Full text of Annual Report to Congress on the Equal Credit Opportunity Act for the Year : Annual Report to Congress on the Equal Credit Opportunity Act, for the Year 1976

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ANNUAL REPORT TO CONGRESS
ON
THE EQUAL CREDIT OPPORTUNITY ACT
FOR THE YEAR 1976

Board o f Governors o f the F e d e r a l Reserve
February 1, 1977

System

TABLE OF CONTENTS

Page
I.

ADMINISTRATIVE FUNCTIONS
A.

B.

C.

The Equal C r e d i t O p p o r t u n i t y Act and
Regulation B

1

Amendments and I n t e r p r e t a t i o n s
Regulation B

4

of

The 1976 Amendments t o the A c t and the
i s s u a n c e o f amended R e g u l a t i o n B

II.

6

D.

Education

12

E.

Consumer A d v i s o r y C o u n c i l

13

ENFORCEMENT AND ASSESSMENT OF COMPLIANCE
A.

The B o a r d ' s enforcement a c t i v i t i e s

14

B.

Enforcement a c t i v i t i e s
agencies

16

C.

o f the

other

Assessment o f compliance

19

APPENDIX A — Consumer A d v i s o r y C o u n c i l Members
APPENDIX B — Rules o f O r g a n i z a t i o n and Procedure o f
Consumer A d v i s o r y C o u n c i l




the

The Board o f Governors o f the F e d e r a l Reserve System i s
t o submit t o Congress t h i s
Opportunity A c t .

f i r s t Annual Report on the E q u a l

The r e p o r t

pleased

Credit

includes a discussion of Regulation B

which was adopted by the Board i n October 1975 t o implement the A c t ' s
prohibition of discrimination i n credit
status.
ing i t s

D u r i n g 1976, the Equal C r e d i t O p p o r t u n i t y A c t was amended by e x t e n d p r o h i b i t i o n of discrimination i n credit

based on r a c e ,

color,

assistance benefits,
Credit

on the b a s i s o f sex and m a r i t a l

religion,

national origin,

discrimination

age, r e c e i p t o f

public

and the good f a i t h e x e r c i s e o f r i g h t s under the Consumer

Protection Act.

The a d o p t i o n o f the s t a t u t o r y amendments r e q u i r e d

r e v i s i o n o f t h e B o a r d ' s R e g u l a t i o n B.
Regulation B w i l l

t o cover

go i n t o e f f e c t

the

The s t a t u t o r y amendments and r e v i s e d

on March 23,

1977.

T h i s r e p o r t a l s o i n c l u d e s a summary o f the enforcement
taken by the a g e n c i e s assigned a d m i n i s t r a t i v e

enforcement

actions

responsibilities

under s e c t i o n 704 o f the Act and an assessment o f the e x t e n t t o which comp l i a n c e w i t h t h e requirements o f the Act
not making recommendations
recommendations,
to

if

i s being achieved.

The Board

f o r s t a t u t o r y amendments at t h i s t i m e .

is

Such

any, w i l l be made i n the B o a r d ' s r e g u l a r Annual Report

Congress.

I.

A.

ADMINISTRATIVE FUNCTIONS

The Equal C r e d i t O p p o r t u n i t y Act and R e g u l a t i o n B

I n o r d e r t o implement the o r i g i n a l A c t ' s
marital discrimination in credit,
beginning i n A p r i l
i s s u e d f o r comment.




p r o h i b i t i o n o f sex and

the Board engaged i n a r u l e - m a k i n g

1975 when the f i r s t

proceeding

proposed v e r s i o n o f R e g u l a t i o n B was

P u b l i c h e a r i n g s on the p r o p o s a l were h e l d at the Board

- 2 -

on May 28 and 29, 1975.
banking, r e t a i l ,

Twenty-eight

individuals

and f i n a n c i a l o r g a n i z a t i o n s

ments t h a t c o u l d be made i n the r e g u l a t i o n ,

t e s t i f i e d as to

groups,

improve-

as w e l l as the e f f e c t s

r e g u l a t i o n would have on the consumer, on c r e d i t
a v a i l a b i l i t y of credit

and consumer

standards,

the

and on the

generally.

V7ritten comments on the proposed r e g u l a t i o n were r e c e i v e d by
m a i l u n t i l June 30, 1975, from over 700 banks, consumers, consumer
financial
credit

institutions,

retailers,

trade a s s o c i a t i o n s ,

groups,

l o a n companies,

bureaus, as w e l l as F e d e r a l and S t a t e r e g u l a t o r y a g e n c i e s .

suggestions

religion,

and n a t i o n a l o r i g i n ,

r e g u l a t i o n along f u n c t i o n a l
as t o i t s

Commentator

i n c l u d e d adding p r o h i b i t i o n s o f d i s c r i m i n a t i o n on the

of race, color,

provisions.

lines,

reorganization of

and i n s t i t u t i n g

educational

C r i t i c i s m included allegations

costs of c r e d i t ,

the r a i s i n g o f c r e d i t

on the a v a i l a b i l i t y o f

standards,

basis
the

requirements

that there

be d e t r i m e n t a l e f f e c t s on consumers due to the p o s s i b i l i t y o f

and

would

increased

and the ensuing

restrictions

credit.

A f t e r c a r e f u l c o n s i d e r a t i o n o f the o r a l

testimony at the

public

h e a r i n g s and the 700 w r i t t e n l e t t e r s o f comment on the proposed R e g u l a t i o n
the Board i s s u e d a second v e r s i o n f o r comment on September 5,
600 a d d i t i o n a l comments were r e c e i v e d from c r e d i t o r s ,
individuals,

representatives of

members o f Congress.
for

further

on October




1975.

About

women's g r o u p s ,

State and l o c a l governmental

The Board a g a i n e v a l u a t e d the numerous

bodies,

and the

suggestions

t e c h n i c a l changes and i s s u e d a f i n a l v e r s i o n o f R e g u l a t i o n B
16, 1975.

B,

- 3 -

Regulation B provides i n part

that:

— A c r e d i t o r may not r e f u s e to g r a n t a s e p a r a t e account to a
c r e d i t w o r t h y a p p l i c a n t because o f the a p p l i c a n t ' s

sex o r m a r i t a l

status.

— A c r e d i t o r may o b t a i n i n f o r m a t i o n c o n c e r n i n g the spouse o f
an a p p l i c a n t o n l y

if

- t h e spouse w i l l use the

account;

- t h e spouse w i l l be c o n t r a c t u a l l y
account;

liable

for

the

or
-the applicant

on community

i s r e l y i n g on the s p o u s e ' s

income or

property.

— A c r e d i t o r may r e q u i r e the s i g n a t u r e o f a n o n - a p p l i c a n t

spouse

when r e q u i r e d by State law (or r e a s o n a b l y b e l i e v e d t o be so r e q u i r e d )
pass c l e a r
addition,

title,

create a v a l i d

a c r e d i t o r may r e q u i r e

meet the c r e d i t o r ' s

standards o f

lien,

a co-signer

if

In

the a p p l i c a n t does not

creditworthiness.

— A c r e d i t o r may not d i s c o u n t
an a p p l i c a n t ' s

o r waive i n c h o a t e r i g h t s .

to

the income o f an a p p l i c a n t

spouse because o f sex or m a r i t a l

or

status.

— A c r e d i t o r may not ask about c h i l d b e a r i n g c a p a b i l i t y or
i n t e n t i o n s nor make assumptions or use s t a t i s t i c s
hood o f a woman's l e a v i n g the l a b o r
—After

r e l a t i n g to the

f o r c e t o bear or r e a r

June 1, 1977, c r e d i t o r s

that

likeli-

children.

furnish credit

information

t o consumer r e p o r t i n g agencies or t o o t h e r c r e d i t o r s w i l l be r e q u i r e d
d e s i g n a t e accounts which both spouses use or
tually liable,
spouses.

T h i s requirement

develop c r e d i t




and to r e p o r t

histories

f o r which b o t h are

to

contrac-

i n f o r m a t i o n about these accounts as t o both

i s d e s i g n e d t o i n s u r e t h a t m a r r i e d women w i l l

i n t h e i r own names.

- 4 ®•

Amendments and I n t e r p r e t a t i o n s
1.

of Regulation B

Amendment s

In June 1976, the Board amended s e c t i o n 202.13 to
that

the D i r e c t o r

and o t h e r o f f i c i a l s

o f the D i v i s i o n o f Consumer

are a u t h o r i z e d to i s s u e , at t h e i r d i s c r e t i o n ,
regulations.
Act.

interpretations

Affairs

of

the

T h i s p r o v i s i o n implements s e c t i o n 706(e) o f the amended

C r e d i t o r s a c t i n g i n good f a i t h c o n f o r m i t y w i t h an o f f i c i a l

i n t e r p r e t a t i o n w i l l not be h e l d l i a b l e
tion

provide

f o r v i o l a t i n g the Act or

staff
Regula-

B.
Official

staff

interpretations

to c l a r i f y t e c h n i c a l ambiguities
policy implications.

will

be i s s u e d where n e c e s s a r y

i n the r e g u l a t i o n t h a t do not have broad

The Board s p e c i f i c a l l y e x c l u d e d from the

o f the designated o f f i c i a l s

the power to approve a p a r t i c u l a r

authority
creditor's

forms because o f the i n o r d i n a t e burden t h i s would impose on Board
However, the problem o f d e s i g n i n g

forms t h a t comply w i t h the

regulation

s h o u l d be s u b s t a n t i a l l y reduced by the i n c l u s i o n i n the amended
B of

s e v e r a l model a p p l i c a t i o n

to use the model forms, but i f
it

forms.

Creditors

a creditor

resources.

Regulation

are n o t , o f c o u r s e ,

required

chooses to use one o f the m o d e l s ,

w i l l be assured o f b e i n g i n compliance w i t h the i n f o r m a t i o n a l

requirements

o f R e g u l a t i o n B.
Official
Federal Register.
of s t a f f

staff

interpretations

will

be p u b l i s h e d i n

R e g u l a t i o n B i n c l u d e s procedures

interpretations

In 1976, two o f f i c i a l

upon formal request o f

staff

interpretations

the

f o r Board r e v i e w

interested

parties.

o f R e g u l a t i o n B were

issued.

