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F ed er a l R eser v e Ba n k o f D allas
DALLAS. TEX A S

75222

C i r c u la r No. 77-18
F e b r u a r y 1, 1977

RE V IS E D REG U LA TIO N B— EQUAL C R E D IT O P P O R T U N IT Y

T O A L L B A N K S , O T H E R C R E D IT O R S ,
A N D OTHERS CO NCERNED IN TH E
E LE V E N TH FE DE RAL RESERVE D IS T R IC T :
Enclosed is a copy of the r e v is e d R egu latio n B p a m p h let, "Equal C r e d it
O p p o r t u n it y ," e ffe c tiv e M arch 2 3 , 1977. T h e re g u la tio n contains the f iv e model
form s for use in d iffe r e n t types of consum er c r e d it tra n s ac tio n s : u n s ec u re d openend c re d it; sec u re d c lo s e d -e n d c re d it; c lo s e d -e n d c r e d it secured o r unsecured;
c r e d it tra n s ac tio n s in community p r o p e r t y states; and re sid e n tia l real estate m o rt­
gage c r e d it . M u ltip le copies of the forms w ill not be a v a ila b le from the Board o r
the Federal R e s e rv e B a n k s . C r e d ito r s w i ll be re sp o n s ib le for re p ro d u c in g model
fo rm s .
T h e new p a m p h let should be file d in y o u r R egulations B in d e r . A ft e r
M a rc h 23, 1977, the e ffe c tiv e date of the new p a m p h le t, all oth er R egulation B
m a teria l in y o u r b in d e r should be rem oved and d e s tro y e d .
If you have a n y questions r e g a r d in g the re g u la tio n , please contact
R ic h a rd B . West of o u r R egulations D e p a r t m e n t a l (214) 6 51 -6 17 1 .
A d d itio n a l copies of R egulatio n B w i ll be fu r n is h e d upon re q u e s t to the
S e c r e ta r y 's O ffice of th is B a n k .
S in c e r e ly y o u r s ,
R o b e rt H . B o y k in
F i r s t V ic e P re s id e n t
Enclosu re

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

REGULATION B
(12 CFR 202)
Effective March 23, 1977

CONTENTS
Page

Page
S e c . 2 0 2 .1 — A

u t h o r it y ,
m ent

, P

b il it ie s,

Se c . 2 0 2 .8 — S pe cia l P u r p o s e C

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In t e r p r e t a t io n s. .

grams

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and

C o n st r u c t io n

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.............................

13

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13

4

o t ific a t io n s

Se c . 2 0 2 .1 0 — F

ta in

C lasses

...........................................

16

S ec. 2 0 2 .1 1 — R e l a t i o n t o S t a t e L a w . . . .

S e c . 2 Q 2.6— R u l e s

sion s

A

17

Se c . 2 0 2 .1 2 — R

18

C o n cer n in g
A

p p l ic a t io n s

C r e d it

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Sta tu to r y A
8

A

p p e n d ix

Pu

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Su ppl e m

B— M

ent

for

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M

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19

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20

E

A

n fo r c e m e n t

...................................

25

F orms

26

pp l ic a t io n

I— P rocedures

11

....................

.............................

ederal

odel

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rposes

A g e n c ie s

E xten­

.......................

Reten

Se c . 2 0 2 .1 3 — I n f o r m a t io n

E valua­

C o n c e r n in g
of

ecord

8

p p l ic a ­

.................................................

t io n of

Se c . 2 0 2 .7 — R u l e s

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C o n c e r n in g

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7

P r o h ib it in g

is c r im in a t io n

Se c . 2 0 2 .5 — R u l e s

C er­

T ransac­

of

R ule

eneral

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for

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tio n s

Se c . 2 0 2 .4 — G

reatm ent

C r e d it I n f o r ­

u r n is h in g o f
m a t io n

Se c . 2 0 2 .3 — S pe cia l T

P ro­

3
Se c . 2 0 2 .9 — N

Se c . 2 0 2 .2 — D

r ed it

.................................................

for

e m p t io n

Sta te

..........................

37

STATUTORY AUTHORITY
This regulation is based upon and issued pursuant to provisions of section
portunity Act, U.S.C., Title 15, sec. 1 6 9 1 et seq.

703

of the Equal Credit Op­

REGULATION B
(12 CFR 202)
Effective March 23, 1977

EQUAL CREDIT OPPORTUNITY

SECTION 202.1— AUTHORITY, SCOPE,
ENFORCEMENT, PENALTIES AND
LIABILITIES, INTERPRETATIONS

posed under the Act and this Part will be en­
forced by the Federal Trade Commission.
(c)
Penalties and liabilities. (1) Sections
706(a) and (b) of the Act provide that any
creditor who fails to comply with any requirement
imposed under the Act or, pursuant to section
702(g), this Part is subject to civil liability for
actual and punitive damages in individual or
class actions. Pursuant to section 704 of the Act,
violations of the Act or, pursuant to section
702(g), this Part constitute violations of other
Federal laws that may provide further penalties.
Liability for punitive damages is restricted by sec­
tion 706(b) to non-governmental entities and is
limited to $10,000 in individual actions and the
lesser of $500,000 or one percent of the creditor’s
net worth in class actions. Section 706(c) provides
for equitable and declaratory relief. Section
706(d) authorizes the awarding of costs and
reasonable attorney’s fees to an aggrieved appli­
cant in a successful action.

(a) Authority and scope. This P a r t 1 comprises
the regulations issued by the Board of Governors
of the Federal Reserve System pursuant to Title
VII (Equal Credit Opportunity Act) of the Con­
sumer Credit Protection Act, as amended (15
U.S.C. § 1601 et seq.). Except as otherwise pro­
vided herein, this Part applies to all persons who
are creditors, as defined in section 202.2(I).
(b) Administrative enforcement. (1) As set
forth more fully in section 704 of the Act, ad­
ministrative enforcement of the Act and this Part
regarding certain creditors is assigned to the
Comptroller of the Currency, Board of Governors
of the Federal Reserve System, Board of Di­
rectors of the Federal Deposit Insurance Corpora­
tion, Federal Home Loan Bank Board (acting
directly or through the Federal Savings and
Loan Insurance Corporation), Administrator of
the National Credit Union Administration, Inter­
state Commerce Commission, Civil Aeronautics
Board, Secretary of Agriculture, Farm Credit
Administration, Securities and Exchange Com­
mission, and Small Business Administration.

(2)
Section 706(e) relieves a creditor from
civil liability resulting from any act done or
omitted in good faith in conformity with any
rule, regulation, or interpretation by the Board of
Governors of the Federal Reserve System, or
with any interpretations or approvals issued by
(2)
Except to the extent that administrative a duly authorized official or employee of the
Federal Reserve System, notwithstanding that af­
enforcement is specifically committed to other
ter such act or omission has occurred, such rule,
authorities, compliance with the requirements im­
regulation, interpretation, or approval is amended,
rescinded, or otherwise determined to be invalid
i As used herein, the words “this P a r t” m ean Regula­
tion B, 12 C F R 202.
for any reason.

