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l l★K

Federal Reserve Bank
of Dallas

July 21, 2000

DALLAS, TEXAS
75265-5906

Notice 2000-46
TO:

The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Request for Public Comment
on Proposed Revisions to Regulation E
(Electronic Fund Transfers)
DETAILS

The Board of Governors of the Federal Reserve System has requested public comment on
proposed revisions to Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The
revisions would implement amendments to the EFTA contained in the Gramm-Leach-Bliley Act that
require disclosure of certain automated teller machine (ATM) fees. The amendments require ATM
operators who impose fees for electronic fund transfer services to disclose this fact in a conspicuous
location either on or near the ATM. Before the consumer is committed to completing the transaction,
ATM operators must also disclose the existence of and the amount of the fee—either on the screen of the
machine or on a paper notice.
The Board must receive comments by August 18, 2000. Please address comments to Jennifer
J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution
Avenue, N.W., Washington, DC 20551. Also, you may mail comments electronically to
regs.comments@federalreserve.gov. All comments should refer to Docket No. R-1077.
ATTACHMENT
A copy of the Board’s notice as it appears on pages 44481–84, Vol. 65, No. 138 of the Federal Register dated July 18, 2000, is attached.
MORE INFORMATION
For more information, please contact Eugene Coy, Banking Supervision Department, at
(214) 922-6201. For additional copies of this Bank’s notice, contact the Public Affairs Department at (214)
922-5254 or access District Notices on our web site at http://www.dallasfed.org/banking/notices/index.html.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

Federal Register / Vol. 65, No. 138 / Tuesday, July 18, 2000 / Proposed Rules
(ii) Applied for and was denied
section 212(c) relief by the Immigration
Court, did not appeal the denial to the
Board (or withdrew an appeal), and
would have been eligible to apply for
section 212(c) relief at the time the
deportation became final but for the
1997 decision of the Attorney General in
Matter of Soriano (or its rationale); or
(iii) Did not apply for section 212(c)
relief but would have been eligible to
apply for such relief at the time the
deportation order became final but for
the 1997 decision of the Attorney
General in Matter of Soriano (or its
rationale).
(c) Scope of reopened proceedings.
Proceedings shall be reopened under
this section solely for the purpose of
adjudicating the application for section
212(c) relief, but if the Immigration
Court or the Board reopens on other
applicable grounds, all issues
encompassed within the reopening
proceedings may be considered
together, as appropriate.
(d) Procedure for filing a motion to
reopen to apply for section 212(c) relief.
An eligible alien must file either a copy
of the original Form I–191 application,
and supporting documents, or file a
copy of a newly completed Form I–191,
plus all supporting documents. An alien
who has a pending motion to reopen or
reconsider before the Immigration Court
or the Board must file a new motion to
reopen to apply for section 212(c)relief
pursuant to this section. The new
motion to reopen shall specify any other
motions currently pending before the
Immigration Court or the Board that
should be consolidated. The Service
shall have 45 days from the date of
service of the motion to reopen to
respond. In the event the Service does
not respond to the motion to reopen, the
Service retains the right in the reopened
proceedings to contest any and all
issues raised.
(e) Fee and number restriction for
motion to reopen waived. No filing fee
is required for a motion to reopen to
apply for section 212(c) relief under this
section. An eligible alien may file one
motion to reopen to apply for section
212(c) relief under this section, even if
a motion to reopen was filed previously
in his or her case.
(f) Deadline to file a motion to reopen
to apply for section 212(c) relief under
this section. An alien with a final
administrative order of deportation
must file a motion to reopen within 90
days of the effective date of the final
rule.
(g) Jurisdiction over motion to reopen
to apply for section 212(c)relief and
remand of appeals.