In May 1976, the Board proposed to amend s e c t i o n 202.6 o f
R e g u l a t i o n B, which r e l a t e s
order




to f a c i l i t a t e

t o the r e p o r t i n g o f c r e d i t

compliance.

experience

In v i e w o f the comments r e c e i v e d ,

in
the

- 5 -

Board determined not to adopt the proposed araendment, but t o
i t s objective of

f a c i l i t a t i n g compliance,

t i v e d a t e o f the s e c t i o n .

Accordingly,

achieve

the Board postponed the

effec-

the e f f e c t i v e d a t e o f t h i s

provision

was changed from November 1976 to June 1977.
The Board a l s o adopted s e v e r a l t e c h n i c a l
R e g u l a t i o n B, which are d i s c u s s e d

amendments to

below.

— S e c t i o n 202.4(d) was amended to p r o v i d e t h a t where more than
one a p p l i c a n t
Equal C r e d i t

is

involved in a transaction,

a c r e d i t o r need f u r n i s h the

O p p o r t u n i t y Act n o t i c e o n l y t o one o f

— S e c t i o n 202.5(d)(2)
phrase "under s e c t i o n

them.

was amended by d e l e t i n g the

superfluous

202.4(c)(3)."

— S e c t i o n 202.9(a) was amended to make i t

clear

that

creditors

are r e q u i r e d t o r e t a i n a copy o f the n o t i f i c a t i o n o f a c t i o n taken
to the a p p l i c a n t

and a copy o f the reasons

p r o v i d e d t o the a p p l i c a n t .

for d e n i a l ,

if

t h i s document

The amendment a l s o p r o v i d e s t h a t i f

uses an automated system f o r g e n e r a t i n g
not r e t a i n a copy o f each such

form l e t t e r s ,

furnished
is

a creditor

the c r e d i t o r

need

letter.

— S e c t i o n 202.10 was amended to p r o v i d e t h a t c r e d i t o r s need not
f u r n i s h reasons
credit

for denial i n connection with a p p l i c a t i o n s

i n excess o f

for

business

$100,000.

— S e c t i o n 202.10 a l s o was amended by adding a new s u b s e c t i o n
which p r o v i d e s t h a t

i n c o n n e c t i o n w i t h an a p p l i c a t i o n

for

a l o a n under a

F e d e r a l or S t a t e student l o a n program, a c r e d i t o r may o b t a i n the
o f the a p p l i c a n t ' s
resources.




spouse i n o r d e r t o v e r i f y m a r i t a l

(f),

s t a t u s and

signature
financial

- 6 -

— S e c t i o n 202.14 was amended by c h a n g i n g the e f f e c t i v e
o f paragraph (1) o f s e c t i o n 202,5(d)

2.

to June 30,

1976,

Interpretations

In March, the Board p u b l i s h e d an i n t e r p r e t a t i o n o f
B authorizing creditors

Regulation

to m o d i f y the Equal C r e d i t n o t i c e p r e s c r i b e d

t h e r e g u l a t i o n by adding a r e f e r e n c e to any s i m i l a r
name and address o f the r e l e v a n t

C.

date

State enforcement

S t a t e law and the
agency,

The 1976 Amendments to the Act and the i s s u a n c e
amended R e g u l a t i o n b

of

The a d o p t i o n o f e x t e n s i v e amendments to the Equal C r e d i t
Act

i n March 1976 made a r e v i s i o n o f R e g u l a t i o n B n e c e s s a r y .

amendments expand the A c t ' s

from p u b l i c

statutory

religion,

national origin,

discrim-

age, r e c e i p t

of

a s s i s t a n c e programs and the good f a i t h e x e r c i s e o f r i g h t s

the Consumer C r e d i t

Protection Act.

—Requires c r e d i t o r s
their

The

Opportunity

p r o h i b i t i o n o f d i s c r i m i n a t i o n to i n c l u d e

i n a t i o n based on r a c e , c o l o r ,

in

applications

In a d d i t i o n ,

under

the amended A c t :

to n o t i f y a p p l i c a n t s o f a c t i o n taken on

and p r o v i d e reasons

f o r adverse a c t i o n e i t h e r

automat-

i c a l l y or upon r e q u e s t .
—Authorizes creditors
age i n order to favor the
—Forbids

to ask about and c o n s i d e r




applicant's

applicant.

the use o f age i n a c r e d i t

system i s demonstrably and s t a t i s t i c a l l y
applicant

an

i s not a s s i g n e d a n e g a t i v e

s c o r i n g system u n l e s s

the

sound and the age o t an e l d e r l y

f a c t o r or

value.

income

- 7 -

— L e n g t h e n s the s t a t u t e o f
under the Act
for

limitations

for

instituting

actions

from one year to two years and i n c r e a s e s t h e maximum award

p u n i t i v e damages i n a c l a s s a c t i o n from $100,000 t o the l e s s e r

$500,000 o r one per cent o f the c r e d i t o r ' s net
—Authorizes
by the enforcement
to b e l i e v e

t h a t one or more c r e d i t o r s

of discrimination

i n v i o l a t i o n o f the

—Authorizes
prohibited basis

worth,

the A t t o r n e y General to p r o s e c u t e m a t t e r s

agencies and to i n s t i t u t e

creditors

such as r a c e ,

of

referred

s u i t s whenever t h e r e i s

are engaged i n a p a t t e r n or

reason

practice

Act.

to d i f f e r e n t i a t e

among a p p l i c a n t s on a

i n c o n n e c t i o n w i t h s p e c i a l purpose

credit

programs•
Some o f the amendments went i n t o e f f e c t
substantive

provisions w i l l

On A p r i l

take e f f e c t

immediately but

on March 23,

t o address the f o l l o w i n g i s s u e s i n t h e i r
1.

1977.

27, the Board h e l d a p r e l i m i n a r y h e a r i n g as a

s t e p toward implementing the s t a t u t o r y amendments.

first

Witnesses were asked

testimony:

Examples o f e x i s t i n g d i s c r i m i n a t i o n based on r a c e ,

national origin,

the

r e l i g i o n or age, and approaches to e l i m i n a t i n g

color,
the

discrimination;
2.

Examples o f e x i s t i n g d i s c r i m i n a t i o n based upon the

o f income from p u b l i c
the

programs, and approaches to

eliminating

discrimination;
3.

sound c r e d i t




assistance

receipt

Standards
scoring

f o r d e t e r m i n i n g what c o n s t i t u t e s

system;

a

statistically

- 8 4.
as i t

Standards f o r d e t e r m i n i n g what c o n s t i t u t e s n e g a t i v e

relates
5.

to e l d e r l y

persons;

Standards f o r d e t e r m i n i n g what q u a l i f i e s

program f o r e c o n o m i c a l l y d i s a d v a n t a g e d
6.

Standards

as a c r e d i t

institutions

as a s p e c i a l

t o meet s p e c i a l

social

Standards f o r d e t e r m i n i n g what c l a s s e s o f b u s i n e s s

might be exempted from a l l

assistance

persons;

f o r d e t e r m i n i n g what q u a l i f i e s

program o f f e r e d by f o r - p r o f i t
7.

scoring

or p a r t o f the p r o v i s i o n s o f the Act

the a p p l i c a t i o n o f the p r o v i s i o n does not c o n t r i b u t e

assistance

needs;
credit

because

substantially

to

c a r r y i n g out the purpose o f the A c t ;
8.
protective,

Standards

f o r d e t e r m i n i n g whether

inconsistent,

9.

or s u b s t a n t i a l l y

Types o f r e c o r d s c r e d i t o r s

and t h e l e n g t h o f the r e t e n t i o n
10.

State laws are more

similar;

should be r e q u i r e d to

retain

period;

The i n f o r m a t i o n which c r e d i t o r s

should be p e r m i t t e d

or

r e q u i r e d to request r e l a t i n g to the p r o h i b i t i o n s o f the act as amended;
and
11.

The c o s t o f implementing the Act and the impact o f

Act on the a v a i l a b i l i t y
The p r i n c i p a l

and c o s t o f

credit.

i s s u e s addressed by w i t n e s s e s at the

h e a r i n g were the p r o v i s i o n s r e l a t i n g to the preemption o f
gestions

f o r d e f i n i n g the terms " e l d e r l y "

sound" c r e d i t
a judicial
ination.




the

preliminary

State l a w ,

and "demonstrably and

sug-

statistically

s c o r i n g systems, and the a p p l i c a t i o n o f the " e f f e c t s

d o c t r i n e e n u n c i a t e d i n cases i n the area o f employment

test,"
discrim-

- 9 The p r e l i m i n a r y h e a r i n g p r o v i d e d the Board w i t h much v a l u a b l e
information.

On J u l y 20, the Board p u b l i s h e d f o r p u b l i c comment i t s

p r o p o s a l f o r r e v i s i n g R e g u l a t i o n B.
on August 12 and 13.

first

H e a r i n g s on the p r o p o s a l were h e l d

Thirty-three witnesses t e s t i f i e d ,

on some o f

same i s s u e s r a i s e d at the p r e l i m i n a r y h e a r i n g and on o t h e r

issues,

the
such

as the d e s i r a b i l i t y o f r e q u i r i n g n o t a t i o n o f i n f o r m a t i o n as t o r a c e ,
sex and m a r i t a l

s t a t u s about a p p l i c a n t s

for

age,

credit.

More than 600 w r i t t e n comments were r e c e i v e d r e g a r d i n g the p r o posal.

Numerous comments urged the Board t o exempt b u s i n e s s c r e d i t

c e r t a i n p r o v i s i o n s o f the r e g u l a t i o n .

A number o f commentators

praised

t h e r e o r g a n i z a t i o n o f the r e g u l a t i o n and the i n c l u s i o n o f model
forms.

C r e d i t o r s c r i t i c i z e d government r e g u l a t i o n i n g e n e r a l ,

c o n c e r n t h a t the c r e d i t

industry,

r e g u l a t e d and the consumer

from

application
and expressed

p a r t i c u l a r l y the b a n k i n g s e c t o r , was o v e r -

over-protected.