3

REGULATION B

§ 2 0 2 .2

making the request believes reconsideration would
be appropriate, and must specify and discuss the
applicability of the relevant facts, statute, and
regulations. Within 15 business days of receipt of
such request for reconsideration, a response grant­
ing or denying the request will be sent to the per­
son making the request, or an acknowledgement
will be sent that sets a reasonable time within
which such response will be given.
(3) Pursuant to section 706(e) of the Act,
the Board has designated the Director and other
officials of the Division of Consumer Affairs as
(4) Sections 706(g) and (h) provide that, if
officials “duly authorized” to issue, at their dis­
the agencies responsible for administrative en­
cretion, official staff interpretations of this Part.
forcement are unable to obtain compliance with
This designation shall not be interpreted to in­
the Act or, pursuant to section 702(g), this
clude authority to approve particular creditors’
Part, they may refer the matter to the Attorney
forms in any manner.
General. On such referral, or whenever the At­
(4) The type of interpretation issued will be
torney General has reason to believe that one
determined by the Board and the designated of­
or more creditors are engaged in a pattern or
ficials by the following criteria:
practice in violation of the Act or this Part, the
(i) Official Board interpretations will be
Attorney General may bring a civil action.
issued upon those requests that involve potentially
(d)
Interpretations. (1) A request for a for­ controversial issues of general applicability deal­
mal Board interpretation or an official staff in­
ing with substantial ambiguities in this Part and
terpretation of this Part must be addressed to the
that raise significant policy questions.
Director of the Division of Consumer Affairs,
(ii) Official staff interpretations will be is­
Board of Governors of the Federal Reserve Sys­
sued upon those requests that, in the opinion
tem, Washington, D.C. 20551. Each request for
of the designated officials, require clarification
an interpretation must contain a complete state­
of technical ambiguities in this Part or that have
ment, signed by the person making the request
no significant policy implications.
or a duly authorized agent, of all relevant facts
(iii) Unofficial staff interpretations will be
of the transaction or credit arrangement relating
issued where the protection of section 706(e) of
to the request. True copies of all pertinent doc­
the Act is neither requested nor required, or
uments must be submitted with the request. The
where time strictures require a rapid response.
relevance of such documents must, however, be
set forth in the request, and the documents must
not merely be incorporated by reference. The
SECTION 202.2— DEFINITIONS
request must contain an analysis of the bearing
AND RULES OF CONSTRUCTION
of the facts on the issues and must specify the
pertinent provisions of the statute and regulation.
For the purposes of this Part, unless the con­
Within 15 business days of receipt of the request,
text indicates otherwise, the following definitions
a substantive response will be sent to the person
and rules of construction shall apply: 2
making the request, or an acknowledgement will
(a) Account means an extension of credit.
be sent that sets a reasonable time within which
When employed in relation to an account, the
a substantive response will be given.
word use refers only to open end credit.
(2)
Any request for reconsideration of an
(b) Act means the Equal Credit Opportunity
official staff interpretation of this Part must be
Act (Title VII of the Consumer Credit Protection
addressed to the Secretary, Board of Governors
Act).
of the Federal Reserve System, Washington, D.C.
(c) Adverse action. (1) For the purposes of
20551, within 30 days of the publication of such
notification of action taken, statement of reasons
interpretation in the Federal Register. Each re­
for denial, and record retention, the term means:
quest for reconsideration must contain a statement
2 N o te that some o f the definitions in this P art are n o t
identical to those in 12 C F R 226 (Regulation Z).
setting forth in full the reasons why the person
(3) As provided in section 706(f), a civil
action under the Act or this Part may be brought
in the appropriate United States district court
without regard to the amount in controversy or
in any other court of competent jurisdiction with­
in two years after the date of the occurrence of
the violation or within one year after the com­
mencement of an administrative enforcement
proceeding or a civil action brought by the At­
torney General within two years after the al­
leged violation.

4

REGULATION B

§ 2 0 2 .2

plication in connection with which a creditor has
received all the information that the creditor
regularly obtains and considers in evaluating ap­
plications for the amount and type of credit re­
quested (including, but not limited to, credit re­
ports, any additional information requested from
the applicant, and any approvals or reports by
governmental agencies or other persons that are
necessary to guarantee, insure, or provide security
for the credit or collateral); provided, however,
that the creditor has exercised reasonable dili­
gence in obtaining such information. Where an
application is incomplete respecting matters that
the applicant can complete, a creditor shall make
a reasonable effort to notify the applicant of the
incompleteness and shall allow the applicant a
reasonable opportunity to complete the applica­
tion.
(g) Board means the Board of Governors of the
Federal Reserve System.
(h) Consumer credit means credit extended to
a natural person in which the money, property,
or service that is the subject of the transaction is
primarily for personal, family, or household pur­
poses.
(i) Contractually liable means expressly obli­
gated to repay all debts arising on an account
by reason of an agreement to that effect.
(j) Credit means the right granted by a creditor
to an applicant to defer payment of a debt, incur
debt and defer its payment, or purchase property
or services and defer payment therefor.
(k) Credit card means any card, plate, cou­
pon book, or other single credit device existing
for the purpose of being used from time to time
upon presentation to obtain money, property, or
services on credit.
(/) Creditor means a person who, in the ordi­
nary course of business, regularly participates in
the decision of whether or not to extend credit.
The term includes an assignee, transferee, or
subrogee of an original creditor who so partici­
pates; but an assignee, transferee, subrogee, or
other creditor is not a creditor regarding any vio­
lation of the Act or this Part committed by the
original or another creditor unless the assignee,
transferee, subrogee, or other creditor knew or
had reasonable notice of the act, policy, or prac­
tice that constituted the violation before its in­
volvement with the credit transaction. The term
does not include a person whose only participa­

(i) a refusal to grant credit in substantially
the amount or on substantially the terms re­
quested by an applicant unless the creditor offers
to grant credit other than in substantially the
amount or on substantially the terms requested
by the applicant and the applicant uses or ex­
pressly accepts the credit offered; or
(ii) a termination of an account or an un­
favorable change in the terms of an account that
does not affect all or a substantial portion of
a classification of a creditor’s accounts; or
(iii) a refusal to increase the amount of
credit available to an applicant when the appli­
cant requests an increase in accordance with pro­
cedures established by the creditor for the type
of credit involved.
(2) The term does not include:
(i) a change in the terms of an account ex­
pressly agreed to by an applicant; or
(ii) any action or forbearance relating to
an account taken in connection with inactivity,
default, or delinquency as to that account; or
(iii) a refusal to extend credit at a point of
sale or loan in connection with the use of an ac­
count because the credit requested would ex­
ceed a previously established credit limit on the
account; or
(iv) a refusal to extend credit because ap­
plicable law prohibits the creditor from extend­
ing the credit requested; or
(v) a refusal to extend credit because the
creditor does not offer the type of credit or credit
plan requested.
(d) Age refers only to natural persons and
means the number of fully elapsed years from
the date of an applicant’s birth.
(e) Applicant means any person who requests
or who has received an extension of credit from
a creditor, and includes any person who is or may
be contractually liable regarding an extension
of credit other than a guarantor, surety, endorser,
or similar party.
(f) Application means an oral or written re­
quest for an extension of credit that is made in
accordance with procedures established by a credi­
tor for the type of credit requested. The term
does not include the use of an account or line of
credit to obtain an amount of credit that does
not exceed a previously established credit limit.
A completed application for credit means an ap­