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15:58 Jul 17, 2000

(1) Notwithstanding any other
provisions, any motion to reopen filed
pursuant to this section to apply for
section 212(c) relief shall be filed with
the Immigration Court or the Board,
whichever last held jurisdiction over the
case.
(2) If the Immigration Court has
jurisdiction, and grants only the motion
to reopen to apply for section 212(c)
relief pursuant to this section, it shall
adjudicate only the section 212(c)
application.
(3) If the Board has jurisdiction and
grants only the motion to reopen to
apply for section 212(c) relief pursuant
to this section, it shall remand the case
to the Immigration Court solely for
adjudication of the section 212(c)
application (Form I–191).
(h) Applicability of other exceptions
to motions to reopen. Nothing in this
section shall be interpreted to preclude
or restrict the applicability of any other
exception to the motion to reopen
provisions of this part as defined in 8
CFR 3.2(c)(3) and 3.23(b).
(i) Limitations on eligibility for
reopening under this rule. This special
reopening rule does not apply to:
(1) Aliens who have departed the
United States;
(2) Aliens with a final order of
deportation who have illegally returned
to the United States; or
(3) Aliens who have not been
admitted or paroled.
PART 212—DOCUMENTARY
REQUIREMENTS: NONIMMIGRANTS;
WAIVERS; ADMISSION OF CERTAIN
INADMISSIBLE ALIENS; PAROLE
3. The authority citation for part 212
continues to read as follows:
Authority: 8 U.S.C. 1101, 1102, 1103, 1182,
1184,1187, 1225, 1226, 1227, 1228, 1252; 8
CFR part 2.

4. Paragraph (g) is added to Section
212.3 to read as follows:
§ 212.3 Application for the exercise of
discretion under section 212(c).

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(g) Relief for certain aliens who were
in deportation proceedings before April
24, 1996. Section 440(d) of
Antiterrorism and Effective Death
Penalty Act of 1996 (AEDPA) shall not
apply to any applicant for relief under
this section whose deportation
proceedings were commenced before
the Immigration Court before April 24,
1996.
Dated: July 12, 2000.
Janet Reno,
Attorney General.
[FR Doc. 00–18210 Filed 7–17–00; 8:45 am]
BILLING CODE 4410–30–U

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44481

FEDERAL RESERVE SYSTEM
12 CFR Part 205
[Regulation E; Docket No. R–1077]

Electronic Fund Transfers
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Proposed rule.
SUMMARY: The Board is publishing for
comment proposed revisions to
Regulation E, which implements the
Electronic Fund Transfer Act (EFTA).
The proposed revisions implement
amendments to the EFTA contained in
the Gramm-Leach-Bliley Act that
require the disclosure of certain fees
associated with automated teller
machine (ATM) transactions. The
amendments require ATM operators
who impose a fee for providing
electronic fund transfer services to
disclose this fact in a prominent and
conspicuous location on or at the ATM.
The operator must also disclose that a
fee will be imposed and the amount of
the fee, either on the screen of the
machine or on a paper notice before the
consumer is committed to completing
the transaction. In addition, when the
consumer contracts for an electronic
fund transfer service, financial
institutions are required to disclose that
a fee may be imposed for electronic
fund transfers initiated at an ATM
owned by another entity.
DATES: Comments must be received by
August 18, 2000.
ADDRESSES: Comments, which should
refer to Docket No. R–1077, may be
mailed to Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW, Washington,
DC 20551 or mailed electronically to
regs.comments@federalreserve.gov.
Comments addressed to Ms. Johnson
also may be delivered to the Board’s
mail room between 8:45 a.m. and 5:15
p.m. weekdays, and to the security
control room at all other times. The mail
room and the security control room,
both in the Board’s Eccles Building, are
accessible from the courtyard entrance
on 20th Street between Constitution
Avenue and C Street, NW. Comments
may be inspected in room MP–500
between 9 a.m. and 5 p.m., pursuant to
the Board’s Rules Regarding the
Availability of Information, 12 CFR part
261.12.
FOR FURTHER INFORMATION CONTACT:
Kyung H. Cho-Miller or Natalie E.
Taylor, Counsel, Division of Consumer
and Community Affairs, Board of
Governors of the Federal Reserve

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Federal Register / Vol. 65, No. 138 / Tuesday, July 18, 2000 / Proposed Rules