A f t e r c o n s i d e r i n g the t e s t i m o n y and the comments, the Board
p u b l i s h e d a second p r o p o s a l on November 3.
500 comments, many o f which c r i t i c i z e d

The Board r e c e i v e d more than

the p r o p o s a l t o r e q u i r e

creditors

to note the r a c e / n a t i o n a l o r i g i n ,

sex, m a r i t a l

s t a t u s and age o f

applicants

f o r r e s i d e n t i a l mortgage c r e d i t .

A f t e r c o n s i d e r a t i o n o f the comments, the

Board announced on December 29 the a d o p t i o n o f the r e v i s e d v e r s i o n o f
R e g u l a t i o n B.
discussed

The p r i n c i p a l p r o v i s i o n s o f the r e v i s e d r e g u l a t i o n are

below.
The amended Act and r e g u l a t i o n p r o h i b i t

on age, but t h e p r o h i b i t i o n i s q u a l i f i e d ,
r e l y on judgmental r a t h e r than c r e d i t
creditworthiness

and p r o b a b l e c o n t i n u a n c e o f income l e v e l s ,




not a b s o l u t e .

Creditors

s c o r i n g systems f o r

are permitted t o c o n s i d e r

employment, and o t h e r " p e r t i n e n t

d i s c r i m i n a t i o n based
that

evaluating

age t o e v a l u a t e the amount
credit history,

elements o f

length of

creditworthiness."

- 10 A creditor
system i s

that

uses an e m p i r i c a l l y d e r i v e d c r e d i t

permitted to consider

and s t a t i s t i c a l l y

sound."

sound."

d e v e l o p i n g and v a l i d a t i n g the

sound c r e d i t
a "negative
"negative
older

specifies

"demonstrably

standards

which

to q u a l i f y as "demonstrably and

These s t a n d a r d s p r e s c r i b e

The Act

the system i s

The r e g u l a t i o n e s t a b l i s h e s

such systems must meet i n o r d e r
tically

age o n l y i f

scoring

technical

statis-

requirements

for

system.

t h a t even i n a demonstrably and

statistically

system, the age o f an e l d e r l y a p p l i c a n t may not be a s s i g n e d
f a c t o r or v a l u e . "

f a c t o r or v a l u e . "

and " n e g a t i v e

The Act does not d e f i n e " e l d e r l y "

or

R e g u l a t i o n B d e f i n e s e l d e r l y as age 62 o r

f a c t o r or v a l u e " as a f a c t o r

that

is

less

favorable

than the f a c t o r o r v a l u e a s s i g n e d to the c l a s s o f a p p l i c a n t s t h a t
e l d e r l y and that
who i s

i s most

favored on the b a s i s o f age.

62 years o l d or o l d e r may not

because t h a t
the S o c i a l

i s the e a r l i e s t

Security
Finally,

the r e g u l a t i o n bars c r e d i t o r s
because c r e d i t

because o f the a p p l i c a n t ' s
unavailability of credit

age.

b e n e f i t s are p a i d by

from t e r m i n a t i n g an

insurance

i s not

available

i n t o account

in setting

the

rates

credit.

requirements on c r e d i t o r s .

R e g u l a t i o n B impose c e r t a i n

is,

credit

the r e g u l a t i o n permits a c r e d i t o r

i s granted,

whether the c r e d i t

o r a l l y or by i m p l i c a t i o n ( f o r

r e c e i v e s the c r e d i t

notification

A c r e d i t o r must n o t i f y an a p p l i c a n t

a c t i o n taken, that




age

Age 62 was chosen

A c r e d i t o r may, however, take

insurance

The Act and r e v i s e d

applicant

for

Administration.

account or denying c r e d i t

and terms o f

age at which r e t i r e m e n t

not

Thus, an a p p l i c a n t

be g i v e n a lower score

than the best score g i v e n to any age group below 62.

is

i s g r a n t e d or d e n i e d .
to n o t i f y

example, where the

c a r d , money, p r o p e r t y or s e r v i c e s

of
When
the

applicant

requested).

- 11 Adverse a c t i o n t r i g g e r s more e x t e n s i v e n o t i f i c a t i o n
First,

the n o t i f i c a t i o n must be i n w r i t i n g ,

and must

requirements.

include a notice

a d v i s i n g the a p p l i c a n t o f the e x i s t e n c e o f the F e d e r a l Equal C r e d i t

Oppor-

t u n i t y Act and the name and address o f the F e d e r a l agency r e s p o n s i b l e
a d m i n i s t e r i n g compliance by t h a t c r e d i t o r .
either

In a d d i t i o n ,

p r o v i d e a w r i t t e n statement o f the s p e c i f i c

t a k e n , or must a d v i s e the a p p l i c a n t ,

in writing,

for

the c r e d i t o r must

reasons

f o r the

o f the r i g h t

action

to r e c e i v e

such a statement upon r e q u e s t .
In o r d e r

to a s s i s t

Federal agencies

compliance w i t h the amended A c t ,
i n amended R e g u l a t i on B.
of residential

the Board adopted a n o t a t i o n

As to a p p l i c a t i o n s

r e a l property,

i n m o n i t o r i n g and e n f o r c i n g

for

loans

status.

A p p l i c a n t s w i l l be a d v i s e d t h a t

by the F e d e r a l government

origin,

l a w s , and they w i l l

under the Act to s u b s t i t u t e

f o r the R e g u l a t i o n B r e q u i r e m e n t s .
d u p l i c a t i o n and to permit

sought
with

have the o p t i o n o f

declining

have enforcement

t h e i r own m o n i t o r i n g

This provision i s

enforcement

i n t e n d e d to

program
prevent

a g e n c i e s have j u r i s d i c t i o n

c o l l e c t i n g the i n f o r m a t i o n ,

c o l l e c t i o n procedures are p r e s c r i b e d

no u n i f o r m t a b u l a t i o n or

i n the r e g u l a t i o n .

agency may f o r m u l a t e i t s own procedures




sex, age, and

experimentation.

Because d i f f e r e n t

data.

request

information.

responsibilities

o f the

to

the i n f o r m a t i o n i s

The r e g u l a t i o n a l s o p e r m i t s the a g e n c i e s t h a t

the c r e d i t o r s

purchase

f o r the purpose o f m o n i t o r i n g compliance

Federal a n t i - d i s c r i m i n a t i o n
to supply the

f o r the

the r e g u l a t i o n r e q u i r e s c r e d i t o r s

i n f o r m a t i o n from a p p l i c a n t s r e g a r d i n g r a c e / n a t i o n a l
marital

requirement

Thus, each

f o r the c o l l e c t i o n and use

over

- 12 -

The r e g u l a t i o n preempts State law o n l y i f
w i t h the F e d e r a l Act and i s

less protective.

t a i n s g u i d e l i n e s enumerating c e r t a i n s p e c i f i c
t h a t are deemed t o be i n c o n s i s t e n t
therefore,

it

is

inconsistent

Revised R e g u l a t i o n B c o n types o f State law p r o v i s i o n s

and l e s s p r o t e c t i v e

and t h a t

are,

preempted ( f o r example, a State law t h a t e i t h e r r e q u i r e s

or

p e r m i t s a p r a c t i c e p r o h i b i t e d by the Act or R e g u l a t i o n B; or one p r o hibiting

individual

extensions o f c r e d i t

In a d d i t i o n ,

to a husband and w i f e ) .

the Act and r e g u l a t i o n p r o v i d e t h a t where a State

law i s more p r o t e c t i v e o f a p p l i c a n t s o r s u b s t a n t i a l l y
may a p p l y f o r an exemption from the F e d e r a l law f o r
of

State regulated t r a n s a c t i o n s .

for

the

a c l a s s or

State

classes

The r e g u l a t i o n p r e s c r i b e s the

procedures

an exemption a p p l i c a t i o n and the c r i t e r i a under which such an exemption

will

be granted by the Board.

comply w i t h the State law,
will

constitute

Where an exemption i s g r a n t e d ,

i n a transaction that

liability

r e l a t i n g to decedents'

D.

estates,

institutions

a failure

to the
for

to

exemption,
purposes

provisions.

The r e g u l a t i o n e x p r e s s l y p r o v i d e s t h a t

financial

i s subject

a v i o l a t i o n o f the F e d e r a l Act and r e g u l a t i o n

o f the A c t ' s c i v i l

of

similar,

State p r o p e r t y l a w s ,

and banking r e g u l a t i o n s d i r e c t e d t o

are not

laws

solvency

preempted.

Education

E d u c a t i o n a l e f f o r t s by the Board, the enforcement a g e n c i e s and the
Reserve Banks have

been addressed to both c r e d i t o r s

and consumers.

These e f f o r t s have i n c l u d e d speeches and seminars o f f e r e d to consumer
and c r e d i t o r




groups, r a d i o and t e l e v i s i o n appearances,

distribution

- 13 -

of printed educational materials,
inquiries

and responses t o o r a l

c o n c e r n i n g the requirements o f the Act and

and w r i t t e n

regulation.

The F e d e r a l Reserve Bank o f Kansas C i t y prepared a b o o k l e t
e n t i t l e d " A n n o t a t e d Summary o f R e g u l a t i o n B . "

To d a t e ,

t r i b u t e d a p p r o x i m a t e l y 6,000 c o p i e s o f t h i s b o o k l e t .

the Bank has

The F e d e r a l

dis-

Trade

Commission has prepared a consumer pamphlet summarizing R e g u l a t i o n B
(40,000 c o p i e s o f the pamphlet have been f u r n i s h e d to the N a t i o n a l
I n f o r m a t i o n Center

i n B o u l d e r , Colorado

In an e f f o r t

to t a i l o r

its

for

Consumer

distribution).

educational e f f o r t s

to a c t u a l

rather

than assumed needs and d e s i r e s o f consumers, the Board has a u t h o r i z e d a
comprehensive

survey o f the a d u l t consumer p o p u l a t i o n .

d e s i g n e d t o l e a r n more about c r e d i t
to provide u s e f u l
consumer c r e d i t

The survey

is

use and consumer needs as w e l l as

i n f o r m a t i o n about consumer awareness and use o f

existing

legislation.