5

REGULATION B

§ 2 0 2 .2

tion in a credit transaction involves honoring a
credit card.
(m) Credit transaction means every aspect of
an applicant’s dealings with a creditor regarding
an application for, or an existing extension of,
credit including, but not limited to, information
requirements; investigation procedures; standards
of creditworthiness; terms of credit; furnishing of
credit information; revocation, alteration, or ter­
mination of credit; and collection procedures.
(n) Discriminate against an applicant means
to treat an applicant less favorably than other ap­
plicants.
(o) Elderly means an age of 62 or older.
(p) Empirically derived credit system. (1)
The term means a credit scoring system that eval­
uates an applicant’s creditworthiness primarily by
allocating points (or by using a comparable basis
for assigning weights) to key attributes describing
the applicant and other aspects of the transaction.
In such a system, the points (or weights) assigned
to each attribute, and hence the entire score:
(i) are derived from an empirical comparison
of sample groups or the population of creditworthy
and non-creditworthy applicants of a creditor who
applied for credit within a reasonable preceding
period of time; and
(ii) determine, alone or in conjunction with
an evaluation of additional information about the
applicant, whether an applicant is deemed credit­
worthy.
(2)
A demonstrably and statistically sound,
empirically derived credit system is a system:
(i) in which the data used to develop the
system, if not the complete population consisting
of all applicants, are obtained from the applicant
file by using appropriate sampling principles;
(ii) which is developed for the purpose of
predicting the creditworthiness of applicants with
respect to the legitimate business interests of the
creditor utilizing the system, including, but not
limited to, minimizing bad debt losses and operat­
ing expenses in accordance with the creditor’s
business judgment;
(iii) which, upon validation using appropri­
ate statistical principles, separates creditworthy
and non-creditworthy applicants at a statistically
significant rate; and
(iv) which is periodically revalidated as to
its predictive ability by the use of appropriate
6

statistical principles and is adjusted as necessary
to maintain its predictive ability.
( з ) A creditor may use a demonstrably and
statistically sound, empirically derived credit sys­
tem obtained from another person or may obtain
credit experience from which such a system may
be developed. Any such system must satisfy the
tests set forth in subsections (1) and (2); provided
that, if a creditor is unable during the develop­
ment process to validate the system based on its
own credit experience in accordance with subsec­
tion (2)(iii), then the system must be validated
when sufficient credit experience becomes avail­
able. A system that fails this validity test shall
henceforth be deemed not to be a demonstrably
and statistically sound, empirically derived credit
system for that creditor.
(q) Extend credit and extension of credit mean
the granting of credit in any form and include,
but are not limited to, credit granted in addition
to any existing credit or credit limit; credit
granted pursuant to an open end credit plan; the
refinancing or other renewal of credit, including
the issuance of a new credit card in place of an
expiring credit card or in substitution for an
existing credit card; the consolidation of two or
more obligations; or the continuance of existing
credit without any special effort to collect at or
after maturity.
(r) Good faith means honesty in fact in the
conduct or transaction.
(s) Inadvertent error means a mechanical, elec­
tronic, or clerical error that a creditor demon­
strates was not intentional and occurred notwith­
standing the maintenance of procedures reason­
ably adapted to avoid any'Such error.
(t) Judgmental system of evaluating applicants
means any system for evaluating the creditworthi­
ness of an applicant other than a demonstrably
and statistically sound, empirically derived credit
system.
(и) M arital status means the state of being un­
married, married, or separated, as defined by
applicable State law. For the purposes of this
Part, the term “unmarried” includes persons who
are single, divorced, or widowed.
(v)
Negative factor or value, in relation to the
age of elderly applicants, means utilizing a factor,
value, or weight that is less favorable regarding
elderly applicants than the creditor’s experience
warrants or is less favorable than the factor, value,
or weight assigned to the class of applicants that

REGULATION B

§ 202.3

are not classified as elderly applicants and are
most favored by a creditor on the basis of age.
(w) Open end credit means credit extended
pursuant to a plan under which a creditor may
permit an applicant to make purchases or obtain
loans from time to time directly from the creditor
or indirectly by use of a credit card, check, or
other device as the plan may provide. The term
does not include negotiated advances under an
open end real estate mortgage or a letter of credit.
(x) Person means a natural person, corporation,
government or governmental subdivision or agency,
trust, estate, partnership, cooperative, or associa­
tion.
(y) Pertinent element of creditworthiness, in
relation to a judgmental system of evaluating ap­
plicants, means any information about applicants
that a creditor obtains and considers and that has
a demonstrable relationship to a determination of
creditworthiness.
(z) Prohibited basis means race, color, religion,
national origin, sex, marital status, or age (pro­
vided that the applicant has the capacity to enter
into a binding contract); the fact that all or part
of the applicant’s income derives from any public
assistance program, or the fact that the applicant
has in good faith exercised any right under the
Consumer Credit Protection A c t3 or any State
law upon which an exemption has been granted
by the Board.
(aa) Public assistance program means any Fed­
eral, State, or local governmental assistance pro­
gram that provides a continuing, periodic income
supplement, whether premised on entitlement or

need. The term includes, but is not limited to,
Aid to Families with Dependent Children, food
stamps, rent and mortgage supplement or assist­
ance programs, Social Security and Supplemental
Security Income, and unemployment compensa­
tion.
(bb) State means any State, the District of Co­
lumbia, the Commonwealth of Puerto Rico, or
any territory or possession of the United States.
(cc) Captions and catchlines are intended
solely as aids to convenient reference, and no
inference as to the substance of any provision of
this Part may be drawn from them.
(dd) Footnotes shall have the same legal effect
as the text of the regulation, whether they are
explanatory or illustrative in nature.

SECTION 202.3— SPECIAL TREATM ENT
FOR CERTAIN CLASSES OF
TRANSACTIONS
(a)
Classes of transactions afforded special treat­
ment. Pursuant to section 703(a) of the Act, the
following classes of transactions are afforded
specialized treatment:
(1) extensions of credit relating to transactions
under public utility tariffs involving services pro­
vided through pipe, wire, or other connected
facilities if the charges for such public utility serv­
ices, the charges for delayed payment, and any
discount allowed for early payment are filed with,
or reviewed or regulated by, an agency of the
Federal government, a State, or a political sub­
division thereof;
(2) extensions of credit subject to regulation
under section 7 of the Securities Exchange Act
of 1934 or extensions of credit by a broker or
dealer subject to regulation as a broker or dealer
under the Securities Exchange Act of 1934;
(3) extensions of incidental consumer credit,
other than of the types described in subsections
(a)(1) and (2):
(i) that are not made pursuant to the terms
of a credit card account;
(ii) on which no finance charge as defined
in section 226.4 of this Title (Regulation Z, 12
CFR 226.4) is or may be imposed; and
(iii) that are not payable by agreement in
more than four instalments;
(4) extensions of credit primarily for business
or commercial purposes, including extensions of

3 The first clause o f the definition is not limited to
characteristics of the applicant. T herefore, “ prohibited
basis” as used in this P art refers not only to the race,
color, religion, nation al origin, sex, m arital status, or age
o f an applicant (or o f partners o r officers o f an appli­
cant), b u t refers also to th e characteristics of individuals
with whom an applicant deals. This means, for example,
that, und er the general rule stated in section 202.4, a credi­
tor m ay n o t discriminate against a non-Jewish applicant
because of that person’s business dealings with Jews, or
discriminate against an applicant because of the c h arac­
teristics o f persons to w hom the extension of credit
relates (e.g., the prospective tenants in an apartm ent co m ­
plex to be constructed with the proceeds o f the credit
requested), or because o f the characteristics o f other
individuals residing in the neighborhood where the p rop­
erty offered as collateral is located. A creditor m ay take
into account, however, any applicable law, regulation, or
executive order restricting dealings with citizens or gov­
ernm ents of o th er countries or imposing lim itations r e ­
garding credit extended for their use.
T h e second clause is limited to an applicant’s receipt
o f public assistance income and to an ap plicant’s good
faith exercise of rights u nder the C onsum er Credit P ro ­
tection A ct o r applicable State law.

