Full text of District Notices (Federal Reserve Bank of Dallas) : Amendments to Regulations B and Z, Circular No. 78-66

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FE D E R A L RESERVE B A N K OF D A LLA S
DALLAS, T E X A S

75222

Circular No. 78-66
May 2H, 1978

AMENDMENTS TO REGULATIONS B AND Z
Revised Procedures for Issuing Official Staff Interpretations

TO ALL BANKS, OTHER CREDITORS,
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System has revised its
procedure for issuing official staff interpretations of its Regulation B (Equal Credit
Opportunity) and Regulation Z (Truth-in-Lending) .
The Board said that it will issue all official staff interpretations of the re g u ­
lations with an effective date 30 days after publication of the interpretation. Further,
if an interpretation is challenged before the effective date, it will be reissued for pu b ­
lic comment before final action is taken on it.
The Board made the change after receiving a number of complaints about
existing procedure. This has been to publish an official staff interpretation in the
FEDERAL REGISTER within two weeks of issuance, to be effective upon publication.
Those questioning this procedure have taken the view that an official staff interpreta­
tion is a " ru le ," as defined in the Administrative Procedures Act, calling for general
notice and opportunity for comment before becoming effective.
An official staff interpretation provides a defense to any creditor acting in
good faith in conformity with it. Official staff interpretations a re limited to clarifica­
tions of technical points, or other matters not involving significant policy implications.
They may be appealed to the Board.
Printed on the following pages is a copy of the Board's o rd e r as it appeared
in the FEDERAL REGISTER on May 1, 1978. In addition, copies of amendments to Regu­
lations B and Z a re enclosed for insertion in your Regulations Binders. Any questions
may be directed to the Bank Supervision and Regulations Department, Consumer Af­
fairs Section, at Ext. 6171 or 6181. Additional copies of the amendments will be f u r ­
nished upon request to the S e c re tary 's Office, Ext. 6267.
Sincerely y o urs,
Robert H . Boykin
First Vice President
Enclosures
Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank:
1-800 -492 -440 3 (intrastate) and 1 -8 00 -527 -497 0 (interstate). For calls placed locally, please use 651 plus
the extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

E x tra c t From
FEDERAL REGISTER,
VOL. 43, NO. 84,
M onday, May 1, 1978
p p . 18539 - 18540