The Board has a l s o p a r t i c i p a t e d

i n a new i n t e r a g e n c y Consumer

E d u c a t i o n and I n f o r m a t i o n L i a i s o n sponsored by the O f f i c e o f the Consumer
A f f a i r s o f the Department o f H e a l t h , E d u c a t i o n and W e l f a r e .

The L i a i s o n

was e s t a b l i s h e d to p r o v i d e a v o l u n t a r y

communication

forum f o r

interagency

about and d i s c u s s i o n s o f F e d e r a l consumer e d u c a t i o n m a t e r i a l s and programs.
The Board i s p r e p a r i n g s e v e r a l pamphlets on the Act and Regulat i o n B.

One pamphlet w i l l r e l a t e

t o sex and m a r i t a l

status

discrimination

and another w i l l r e l a t e to the p r o h i b i t i o n o f age d i s c r i m i ^ n a t i o n .

Consumer A d v i s o r y

Council

The amended Act d i r e c t s
Council to a s s i s t




the Board t o e s t a b l i s h a Consumer

the Board i n implementing the Consumer C r e d i t

Advisory

Protection

- 14 Act,

and to a d v i s e and c o n s u l t w i t h the Board on c o n s u m e r - r e l a t e d

Members o f the C o u n c i l were chosen i n September
dates

from more than 400 c a n d i -

f o l l o w i n g p u b l i c a t i o n o f a n o t i c e t h a t the Board was s e e k i n g

names o f q u a l i f i e d

individuals.

the

C o u n c i l membership i n c l u d e s a broad

r e p r e s e n t a t i o n o f constmer and c r e d i t o r

interests.

by former Congresswoman Leonor K. S u l l i v a n .
is

matters.

A list

The C o u n c i l i s

chaired

o f C o u n c i l members

a t t a c h e d as Appendix A .
The C o u n c i l met f o r the f i r s t

During i t s

first

responsibilities

s e s s i o n the C o u n c i l a c q u a i n t e d i t s e l f
and f u n c t i o n s

cussed s e v e r a l c u r r e n t
R e g u l a t i o n B.

issues,

The C o u n c i l

is

pursuant to i t s

Appendix

A.

and d i s -

i n c l u d i n g the proposed amendments t o
scheduled t o meet q u a r t e r l y ;

its

next

C o u n c i l meetings are open to the

Rules o f O r g a n i z a t i o n and Procedure

(see

ENFORCEMENT AND ASSESSMENT OF COMPLIANCE

The B o a r d ' s Enforcement

Primary o p e r a t i o n a l

Activities

responsibility

O p p o r t u n i t y Act w i t h r e s p e c t

the F e d e r a l Reserve Banks.

f o r e n f o r c i n g the

to S t a t e member banks r e s t s

The Banks c a r r y out t h i s

w i t h the Act d u r i n g the r e g u l a r commercial

with

During 1976 some

Reserve Banks experimented w i t h c o n d u c t i n g separate consumer
w h i l e o t h e r Banks found i t more e f f e c t i v e

Equal

responsibility

t h r o u g h examinations and i n v e s t i g a t i o n o f c o m p l a i n t s .




Board's

B).

II.

Credit

w i t h the

i n the a r e a o f consumer c r e d i t

meeting w i l l be March 10, 1977.
public

time on November 11 and 12.

to examine f o r
examination.

examinations,

compliance

- 15 -

I n v e s t i g a t i o n o f complaints
by the F e d e r a l Reserve Banks.

i s the second major t o o l used

Each c o m p l a i n t a g a i n s t a S t a t e member

bank i s i n v e s t i g a t e d and where a p p r o p r i a t e , brought t o the
o f management f o r c o r r e c t i v e

attention

action.

The Board p l a c e s a h i g h p r i o r i t y on improving compliance
consumer c r e d i t

laws on the p a r t o f

S t a t e member banks and has adopted

a new consumer r e g u l a t i o n compliance program t o s t r e n g t h e n the
enforcement c a p a b i l i t i e s .
F e d e r a l Reserve Bank w i l l

The program has two a s p e c t s .

System's

First,

each

p r o v i d e a d v i s o r y and e d u c a t i o n a l s e r v i c e s

S t a t e member banks and consumers c o n c e r n i n g the F e d e r a l consumer
laws.

The second aspect o f the program i s

w i l l be conducted by s p e c i a l l y t r a i n e d examiners.

to

credit

s p e c i a l examinations o f

member banks t o determine compliance w i t h t h e s e l a w s .

staff

with

State

These examinations

To i n s u r e t h a t

trained

i s a v a i l a b l e t o c a r r y out the e x a m i n a t i o n program, the Board con-

ducted two consumer r e g u l a t i o n s c h o o l s d u r i n g the F a l l o f 1976.
Board e x p e c t s t o conduct such s p e c i a l i z e d s c h o o l s on a r e g u l a r

The
basis.

The Board a l s o has e s t a b l i s h e d a t a s k f o r c e t o study the a r e a o f
enforcement and recommend methods f o r
w i t h the consumer c r e d i t r e g u l a t i o n s .
following matters:
checklist

improving S t a t e member bank compliance
The t a s k f o r c e has c o n s i d e r e d

u p d a t i n g the examiner manuals; d e v e l o p i n g an e x a m i n e r ' s

f o r use i n examinations; d e v e l o p i n g a u n i f o r m compliance

s e p a r a t e from t h e commercial e x a m i n a t i o n r e p o r t ; d e v e l o p i n g proper
t e c h n i q u e s and methods f o r c o r r e c t i n g v i o l a t i o n s




the

discovered.

report
sampling

- 16 B.

Enforcement A c t i v i t i e s

o f the Other

Agencies

The f o l l o w i n g i s a summary o f i n f o r m a t i o n s u p p l i e d t o
Board by the o t h e r enforcement

agencies.

The C o m p t r o l l e r o f the C u r r e n c y , which i s r e s p o n s i b l e
e n f o r c i n g the Act w i t h r e s p e c t

the

for

t o n a t i o n a l banks, has sent l e t t e r s

the p r e s i d e n t s o f a l l n a t i o n a l banks s e t t i n g

f o r t h the main

to

provisions

o f t h e Act and R e g u l a t i o n B and o f f e r i n g s u g g e s t i o n s on how banks might
comply.
iarize

In a d d i t i o n ,

the C o m p t r o l l e r has h e l d s p e c i a l

schools to

i t s examiners w i t h t h e law and has conducted a program o f

examinations.

L i k e the Board o f Governors, the C o m p t r o l l e r

consumer c o m p l a i n t s t h a t a l l e g e sex o r m a r i t a l
The F e d e r a l D e p o s i t

investigates

discrimination.

The FDIC has conducted

f o r examiners and has i n c r e a s e d the number o f consumer

The FDIC a l s o makes a thorough i n q u i r y o f each c o m p l a i n t
marital

consumer

Insurance C o r p o r a t i o n e n f o r c e s the Act

w i t h r e s p e c t t o i n s u r e d non-member b a n k s .
sessions

status

famil-

taken i f

a violation is

examinations.

a l l e g i n g sex or

s t a t u s d i s c r i m i n a t i o n to determine the m e r i t s o f the

Appropriate supervisory action i s

training

complaint.

discovered.

The FDIC and C o m p t r o l l e r o f the Currency are c o n d u c t i n g a j o i n t
mortgage l e n d i n g survey i n a p p r o x i m a t e l y 300 banks.
two p a r t s .

One p a r t r e q u i r e s the bank t o r e p o r t c e r t a i n economic

about the l o a n a p p l i c a n t .

sex, r e l i g i o n and c e r t a i n

to

other

characteristics.
The F e d e r a l Home Loan Bank Board e n f o r c e s the Act w i t h

to F e d e r a l l y - c h a r t e r e d




data

The o t h e r p a r t r e q u e s t s the l o a n a p p l i c a n t

forward to the agencies d a t a on r a c e ,
personal

The survey form has

s a v i n g s and l o a n a s s o c i a t i o n s .

The agency

respect
reports

- 17 -

that

it

sent two i n f o r m a t i o n a l memoranda to e v e r y i n s u r e d s a v i n g s and l o a n

association.

Compliance w i t h the Act i s checked as p a r t o f the

e x a m i n a t i o n s conducted by the
The N a t i o n a l C r e d i t
respect

regular

agency.
Union A d m i n i s t r a t i o n e n f o r c e s the Act

to F e d e r a l l y - c h a r t e r e d c r e d i t

unions.

L i k e the o t h e r

r e g u l a t o r y a g e n c i e s , NCUA's enforcement a c t i v i t i e s
e x a m i n a t i o n s and i n v e s t i g a t i o n o f c o m p l a i n t s .

financial

take the form o f

Appropriate

a c t i o n was t a k e n i n s i t u a t i o n s where p o s s i b l e v i o l a t i o n s

corrective

were e n c o u n t e r e d .

NCUA a l s o has e s t a b l i s h e d a D i v i s i o n o f Consumer A f f a i r s which w i l l
as a f o c a l p o i n t

for a l l

consumer p r o t e c t i o n

with

serve

programs a f f e c t i n g the a g e n c y ' s enforcement

of

regulations.

The I n t e r s t a t e Commerce Commission i s r e s p o n s i b l e
the Act w i t h r e s p e c t t o r e g u l a t e d common c a r r i e r s .
o p i n i o n t h a t common c a r r i e r s

It

i s the

are f o r b i d d e n t o d i s c r i m i n a t e

o f c r e d i t by s e c t i o n 3(1) o f the I n t e r s t a t e

for

enforcing

Commission's

i n the

Commerce Act and,

granting

therefore,

t h a t the E q u a l C r e d i t O p p o r t u n i t y A c t does not have a s i g n i f i c a n t

impact

on t h e o p e r a t i o n s o f common c a r r i e r s .
The C i v i l A e r o n a u t i c s Board e n f o r c e s the Act w i t h r e s p e c t
air carriers

and f o r e i g n a i r c a r r i e r s .

