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R ESER VE BAN K O F DALLAS DALLAS, TEXAS 75222 Circular No, 76-53 A p ril 8, 1976 A m e ric a n R e v o lu tio n B ic e n te n n ia l REGULATION B— EQUAL CREDIT OPPORTUNITY ACT P r e l i m i n a r y H e a r in g on Im p lem e n tatio n Of A m e n d e d L e g is la tio n TO ALL BANKS, OTHER CREDITORS, AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: T h e B o a rd 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 h a s s c h e d u l e d a p r e l i m i n a r y h e a r i n g , on A p r il 27, 1976, to r e c e i v e p u b l i c co m m en t a n d s u g g e s tio n s r e l a t i n g to im p le m e n ta tio n of r e c e n t l y p a s s e d a m e n d m e n t s to th e E q u al C r e d i t O p p o r t u n i t y A ct. T h e A c t, e ffe c tiv e O c to b e r 28, 1975, p r o h i b i t e d d i s c r i m i n a t i o n in th e g r a n t i n g of c r e d i t on th e b a s i s o f s e x o r m a r ita l s t a t u s . T h e a m e n d e d A c t, e f f e c ti v e M arch 23, 1977, a l s o p r o h i b i t s d i s c r i m i n a t i o n in g r a n t i n g c r e d i t on t h e b a s i s of r a c e , c o l o r , r e l i g i o n , n a tio n a l o r i g i n , a g e , r e c e i p t of incom e from p u b l i c a s s i s t a n c e p r o g r a m s , o r e x e r c i s e o f r i g h t s u n d e r t h e C o n s u m e r P r o te c tio n A c t. A s w ith th e o r i g i n a l E q u al C r e d i t O p p o r t u n i t y A c t, t h e F e d e r a l R e s e r v e B o a r d is d i r e c t e d to w r i t e r e g u l a t i o n s to im p le m e n t t h e a m e n d e d le g is la t io n . T h e p r e l i m i n a r y h e a r i n g a t t h e B o a r d w ill b e g i n a t 10 a . m . o n A p r i l 27. P e o p le w i s h i n g to p a r t i c i p a t e in t h e h e a r i n g s h o u l d n o tify th e B o a r d a n d s h o u l d s u b m i t a s u m m a r y of t h e e v i d e n c e t h e y w is h to p r e s e n t b y A p r il 19. P e o p le w i s h ing to s u b m it w r i t t e n co m m e n ts o r s u g g e s t i o n s s h o u l d a l s o d o s o b y t h a t d a t e . T h e p u r p o s e of t h e p r e l i m i n a r y h e a r i n g is to s o lic it v ie w s from c o n s u m e r s a n d b u s i n e s s e s , e s p e c i a l l y on a li s t o f s p e c i f i c i s s u e s , a s t h e f i r s t s t e p in p r e p a r i n g im p le m e n tin g r e g u l a t i o n s . A p r o p o s e d r e g u l a t i o n w ill b e i s s u e d a t a la te r d a t e . F o r t h e p r e l i m i n a r y h e a r i n g , t h e B o a r d is e s p e c i a l l y i n t e r e s t e d in c o m m e n ts on items 1 t h r o u g h 11 lis te d in th e B o a r d ' s o r d e r , w h i c h is p r i n t e d on t h e fo llo w in g pages. A n y o n e d e s i r i n g to s u b m i t w r i t t e n c o m m e n t s , g i v e te s t i m o n y , p r e s e n t e v i d e n c e , o r o t h e r w i s e p a r t i c i p a t e in t h e s e p r o c e e d i n g s s h o u l d file w ith t h e S e c r e t a r y , B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m , W a s h i n g to n , D . C . This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - 20551, o n o r b e f o r e M o n d a y , A p r il 19, 1976, w r i t t e n c o m m en ts o r a w r i t t e n r e q u e s t c o n t a i n i n g a s t a t e m e n t o f t h e n a t u r e of h i s i n t e r e s t in t h e p r o c e e d i n g s , t h e e x t e n t o f p a r t i c i p a t i o n d e s i