7

§ 202.4

REGULATION B

credit primarily for agricultural purposes, but ex­
cluding extensions of credit of the types described
in subsections (a)(1) and (2); and
(5)
extensions of credit made to governments
or governmental subdivisions, agencies, or instru­
mentalities.
(b) Public utilities credit. The following pro­
visions of this Part shall not apply to extensions of
credit of the type described in subsection (a)(1):
(1) section 202.5(d)(1) concerning information
about marital status;
(2) section 202.10 relating to furnishing of
credit information; and
(3) section 202.12(b) relating to record reten­
tion.
(c) Securities credit. The following provisions
of this Part shall not apply to extensions of credit
of the type described in subsection (a)(2):
(1) section 202.5(c) concerning information
about a spouse or former spouse;
(2) section 202.5(d)(1) concerning information
about marital status;
(3) section 202.5(d)(3) concerning information
about the sex of an applicant;
(4) section 202.7(b) relating to designation of
name, but only to the extent necessary to prevent
violation of rules regarding an account in which a
broker or dealer has an interest, or rules necessi­
tating the aggregation of accounts of spouses for
the purpose of determining controlling interests,
beneficial interests, beneficial ownership, or pur­
chase limitations and restrictions;
(5) section 202.7(c) relating to action concern­
ing open end accounts, but only to the extent the
action taken is on the basis of a change of name
or marital status;
(6) section 202.7(d) relating to signature of a
spouse or other person;
(7) section 202.10 relating to furnishing of
credit information; and
(8) section 202.12(b) relating to record reten­
tion.
(d) Incidental credit. The following provisions
of this Part shall not apply to extensions of credit
of the type described in subsection (a)(3):
(1) section 202.5(c) concerning information
about a spouse or former spouse;
(2) section 202.5(d)(1) concerning information
about marital status;
(3) section 202.5(d)(2) concerning information
about income derived from alimony, child sup­
port, or separate maintenance payments;
8

(4) section 202.5(d)(3) concerning information
about the sex of an applicant to the extent neces­
sary for medical records or similar purposes;
(5) section 202.7(d) relating to signature of a
spouse or other person;
(6) section 202.9 relating to notifications;
(7) section 202.10 relating to furnishing of
credit information; and
(8) section 202.12(b) relating to record reten­
tion.
(e) Business credit. The following provisions of
this Part shall not apply to extensions of credit of
the type described in subsection (a)(4):
(1) section 202.5(d)(1) concerning information
about marital status;
(2) section 202.9 relating to notifications, unless
an applicant, within 30 days after oral or written
notification that adverse action has been taken,
requests in writing the reasons for such action;
(3) section 202.10 relating to furnishing of
credit information; and
(4) section 202.12(b) relating to record reten­
tion, unless an applicant, within 90 days after
adverse action has been taken, requests in writing
that the records relating to the application be
retained.
(f) Governmental credit. Except for section 202.1
relating to authority, scope, enforcement, penalties
and liabilities, and interpretations, section 202.2
relating to definitions and rules of construction,
this section, section 202.4 relating to the general
rule prohibiting discrimination, section 202.6(a)
relating to the use of information, section 202.11
relating to State laws, and section 202.12(a) relat­
ing to the retention of prohibited information, the
provisions of this Part shall not apply to extensions
of credit of the type described in subsection (a)(5).

SECTION 202.4— GENERAL RULE
PROHIBITING DISCRIMINATION
A creditor shall not discriminate against an
applicant on a prohibited basis regarding any
aspect of a credit transaction.

SECTION 202.5— RULES CONCERNING
APPLICATIONS
(a)
Discouraging applications. A creditor shall
not make any oral or written statement, in adver­

§ 202.5

REGULATION B
tising or otherwise, to applicants or prospective
applicants that would discourage on a prohibited
basis a reasonable person from making or pur­
suing an application.
(b) General rules concerning requests for infor­
mation. (1) Except as otherwise provided in this
section, a creditor may request any information
in connection with an application.1
(2) Notwithstanding any other provision of this
section, a creditor shall request an applicant’s
race/national origin, sex, and marital status as
required in section 202.13 (information for moni­
toring purposes). In addition, a creditor may ob­
tain such information as may be required by a
regulation, order, or agreement issued by, or
entered into with, a court or an enforcement
agency (including the Attorney General or a sim­
ilar State official) to monitor or enforce compli­
ance with the Act, this Part, or other Federal
or State statute or regulation.
(3) The provisions of this section limiting per­
missible information requests are subject to the
provisions of section 202.7(e) regarding insurance
and sections 202.8(c) and (d) regarding special
purpose credit programs.
(c) Information about a spouse or former
spouse. (1) Except as permitted in this subsection,
a creditor may not request any information con­
cerning the spouse or former spouse of an appli­
cant.
(2)
A creditor may request any information
concerning an applicant’s spouse (or former
spouse under (v) below) that may be requested
about the applicant if:
(i) the spouse will be permitted to use the
account; or
(ii) the spouse will be contractually liable
upon the account; or
(iii) the applicant is relying on the spouse’s
income as a basis for repayment of the credit
requested; or
(iv) the applicant resides in a community
property State or property upon which the appli­
cant is relying as a basis for repayment of the
credit requested is located in such a State; or

(v)
the applicant is relying on alimony, child
support, or separate maintenance payments from
a spouse or former spouse as a basis for repay­
ment of the credit requested.
(3)
A creditor may request an applicant to list
any account upon which the applicant is liable
and to provide the name and address in which
such account is carried. A creditor may also ask
the names in which an applicant has previously
received credit.
(d)
Inform ation a creditor may not request. (1)
If an applicant applies for an individual, unse­
cured account, a creditor shall not request the
applicant’s marital status, unless the applicant
resides in a community property State or prop­
erty upon which the applicant is relying as a basis
for repayment of the credit requested is located
in such a State.5 Where an application is for other
than individual, unsecured credit, a creditor may
request an applicant’s marital status. Only the
terms “married,” “unmarried,” and “separated”
shall be used, and a creditor may explain that
the category “unmarried” includes single, di­
vorced, and widowed persons.
(2)
A creditor shall not inquire whether any
income stated in an application is derived from
alimony, child support, or separate maintenance
payments, unless the creditor appropriately dis­
closes to the applicant that such income need not
be revealed if the applicant does not desire the
creditor to consider such income in determining
the applicant’s creditworthiness. Since a general
inquiry about income, without further specifica­
tion, may lead an applicant to list alimony, child
support, or separate maintenance payments, a
creditor shall provide an appropriate notice to an
applicant before inquiring about the source of an
applicant’s income, unless the terms of the inquiry
(such as an inquiry about salary, wages, invest­
ment income, or similarly specified income) tend
to preclude the unintentional disclosure of aliThis provision does not preclude requesting relevant
inform ation that m ay indirectly disclose m arital status,
such as asking a bout liability to pay alimony, child sup­
port, or separate m aintenance; the source of incom e to be
used as a basis for the repaym ent of the credit requested,
which m ay disclose that it is a spouse’s income; whether
any obligation disclosed by the applicant has a co-obligor,
which m ay disclose th a t the co-obligor is a spouse or
form er spouse; or the ownership o f assets, which m ay
disclose the interest o f a spouse, when such assets are
relied upon in extending the credit. Such inquiries are
allowed by the general rule of subsection (b)(1).