The Board r e p o r t s t h a t

d i s t r i b u t e d copies o f Regulation B to a l l
j u r i s d i c t i o n and t o a l l
regulation.




subject

to

it
its

i n d i v i d u a l s who i n q u i r e d about the Act or

The Board responded t o r e q u e s t s

consumers, c r e d i t o r s
all

carriers

to

for

information

from

and women's groups and i n v e s t i g a t e d and r e s o l v e d

c o m p l a i n t s a l l e g i n g sex o r m a r i t a l

status

discrimination.

- 18 -

The Farm C r e d i t A d m i n i s t r a t i o n e n f o r c e s the A c t w i t h
t o F e d e r a l l a n d banks, F e d e r a l l a n d bank a s s o c i a t i o n s ,
mediate c r e d i t banks and p r o d u c t i o n c r e d i t
c a r r i e s out i t s

regular examination o f these
The S e c u r i t i e s
respect
staff,

inter-

The FCA

i n the c o u r s e o f

its

institutions.

and Exchange Commission e n f o r c e s the Act

t o b r o k e r s and d e a l e r s .
the S e c u r i t i e s

Federal

associations.

enforcement r e s p o n s i b i l i t i e s

respect

At the s u g g e s t i o n o f the

with

Commission's

I n d u s t r y A s s o c i a t i o n prepared and t r a n s m i t t e d t o

o f i t s members a " l e g a l a l e r t " e x p l a i n i n g the A c t and R e g u l a t i o n B.

The

Commission has n o t r e c e i v e d any consumer c o m p l a i n t s o f d i s c r i m i n a t i o n
thus,

i t has not been n e c e s s a r y t o e s t a b l i s h a s e p a r a t e enforcement

all

and,

effort.

The Small B u s i n e s s A d m i n i s t r a t i o n e n f o r c e s the A c t w i t h r e s p e c t
t o s m a l l b u s i n e s s investment companies.

The agency sent n o t i c e s t o

SBA program o f f i c e s r e q u e s t i n g them t o n o t i f y a l l
requirements o f the A c t .

SBA r e c i p i e n t s o f

M o n i t o r i n g compliance w i t h the Act i s

by r e p o r t s and o n - s i t e r e v i e w s wherein t h e r e c i p i e n t ' s c r e d i t
are c l o s e l y

all
the

accomplished

practices

scrutinized.

The F e d e r a l Trade Commission e n f o r c e s the A c t w i t h r e s p e c t

to

a l l c r e d i t o r s n o t s u b j e c t t o the j u r i s d i c t i o n o f t h e a g e n c i e s mentioned
above.

The Commission's E q u a l C r e d i t O p p o r t u n i t y program has

components:

(1) a consumer e d u c a t i o n component d e s i g n e d t o

consumers o f t h e i r r i g h t s and r e s p o n s i b i l i t i e s

three

inform

under the law; (2) an

i n d u s t r y e d u c a t i o n component designed t o a d v i s e c r e d i t o r s o f t h e
ments o f the l a w and t o c o r r e c t

possible v i o l a t i o n s

i n f o r m e d , v o l u n t a r y means where a p p r o p r i a t e ;




require-

at an e a r l y stage

and (3) a l i t i g a t i o n

through

component

- 19 -

designed t o r a i s e the l e v e l o f compliance w i t h the law by b r i n g i n g

selected

enforcement a c t i o n s which have a h i g h p r e c e d e n t i a l v a l u e and d e t e r r e n t
effect.

With r e g a r d t o the t h i r d component, the Commission

issued i t s

first

complaint a l l e g i n g a v i o l a t i o n o f the Act and has

i n i t i a t e d preliminary investigations
and r e t a i l

recently

o f s e v e r a l s m a l l l o a n companies

creditors.
Between January 1, 1976 and December 1, 1976, t h e Commission

r e c e i v e d a p p r o x i m a t e l y 2,060 consumer c o m p l a i n t s .

The Commission responded

t o each o f the c o m p l a i n t s by p r o v i d i n g a d e s c r i p t i o n o f the p r o v i s i o n s
the r e g u l a t i o n which might be a p p l i c a b l e t o the s p e c i f i c
as g e n e r a l i n f o r m a t i o n about the

s i t u a t i o n as w e l l

law.

The Commission has prepared a consumer pamphlet which i t
tributes

t o consumers (40,000 c o p i e s o f the pamphlet have been

d i s t r i b u t i o n through i t s n a t i o n w i d e c h a n n e l s ) .
files

for

The Commission's com-

serve as the primary means o f i d e n t i f y i n g c r e d i t o r s

p r a c t i c e s may warrant

further

investigations

dis-

furnished

t o the N a t i o n a l Consumer I n f o r m a t i o n Center i n B o u l d e r , C o l o r a d o

plaint

of

whose

f o r compliance w i t h the

Act.

C.

Assessment o f

Based on r e p o r t s

Compliance
from the o t h e r F e d e r a l enforcement

the F e d e r a l Reserve Banks, the Board b e l i e v e s t h a t
s i n c e the law became e f f e c t i v e ,
compliance w i t h the l a w .

i n the f i r s t

good p r o g r e s s was made toward

The g r e a t m a j o r i t y o f v i o l a t i o n s

t i o n which have been d i s c o v e r e d through examinations and




agencies
full

and

year

achieving

o f the

regula-

investigations

- 20 o f consumer c o m p l a i n t s were o f a t e c h n i c a l n a t u r e and g e n e r a l l y
either

from i n a d v e r t e n c e or m i s u n d e r s t a n d i n g o f the r e g u l a t i o n .

almost a l l
of

c a s e s , management i n i t i a t e d c o r r e c t i v e

In

a c t i o n when informed

violations.
The g r e a t e s t o b s t a c l e to f u l l

o f u n d e r s t a n d i n g o f the law.
report that

compliance appears t o be a l a c k

The F e d e r a l Reserve Banks,

s m a l l e r banks e x p e r i e n c e p a r t i c u l a r

problem has l e d the Board to i n c r e a s e
above.

for

difficulty

a b r e a s t o f r e c e n t l y enacted laws and r e g u l a t i o n s .




resulted

example,

keeping

Recognition of

this

i t s e d u c a t i o n a l e f f o r t s as d e s c r i b e d

APPENDIX A

C O N S U M E R

A D V I S O R Y

C O U N C I L

Board o f Governors
F e d e r a l Reserve System
CHAIRMAN
Leonor K. S u l l i v a n
U.S. House o f R e p r e s e n t a t i v e s
Mrs. S u l l i v a n has been i n Congress f o r 24 y e a r s , b e g i n n i n g
i n 1952.
She was the f i r s t woman e l e c t e d t o Congress from M i s s o u r i .
For 12 y e a r s , from 1963 t o 1975, M r s . S u l l i v a n was Chairman o f the
Subcommittee on Consumer A f f a i r s o f the House Banking and Currency
Committee.
She was one o f the p r i m a r y authors o f the Consumer C r e d i t
P r o t e c t i o n Act of 1968, which i n c l u d e d the T r u t h i n L e n d i n g A c t .
In
1970 Mrs. S u l l i v a n sponsored the F a i r C r e d i t R e p o r t i n g Act i n the
House.
She was a member o f the N a t i o n a l Commission on Consumer
F i n a n c e from 1969 t o 1972.
I n 1974 M r s . S u l l i v a n proposed l e g i s l a t i o n
t o f o r b i d d i s c r i m i n a t i o n i n the e x t e n s i o n o f c r e d i t on the b a s i s o f
sex, m a r i t a l s t a t u s , r a c e , c o l o r , r e l i g i o n and age.
These p r o p o s a l s
are now embodied i n the E q u a l C r e d i t O p p o r t u n i t y A c t .
Mrs. S u l l i v a n
sponsored the Food Stamp A c t i n 1964.
Mrs. S u l l i v a n i s c u r r e n t l y
Chairman o f the House Committe on Merchant M a r i n e and F i s h e r i e s , and
r a n k i n g m a j o r i t y member o f the Committee on Banking, Currency and
Housing and o f t h a t Committee's subcommittees on Housing and Community
Development, and Consumer A f f a i r s .
I n a d d i t i o n , she c h a i r s the J o i n t
Committee o f the Congress on Defense P r o t e c t i o n and i t s House M a t e r i a l s
A v a i l a b i l i t y Subcommittee.

VICE CHAIRMAN
W i l l i a m D. Warren
Los A n g e l e s , C a l i f o r n i a
Mr. Warren i s Dean o f the School o f Law o f the U n i v e r s i t y
o f C a l i f o r n i a at Los A n g e l e s .
He was r e p o r t e r - d r a f t s m a n o f the
Uniform Consumer C r e d i t Code, 1964 t o 1974, and has been a c o n s u l t a n t
on consumer law and d e b t o r / c r e d i t o r law t o the N a t i o n a l Commission on
Consumer F i n a n c e and v a r i o u s C a l i f o r n i a a g e n c i e s .
Mr. Warren i s the
author o f books and a r t i c l e s c o n c e r n i n g commercial and consumer law.
He taught law at S t a n f o r d U n i v e r s i t y and the U n i v e r s i t y o f I l l i n o i s
b e f o r e j o i n i n g UCLA.




-2-

MEMBERS
Barbara D. Blum
A t l a n t a , Georgia
Ms. Blum i s V i c e Chairman o f the F u l t o n County P l a n n i n g
Commission and was, u n t i l r e c e n t l y , a member o f the A t l a n t a R e g i o n a l
Commission H e a l t h and S o c i a l S e r v i c e s A d v i s o r y Board.
She has broad
e x p e r i e n c e as chairman or member o f numerous s t a t e - w i d e consumer
oriented organizations.
Ms. Blum has a l s o worked i n the f i e l d o f
mental h e a l t h .
She has a degree o f Master o f S o c i a l Work from
F l o r i d a State U n i v e r s i t y .

