Disclosure Statement

AAA

DEFINITION of 'Disclosure Statement'

1. A document explaining the rules of an IRA in plain, nontechnical language. This must be provided to the IRA owner at least seven days before the IRA is established, or it can be provided to the IRA owner at the time the IRA is being established providing the IRA owner is given seven days within which he/she may revoke the IRA.

2. A document outlining the specific terms and conditions of a loan, including the interest rate of the loan, any loan fees, the amount borrowed, insurance, prepayment rights and the responsibilities of the borrower.

INVESTOPEDIA EXPLAINS 'Disclosure Statement'

1. The disclosure statement must include information relating to IRA fees, IRA distribution rules and penalties, eligibility requirements for establishing an IRA and the general rules of an IRA.

2. This document must be sent by the lender to the borrower before the loan proceeds are disbursed.

RELATED TERMS
  1. Cooling-Off Rule

    A term referring to law pertaining to newly-entered contracts ...
  2. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  3. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Prepayment

    The satisfaction of a debt or installment payment before its ...
  6. Distribution

    1. When trading volume is higher than that of the previous day ...
Related Articles
  1. Tips On How To Use IRAs To Boost Retirement ...
    Retirement

    Tips On How To Use IRAs To Boost Retirement ...

  2. Traditional IRA Deductibility Limits ...
    Retirement

    Traditional IRA Deductibility Limits ...

  3. Recharacterizing Your IRA Contribution ...
    Taxes

    Recharacterizing Your IRA Contribution ...

  4. Roth Vs. Traditional IRA: Which Is Right ...
    Retirement

    Roth Vs. Traditional IRA: Which Is Right ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center