPAs. If creditor includes the LLPA in the interest rate and discounts the interest rate through the payment of points. This is consistent with guidance the CFPB has provided with respect to the determination of bona fide discount points, which generally permits the undiscounted rate to include LLPAs. Whether the discount point is a bona fide discount point and excludable from "points and fees" is not a factor in whether it is disclosed as a point on the integrated disclosures.

Must a creditor disclose fees that are not allowed by FHA/VA? If so, where? (Comment 37-1; 1026.17(c))

If the FHA/VA loan prohibits a type of fee, the creditor should not charge the fee. If the program allows the creditor to charge the fee and offset it with a lender credit, the creditor must disclose the charge and the lender credit. The CFPB, however, does not weigh in on whether a fee is permissible for a particular loan program.

How does the creditor disclose charges for third-party administrative and processing fees that are currently rolled up into Block 1 of the GFE? (1026.37(f)(1) and (f)(2))

The creditor generally decides the extent of itemization in the origination charges section on the Loan Estimate, except for charges that are required to be itemized, such as points and LLPAs. To the extent these are settlement services the consumer will pay for, they are disclosed under Service You Cannot Shop For under § 1026.37(f)(2). Whether it is disclosed as a settlement service under this section depends on whether the creditor requires the consumer to pay for it, or treats it as normal business overhead expenses, such as rent or utilities.

Can a creditor change the number of lines for each category of costs if there are more or fewer charges in each category? (1026.37(f)(6))

No. Each category in the Loan Costs section has a prescribed number of lines. A creditor cannot change the number of lines on the Loan Estimate. If a creditor runs out of lines for Origination Charges or Services You Cannot Shop For, it must disclose the aggregate amount of the additional charges in the last line of the section as "additional charges." § 1026.37(f)(6)(i). However, for Services You Can Shop For, the additional charges can be itemized in an addendum to the Loan Estimate. § 1026.37(f)(6)(ii).

[Note: Section 1026.38 provides more flexibility with respect to the number of lines in the closing costs categories on the Closing Disclosure.]

How should premium rate credit or "negative points" be disclosed? May the creditor add a separate addendum to detail the offset? (1026.37(g)(6))

This should be disclosed as a Lender Credit. See comment 37(g)(6)(ii)-2. The creditor may not add an addendum to itemize the lender credits. The CFPB made a policy decision not to have these credits itemized on the Loan Estimate.

Other Costs (1026.37(g))

Recording fees and other taxes appear to encompass all government taxes which are not transfer taxes. Does this include taxes on separate services, such as title insurance? (1026.37(g)(1))

No. It does not. The taxes disclosed under § 1026.37(g)(1)(i) are limited to those associated with the recording of documents. Sales or other taxes assessed on other services and paid to the individual service provider are included in the cost of the individual service, and not disclosed in the Recording Fees and Other Taxes section.

Credit life insurance is usually paid on a monthly basis, but is only mentioned in the "Other" section of "Other Costs." Is that where I should disclose the premium? (1026.37(g)(4))

No, assuming this is about optional credit insurance premiums charged monthly, they would not be disclosed there. The amount disclosed in this section is any amount paid in connection with the transaction as a closing cost. Section 1026.37(g)(4) would only be include amounts paid up front, to the extent permissible.

Calculating Cash to Close (1026.37(h))

How does a creditor determine the "third party" payments to be deducted from the loan amount to calculate the Closing Costs Financed line item on the Calculating Cash to Close table? (1026.17(c) and .37(g))

The amounts to be deducted are third party payments not otherwise disclosed as closing costs under § 1026.37(f) or (g). They would include the payoff of an existing loan with the same creditor, if not included in the Other category under Other Costs.

Is the deposit or down payment subtracted as part of the calculation of Closing Costs Financed? (1026.37(h))

No. The deposit would not be subtracted. The calculation of the Closing Costs Financed is not affected by the deposit. The deposit has its own line item.

Is the calculation of the Closing Costs Financed line item affected by a seller credit? (1026.37(h))

No. Closing Costs Financed is not affected by seller credits. Seller credits are disclosed as a separate Seller Credits line item.

For the "Downpayment/Funds from Borrower" line item, does the "existing debt" being satisfied include any type of debt, other than debts disclosed under §1026.37(g), whether or not the creditor required it to be repaid?

Yes. Any type of debt would be included in the Funds from Borrower line item, except for in purchase transactions, which have special rules for that (see comment 37(h)(1)(v)-1). The creditor is required to complete this section based on the best information reasonably available.

What debt is disclosed under § 1026.37(g)(4) instead of as part of Payoffs and Payments under the alternative Calculating Cash to Close table?

To the extent a creditor discloses debts the creditor knows about based on the best information reasonable available, the creditor may disclose these amounts under § 1026.37(g)(4). If it does not disclose the debt not there, then its approximate value is included in the Payoffs and Payments line in the alternative Calculating Cash to Close table.

Does the payoff of any outstanding debt of the consumer included as part of Payoffs and Payments or only those debts of the consumer that are required to be paid as a condition of the extension of credit? (1026.37(h)(2))

The Payoffs and Payments line item includes any amounts paid or payoffs to be made, based on the best information reasonably available to the creditor. The amount is not limited to those debts required to be paid by the creditor. See comment 37(h)(2)(iii)-1.