Roland E . B r a n d e l
San F r a n c i s c o , C a l i f o r n i a
Mr. B r a n d e l i s a p a r t n e r i n the law f i r m o f M o r r i s o n and
Foerster.
He i s a member o f the Committee o f the American Bar
A s s o c i a t i o n on the R e g u l a t i o n o f Consumer C r e d i t .
He has worked
e x t e n s i v e l y i n the f i e l d o f bank c r e d i t c a r d law.
He has been
v i s i t i n g p r o f e s s o r o f law at the U n i v e r s i t y o f C a l i f o r n i a a t
Berkeley.
Mr. B r a n d e l has w r i t t e n and l e c t u r e d on the s u b j e c t s o f
T r u t h i n L e n d i n g , F a i r C r e d i t B i l l i n g , E q u a l C r e d i t O p p o r t u n i t y and
e l e c t r o n i c funds t r a n s f e r .

Agnes H. Bryant
D e t r o i t , Michigan
M r s . Bryant i s D i r e c t o r o f the C i t y o f D e t r o i t Human
R i g h t s Department.
She c h a i r s the M i c h i g a n Consumer C o u n c i l , and i s
v i c e p r e s i d e n t o f the Consumer Research A d v i s o r y C o u n c i l , a member
o f the Board o f the N a t i o n a l A s s o c i a t i o n f o r the Advancement o f
C o l o r e d P e o p l e , a member o f the A d v i s o r y C o u n c i l o f the Wayne County
Consumer P r o t e c t i o n Agency, and a former member o f the M i c h i g a n State
A d v i s o r y C o u n c i l on V o c a t i o n a l E d u c a t i o n .

John G. B u l l
Pompano Beach,

Florida

Mr. B u l l i s P r e s i d e n t and C h i e f E x e c u t i v e O f f i c e r o f the
Southern BankCard C o r p o r a t i o n .
He has served two terms as chairman
o f the bank c a r d d i v i s i o n o f the F l o r i d a Bankers A s s o c i a t i o n , and was
chairman o f the d e s i g n s p e c i f i c a t i o n s committee which developed a
computer program f o r d e s c r i p t i v e b i l l i n g i n e l e c t r o n i c funds t r a n s f e r .
He has done e x t e n s i v e work on o t h e r a s p e c t s o f the o p e r a t i o n o f bank
c a r d systems.




-3-

Robert V. B u l l o c k
F r a n k f o r t , Kentucky
Mr. B u l l o c k i s A s s i s t a n t A t t o r n e y G e n e r a l i n charge o f t h e
D i v i s i o n o f Consumer P r o t e c t i o n i n the O f f i c e o f t h e A t t o r n e y G e n e r a l
of Kentucky.
He i s a c t i v e i n the N a t i o n a l A s s o c i a t i o n o f A t t o r n e y s
G e n e r a l ' s Consumer P r o t e c t i o n Committee.
He was p r e v i o u s l y as
a t t o r n e y f o r the F e d e r a l Trade Commission at C l e v e l a n d , Ohio, and i n
Washington, D.C.

L i n d a M. Cohen
Washington, D.C.
Ms. Cohen i s C o o d i n a t o r o f the N a t i o n a l C r e d i t Task F o r c e
o f the N a t i o n a l O r g a n i z a t i o n f o r Women, and has served as spokesperson and l e c t u r e r on women and c r e d i t f o r t h a t o r g a n i z a t i o n .
She
has been an a t t o r n e y - a d v i s e r i n the General S e r v i c e s A d m i n i s t r a t i o n
s i n c e 1973 and i s a c t i v e i n l o c a l community o r g a n i z a t i o n s .

John R. Coleman
Haverford, Pennsylvania
Mr. Coleman i s P r e s i d e n t o f H a v e r f o r d C o l l e g e and Chairman
o f the Board o f D i r e c t o r s o f the F e d e r a l Reserve Bank o f P h i l a d e l p h i a .
He i s a T r u s t e e and member o f the Research and P o l i c y Committee o f the
the Committee f o r Economic Development.
Mr. Coleman was a member o f
s p e c i a l CED committees which produced i n 1976 statements r e g a r d i n g
n a t i o n a l p o l i c y on " W e l f a r e Report and i t s F i n a n c i n g " and " F i g h t i n g
I n f l a t i o n and Promoting Growth."
He i s t r u s t e e o f a number o f educat i o n a l i n s t i t u t i o n s and was f o r m e r l y a t r u s t e e o f the S p e c i a l D e v e l o p ment Fund o f the N a t i o n a l A s s o c i a t i o n f o r the Advancement o f C o l o r e d
People.
Mr. Coleman i s the author o f a number o f books h a v i n g t o do
w i t h economics and l a b o r problems.
One o f h i s books, "Blue C o l l a r
J o u r n a l " (1974) r e c o u n t s h i s e x p e r i e n c e s i n 1973 when he took l e a v e
from h i s p r o f e s s i o n a l o c c u p a t i o n s t o work as a b l u e c o l l a r l a b o r e r .

Robert R. Dockson
Los A n g e l e s , C a l i f o r n i a
Mr. Dockson i s P r e s i d e n t and c h i e f e x e c u t i v e o f f i c e r o f the
C a l i f o r n i a F e d e r a l Savings and Loan A s s o c i a t i o n .
P r i o r to joining
t h a t A s s o c i a t i o n , he was dean o f the undergraduate School o f B u s i n e s s
and the Graduate School o f B u s i n e s s A d m i n i s t r a t i o n o f the U n i v e r s i t y
of Southern C a l i f o r n i a at Los A n g e l e s .
Mr. Dockson has r e c e i v e d
the Human R e l a t i o n s Award o f the American J e w i s h Committee and the
Brotherhood Award o f the N a t i o n a l Conference o f C h r i s t i a n s and Jews.




-4-

Anne G. Draper
Washington, D.C.
Ms. Draper i s an economic a n a l y s t w i t h the AFL-CIO and
author o f numerous a r t i c l e s , t e s t i m o n y and p o l i c y r e s o l u t i o n s on
consumer m a t t e r s .
She serves on a d v i s o r y c o u n c i l s i n the Department
o f Labor and the Bureau o f the Census.
She was f o r m e r l y a s o c i a l
r e s e a r c h a n a l y s t w i t h the S o c i a l S e c u r i t y A d m i n i s t r a t i o n and served
as an economist w i t h the N a t i o n a l War Labor Board and the O f f i c e o f
Price Controls.

Carl Felsenfeld
New Y o r k C i t y , New Y o r k
Mr. F e l s e n f e l d i s V i c e P r e s i d e n t o f C i t i c o r p i n charge o f
l e g a l aspects of i t s consumer-related o p e r a t i o n s .
He i s a member o f
the Committee on the R e g u l a t i o n o f Consumer C r e d i t o f the American
Bar A s s o c i a t i o n and i s an adjunct p r o f e s s o r o f Banking Law a t Fordham
University.
He has served as c o n s u l t a n t t o the Commissioners on
U n i f o r m S t a t e Laws i n the d r a f t i n g o f the U n i f o r m Consumer C r e d i t
Code.

M a r c i a A. Hakala
Omaha, Nebraska
Ms. H a k a l a was, u n t i l r e c e n t l y . E x e c u t i v e D i r e c t o r o f the
M a y o r ' s Commission on the S t a t u s o f Women f o r the c i t y o f Omaha and
i s a member o f a number o f o t h e r a d v i s o r y c o u n c i l s and committees
w o r k i n g i n the f i e l d s o f manpower p l a n n i n g , women i n s m a l l b u s i n e s s ,
and problems o f o l d e r c i t i z e n s .
She has taught at I l l i n o i s S t a t e
U n i v e r s i t y , C l e v e l a n d State U n i v e r s i t y , Stout S t a t e U n i v e r s i t y , and
Indiana U n i v e r s i t y .

Joseph F . H o l t , I I I
Washington, D.C.
Mr. H o l t i s a c o n s u l t a n t t o the F e d e r a l N a t i o n a l Mortgage
A s s o c i a t i o n , where he was f o r m e r l y N a t i o n a l F i e l d R e p r e s e n t a t i v e
w i t h r e s p o n s i b i l t i y f o r f i e l d o p e r a t i o n s , e s p e c i a l l y i n the a r e a o f
d i s c r i m i n a t i o n by geographic areas ( " r e d - l i n i n g " ) .
Mr. H o l t i s a
former member o f the U.S. House o f R e p r e s e n t a t i v e s , and was a member
o f the E d u c a t i o n and Labor Committee and served on House subcommittees
r e s p o n s i b l e f o r minimum wage l e g i s l a t i o n and F e d e r a l a i d f o r e d u c a t i o n
i n impacted a r e a s .




-5Edna De Coursey Johnson
B a l t i m o r e , Maryland
Ms. Johnson i s D i r e c t o r o f Consumer S e r v i c e s o f the B a l t i m o r e
Urban League.
She i s a member o f the P r e s i d e n t ' s Consumer A d v i s o r y
Council.
Ms. Johnson i s a l s o a member o f the Maryland and V i r g i n i a
C i t i z e n s Consumer C o u n c i l s , o f the G o v e r n o r ' s Commission on the S t a t u s
of Women, and o f the Board o f D i r e c t o r s o f Consumer's Union o f t h e
United States.
She was f o r m e r l y a t e a c h e r i n t h e B a l t i m o r e p u b l i c
Schools.

Robert J . K l e i n
New Y o r k C i t y , New Y o r k
Mr. K l e i n i s a s e n i o r e d i t o r o f Money Magazine.
He i s a
member o f the N a t i o n a l A d v i s o r y C o u n c i l on Small Claims o f the N a t i o n a l
Center f o r S t a t e Courts and served from i t s i n c e p t i o n on the F e d e r a l
Reserve B o a r d ' s T r u t h i n L e n d i n g A d v i s o r y Committee (which the Consumer
Advisory Council replaces).
He has been a r e p o r t e r and e d i t o r w i t h
a number o f p u b l i c a t i o n s and i s the author o f numerous a r t i c l e s conc e r n i n g conusmer a f f a i r s .
Mr. K l e i n has t e s t i f i e d on consumer m a t t e r s
b e f o r e governmental committees.