nificant policy implications. The inter­
pretation is published tn the Federal
R e g i s t e r within a week or two of Issu­
ance, to be effective at the time of
publication. The regulations also pro­
vide for reconsideration of an official
staff interpretation if a request is sub­
mitted within 30 days of publication.
The Board is amending Regulations
[4 2 1 0 -0 1 ]
B and Z to provide for a delayed effec­
tive date and for an opportunity for
Title 13—Bonks and Banking
public comment on official staff inter­
pretations. The Board believes this
CHAPTER II—FEDERAL RESERVE
change In procedure is appropriate be­
SYSTEM
cause it will enable the public to
review official staff Interpretations
S U I Q U P m A — B O A R D O F G O V ERN ORS O F
before they become final. If an official
THE K D E R A l RESERVE SYSTEM
staff interpretation is challenged, the
CRegs. B u t l Z ; D o c k e t N o . R -0 M 4 ]
new procedures will enable the new
staff to reconsider it in the light of
PART 202—EQUAL CREDIT
public comments.
OPPORTUNITY
The amendment provides that offi­
cial staff interpretations will be pub­
PART 226— TRUTH IN LENDING
lished in the F e d e r a l R e g i s t e r within
a week or two of issuance but will
A m en d m en t to Procedures for Issuing
become effective only upon the expira­
tion of thirty days. If a request for
Official Staff Interpretations
public comment is received or post­
AGENCY: Board of Governors of the marked within the 30 days, the effec­
Federal Reserve System.
tive date of the interpretation will be
suspended. Notice of the suspension of
ACTION: Final rule.
the effective date and the interpreta­
S U M M A R Y : This amendment to Reg­ tion will then be published for public
ulation B, Equal Credit Opportunity, comment as soon as possible. Any com­
and Regulation Z, Truth in Lending, ments received will be reviewed and a
revises the Board’s existing procedures final interpretation issued to be effec­
for issuing official staff interpreta­ tive upon publication in the F e d e r a l
tions.
R e g is t e r .
The amendment provides that offi­
cial staff interpretations will be pub­
E x p l a n a t io n o f A m e n d m e n t
lished in the F e d e r a l R e g i s t e r with a
The
references to official or formal
30 day delayed effective date. If a re­
quest for public comment is received, Board interpretations have been de­
the effective date will be suspended leted because the Administrative Pro­
and the interpretation published for cedure Act and the Board’s Rules of
comment. Once the comments have Procedure (12 C F R 262.3) indepen­
been analyzed, a final version of the dently provide opportunity for re­
interpretation will be published. The quests for Board action. Sections
current criteria for determining 202.1(d) and 226.1(d) deal only with
whether a question merits an official staff action and procedures.
The language tn the second and
staff interpretation and the proce­
dures for a request for reconsideration third sentences of subsection (d)(1) of
the regulations regarding the signa­
are eliminated.
ture of the requester or authorized
EFFECTIVE DATE: Immediately.
agent, and copies of documents accom­
F O R F U R T H E R I N F O R M A T I O N panying a request has been deleted be­
cause the Board believes that such re­
CONTACT:
quirements have proved unnecessary.
Anne Geary, Chief Staff Attorney, In the same subsection, the language
Division of Consumer Affairs, Board concerning a siTbstantive response has
of Governors of the Federal Reserve been deleted as it is no longer applica­
System, Washington, D.C. 20551, ble. The time for acknowledging the
203-452-2761.
request for an offical staff interpreta­
S U P P L E M E N T A R Y INFORMATION: tion has been reduced from fifteen to
The Equal Credit Opportunity Act five business days.
The provision for requests for recon­
and Truth in Lending Act provide for
the issuance of official staff interpre­ sideration of official at&lf interpreta­
tations. Regulations B and Z, which tions has been deleted because this
Implement these laws, set forth proce­ amendment provides an opportunity
dures and criteria lor requesting an of­ for public comment and the Board’s
ficial staff interpretation. Currently, Rules of Procedure independently pro­
official staff interpretations are issued vide for Board consideration of the un­
when clarification of a technical ambi­ derlying issue.
guity in the regulation is required or
The requirements in subsection
when a request does not involve sig­ (dX4)(il) that official staff lnterpreta-

staff interpretation is appropriate, it the publication date. If a request for
will be published in the F e d e r a l R e g ­ public comment is received, the effec­
tive date will be suspended. The inter­
i s t e r to become effective 30 days after
the publication date. If a request for pretation will then be republished in
public comment is received, the effec­ the F e d e r a l R e g i s t e r and the public
tive date will be suspended. The inter­ given an opportunity to comment. Any
pretation will then be republished in official staff interpretation Issued
the F e d e r a l R e g i s t e r and the public after opportunity for public comment
given an opportunity to comment. Any shall become effective upon publica­
official staff interpretation issued tion in the F e d e r a l R e g i s t e r .
(3) Any request for public comment
after opportunity for public comment
shall become effective upon publica­ on an official staff interpretation of
this Part must be in writing and ad­
tion in the F e d e r a l R e g i s t e r .
(3) Any request for public comment dressed to the Secretary, Board of
on an official staff interpretation of Governors of the Federal Reserve
this Part must be in writing and ad­ System, Washington, D.C. 20551, and
dressed to the Secretary, Board of postmarked or received by the Secre­
Governors of the Federal Reserve tary’s office within 30 days of the in­
System, Washington, D.C. 20551, and terpretation’s publication in the F e d ­
postmarked or received by the Secre­ e r a l R e g i s t e r . The request must con­
tary’s office within 30 days of the in­ tain a statement setting forth the rea­
terpretation’s publication in the F e d ­ sons why the person making the re­
quest believes that public comment
e r a l R e g i s t e r . The request must con­
tain a statement setting forth the rea­ would be appropriate.
(4) Pursuant to section 130(f) of the
sons why the person making the re­
quest believes that public comment Act, the Board has designated the Di­
rector and other officials of the Divi­
would be appropriate.
(4) Pursuant to section 706(e) of the sion of Consumer Affairs as officials
Act, the Board has designated the Di­ “duly authorized” to issue, at their dis­
rector and other officials of the Divi­ cretion, official staff interpretations of
sion of Consumer Affairs as officials this Part.
“duly authorized” to issue, at their dis­
By order of the Board of Governors,
cretion, official staff interpretations of April 21, 1978.
this Part.
T ex t o f A m endm ent
T h e o d o r e E. A l l i s o n ,
2.
Pursuant to the authority granted
S e c r e t a r y o f th e B o a r d .
1. Pursuant to the authority grantedunder § 105 of the Truth in Lending
[
P
R
D
oc.
78-11758
F ile d 4-2 8 -7 8 ; 8:45 a m )
Act
(15
U.S.C.
1604),
the
Board
under section 703 of the Equal Credit
Opportunity Act (IS U.S.C. 1601(b)), amends Regulation Z, 12 C F R
the Board amends Regulation B, 12 226.1(d), as follows:
C F R 202.1(d) as follows:

