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F e d e r a l R e s e r v e Ba n k o f D a lla s DALLAS, TEXAS 75222 C i r c u l a r No. 76-2 J a n u a r y 9, 1976 A m e ric a n R ev o lu tio n B ic en ten n ia l in t e r pr e ta tio n of re g u l a t io n b EQUAL CREDIT OPPORTUNITY ACT S t u d e n t Loan P r o g r a m s A d m i n i s t e r e d b y t h e D e p a r t m e n t of H e a lth , E d u c a t i o n , a n d W elfare (HEW) TO ALL BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: On D e c e m b e r 22, 1975, t h e B o a r d of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y ste m i s s u e d a c l a r i f y i n g i n t e r p r e t a t i o n of R e g u l a ti o n B, t h e Equal C r e d i t O p p o r t u n i t y A c t, m a k in g it c l e a r t h a t b a n k s in P e n n s y l v a n i a m a y c o n t i n u e to m a k e f e d e r a l l y g u a r a n t e e d loans to m a r r i e d s t u d e n t s in c o m p l i a n c e w ith s ta t e r e g u l a t i o n s . T h e s e r e g u l a t i o n s r e q u i r e d t h a t th e s i g n a t u r e of b o th s p o u s e s b e o b t a i n e d in c o n n e c t i o n w ith loans g u a r a n t e e d u n d e r p r o g r a m s a d m i n i s t e r e d b y HEW. Effective J a n u a r y 31, 1976, R e g u l a ti o n B will p r o h i b i t m a k in g a g e n e r a l p r a c t i c e of r e q u i r i n g t h e s i g n a t u r e of b o th s p o u s e s on s u c h credit arrangem ents. P r i n t e d on t h e r e v e r s e of t h i s c i r c u l a r is a c o p y of th e i n t e r p r e ta tio n . If y o u h a v e a n y q u e s t i o n s r e g a r d i n g R e g u l a ti o n B, p l e a s e c o n t a c t t h i s B a n k ' s R e g u l a t i o n s D e p a r t m e n t a t (214) 651-6169 o r 651-6269. A d d iti o n a l c o p i e s of t h i s i n t e r p r e t a t i o n of R e g u l a ti o n B will b e f u r n i s h e d u p o n r e q u e s t to t h e S e c r e t a r y ' s Office of t h i s B a n k . Sincerely y o u rs , T . W. P la n t F i r s t V ice P r e s i d e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM EQUAL CREDIT OPPORTUNITY IN T ER PR ET A TIO N O F R E G U LA TIO N B S E CT IO N 202.701 — O B T A I N I N G T H E S I G N A T U R E O F A S P O U S E PRIOR TO J A N U A R Y 31, 1976 Section 2 0 2 .7 (a ) o f this Part which becomes effective on January 31, 1976, provides, with cer tain exceptions not applicable to the present ques tion, that * * * a creditor may not require the signa ture o f a spouse or other person on a credit instrument unless such a requirement is im posed without regard to sex or marital status on all similarly qualified applicants who apply for a similar type and amount of credit. Regulations o f certain states require that the signature o f both spouses be obtained in con n ec tion with credit guaranteed under student loan programs administered by the Department of Health, Education, and Welfare. It appears that it may not be possible effectively to amend these regulations in order to eliminate this requirement 1-31-76 until the end o f January 1976. Therefore, a ques tion has arisen whether creditors extending credit in connection with such programs may continue until January 31, 1976 to obtain the signatures of both spouses upon instruments connected with the loan. In d e fe r r in g the e f f e c t i v e d ate o f s e c t io n 2 0 2 . 7 ( a ) , the Board o f Governors explained that it had done so because public com m ent on the regulations as proposed for com m ent on Sep tember 10, 1975 (4 0 FR 4 2 0 3 0 ) “stated that creditors would need a few months to adapt their application procedures and re-train their e m ployees as to the situations in which a creditor may request or require the signature o f a spouse or other person.” Accordingly, in extending credit prior to January 31, 1976, in connection with student loan programs administered by the D e partment of Health, Education, and W elfare a creditor may continue to require the signature of both spouses upon instruments connected with the loan.