Ralph Lazarus
C i n c i n n a t i , Ohio
Mr. Lazarus i s Chairman o f the board o f D i r e c t o r s o f
Federated Department S t o r e s , I n c .
He i s a T r u s t e e and member o f the
Research and P o l i c y Committee o f the Committee f o r Economic Development and has been a s s o c i a t e d w i t h the S t a n f o r d Research I n s t i t u t e
C o u n c i l and the C o u n c i l f o r F i n a n c i a l A i d t o E d u c a t i o n .
Mr. Lazarus
i s a T r u s t e e o f Dartmouth C o l l e g e and a member o f the R o c k e f e l l e r
U n i v e r s i t y C o u n c i l , among a number o f o t h e r c i v i c a s s o c i a t i o n s .

P e r c y W. Loy
P o r t l a n d , Oregon
Mr. Loy i s p r e s i d e n t o f the Kubla Khan Food Company.
He
i s s e r v i n g h i s t h i r d term as a member o f the D i s t r i c t A d v i s o r y
C o u n c i l o f the Small Business A d m i n i s t r a t i o n , i s a member o f the
B u s i n e s s L i a i s o n Committee o f the B u s i n e s s School o f the U n i v e r s i t y
of Oregon, and i s a past p r e s i d e n t o f the F r o z e n Food C o u n c i l o f
Oregon and a past member o f the M a r k e t i n g A d v i s o r y C o u n c i l o f the
Business School o f the U n i v e r s i t y o f Oregon.
He i s a member o f the
Board o f Overseers o f Lewis and C l a r k C o l l e g e .




-6R. C. Morgan
E l Paso, Texas
Mr. Morgan i s p r e s i d e n t o f the Government Employees C r e d i t
Union o f E l Paso.
He i s immediate past v i c e chairman o f the N a t i o n a l
L e g i s l a t i v e Forum and chairman o f the Governmental A f f a i r s Committee
o f the C r e d i t Union N a t i o n a l A s s o c i a t i o n .
He served t h r e e terms as
president of that A s s o c i a t i o n .
He has served as a member and as
chairman o f the C r e d i t Union A d v i s o r y Commission f o r t h e S t a t e o f
Texas and as a member o f the Texas C r e d i t Union Commission.
He has
t e s t i f i e d on consumer p r o t e c t i o n i s s u e s b e f o r e committees o f the U.S.
Senate and House o f R e p r e s e n t a t i v e s and r e g u l a t o r y a g e n c i e s .

Reece A . Overcash
D a l l a s , Texas
Mr. Overcash i s p r e s i d e n t and c h i e f o p e r a t i n g o f f i c e r o f
A s s o c i a t e s C o r p o r a t i o n o f N o r t h America.
He has served as p r e s i d e n t
of the N a t i o n a l Consumer F i n a n c e A s s o c i a t i o n and f o r m e r l y s e r v e d
on the board o f d i r e c t o r s o f the N o r t h C a r o l i n a Economic Resources
Association.
He has taught at the N a t i o n a l I n s t i t u t e o f Consumer
F i n a n c e a t Marquette U n i v e r s i t y and the N a t i o n a l I n s t a l m e n t Banking
School at the U n i v e r s i t y o f C o l o r a d o .

Raymond J . S a u l n i e r
New Y o r k C i t y , New Y o r k
Mr. S a u l n i e r i s p r o f e s s o r emeritus o f economics a t Barnard
C o l l e g e , Columbia U n i v e r s i t y .
He i s a former chairman o f the P r e s i d e n t ' s
C o u n c i l o f Economic A d v i s e r s and a former d i r e c t o r o f the F i n a n c i a l
Research Program o f the N a t i o n a l Bureau o f Economic R e s e a r c h , where
he was r e s p o n s i b l e f o r s t u d i e s o f consumer i n s t a l m e n t c r e d i t .
He has
w r i t t e n e x t e n s i v e l y i n the f i e l d o f consumer i n s t a l m e n t c r e d i t .

E . G. Schuhart
D a l h a r t , Texas
Mr. S c h u h a r t , a farmer and r a n c h e r , has served as v i c e chairman and member o f the F e d e r a l Farm C r e d i t Board ( p o l i c y - m a k i n g
board f o r the Farm C r e d i t System).
He has a l s o been a member o f
the A g r i c u l t u r a l S t a b i l i z a t i o n and C o n s e r v a t i o n Committee f o r the
S t a t e o f Texas and mayor o f the C i t y o f D a l h a r t , Texas.
He has been
a d i r e c t o r o f the Farm C r e d i t Board o f Houston and a chairman and
member o f the s t o c k h o l d e r s ' committee o f the F e d e r a l Land Bank o f
Houston.
He was f o r m e r l y manager o f the Schuhart G r a i n Company.




-7James E . S u t t o n
D a l l a s y Texas
Mr. S u t t o n i s S e c r e t a r y and C o r p o r a t e Counsel o f C h i l t o n
Corporation.
B e f o r e j o i n i n g C h i l t o n i n 1973, M r . S u t t o n served
t h r e e years as s t a f f a t t o r n e y and consumer e d u c a t i o n c o n s u l t a n t i n
the Texas S t a t e Consumer C r e d i t Commission.
While i n that o f f i c e ,
he was charged w i t h e n f o r c i n g the Texas C r e d i t Code and worked
c l o s e l y w i t h the F e d e r a l T r u t h i n L e n d i n g A c t .
M r . S u t t o n was a l s o
engaged i n consumer e d u c a t i o n programs and p a r t i c i p a t e d i n the
e s t a b l i s h m e n t o f the Consumer C r e d i t C o u n s e l i n g S e r v i c e o f G r e a t e r
D a l l a s and F a m i l y Debt C o u n s e l o r s o f Corpus C h r i s t i .

Anne Gary T a y l o r
Alexandria, V i r g i n i a
Ms. T a y l o r i s a former n a t i o n a l p r e s i d e n t o f the American
A s s o c i a t i o n o f U n i v e r s i t y Women. For 21 y e a r s she was p r e s i d e n t
of Sweet B r i a r C o l l e g e .
She has served on the American C o u n c i l on
E d u c a t i o n , and was v i c e - c h a i r m a n o f the Board, and a member o f the
Commission on Students and F a c u l t y o f the A s s o c i a t i o n o f American
Colleges.
She was one o f f o u r e d u c a t i o n a l a d m i n i s t r a t o r s who
arranged f o r the e s t a b l i s h m e n t o f the U n i t e d S t a t e s - I n d i a Women's
C o l l e g e s F a c u l t y Exchange Program.

R i c h a r d D. Wagner
Simsbury, C o n n e c t i c u t
Mr. Wagner i s p r e s i d e n t o f Wagner F o r d S a l e s , I n c o r p o r a t e d ,
He i s a member o f the board o f d i r e c t o r s o f the N a t i o n a l A u t o m o b i l e
D e a l e r s ' A s s o c i a t i o n and i s chairman o f the A s s o c i a t i o n ' s P u b l i c
and Consumer A f f a i r s Committee and d i r e c t o r o f the A s s o c i a t i o n f o r
the S t a t e o f C o n n e c t i c u t .
He e s t a b l i s h e d the C o n n e c t i c u t Automotive
Consumer A c t i o n P a n e l Program (AUTOCAP).

R i c h a r d L . Wheatley, J r .
S t i l l w a t e r , Oklahoma
Mr. Wheatley i s chairman and c h i e f e x e c u t i v e o f f i c e r o f the
U n i v e r s i t y Bank at S t i l l w a t e r .
He was the f i r s t A d m i n i s t r a t o r of
Consumer A f f a i r s f o r the S t a t e o f Oklahoma a f t e r the S t a t e enacted
the U n i f o r m Consumer C r e d i t Code, and served as a r e p r e s e n t a t i v e i n
the S t a t e l e g i s l a t u r e .
He has served as c o n s u l t a n t w i t h some 30 other
S t a t e l e g i s l a t u r e s r e g a r d i n g enactment o f the U n i f o r m Consumer C r e d i t
Code i n those s t a t e s .




APPENDIX B

PART 267 - RULES OF ORGANIZATION AND PROCEDURE
OF THE CONSUMER ADVISORY COUNCIL

SECTION 267.1 - STATUTORY AUTHORITY
Section

703 of the Equal C r e d i t O p p o r t u n i t y A c t ,

as amended,

provides:
The Board [of Governors o f the F e d e r a l
Reserve System] s h a l l e s t a b l i s h a Consumer A d v i s o r y
C o u n c i l t o a d v i s e and c o n s u l t w i t h i t i n the e x e r c i s e
o f i t s f u n c t i o n s under the Consumer C r e d i t P r o t e c t i o n
Act and t o a d v i s e and c o n s u l t w i t h i t c o n c e r n i n g o t h e r
consumer r e l a t e d matters i t may p l a c e b e f o r e the C o u n c i l s
In a p p o i n t i n g the members o f the C o u n c i l , the Board
s h a l l seek t o a c h i e v e a f a i r r e p r e s e n t a t i o n o f the
i n t e r e s t s o f c r e d i t o r s and consumers^
The C o u n c i l s h a l l
meet from time t o time at the c a l l o f the Board•
Members
of the C o u n c i l who are not r e g u l a r f u l l - t i m e employees
o f the U n i t e d S t a t e s s h a l l , w h i l e a t t e n d i n g meetings
o f such C o u n c i l , be e n t i t l e d t o r e c e i v e compensation
at a r a t e f i x e d by the Board, but n o t e x c e e d i n g $100
per day, i n c l u d i n g t r a v e l t i m e .
Such members may be
a l l o w e d t r a v e l expenses, i n c l u d i n g t r a n s p o r t a t i o n and
s u b s i s t e n c e , w h i l e away from t h e i r homes o r r e g u l a r
p l a c e o f business*

SECTION 267.2 - PURPOSES AND OBJECTIVES OF THE COUNCIL
The C o u n c i l s h a l l a d v i s e and c o n s u l t w i t h the Board i n the
e x e r c i s e o f the B o a r d ' s

f u n c t i o n s under the Consumer C r e d i t

Protection

Act and w i t h r e g a r d t o o t h e r m a t t e r s the Board may p l a c e b e f o r e

the

Council.