tlons deal with clarification of a tech­
nical ambiguity in the regulation or
have no significant policy implications
have been deleted because the Board
has determined that these criteria are
not sufficiently specific to be useful.
However, official staff interpretations
will not address policy questions,
which will be referred to the Board for
its consideration.
The prohibition on issuance of inter­
pretations approving creditors’ or les­
sors’ forms or language has been
moved from subsection Cd)(3) to
(dX2)(l). The description of the two
types of staff interpretations, followed
by a description of the manner in
which they may be obtained, will
enable an interested party to deter­
mine, first, which kind of interpreta­
tion to seek and, second, how to re­
quest it.
A new subsection (d)(3) has been
added to provide for requests for
public comment on official staff inter­
pretations. Such requests must be
postmarked or received by the Secre­
tary, Board of Governors of the Feder­
al Reserve System, within 30 days of
the interpretation’s publication in the
F e d e r a l R e g i s t e r . A statement of the
reasons why public comment is appro­
priate must accompany the request.

§ 226.1 Authority, Scope, Purpose, etc.

§ 202.1 Authority,
penalties and
tions.

scope, enforcement,
liabilities, interpreta­

(d)I s s u a n c e o f s t a f f i n t e r p r e t a t i o n s .
(1) Unofficial staff Interpretations will
be issued at the staff’s discretion
where the protection of section 706(e)
of the Act is neither requested nor re­
quired, or where a rapid response is
necessary.
(2) (i) Official staff interpretations
will be issued at the discretion of des­
ignated officials. No such interpreta­
tion will be issued approving creditors’
forms or statements. Any
request for an official staff interpreta­
tion of this Part must be in writing
and addressed to the Director of the
Division of Consumer Affairs, Board
of Governors of the Federal Reserve
System, Washington, D.C. 20551. The
request must contain a complete state­
ment of all relevant facts concerning
the credit
transaction or ar­
rangement and must include copies of
all pertinent documents.
(ii) Within 5 business days of receipt
of the request, an acknowledgment
will be sent to the person making the
request. If, in the opinion of the desig­
nated officials, issuance of an official

(d) I s s u a n c e o f s t a f f i n te r p r e t a t i o n s .
(1) Unofficial staff interpretations will
be issued at the staff’s discretion
where the protection of section 130(f)
of the Act is neither requested nor re­
quired, or where a rapid response is
necessary.
(2) (i) Offlcal staff interpretations
will be issued at the discretion of des­
ignated officials. No such interpreta­
tion will be issued approving creditors’
or lessors’ forms or statements. Any
request for an official staff interpreta­
tion of this Part must be in writing
and addressed to the Director of the
Division of Consumer Affairs, Board
of Governors of the Federal Reserve
System, Washington, D.C. 20551. The
request must contain a complete state­
ment of all relevant facts concerning
the credit or lease transaction or ar­
rangement and must include copies of
all pertinent documents.
(il) Within 5 business days of receipt
of the request, an acknowledgment
will be sent to the person making the
request. If, in the opinion of the desig­
nated officials, issuance of an official
staff interpretation Is appropriate. It
will be published In the F e d e r a l R e g ­
i s t e r to become effective 30 days after

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

EQUAL CREDIT OPPORTUNITY

AMENDMENT TO REGULATION Bf

Effective April 21, 1978, §202.1 (d) of Regula­
tion B is amended to read as follows:
SECTION 202.1 — AUTHORITY, SCOPE,
EN FORCEM EN T, PENALTIES AND
LIABILITIES, INTERPRETATIONS