System, Washington, D.C. 20551, at
(202) 452–2412 or (202) 452-3667. For
the hearing impaired only, contact
Janice Simms, Telecommunications
Device for the Deaf (TDD), at (202) 872–
4984.
SUPPLEMENTARY INFORMATION:
I. The Electronic Fund Transfer Act
The Electronic Fund Transfer Act
(EFTA), 15 U.S.C. 1693 et seq., enacted
in 1978, provides a basic framework
establishing the rights, liabilities, and
responsibilities of participants in
electronic fund transfer (EFT) systems.
The Board’s Regulation E (12 CFR part
205) implements the act. Types of
transfers covered by the act and
regulation include transfers initiated
through an automated teller machine
(ATM), point-of-sale terminal,
automated clearinghouse, telephone
bill-payment plan, or home-banking
program. The act and regulation
prescribe restrictions on the unsolicited
issuance of ATM cards and other access
devices; disclosure of terms and
conditions of an EFT service;
documentation of EFT services by
means of terminal receipts and periodic
account statements; limitations on
consumer liability for unauthorized
transfers; procedures for error
resolution; and certain rights related to
preauthorized EFT services.
The Official Staff Commentary (12
CFR part 205 (Supp. I)) interprets the
regulation, and provides guidance to
financial institutions in applying the
regulation to specific transactions. The
commentary is a substitute for
individual staff interpretations; it is
updated periodically, as necessary, to
address significant questions that arise.
EFTA coverage is not limited to
traditional financial institutions holding
consumers’ asset accounts. For EFT
services made available by entities other
than an account-holding financial
institution, the act directs the Board to
assure, by regulation, that the provisions
of the act are made applicable.
II. The Gramm-Leach-Bliley
Amendments to the EFTA
On November 12, 1999, the GrammLeach-Bliley Act (GLBA) became law
(Pub. L. 106–102, 113 Stat. 1338).
Sections 702, 703, and 705 of the GLBA
contain amendments to the EFTA. The
amendments require disclosure of ATM
fees (sometimes referred to as
‘‘surcharges’’) imposed by ATM
operators on consumers who hold
accounts at other financial institutions.
Many ATM operators including
financial institutions that impose such a
fee, currently disclose information about

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15:58 Jul 17, 2000

the fee to satisfy existing regulatory and
network requirements.
Section 702 of the GLBA amends
section 904(d) of the EFTA regarding
services provided by entities other than
the account-holding institution. An
ATM operator that imposes a fee on a
consumer for providing EFT services is
required to provide notice of that fact in
a prominent and conspicuous location
on or at the ATM on which the EFT is
initiated. The ATM operator must also
disclose that a fee will be imposed and
the amount of the fee, either on the
screen of the ATM or on a paper notice,
before the consumer is committed to
completing the transaction. No fee may
be imposed unless proper notice is
provided and the consumer elects to
complete the transaction.
Section 703 of the GLBA amends
section 905(a) of the EFTA regarding the
disclosure of terms and conditions. The
financial institution holding the
consumer’s account must include in its
initial disclosures a notice that a fee
may be imposed by (1) An ATM
operator not holding the consumer’s
account, or (2) any national, regional, or
local network used to complete the
transaction.
Section 705 of the GLBA amends
section 910 of the EFTA regarding
liability of financial institutions. ATM
operators are not liable for failing to
comply with the requirement to post
notice if the notice posted at an ATM is
subsequently removed, damaged, or
altered by any person other than the
ATM operator.
III. Proposed Revisions to Regulation E
Pursuant to its authority under
section 904(a) of the EFTA, the Board is
proposing amendments to Regulation E
to implement sections 702 and 703 of
the GLBA. Section 705, like other
statutory provisions regarding liability,
would not be made part of the
regulation.
To ease compliance, the Board
proposes to add a new § 205.16 to
address in a single location the rules
related to disclosure of surcharges by
ATM operators. Below is a section-bysection analysis of the proposed
amendments including proposed
revisions to §§ 205.3 and 205.7. A crossreference would also be added to the
Official Staff Commentary to existing
§ 205.9(a)(1). The Board contemplates
issuing a final rule in early fall that
would be effective 30 days thereafter.
Section 205.3—Coverage

Proposed paragraph (b)(6) would add
balance inquiries at ATMs to the list of
examples of an EFT. A balance inquiry
would only be considered an EFT for
purposes of proposed § 205.16. Thus,
balance inquiries at ATMs would be
subject to the new ATM fee disclosure
requirements, but would not otherwise
be subject to Regulation E requirements.
Section 205.7—Initial Disclosures
7(b) Content of Disclosures
Section 205.7(b) would be revised to
implement section 703 of the GLBA. At
the time a consumer contracts for an
EFT service or before the first EFT, a
financial institution is required to
provide initial disclosures related to the
EFT service, such as fees and a
summary of the consumer’s liability for
unauthorized transfers. Section 703 of
the GLBA amends section 905(a) of the
EFTA by adding to the initial
disclosures a provision that a fee may be
imposed by an ATM operator not
holding the consumer’s account and by
a national, regional, or local network
used to complete the transfer. If a
financial institution’s disclosures do not
currently include such a provision, it
may comply with the new requirement
by including an insert regarding ATM
surcharges. The Board solicits specific
comment on whether national, regional,
or local networks separately impose fees
and, thus, should be distinguished or
whether it is sufficient to refer to ‘‘any
network’’ in the disclosures as an
alternative to the statutory language, as
the proposal provides. In addition, the
proposed language would capture
national networks that impose a
surcharge and that operate
internationally.
Section 205.16—Disclosures at
Automatic Teller Machines
A new § 205.16 would be added to
implement generally section 702 of the
GLBA. Proposed § 205.16 (a) defines
ATM operator and provides, for
purposes of this section, that a balance
inquiry is an EFT. The proposal does
not incorporate the definition for host
transfer services contained in section
702 of the GLBA, as it seems
unnecessary to do so.
Proposed §§ 205.16(b) and (c) set forth
the ATM disclosure requirements. The
disclosure required on the screen or on
a paper notice does not apply to any
ATM operator that lacks the technical
capability to provide such information.

