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FEDERAL RESERVE BANK OF DALLAS DALLAS. TEXAS 7S222 Circular No. 82-58 May 21, 1982 REGULATION Z Truth in Lending Amendments and Corrections TO ALL MEMBER BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: The Board of Governors of the Federal Reserve System has made several technical amendments to Regulation Z, effective at various dates, and has corrected the Official Staff Commentary on Regulation Z. Enclosed are copies of the amendments and corrections in slip-sheet form, which should be filed in Vol. II of your Regulations Binders. Questions regarding this circular should be directed to Dean A. Pankonien of this Bank's Legal Department, Ext. 6171. Additional copies of this circular may be obtained upon request to the Department of Communications, Financial and Community Affairs, Ext. 6289. Sincerely yours, William H. Wallace First Vice President Enclosures Banks and others are encouraged to use the following incoming W A TS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (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) Board of Governors of the Federal Reserve System Amendments and Corrections to Regulation Z, Truth in Lending, and the Truth in Lending Act* April 1982 REG U LA TIO N Z 1. Effective December 31, 1981, the April 1, 1982 effective date for mandatory compli ance with Regulation Z is delayed to Octo ber 1, 1982, pursuant to Public Law 97 110. 2. Effective February 19, 1982, section 226.2(a)(3) is amended by adding a final sentence to read as follows: S. Effective December 3, 1981, the paragraph entitled “How to Cancel" of model form G -6 is amended by adding “If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time.” im mediately after “ (or midnight of the third business day following the latest of the three events listed above).” The equation in paragraph (c)(4 ) of ap pendix J is corrected to appear as follows: J____ SECTION 226.2—Definitions and Rules of Construction A =( l+ f i) ( l + i)' P.+ P an-2l ^, d + i) (1 (a) Definitions.* * * M -,)nij (3) * * * (i) * • • (ii) • • • The term does not include a person (such as a real estate broker) when arranging seller financing of a dwell ing or real property. 3. Effective December 31, 1981, footnotes 31a to section 226.14(a) and 45a to section 226.22(a)(1) are amended by changing “April 1, 1982” to “October 1, 1982.” 4. Effective December 3, 1981, the last sen tence of the paragraph entitled “Section 226.11” in appendix E is amended by changing “five business days” to “seven business days." • F or this regulation to be complete, as amended effec tive February 19, 1982, retain: • Regulation Z p am ph let dated A p ril 1, 1981 • this slip sheet TR U TH IN L EN D IN G ACT 1. Effective July 27, 1981, section 103 of the Truth in Lending Act is amended by add ing paragraph (z); and effective April 10, 1982, section 103 is amended by redesig nating paragraphs (x), (y), and (z) as (y), (z), and (x), respectively. New para graph (x), originally designated as (z), reads as follows: (x) As used in this section and section 167, the term “regular price” means the tag or posted price charged for the prop erty or service if a single price is tagged or posted, or the price charged for the property or service when payment is made by use of an open-end credit plan or a credit card if either ( 1) no price is tagged or posted, or ( 2) two prices are tagged or posted, one of which is charged when payment is made by use of an open-end credit plan or a credit card \ and the other when payment is made by use of cash, check, or similar means. For purposes of this definition, payment by check, draft, or other negotiable instru ment which may result in the debiting of an open-end credit plan or a credit card holder’s open-end account shall not be considered payment made by use of the plan or the account. 2. Section 108(e)(7) of the Truth in Lending Act, as amended, is corrected by removing “except in the case of an irregular mort gage lending transaction,” after “title,” and before “with”. 3. Pursuant to section 301 of Public Law 97 25 (July 27, 1981), creditors and their as signees choosing to comply with the amended Truth in Lending Act and imple menting regulations prior to October 1, 1982 are subject to the amended civil liabil- 2 ity provisions in sections 130 and 131 of the act. 4. Pursuant to section 201 of Public Law 97 25 (July 27, 1981), section 167(a)(2) of the Truth in Lending Act will cease to be effective on February 27, 1984. 5. Effective July 27, 1981, section 167(b) of the Truth in Lending Act is amended to read as follows: (b) With respect to any sales transac tion, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 106 if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously. Board of Governors of the Federal Reserve System Corrections to the Official Staff Commentary on Regulation Z Truth in Lending* April 1982 I. Comment 17(i)-4 is corrected by changing “guaranteed” to “insured” in the first sen tence, and by adding “such” before “cred it” and after “On” in the second sentence. * F o r this com m entary to be complete, retain: • Regulation Z com m entary pam phlet dated Decem ber 1981 (see inside cover) • this slip sheet
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