SECTION 267.3 - MEMBERS
(a)

The C o u n c i l s h a l l c o n s i s t

a p p o i n t e d by the Board.

The term o f o f f i c e o f each member o f

C o u n c i l s h a l l be t h r e e y e a r s .
members f i r s t




o f not more than 30 members

taking o f f i c e

However, the i n i t i a l

s h a l l e x p i r e as f o l l o w s :

terms o f

the
the

approximately

o n e - t h i r d on December 31, 1977, and a p p r o x i m a t e l y o n e - t h i r d a t
end of each o f

the two s u c c e e d i n g c a l e n d a r years•

t i o n o f any member's term o f o f f i c e ,
serve u n t i l

After

the

expira-

such member may c o n t i n u e

a s u c c e s s o r has been a p p o i n t e d by the Board.

s h a l l have the a u t h o r i t y to a p p o i n t persons t o f i l l

the

to

The Board

v a c a n c i e s on the

Council«
(b)

Resignation.

Any member may r e s i g n at any time

by g i v i n g n o t i c e t o the Board.
effect

upon i t s
(c)

employees o f

Any such r e s i g n a t i o n s h a l l

take

acceptance by the Board.
Compensation.

Members who are not r e g u l a r

the United States s h a l l be p a i d t r a v e l

i n c l u d i n g t r a n s p o r t a t i o n and s u b s i s t e n c e ,

full-time

expenses,

and compensation of

$100

f o r each day devoted to a t t e n d i n g and t r a v e l i n g t o and from meetings-

SECTION 267.4 - OFFICERS
(a)

Chairman.

The Board s h a l l a p p o i n t

a Chairman

and a V i c e Chairman from among the members o f the C o u n c i l , who
shall

serve at the p l e a s u r e o f the Board.

the Chairman's absence the V i c e Chairman,
meetings o f the C o u n c i l .
tem who s h a l l
of

of

its

staff,

in § 267.5(c),

Secretary.

in
all

The Board may a p p o i n t a Chairman pro
i n the absence

Chairman.
The Board s h a l l d e s i g n a t e a member

who may but need not he the r e p r e s e n t a t i v e
t o act as S e c r e t a r y o f the C o u n c i l .

s h a l l r e c o r d and m a i n t a i n minutes o f




s h a l l preside at

p r e s i d e at a meeting o f the C o u n c i l

the Chairman and Vice
(b)

The Chairman, or

the meetings o f

The
the

described
Secretary
Council.

M i n u t e s o f each meeting s h a l l c o n t a i n ,
o f the persons p r e s e n t ,
recommendations made*
shall certify

among o t h e r t h i n g s ,

a record

a d e s c r i p t i o n o f the m a t t e r s d i s c u s s e d ,
The person a c t i n g as S e c r e t a r y a t

t o the a c c u r a c y o f the minutes o f t h a t

and

a meeting

meeting-

SECTION 267*5 - MEETINGS
(a)

Time*

Meetings o f the C o u n c i l

s h a l l be h e l d at

once each year and may be h e l d more f r e q u e n t l y a t the c a l l o f

least
the

Board «
(b)

Agenda*

Each meeting o f the C o u n c i l

s h a l l be

conducted i n accordance w i t h an agenda f o r m u l a t e d o r

approved

by the Board*
(c)

Board R e p r e s e n t a t i o n *

Each meeting o f the

Council

s h a l l be a t t e n d e d by a r e p r e s e n t a t i v e o f the Board who i s e i t h e r
member of the Board or o f the B o a r d ' s s t a f f *

The Board

representative

s h a l l have a u t h o r i t y t o and s h a l l a d j o u r n any meeting o f the
when such r e p r e s e n t a t i v e

c o n s i d e r s adjournment

a

t o be i n the

Council
public

interest*
(d)
shall,

P u b l i c Nature*

(1)

Each meeting o f the

t o the e x t e n t o f r e a s o n a b l y a v a i l a b l e

to p u b l i c

o b s e r v a t i o n u n l e s s the Board,

facilities,

i n accordance

Council
be open

with

§ 267*5(d)(6), h e r e o f , determines t h a t the meeting s h a l l be c l o s e d *
(2)

Notice of

as w e l l as a summary o f

the t i m e , p l a c e and purpose of each m e e t i n g ,
the proposed agenda, s h a l l bt- p u b l i s h e d

i n the F e d e r a l R e g i s t e r not more than 45 or l e s s
prior




t o the scheduled meeting date*

I n s o f a r as

than i

days

pravtLcable,

a list

o f persons and o r g a n i z a t i o n s

s h a l l be m a i n t a i n e d ,

interested

the scheduled meeting d a t e .
Board determines t h a t

15 days i n advance o f

Shorter n o t i c e may be g i v e n when the

i t s business

so r e q u i r e s ;

- s e n t e n c e , w i l l be g i v e n n o t i c e a t the e a r l i e s t
Members o f the p u b l i c may f i l e

w i t h the C o u n c i l p r i o r
Council's

agenda.

written

time-

statements

t o submit w r i t t e n statements on
time a f t e r

such submissions s h a l l be c i r c u l a t e d

(4)

practicable

preceding

The person p r e s i d i n g a t the C o u n c i l meeting

such m a t t e r s w i t h i n a s p e c i f i e d

as soon as i s

i n the

the

t o the meeting c o n c e r n i n g m a t t e r s on the

may permit members o f the p u b l i c

All

i n such e v e n t ,

i n c l u d i n g persons and o r g a n i z a t i o n s d e s c r i b e d

(3)

Council

and a n o t i c e o f each meeting s h a l l be m a i l e d

t o such persons and o r g a n i z a t i o n s a t l e a s t

public,

i n the

the C o u n c i l

meeting.

t o the C o u n c i l members

practicable.
Oral presentations

at the C o u n c i l meetings by

members o f the p u b l i c

s h a l l not be p e r m i t t e d except upon

t i o n o f the C o u n c i l .

However, i f

invita-

the C o u n c i l and the Board

determine t h a t p u b l i c h e a r i n g s r e g a r d i n g a m a t t e r o r matters

of

concern t o the C o u n c i l are w a r r a n t e d , members o f the p u b l i c may
make p r e s e n t a t i o n s a t such h e a r i n g s
established

Minutes o f meetings,

records,

the C o u n c i l s h a l l be a v a i l a b l e

at the B o a r d ' s o f f i c e s
provisions of




procedures

therefor.

(5)
agenda o f

i n accordance w i t h

reports,

t o the p u b l i c

i n Washington, D . C . ,

studies,
for

copying

i n accordance w i t h

12 C . F . R . 261 (Rules Regarding A v a i l a b i l i t y

and

of

the

Information)^ Requests f o r c o p i e s o f such documents
addressed t o the S e c r e t a r y ,

Board o f Governors o f

Reserve System, Washington, D.C-,
(6)

such meeting or p o r t i o n t h e r e o f
(i)

t o the p u b l i c

(ii)

Federal

an/ meeting,

the C o u n c i l i f

is

likely

and p r a c t i c e s o f the

it

determines

solely

to

internal

Council;

d i s c l o s e t r a d e s e c r e t s and commercial o r

information obtained
(iii)

that

to:

d i s c l o s e matters t h a t r e l a t e

personnel r u l e s

the

20551#

The Board may c l o s e

or any p o r t i o n o f any meeting, o f

should be

from a person and p r i v i l e g e d or

financial

confidential;

i n v o l v e a c c u s i n g any person o f a c r i m e , o r

formally

c e n s u r i n g any person;
(iv)

disclose

i n f o r m a t i o n o f a p e r s o n a l n a t u r e where

d i s c l o s u r e would c o n s t i t u t e a c l e a r l y unwarranted
personal




privacy;
(v)

examination,
of,

invasion of

disclose

information contained

i n or r e l a t e d

to

o p e r a t i n g o r c o n d i t i o n r e p o r t s p r e p a r e d b y , on b e h a l f

or f o r the use o f an agency r e s p o n s i b l e

or s u p e r v i s i o n o f
(vi)

financial

disclose

for

i n f o r m a t i o n the premature

securities,

disclose

which would be l i k e l y

disclosure

financial

or commodities or s i g n i f i c a n t l y

the s t a b i l i t y o f any f i n a n c i a l
(vii)

regulation

institutions;

o f which would be l i k e l y t o l e a d t o s i g n i f i c a n t
in currencies,

the

speculation
endanger

institution;

i n f o r m a t i o n the prematurn d i s c l o s u r e

to frustrate

significantly

unplementation

of
of

a proposed Board a c t i o n ,
the p u b l i c

u n l e s s the Board has a l r e a d y d i s c l o s e d

the c o n t e n t or nature o f

its

to

proposed a c t i o n , o r where

the Board i s r e q u i r e d by law t o make such d i s c l o s u r e on i t s own
initiative

prior
(viii)

t o t a k i n g f i n a l a c t i o n on the p r o p o s a l ;
w h i c h r e l a t e t o any l e g a l

or

proceedings,

agency a d j u d i c a t o r y p r o c e e d i n g or a r b i t r a t i o n

i n v o l v i n g the Board

or the C o u n c i l s
If

the Board c l o s e s a meeting or any p o r t i o n o f a m e e t i n g ,

the C o u n c i l w i l l

i s s u e , at l e a s t annually,

a report containing a

summary, c o n s i s t e n t w i t h 5 U.S^C. 552(b)(1970), o f the

Council's

a c t i v i t i e s d u r i n g such c l o s e d meetings o r p o r t i o n s o f meetings*.

SECTION 267.6 - AMENDMENTS
These r u l e s o f o r g a n i z a t i o n and procedure may be amended
o r r e p e a l e d a t any time by a c t i o n o f the Board, p r o v i d e d ,

however,

t h a t members o f the C o u n c i l s h a l l be promptly n o t i f i e d by the Board
o f any such a c t i o n *
By o r d e r o f the Board o f Governors, November 1,

( s i g n e d ) Theodore E . A l l i s o n
Theodore E« A l l i s o n
S e c r e t a r y o f t h e Board
[SEAL]




1976«