4 This subsection is n o t intended to limit o r abrogate
any F ederal o r State law regarding privacy, privileged
inform ation, credit reporting limitations, or similar re­
strictions on obtainable inform ation. F urth e rm ore, permis­
sion to request inform ation should n o t be confused with
how it m ay be utilized, which is governed by section
202.6 (rules concerning evaluation of applications).

9

REGULATION B

§ 2 0 2 .6

mony, child support, or separate maintenance
payments.
(3) A creditor shall not request the sex of an
applicant. An applicant may be requested to desig­
nate a title on an application form (such as Ms.,
Miss, Mr., or Mrs.) if the form appropriately
discloses that the designation of such a title is
optional. An application form shall otherwise use
only terms that are neutral as to sex.
(4) A creditor shall not request information
about birth control practices, intentions concern­
ing the bearing or rearing of children, or capa­
bility to bear children. This does not preclude a
creditor from inquiring about the number and
ages of an applicant’s dependents or about
dependent-related financial obligations or expendi­
tures, provided such information is requested with­
out regard to sex, marital status, or any other
prohibited basis.
(5) A creditor shall not request the race, color,
religion, or national origin of an applicant or any
other person in connection with a credit trans­
action. A creditor may inquire, however, as to
an applicant’s permanent residence and immigra­
tion status.
(e)
Application forms. A creditor need not use
written applications. If a creditor chooses to use
written forms, it may design its own," use forms
prepared by another person, or use the appropri­
ate model application forms contained in Appen­
dix B. If a creditor chooses to use an Appendix
B form, it may change the form:
(1) by asking for additional information not
prohibited by this section;
(2) by deleting any information request; or
(3) by rearranging the format without modify­
ing the substance of the inquiries; provided that
in each of these three instances the appropriate
notices regarding the optional nature of courtesy
titles, the option to disclose alimony, child sup­
port, or separate maintenance, and the limitation
concerning marital status inquiries are included
in the appropriate places if the items to which
they relate appear on the creditor’s form. If a
creditor uses an appropriate Appendix B model
form or to the extent that it modifies such a form
0 A creditor also m ay continue to use any application
form th a t complies with the requirem ents of the O ctober
28, 1975 version of Regulation B until its present stock
of those form s is exhausted or until M arch 23, 1978,
whichever occurs first. T he provisions o f this P a rt shall
n o t determ ine and are not evidence o f the meaning of
the requirem ents o f the previous version o f Regulation B.
10

in accordance with the provisions of clauses (2)
or (3) of the preceding sentence or the instruc­
tions to Appendix B, that creditor shall be deemed
to be acting in compliance with the provisions of
subsections (c) and (d).

SECTION 202.6— RULES CONCERNING
EVALUATION OF APPLICATIONS
(a) General rule concerning use of information.
Except as otherwise provided in the Act and this
Part, a creditor may consider in evaluating an ap­
plication any information that the creditor obtains,
so long as the information is not used to dis­
criminate against an applicant on a prohibited
basis.7
(b) Specific rules concerning use of information.
(1) Except as provided in the Act and this Part,
a creditor shall not take a prohibited basis into
account in any system of evaluating the credit­
worthiness of applicants.8
(2)(i) Except as permitted in this subsection, a
creditor shall not take into account an applicant’s
age (provided that the applicant has the capacity
to enter into a binding contract) or whether an
applicant’s income derives from any public assist­
ance program.
(ii) In a demonstrably and statistically sound,
empirically derived credit system, a creditor may
use an applicant’s age as a predictive variable,
provided that the age of an elderly applicant is
not assigned a negative factor or value.
(iii) In a judgmental system of evaluating
creditworthiness, a creditor may consider an ap­
plicant’s age or whether an applicant’s income
derives from any public assistance program only
7 T he legislative history o f the A ct indicates th a t the
C ongress intended an “effects test” concept, as outlined
in the em ploym ent field by the Suprem e C o u rt in the
cases of Griggs v. D u k e P ower Co., 401 U.S. 424 (19 71),
and A lbem arle Paper Co. v. M o o d y, 422 U.S. 405 (1 975),
to be applicable to a creditor’s determ ination o f credit­
worthiness. See Senate R e p o rt to accom pany H .R . 6516,
No. 94-589, pp. 4-5; H ouse R eport to accom pany H .R.
6516, N o. 94-210, p. 5.
8 This provision does not prevent a creditor from co n ­
sidering the marital status of an applicant o r the source
o f an ap plicant's incom e for the purpose o f ascertaining
the creditor’s rights and remedies applicable to the p a r ­
ticular extension o f credit an d n ot to discrim inate in a
determ ination o f creditworthiness. F urtherm o re, a p ro ­
hibited basis m ay be considered in accordance with sec­
tion 202.8 (special purpose credit programs).