r e d , a s u m m a r y of t h e m a t t e r s a b o u t w h ic h h e w i s h e s to g i v e te s t im o n y o r s u b m it e v i d e n c e , a n d t h e n a m e s a n d id e n tit y o f w i t n e s s e s w h o p r o p o s e to a p p e a r . All m a te r i a l s u b m i t t e d s h o u l d i n c l u d e th e d o c k e t n u m b e r R - 0 0 3 1 . Q u e s tio n s o n R e g u l a ti o n B s h o u l d b e d i r e c t e d to R i c h a r d W est, S e n i o r A t t o r n e y o f o u r R e g u l a ti o n s D e p a r t m e n t , a t (214) 651-6169. A d d itio n a l c o p i e s of th i s c i r c u l a r a n d e n c l o s u r e w ill 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 O ffice of th i s B a n k . S in c e re ly y o u r s , T . W. P la n t F i r s t V ice P r e s i d e n t E n c lo su re B o a r d of G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y ste m Equal C r e d i t O p p o r t u n i t y A c t A m e n d m e n ts Notice of H e a r in g [D o ck et No. R-0031] T h e P r e s i d e n t r e c e n t l y s i g n e d t h e Equal C r e d i t O p p o r t u n i t y A ct A m e n d m e n ts of 1976 ( P . L . 94-239) w h i c h , am o n g o t h e r t h i n g s , a d d s a s p r o h i b i t e d b a s e s of d i s c r i m i n a tio n in g r a n t i n g c r e d i t : r a c e , c o l o r , r e l i g i o n , n a tio n a l o r i g i n , a g e , r e c e i p t of incom e from p u b l i c a s s i s t a n c e p r o g r a m s a n d a p e r s o n ' s h a v i n g e x e r c i s e d r i g h t s u n d e r th e C o n s u m e r C r e d i t P r o te c tio n A c t. P u r s u a n t to t h e a u t h o r i t y c o n t a i n e d in s e c t io n 703 of th e Equ al C r e d i t O p p o r t u n i t y A c t, th e B o a r d w ill b e p r e s c r i b i n g a m e n d e d r e g u l a t i o n s to c a r r y o u t t h e p u r p o s e s of t h e A c t, a s a m e n d e d . To a i d in p r e p a r a t i o n of t h e r e g u l a t i o n , a h e a r i n g will b e h e l d b e f o r e a v a i l a b l e m e m b e r s o f t h e B o a r d in t h e B o a r d Room, s e c o n d flo o r of th e B o a r d 's b u i l d i n g on 20th a n d C S t r e e t s N . W . , W a s h i n g to n , D.C., b e g i n n i n g a t 10 a . m . , on T u e s d a y , A p r il 27, 1976. T h e p r o c e e d i n g will c o n s i s t of p r e s e n t a t i o n s of s ta t e m e n ts in o ra l o r w r i t t e n fo rm . I n t e r e s t e d p e r s o n s n e e d n o t, h o w e v e r , p a r t i c i p a t e in th e p r o c e e d i n g s t h r o u g h o r a l p r e s e n t a t i o n in o r d e r to h a v e t h e i r v ie w s c o n s i d e r e d . A n y p e r s o n s d e s i r i n g to s u b m it w r i t t e n c o m m e n ts , g i v e t e s t im o n y , p r e s e n t e v i d e n c e , o r o t h e r w i s e p a r t i c i p a t e in t h e s e p r o c e e d i n g s s h o u ld file w ith t h e S e c r e t a r y , 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 s t e m , W a s h in g to n , D . C . 20551, on o r b e f o r e M o n d ay , A p r i l 19, 1976, t h e i r w r i t t e n c o m m e n ts o r a w r i t t e n r e q u e s t c o n t a i n i n g a s ta t e m e n t o f th e n a t u r e of t h e p e t i t i o n e r ' s i n t e r e s t in th e p r o c e e d i n g s , th e e x t e n t of p a r t i c i p a t i o n d e s i r e d , a s u m m a r y of th e m a t t e r s c o n c e r n i n g w h ic h p e t i t i o n e r w i s h e s to g i v e te s tim o n y o r s u b m it e v i d e n c e , a n d t h e n a m e s a n d id e n tit y o f w i t n e s s e s w h o p r o p o s e to a p p e a r . W ritte n co m m e n ts w ill b e m a d e a v a i l a b l e fo r p u b li c in s p e c tio n a n d c o p y i n g u p o n r e q u e s t , e x c e p t a s p r o v i d e d in § 2 6 1 . 