3(b) Electronic Fund Transfer

Appendix A to Part 205—Model
Disclosure Clauses and Forms

Section 205.3(b) generally defines the
term ‘‘electronic fund transfer.’’

Model language that reflects the new
disclosure in proposed § 205.7(b)(11)

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Federal Register / Vol. 65, No. 138 / Tuesday, July 18, 2000 / Proposed Rules
regarding fees that may be imposed by
an ATM operator and by any network
would be added to appendix A–2.

analysis will be conducted after
consideration of comments received
during the public comment period.

IV. Proposed Revisions to the Official
Staff Commentary

VII. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR 1320 Appendix A.1), the Board
reviewed the proposed rule under the
authority delegated to the Board by the
Office of Management and Budget
(OMB). The Federal Reserve may not
conduct or sponsor, and an organization
is not required to respond to, this
information collection unless it displays
a currently valid OMB number. The
OMB control number is 7100–0200.
The collection of information
requirements that are relevant to this
proposed rulemaking are in 12 CFR part
205 and in Appendix A. This
information is mandatory (15 U.S.C.
1693 et seq.) to evidence compliance
with the requirements of Regulation E
and the Electronic Fund Transfer Act
(EFTA). The revised requirements
would be used to ensure adequate
disclosure of fees imposed for electronic
fund transfers at ATMs owned by a
party other than the account-holding
financial institution. The respondents/
recordkeepers are for-profit financial
institutions, including small businesses.
Institutions are also required to retain
records for 24 months. This regulation
applies to all types of financial
institutions, not just state member
banks; however, under Paperwork
Reduction Act regulations, the Federal
Reserve accounts for the burden of the
paperwork associated with the
regulation only for state member banks.
Other agencies account for the
paperwork burden on their respective
constituencies under this regulation.
The proposed revisions are not
expected to increase the ongoing annual
burden of Regulation E. With respect to
state member banks, it is estimated that
there are 851 respondents/recordkeepers
and an average frequency of about
85,800 responses per respondent each
year. Therefore the current amount of
annual burden is estimated to be
approximately 462,800 hours. Using the
same hourly cost, the Federal Reserve
estimates that there would be associated
start up cost ranging from $1,600 to
$5,000 per respondent, depending on
size and location, for changing
disclosures (or disclosure producing
software) to include disclosures relating
to ATM surcharges and for posting a
notice regarding the surcharge at either
the ATM or on the screen of the ATM.
Because the records would be
maintained at state member banks and
the notices are not provided to the
Federal Reserve, no issue of

Section 205.9—Receipts at Electronic
Terminals; Periodic Statements
Section 205.9(a)(1) requires financial
institutions that include in the
transaction amount a fee for completing
an EFT at an electronic terminal to
disclose the amount of the fee on the
receipt and to display it on or at the
terminal. Comment 9(a)(1)-1, which
provides guidance on complying with
the disclosure requirement, would be
revised to provide a cross-reference to
the notice requirements in proposed
§ 205.16(b) for ATM operators.
V. Form of Comment Letters
Comment letters should refer to
Docket No. R–1077, and, when possible,
should use a standard typeface with a
type size of 10 or 12 characters per inch.
This will enable the Board to convert
the text to machine-readable form
through electronic scanning, and will
facilitate automated retrieval of
comments for review. Also, if
accompanied by an original document
in paper form, comments may be
submitted on 3 1⁄2 inch computer
diskettes in any IBM-compatible DOSor Windows-based format.
VI. Initial Regulatory Flexibility
Analysis
In accordance with section 3(a) of the
Regulatory Flexibility Act and section
904(a)(2) of the EFTA, the Board has
reviewed the proposed amendments to
Regulation E. The proposal would
impose a disclosure requirement on
account-holding financial institutions
with respect to ATM surcharges and a
notice requirement on ATM operators.
The proposal exempts ATMs lacking
technical capabilities from certain
notice requirements until December 31,
2004.
The proposed amendments are not
expected to have any significant impact
on small entities. Many financial
institutions that impose a fee for
carrying out an EFT at an ATM already
disclose the fee on a receipt and on the
screen of a terminal or at the electronic
terminal to satisfy existing requirements
under § 205.9(a)(1). The proposed
amendment would require that the
notification regarding the fee be posted
at the terminal and on the screen. The
notice, however, is generic and can
easily be programmed to be viewed on
the screen and posted once at the
terminal. A final regulatory flexibility