REGULATION B

§ 202.7

for the purpose of determining a pertinent ele­
but are not limited to, whether the payments are
ment of creditworthiness.9
received pursuant to a written agreement or court
decree; the length of time that the payments have
(iv)
In any system of evaluating creditworthi­
been received; the regularity of receipt; the avail­
ness, a creditor may consider the age of an elderly
ability of procedures to compel payment; and the
applicant when such age is to be used to favor
creditworthiness of the payor, including the credit
the elderly applicant in extending credit.
history of the payor where available to the credi­
(3) A creditor shall not use, in evaluating the
tor under the Fair Credit Reporting Act or other
creditworthiness of an applicant, assumptions or
applicable laws.
aggregate statistics relating to the likelihood that
(6) To the extent that a creditor considers credit
any group of persons will bear or rear children
history in evaluating the creditworthiness of sim­
or, for that reason, will receive diminished or
ilarly qualified applicants for a similar type and
interrupted income in the future.
amount of credit, in evaluating an applicant’s
(4) A creditor shall not take into account the
creditworthiness, a creditor shall consider (unless
existence of a telephone listing in the name of
the failure to consider results from an inadvertent
an applicant for consumer credit. A creditor may
error):
take into account the existence of a telephone in
(i) the credit history, when available, of ac­
the residence of such an applicant.
counts designated as accounts that the applicant
(5) A creditor shall not discount or exclude
and a spouse are permitted to use or for which
from consideration the income of an applicant or
both are contractually liable;
the spouse of the applicant because of a prohib­
(ii) on the applicant’s request, any informa­
ited basis or because the income is derived from
tion that the applicant may present tending to
part-time employment, or from an annuity, pen­
indicate that the credit history being considered
sion, or other retirement benefit; but a creditor
by the creditor does not accurately reflect the
may consider the amount and probable continu­
applicant’s creditworthiness; and
ance of any income in evaluating an applicant’s
(iii) on the applicant’s request, the credit
creditworthiness. Where an applicant relies on
history, when available, of any account reported
alimony, child support, or separate maintenance
in the name of the applicant’s spouse or former
payments in applying for credit, a creditor shall
spouse that the applicant can demonstrate accu­
consider such payments as income to the extent
rately reflects the applicant’s creditworthiness.
that they are likely to be consistently made. Fac­
tors that a creditor may consider in determining
(7) A creditor may consider whether an appli­
the likelihood of consistent payments include,
cant is a permanent resident of the United States,
the applicant’s immigration status, and such addi­
9 C oncerning incom e derived from a public assistance
tional information as may be necessary to ascer­
program , a creditor m ay consider, for example, the length
tain its rights and remedies regarding repayment.
o f time an applicant has been receiving such income;
whether an applicant intends to continue to reside in the
(c)
State property laws. A creditor’s considera­
jurisdiction in relation to residency requirem ents for
tion or application of State property laws directly
benefits; and the status o f an applicant's d ependents to
or indirectly affecting creditworthiness shall not
ascertain whether benefits that the applicant is presently
receiving will continue.
constitute unlawful discrimination for the purposes
C oncerning age, a creditor m ay consider, for example,
of the Act or this Part.
the occup ation and length o f time to retirem ent o f an
applicant to ascertain whether the applicant’s income
(including retirem ent income, as applicable) will support
the extension o f credit until its m aturity; or the adequacy
o f any security offered if the duration o f the credit
extension will exceed the life expectancy of the applicant.
A n elderly applicant m ight n o t qualify for a five-percent
dow n, 30-year m ortgage loan because the duration o f the
loan exceeds the ap plican t’s life expectancy and the cost
o f realizing o n the collateral might exceed the applicant’s
equity. The same applicant m ight qualify with a larger
d ow npaym ent and a shorter loan m aturity. A creditor
c ould also consider an applican t’s age, fo r exam ple, to
assess the significance o f the applicant’s length o f e m ­
ploym ent or residence (a young applicant m ay have just
entered the job m arket; an elderly applicant m ay recently
have retired and moved from a long-time residence).

SECTION 202.7— RULES CONCERNING
EXTENSIONS OF CREDIT
(a) Individual accounts. A creditor shall not
refuse to grant an individual account to a credit­
worthy applicant on the basis of sex, marital
status, or any other prohibited basis.
(b) Designation of name. A creditor shall not
prohibit an applicant from opening or maintaining
11

§ 202.7

REGULATION B

an account in a birth-given first name and a sur­
name that is the applicant’s birth-given surname,
the spouse’s surname, or a combined surname.
(c) Action concerning existing open end ac­
counts. (1) In the absence of evidence of inability
or unwillingness to repay, a creditor shall not take
any of the following actions regarding an appli­
cant who is contractually liable on an existing
open end account on the basis of the applicant’s
reaching a certain age or retiring, or on the basis
of a change in the applicant’s name or marital
status:
(i) require a reapplication; or
(ii) change the terms of the account; or
(iii) terminate the account.
(2)
A creditor may require a reapplication re­
garding an open end account on the basis of a
change in an applicant’s marital status where the
credit granted was based on income earned by the
applicant’s spouse if the applicant’s income alone
at the time of the original application would not
support the amount of credit currently extended.
(d) Signature of spouse or other person. (1)
Except as provided in this subsection, a creditor
shall not require the signature of an applicant’s
spouse or other person, other than a joint appli­
cant, on any credit instrument if the applicant
qualifies under the creditor’s standards of credit­
worthiness for the amount and terms of the credit
requested.
(2) If an applicant requests unsecured credit
and relies in part upon property to establish
creditworthiness, a creditor may consider State
law; the form of ownership of the property; its
susceptibility to attachment, execution, severance,
and partition; and other factors that may affect
the value to the creditor of the applicant’s interest
in the property. If necessary to satisfy the credi­
tor’s standards of creditworthiness, the creditor
may require the signature of the applicant’s spouse
or other person on any instrument necessary, or
reasonably believed by the creditor to be neces­
sary, under applicable State law to make the prop­
erty relied upon available to satisfy the debt in the
event of default.
(3) If a married applicant requests unsecured
credit and resides in a community property State
or if the property upon which the applicant is
relying is located in such a State, a creditor may
require the signature of the spouse on any instru­
ment necessary, or reasonably believed by the
12

creditor to be necessary, under applicable State
law to make the community property available to
satisfy the debt in the event of default if:
(i) applicable State law denies the applicant
power to manage or control sufficient community
property to qualify for the amount of credit re­
quested under the creditor’s standards of credit­
worthiness; and
(ii) the applicant does not have sufficient
separate property to qualify for the amount of
credit requested without regard to community
property.
(4) If an applicant requests secured credit, a
creditor may require the signature of the appli­
cant’s spouse or other person on any instrument
necessary, or reasonably believed by the creditor
to be necessary, under applicable State law to
make the property being offered as security avail­
able to satisfy the debt in the event of default, for
example, any instrument to create a valid lien,
pass clear title, waive inchoate rights, or assign
earnings.
(5) If, under a creditor’s standards of credit­
worthiness, the personal liability of an additional
party is necessary to support the extension of the
credit requested,10 a creditor may request that the
applicant obtain a co-signer, guarantor, or the like.
The applicant’s spouse may serve as an additional
party, but a creditor shall not require that the
spouse be the additional party. For the purposes
of subsection (d), a creditor shall not impose re­
quirements upon an additional party that the
creditor may not impose upon an applicant.
(e)
Insurance. Differentiation in the availability,
rates, and terms on which credit-related casualty
insurance or credit life, health, accident, or dis­
ability insurance is offered or provided to an
applicant shall not constitute a violation of the
Act or this Part; but a creditor shall not refuse to
extend credit and shall not terminate an account
because credit life, health, accident, or disability
insurance is not available on the basis of the
applicant’s age. Notwithstanding any other pro­
vision of this Part, information about the age, sex,
or marital status of an applicant may be requested
in an application for insurance.
If an applicant requests individual credit relying on
the separate income o f another person, a creditor m ay
require the signature o f the other person to m ak e the
incom e available to pay the debt.