Can the alternative cash to close table be used for multiple loan transactions without a seller? There is no line for the application of subordinate financing in the alternative Cash to Close table. (1026.37(h)(2))

Yes. The alternative table can be used. To the extent there are multiple transactions, each loan covered by the rule will have a separate Loan Estimate and Closing Disclosure. In the case of a first-lien cash-out refinance with subordinate-lien financing, the settlement agent can total up the amounts due to or from the consumer across all the loans to determine the final amount due to or from the consumer. There is no requirement in the alternative Calculating Cash to Close provisions for the Loan Estimate or the Closing Disclosure for one of the loans to disclose the "master" Cash to Close amount across all the transactions.

Can the standard Calculating Cash to Close table disclose the Estimated Cash to Close amount as a negative number? (1026.37(h)(1))

Yes. When the calculation of § 1026.37(h)(1)(viii) (the sum of all the amounts disclosed in the table) is negative, then the negative number is disclosed for the Estimated Cash to Close here and also on Page 1 under § 1026.37(d)(2). The negative number indicates the consumer is receiving that amount at closing.

AP & AIR Tables (1026.37(i) and (j))

Are the adjustable payments and adjustable interest tables disclosed for a fixed rate loan? (1026.37(i) and .37(j))

The Adjustable Payment table would be disclosed if the Fixed Rate loan has any adjustable payment features. The Adjustable Interest Rate table is never disclosed for a Fixed Rate loan.

Contact Information (1026.37(k))

In a loan with a mortgage broker, must both a creditor's loan officer and a mortgage broker's loan officer be listed? (1026.37(k); 1026.36(g))

Yes. In a loan with a mortgage broker, both the creditor and mortgage broker's contact information, including the loan officer information (name and NMLS ID), must be disclosed. However, this is assuming that the names and IDs are available based on the best information reasonably available. This standard includes an obligation to conduct due diligence to obtain the information. But if no individual loan officer has been assigned, or if the creditor name is not known, it can be left blank. When the creditor in a brokered transaction does receive the loan, the creditor would disclose the contact information, including the information for a loan officer.

Should we use the same person's NMSLR identification number that will be identified on the note and other documents? (1026.37(k); 1026.36(g))

Yes. Creditors should use the same person's NMLSR ID that is identified on other documents under § 1026.36(g). The CFPB staff states that these two provisions should be read the same, even though § 1026.36(g) requires this to be the LO with "primary responsibility for origination" and § 1026.37(k) describes this person as the "primary contact for the consumer." The CFPB staff states that although the language is different, they consider this to be the same person. The CFPB staff also noted that section 1026.36(g)(2)(ii) will be amended prior to the August 1, 2015 effective date to require that person's NMLSR ID on the integrated disclosures.

[Note: We hope that the CFPB includes in the final rule amending § 1026.36(g)(2)(ii) some written guidance in the commentary and/or the preamble stating that creditors should use the same loan officer under §§ 1026.36(g) and § 1026.37(k). The differences in the regulatory text could, in some circumstances, lead to a different interpretation. A commentary provision permitting this treatment of the two provisions would be helpful.]

Comparisons (1026.37(l))

Is the Annual Percentage Rate disclosed as a rounded amount or is it truncated at three decimal places? (1026.37(l) and .37(o)(4))

The APR is not rounded and should be disclosed to 3 decimal places. However, if it is a whole number, it is truncated at the decimal point (e.g., 7%, and not 7.0% or 7.00%). If the APR has only two decimal points, a zero is added to bring it to three decimal points (e.g., 7.250%, and not 7.25%). This is different from other percentage amount disclosures on the form for which a zero is not added to bring a two-decimal amount up to three decimal points.

Other Considerations (1026.37(m))

Does the creditor need to disclose on the Loan Estimate that it will transfer servicing if the transfer is not immediate, but will happen at some later point in time during the life of the loan? (1026.37(m)(6))

Yes. The creditor must disclose its intent to transfer servicing at any time after consummation. See comment 37(m)(6)-1, which states that the disclosure depends on the creditor's intent at the time of issuance.

Does the creditor need to disclose on the Loan Estimate that it will transfer servicing if the transfer is to the creditor's subsidiary or affiliate? (1026.37(m)(6))

Yes. The creditor must disclose this, because the subsidiary or affiliate would be considered another servicer. See comment 37(m)(6)-1.

Does the Appraisal notice satisfy the requirements of Regulation B, or does the creditor need to provide a separate disclosure for that requirement? (1026.37(m)(7))

This disclosure satisfies the disclosure requirement of Regulation B. But the creditor is still required to provide a copy of the appraisal under Regulation B. See the preamble of the final rule, 78 FR 79985-87.

Service Provider List (1026.19(e)(1)(vi) and Appendix H-27)

How can a creditor communicate to the consumer that the identification of a service provider on the written list is not an endorsement of that service provider?

A creditor is permitted to include language indicating that inclusion of a service provider on the written list is not an endorsement of the provider. See comment 19(e)(1)(vi)-6. But there is no specific language for this statement. The general requirement that information be disclosed clearly and conspicuously under § 1026.17(a) would apply to the language included by the creditor.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
6 Dec 2017, Webinar, New York, United States

Join Dentons for a complimentary webinar focused on the ongoing challenge of integrating new technologies into existing information governance policies and risk management frameworks.

7 Dec 2017, Seminar, Cape Town, South Africa

Dentons South Africa would be delighted if you could join us for our upcoming event.

8 Dec 2017, Seminar, Johannesburg, South Africa

Dentons South Africa would be delighted if you could join us for our upcoming event.

 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Emails

From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.