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confidentiality under the Freedom of
Information Act arises; however, any
information obtained by the Federal
Reserve may be protected from
disclosure under exemptions (b)(4), (6),
and (8) of the Freedom of Information
Act (5 U.S.C. 522 (b)(4), (6) and (8)). The
disclosures and information about error
allegations are confidential between
institutions and the customer.
The Federal Reserve requests
comments from institutions, especially
state member banks, that will help to
estimate the number and burden of the
various disclosures that would be made
in the first year this proposed regulation
would be effective. Comments are
invited on: (a) The cost of compliance;
(b) ways to enhance the quality, utility,
and clarity of the information to be
disclosed; (c) ways to minimize the
burden of disclosure on respondents,
including through the use of automated
disclosure techniques or other forms of
information technology; and (d) capital
and start up costs and costs of
operations, maintenance, and purchase
of services to provide information.
Comments on the collection of
information should be sent to the Office
of Management and Budget, Paperwork
Reduction Project (7100–0200),
Washington, DC 20503, with copies of
such comments sent to Mary M. West,
Federal Reserve Board Clearance
Officer, Division of Research and
Statistics, Mail Stop 97, Board of
Governors of the Federal Reserve
System, Washington, DC 20551.
List of Subjects in 12 CFR Part 205
Consumer protection, Electronic fund
transfers, Federal Reserve System,
Reporting and record keeping
requirements.
Text of Proposed Revisions
Certain conventions have been used
to highlight proposed changes to
Regulation E. New language is shown
inside bold-faced arrows, deletions
inside bold-faced brackets.
For the reasons set forth in the
preamble, the Board proposes to amend
Regulation E, 12 CFR part 205, as set
forth below:
PART 205—ELECTRONIC FUND
TRANSFERS (REGULATION E)
1. The authority citation for part 205
would continue to read as follows:
Authority: 15 U.S.C. 1693–1693r.

2. Under § 205.3—Coverage,
paragraph (b) would be revised to read
as follows:
§ 205.3

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Coverage.

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Federal Register / Vol. 65, No. 138 / Tuesday, July 18, 2000 / Proposed Rules

(b) Electronic fund transfer. The term
electronic fund transfer means any
transfer of funds that is initiated
through an electronic terminal,
telephone, computer, or magnetic tape
for the purpose of ordering, instructing,
or authorizing a financial institution to
debit or credit an account. The term
includes, but is not limited to:
(1) Point-of-sale transfers;
(2) Automated teller machine
transfers;
(3) Direct deposits or withdrawals of
funds;
(4) Transfers initiated by telephone;
øand¿
(5) Transfers resulting from debit card
transactions, whether or not initiated
through an electronic terminalø.¿fl;
and
(6) Balance inquiries at automated
teller machines for purposes of
§ 205.16.fi
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3. Under § 205.7—Initial Disclosures,
new paragraph (b)(11) would be added
to read as follows:
§ 205.7

Initial disclosures.

*

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*
(b) Content of disclosures. * * *
fl(11) ATM surcharge. A notice that
a fee may be imposed by an automated
teller machine operator as defined in
§ 205.16(a)(1), when the consumer
initiates an electronic fund transfer or
makes a balance inquiry at an
automated teller machine operated by a
non-accountholding financial
institution, and by any network used to
complete the transaction.fi
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4. A new § 205.16-Disclosures at
Automatic Teller Machines, would be
added to read as follows:
ߤ 205.16 Disclosures at automatic
teller machines.