* * * * *
(d)
Issuance of staff interpretations. (1) Unof­
ficial staff interpretations will be issued at the
staff’s discretion where the protection of section
706(e) of the Act is neither requested or required,
or where a rapid response is necessary.
(2)
(i ) Official staff interpretations will be issued
at the discretion of designated officials. No such
interpretation will be issued approving creditors’
forms or statements. Any request for an official
staff interpretation of this Part must be in writing
and addressed to the Director of the Division of
Consumer Affairs, Board of Governors of the Fed­
eral Reserve System, Washington, D.C. 20551.
The request must contain a complete statement of
all relevant facts concerning the credit transaction
or arrangement and must include copies of all
pertinent documents.
(ii) Within 5 business days of receipt of the
request, an acknowledgement will be sent to the
person making the request. If, in the opinion of the

designated officials, issuance of an official staff in­
terpretation is appropriate, it will be published in
the Federal Register to become effective 30 days
after the publication date. If a request for public
comment is received, the effective date will be
suspended. The interpretation will then be repub­
lished in the Federal Register and the public given
an opportunity to comment. Any official staff in­
terpretation issued after opportunity for public
comment shall become effective upon publication
in the Federal Register.
(3) Any request for public comment on an
official staff interpretation of this Part must be in
writing and addressed to the Secretary, Board of
Governors of the Federal Reserve System, Wash­
ington D.C. 20551, and postmarked or received
by the Secretary’s office within 30 days of the in­
terpretation’s publication in the Federal Register.
The request must contain a statement setting forth
the reasons why the person making the request
believes that public comment would be appropri­
ate.
(4) Pursuant to section 706(e) of the Act, the
Board has designated the Director and other of­
ficials of the Division of Consumer Affairs as
officials “duly authorized” to issue, at their dis­
cretion, official staff interpretations of this Part.

t For this Regulation to be complete as amended effective April 21, 1978, retain:
1) Printed Pamphlet as amended effective March 23, 1977;
2) Amendment effective March 13, 1978; and
3) This slip sheet.

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

TRUTH IN LENDING

AMENDMENT TO REGULATION Zf

Effective April 21, 1978, §226.1(d) of Regula­
tion Z is amended to read as follows:
SECTION 226.1 — AUTHORITY, SCOPE,
PURPOSE, ETC.
* * * * *
(d)
Issuance of staff interpretations. (1) U n­
official staff interpretations will be issued at the
staff’s discretion where the protection of section
130(f) of the Act is neither requested nor re­
quired, or where a rapid response is necessary.
(2)(i) Official staff interpretations will be issued
at the discretion of designated officials. No such
interpretation will be issued approving creditors’
or lessors’ forms or statements. Any request for
an official staff interpretation of this Part must be
in writing and addressed to the Director of the
Division of Consumer Affairs, Board of Governors
of the Federal Reserve System, Washington D.C.
20551. The request must contain a complete state­
ment of all relevant facts concerning the credit or
lease transaction or arrangement and must include
copies of all pertinent documents.
(ii) Within 5 business days of receipt of the
request, an acknowledgement will be sent to the
person making the request. If, in the opinion of
the designated officials, issuance of an official

staff interpretation is appropriate, it will be pub­
lished in the Federal Register to become effective
30 days after the publication date. If a request for
public comment is received, the effective date will
be suspended. The interpretation will then be re­
published in the Federal Register and the public
given an opportunity to comment. Any official
staff interpretation issued after opportunity for
public comment shall become effective upon publi­
cation in the Federal Register.
(3) Any request for public comment on an
official staff interpretation of this Part must be in
writing and addressed to the Secretary, Board of
Governors of the Federal Reserve System, Wash­
ington, D.C. 20551, and postmarked or received
by the Secretary’s office within 30 days of the
interpretation’s publication in the Federal Reg­
ister. The request must contain a statement setting
forth the reasons why the person making the re­
quest believes that public comment would be ap­
propriate.
(4) Pursuant to section 130(f) of the Act, the
Board has designated the Director and other
officials of the Division of Consumer Affairs as
officials “duly authorized” to issue, at their dis­
cretion, official staff interpretations of this Part.

t F o r this Regulation to be complete effective April 21, 1978, retain the following:
1) Printed pam phlet as amended effective M arch 23, 1977;
2 ) Amendments effective April I I , 1977, Section 226.6, and October
10, 1977, Section 226.8;
3) Amendments effective July 20, 1977, Section 226.2, Section 226.4, Section 226.5, and Section 226.13;
4) Amendment effective M arch 28, 1978, Section 2 2 6 .7 ( k ) ( 3 ) (ii); and

5) This slip sheet.