6 ( a ) of th e B o a r d 's r u l e s r e g a r d i n g a v a i l a b i l i t y of in f o r m a tio n . All m a te r ia l s u b m i t t e d s h o u l d i n c l u d e th e D o cket No. R - 0 0 3 1 . T h e B o a r d is e s p e c i a l l y i n t e r e s t e d in c o m m e n t on t h e fo llo w in g s u b j e c t s : 1. E x a m p le s of e x i s t i n g d i s c r i m i n a t i o n b a s e d on r a c e , c o l o r , n a tio n al o r i g i n , r e l i g i o n , o r a g e , a n d a p p r o a c h e s to e l im i n a ti n g t h e d i s c r i m i n a tio n ; 2. E x a m p le s of e x i s t i n g d i s c r i m i n a t i o n b a s e d u p o n t h e r e c e i p t of in co m e from p u b l i c a s s i s t a n c e p r o g r a m s , a n d a p p r o a c h e s to e l im i n a ti n g t h e discrim ination; 3. S t a n d a r d s fo r d e t e r m i n i n g w h a t c o n s t i t u t e s a s t a t i s t i c a l l y s o u n d c r e d i t s c o r i n g s y s te m ; - 2 - 4. S t a n d a r d s f o r d e t e r m i n i n g w h a t c o n s t i t u t e s n e g a t i v e s c o r i n g a s it r e l a t e s to e l d e r l y p e r s o n s ; 5. S t a n d a r d s fo r d e t e r m i n i n g w h a t q u a l i f i e s a s a c r e d i t a s s i s t a n c e p r o g r a m fo r e c o n o m ic a lly d i s a d v a n t a g e d p e r s o n s ; 6. S t a n d a r d s fo r d e t e r m i n i n g w h a t q u a l i f i e s a s a s p e c i a l a s s i s t a n c e p r o g r a m o f f e r e d b y f o r - p r o f i t in s t i t u t i o n s to m e e t s p e c i a l so cia l n e e d s ; 7. S t a n d a r d s fo r d e t e r m i n i n g w h a t c l a s s e s o f b u s i n e s s c r e d i t m ig h t b e e x e m p te d from all o r p a r t o f t h e p r o v i s i o n s of t h e A c t b e c a u s e th e a p p l i c a t i o n of t h e p r o v i s i o n d o e s n o t c o n t r i b u t e s u b s t a n t i a l l y to c a r r y in g o u t t h e p u r p o s e o f t h e A ct; 8. S t a n d a r d s fo r d e t e r m i n i n g w h e t h e r S ta t e law s a r e m o re p r o t e c t i v e , i n c o n s i s t e n t , o r s u b s t a n t i a l l y s im ila r ; 9. T y p e s of r e c o r d s c r e d i t o r s s h o u l d b e r e q u i r e d to r e t a i n a n d t h e le n g th of th e reten tio n p erio d ; 10. T h e in fo rm a tio n w h ic h c r e d i t o r s s h o u l d b e p e r m i t t e d o r r e q u i r e d to r e q u e s t r e l a t i n g to t h e p r o h i b i t i o n s o f t h e A c t a s a m e n d e d ; a n d 11. T h e c o s t of im p le m e n tin g t h e A c t a n d th e im p a c t of t h e A c t o n a b i l i t y a n d c o s t o f c r e d i t to t h e u s e r of c r e d i t . th e a v a i l T h i s n o tic e is p u b l i s h e d p u r s u a n t to s e c t io n 553(b) o f T i t l e 5 U n ite d S ta t e s C o d e , a n d § 2 6 2 .2 ( a ) o f t h e r u l e s o f p r o c e d u r e of t h e B o a r d o f G o v e r n o r s of t h e F e d e r . R e s e r v e S y s te m (12 CFR 2 6 2 . 2 ( a ) ) . By o r d e r o f t h e B o a r d of G o v e r n o r s , M a rc h 31, 1976. ( s i g n e d ) T h e o d o r e E. A llis o n T h e o d o r e E. A llis o n S e c re ta ry of th e B oard (SEAL)
@FedFRASER