15:58 Jul 17, 2000

Appendix A to Part 205—Model
Disclosure Clauses and Forms
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*

A–2—Model Clauses for Initial Disclosures
(§ 205.7(b))

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fl(j) ATM surcharges (§ 205.7(b)(11)).
When you use an ATM not owned by us, you
may be charged a fee by the ATM operator
or any network used to complete the transfer
(and you may be charged a fee for a balance
inquiry).fi

*

(a) Definitions. (1) Automated teller
machine operator means any person
that operates an automated teller
machine at which a consumer initiates
an electronic fund transfer as defined in
§ 205.3(b), and that does not hold the
account from which the transfer is
made.
(2) Balance inquiry as EFT. For
purposes of this section, the term
electronic fund transfer includes a
transaction that involves a balance
inquiry initiated by a consumer.
(b) General. An automated teller
machine operator that imposes a fee on
a consumer for initiating an electronic
fund transfer shall:
(1) Provide notice that a fee will be
imposed; and
(2) Disclose the amount of the fee.

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(c) Notice requirement. (1) On the
machine. Notice required by paragraph
(b)(1) of this section shall be posted in
a prominent and conspicuous location
on or at the automatic teller machine.
(2) Screen or paper notice. The notice
required by paragraph (b) of this section
shall be given to the consumer, either by
showing it on the screen of the
automatic teller machine or by printing
out a paper notice, before the consumer
is irrevocably committed to completing
the transaction.
(d) Temporary exemption. The notice
requirement in paragraph (c)(2) of this
section does not apply to any automated
teller machine that lacks the technical
capability to provide such information
until December 31, 2004.
(e) Imposition of fee. An automated
teller machine operator may impose a
fee on a consumer for initiating an
electronic fund transfer only if
(1) The consumer receives the notice
required under paragraph (c) of this
section, and
(2) The consumer elects to continue
the transaction after receiving such
notice.fi
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*
5. Under Appendix A, in A–2 a new
paragraph (j) would be added to read as
follows:

*
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*
6. In Supplement I to Part 205, under
Section 205.9—Receipts at Electronic
Terminals; Periodic Statements, under
Paragraph 9(a)(1)—Amount, paragraph
1. would be revised to read as follows:
Supplement I to Part 205—Official Staff
Interpretations
Section 205.9—Receipts at Electronic
Terminals; Periodic Statements

*

*

*

*

*

Paragraph 9(a)(1)—Amount
1. Disclosure of transaction fee. The
required display of a fee amount on or at the
terminal may be accomplished by displaying
the fee on a sign at the terminal or on the
terminal screen for a reasonable duration.
Displaying the fee on a screen provides
adequate notice, as long as consumers are
given the option to cancel the transaction
after receiving notice of a fee. fl(See
§ 205.16(c) for the notice requirements

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applicable to ATM operators that impose a
fee for providing EFT services.)fi

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By order of the Board of Governors of the
Federal Reserve System, July 7, 2000.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 00–17674 Filed 7–17–00; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL TRADE COMMISSION
16 CFR Part 436
Trade Regulation Rule on Disclosure
Requirements and Prohibitions
Concerning Franchising and Business
Opportunity Ventures
Federal Trade Commission.
Proposed Rule; Commission
Solicits Demonstration Projects for
Electronic Pre-Sale Disclosure.
AGENCY:
ACTION:

SUMMARY: The Federal Trade
Commission (the ‘‘Commission’’)
solicits proposals to conduct
demonstration projects implementing
the proposed instructions for electronic
dissemination of disclosure documents
set forth in § 436.7 of the Commission’s
October 22, 1999, Notice of Proposed
Rulemaking.
DATES: Proposals to conduct
demonstration project start on July 18,
2000.
ADDRESSES: Petitions for permission to
implement a demonstration projects
should be addressed to: Federal Trade
Commission, Office of the Secretary,
Room 159, 600 Pennsylvania Ave., NW.,
Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Steven Toporoff, (202) 326–3135,
Division of Marketing Practices, Bureau
of Consumer Protection, Federal Trade
Commission, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: On
October 22, 1999, the Commission
published a Notice of Proposed
Rulemaking (‘‘NPR’’), soliciting
comment on a wide-range of proposed
amendments to the Franchise Rule. One
proposal would permit franchisors to
comply with the Franchise Rule by
furnishing prospective franchises with
disclosures electronically, including
through the Internet. Among other
things, the proposal would: (1) Require
franchisors to obtain a prospective
franchisee’s prior consent to receive
disclosure electronically; (2) permit a
prospective franchisee the right to
obtain a paper disclosure document
until the time of sale; and (3) require
franchisors to provide a prospective
franchisee with a paper summary

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