REGULATION B

§ 2 0 2 .8

SECTION 202.8— SPECIAL PURPOSE
CREDIT PROGRAMS

from a public assistance program, or good faith
exercise of any right under the Consumer Credit
Protection Act or any State law upon which an
exemption has been granted therefrom by the
(a) Standards for programs. Subject to the pro­
Board; except that all program participants may
visions of subsection (b), the Act and this Part are
be required to share one or more of those char­
not violated if a creditor refuses to extend credit
acteristics so long as the program was not estab­
to an applicant solely because the applicant does
lished and is not administered with the purpose of
not qualify under the special requirements that
evading the requirements of the Act or this Part.
define eligibility for the following types of special
purpose credit programs:
(c) Special rule concerning requests and use of
information. If all participants in a special pur­
(1) any credit assistance program expressly au­
pose credit program described in subsection (a) are
thorized by Federal or State law for the benefit of
or will be required to possess one or more com­
an economically disadvantaged class of persons; or
mon characteristics relating to race, color, religion,
(2) any credit assistance program offered by a
national origin, sex, marital status, age, or receipt
not-for-profit organization, as defined under sec­
of income from a public assistance program and if
tion 501(c) of the Internal Revenue Code of 1954,
the special purpose credit program otherwise satis­
as amended, for the benefit of its members or for
fies the requirements of subsection (a), then, not­
the benefit of an economically disadvantaged class
withstanding the prohibitions of sections 202.5
of persons; or
and 202.6, the creditor may request of an appli­
(3) any special purpose credit program offered
cant and may consider, in determining eligibility
by a for-profit organization or in which such an
for such program, information regarding the com­
organization participates to meet special social
mon characteristics required for eligibility. In
needs, provided that:
such circumstances, the solicitation and considera­
tion of that information shall not constitute un­
(i) the program is established and adminis­
lawful discrimination for the purposes of the Act
tered pursuant to a written plan that (A) identi­
or this Part.
fies the class or classes of persons that the pro­
gram is designed to benefit and (B) sets forth the
(d) Special rule in the case of financial need. If
procedures and standards for extending credit pur­
financial need is or will be one of the criteria for
suant to the program; and
the extension of credit under a special purpose
credit program described in subsection (a), then,
(ii) the program is established and adminis­
notwithstanding the prohibitions of sections 202.5
tered to extend credit to a class of persons who,
and 202.6, the creditor may request and consider,
pursuant to the customary standards of credit­
in determining eligibility for such program, in­
worthiness used by the organization extending the
formation regarding an applicant’s marital status,
credit, either probably would not receive such
income from alimony, child support, or separate
credit or probably would receive it on less favor­
maintenance, and the spouse’s financial resources.
able terms than are ordinarily available to other
In addition, notwithstanding the prohibitions of
applicants applying to the organization for a
section 202.7(d), a creditor may obtain the signa­
similar type and amount of credit.
ture of an applicant’s spouse or other person on
(b) Applicability of other rules. (1) All of the
an application or credit instrument relating to a
provisions of this Part shall apply to each of the
special purpose program if required by Federal or
special purpose credit programs described in sub­
State law. In such circumstances, the solicitation
section (a) to the extent that those provisions are
and consideration of that information and the ob­
not inconsistent with the provisions of this section.
taining of a required signature shall not constitute
(2)
A program described in subsections (a)(2) or unlawful discrimination for the purposes of the
(a)(3) shall qualify as a special purpose credit pro­
Act or this Part.
gram under subsection (a) only if it was estab­
lished and is administered so as not to discrimi­
SECTION 202.9— NOTIFICATIONS
nate against an applicant on the basis of race,
color, religion, national origin, sex, marital status,
(a)
Notification of action taken, ECOA notice,
age (provided that the applicant has the capacity
and statement of specific reasons.
to enter into a binding contract), income derived

13

§ 202.9

REGULATION B

(1) Notification of action taken. A creditor shall
notify an applicant of action taken within:
(i) 30 days after receiving a completed ap­
plication concerning the creditor’s approval of,
or adverse action regarding, the application (noti­
fication of approval may be express or by impli­
cation, where, for example, the applicant receives
a credit card, money, property, or services in
accordance with the application);
(ii) 30 days after taking adverse action on
an uncompleted application;
(iii) 30 days after taking adverse action re­
garding an existing account; and
(iv) 90 days after the creditor has notified
the applicant of an offer to grant credit other than
in substantially the amount or on substantially the
terms requested by the applicant if the applicant
during those 90 days has not expressly accepted
or used the credit offered.

creditor and either no credit is offered or the
applicant does not expressly accept or use any
credit offered, then each creditor taking adverse
action must comply with this section. The re­
quired notification may be provided indirectly
through a third party, which may be one of the
creditors, provided that the identity of each cred­
itor taking adverse action is disclosed. When­
ever the notification is to be provided through a
third party, a creditor shall' not be liable for any
act or omission of the third party that constitutes
a violation of this section if the creditor accu­
rately and in a timely manner provided the third
party with the information necessary for the
notification and was maintaining procedures rea­
sonably adapted to avoid any such violation.
(b)
Form of ECOA notice and statement of
specific reasons.
(1) ECOA notice. A creditor satisfies the re­
quirements of subsection (a)(2) regarding a state­
ment of the provisions of section 701(a) of the
Act and the name and address of the appropriate
Federal enforcement agency if it provides the
following notice, or one that is substantially sim­
ilar:

(2) Content of notification. Any notification
given to an applicant against whom adverse action
is taken shall be in writing and shall contain: a
statement of the action taken; a statement of the
provisions of section 701(a) of the Act; the name
and address of the Federal agency that admin­
isters compliance concerning the creditor giving
the notification; and

The Federal Equal Credit Opportunity Act pro­
hibits creditors from discriminating against credit
applicants on the basis of race, color, religion, na­
tional origin, sex, marital status, age (provided
that the applicant has the capacity to enter into
a binding contract); because all or part of the
applicant’s income derives from any public assist­
ance program; or because the applicant has in
good faith exercised any right under the Consumer
Credit Protection Act. The Federal agency that
administers compliance with this law concerning
this creditor is (name and address as specified by
the appropriate agency listed in Appendix A).

(i) a statement of specific reasons for the
action taken; or
(ii) a disclosure of the applicant’s right to
a statement of reasons within 30 days after receipt
by the creditor of a request made within 60 days
of such notification, the disclosure to include the
name, address, and telephone number of the
person or office from which the statement of
reasons can be obtained. If the creditor chooses
to provide the statement of reasons orally, the
notification shall also include a disclosure of the
applicant’s right to have any oral statement of
reasons confirmed in writing within 30 days after
a written request for confirmation is received by
the creditor.

The sample notice printed above may be mod­
ified immediately following the required references
to the Federal Act and enforcement agency to in­
clude references to any similar State statute or
regulation and to a State enforcement agency.
(2) Statement of specific reasons. A statement
of reasons for adverse action shall be sufficient
if it is specific and indicates the principal rea­
son^) for the adverse action. A creditor may
formulate its own statement of reasons in check­
list or letter form or may use all or a portion of
the sample form printed below, which, if properly
completed, satisfies the requirements of subsection
(a)(2)(i). Statements that the adverse action was
based on the creditor’s internal standards or pol­

(3) Multiple applicants. If there is more than
one applicant, the notification need only be given
to one of them, but must be given to the primary
applicant where one is readily apparent.
(4) M ultiple creditors. If a transaction involves
more than one creditor and the applicant expressly
accepts or uses the credit offered, this section does
not require notification of adverse action by any
creditor. If a transaction involves more than one

14

REGULATION B

§ 202.9

icies or that the applicant failed to achieve the
qualifying score on the creditor’s credit scoring
system are insufficient.

Street address:
Telephone number: _______________ --------, ----------Information obtained from an outside source
other than a consumer reporting agency.
Under the Fair Credit Reporting Act, you
have the right to make a written request,
within 60 days of receipt of this notice, for
disclosure of the nature of the adverse in­
formation.

STATEMENT OF CREDIT DENIAL,
TERMINATION, OR CHANGE
DATE _______________
Applicant’s Name:
_________________________
Applicant’s Address: __________________ _

Creditor’s name: _______________________
Creditor’s a d d re ss:______________________

Description of Account, Transaction, or Requested
C re d it:______________________________________

Creditor’s telephone number: ___________

Description of Adverse Action Taken:

[Add ECOA Notice]
(3)
Other information. The notification re­
quired by subsection ( a )(1 ) may include other
information so long as it does not detract from
the required content. This notification also may
be combined with any disclosures required under
other titles of the Consumer Credit Protection Act
or any other law, provided that all requirements
for clarity and placement are satisfied; and it may
appear on either or both sides of the paper if
there is a clear reference on the front to any
information on the back.
(c) Oral notifications. The applicable require­
ments of this section are satisfied by oral notifica­
tions (including statements of specific reasons) in
the case of any creditor that did not receive more
than 150 applications during the calendar year
immediately preceding the calendar year in which
the notification of adverse action is to be given to
a particular applicant.
(d) Withdrawn applications. Where an applicant
submits an application and the parties contemplate
that the applicant will inquire about its status, if
the creditor approves the application and the appli­
cant has not inquired within 30 days after apply­
ing, then the creditor may treat the application as
withdrawn and need not comply with subsection
(a)(1 ).
(e) Failure of compliance. A failure to comply
with this section shall not constitute a violation
when caused by an inadvertent error; provided
that, on discovering the error, the creditor cor­
rects it as soon as possible and commences com­
pliance with the requirements of this section.
(f) Notification. A creditor notifies an applicant
when a writing addressed to the applicant is deliv­

PRINCIPAL REASON(S) FOR ADVERSE
ACTION CONCERNING CREDIT
Credit application incomplete
Insufficient credit references
Unable to verify credit references
Temporary or irregular employment
Unable to verify employment
Length of employment
Insufficient income
Excessive obligations
Unable to verify income
Inadequate collateral
Too short a period of residence
Temporary residence
Unable to verify residence
No credit file
Insufficient credit file
Delinquent credit obligations
Garnishment, attachment, foreclosure, repos­
session, or suit
Bankruptcy
We do not grant credit to any applicant on
the terms and conditions you request.
Other, specify: _________________________

DISCLOSURE OF USE OF INFORMATION
OBTAINED FROM AN OUTSIDE SOURCE
Disclosure inapplicable
Information obtained in a report from a con­
sumer reporting agency
Name: _________________________________

15

REGULATION B

§ 2 0 2 .1 0

ered or mailed to the applicant’s last known ad­
dress or, in the case of an oral notification, when
the creditor communicates with the applicant.

(ii) designate any such account to reflect
the fact of participation of both spouses;13 and
(iii) comply with the reporting requirements
of subsections (a)(2) and (a)(3); or
(2)
mail or deliver to all applicants, or all
married applicants, in whose name an account is
carried on the creditor’s records one copy of the
notice set forth below.14 The notice may be mailed
with a billing statement or other mailing. All such
notices shall be mailed or delivered by October 1,
1977. As to open end accounts, this requirement
may be satisfied by mailing one notice at any time
prior to October 2, 1977, regarding each account
for which a billing statement is sent between June
1 and October 1, 1977. The notice may be supple­
mented as necessary to permit identification of
the account by the creditor or by a consumer re­
porting agency. A creditor need only send notices
relating to those accounts on which it lacks the
information necessary to make the proper desig­
nation regarding participation or contractual liabil­
ity.

SECTION 202.10— FURNISHING OF
CREDIT INFORMATION
(a) Accounts established on or after June 1,
1977. (1) For every account established on or
after June 1, 1977, a creditor that furnishes credit
information shall:
(i) determine whether an account offered by
the creditor is one that an applicant’s spouse is
permitted to use or upon which the spouses are
contractually liable other than as guarantors, sure­
ties, endorsers, or similar parties; and
(ii) designate any such account to reflect the
fact of participation of both spouses.11
(2) Except as provided in subsection (3), if
a creditor furnishes credit information concerning
an account designated under this section (or desig­
nated prior to the effective date of this Part) to a
consumer reporting agency, it shall furnish the
information in a manner that will enable the
agency to provide access to the information in the
name of each spouse.
(3) If a creditor furnishes credit information
concerning an account designated under this sec­
tion (or designated prior to the effective date of
this Part) in response to an inquiry regarding a
particular applicant, it shall furnish the informa­
tion in the name of the spouse about whom such
information is requested.12
(b) Accounts established prior to June 1, 1977.
For every account established prior to and in
existence on June 1, 1977, a creditor that fur­
nishes credit information shall either:
(1) not later than June 1, 1977
(i)
determine whether the account is
that an applicant’s spouse, if any, is permitted to
use or upon which the spouses are contractually
liable other than as guarantors, sureties, endorsers,
or similar parties;
1 1A creditor need n o t distinguish between participa­
tion as a user o r as a contractually liable party.
i s If a creditor learns th a t new parties have u n d e r­
tak en paym ent on an account, then the subsequent his­
tory o f the account shall be furnished in the nam es of
the new parties an d need n o t continue to be furnished
in the nam es o f the form er parties.

NOTICE
CREDIT HISTORY FOR MARRIED PERSONS
The Federal Equal Credit Opportunity Act pro­
hibits credit discrimination on the basis of race,
color, religion, national origin, sex, marital status,
age (provided that a person has the capacity to
enter into a binding contract); because all or
part of a person’s income derives from any pub­
lic assistance program; or because a person in
good faith has exercised any right under the Fed­
eral Consumer Credit Protection Act. Regulations
under the Act give married persons the right to
have credit information included in credit reports
in the name of both the wife and the husband
if both use or are responsible for the account.
This right was created, in part, to insure that
one
credit histories will be available to women who
become divorced or widowed.
If your account with us is one that both hus­
band and wife signed for or is an account that
is being used by one of you who did not sign,
then you are entitled to have us report credit
13 See footnote 11.
14 A creditor m ay delete the references to the “ use”
of an acco unt when providing notices regarding closed
end accounts.

16

REGULATION B

§ 2 0 2 .1 1

information relating to the account in both your
names. If you choose to have credit information
concerning your account with us reported in both
your natnes, please complete and sign the state­
ment below and return it to us.

SECTION 202.11— RELATION TO
STATE LAW
(a) Inconsistent State laws. Except as otherwise
provided in this section, this Part alters, affects,
or preempts only those State laws that are incon­
sistent with this Part and then only to the extent
of the inconsistency. A State law is not incon­
sistent with this Part if it is more protective of an
applicant.
(b) Preempted provisions of State law. (1) State
law is deemed to be inconsistent with the require­
ments of the Act and this Part and less protective
of an applicant within the meaning of section
705(f) of the Act to the extent that such law:
(i) requires or permits a practice or act pro­
hibited by the Act or this Part;
(ii) prohibits the individual extension of
consumer credit to both parties to a marriage if
each spouse individually and voluntarily applies
for such credit;

Federal regulations provide that signing your
name below will not change your or your spouse’s
legal liability on the account. Your signature will
only request that credit information be reported
in both your names.
If you do not complete and return the form
below, we will continue to report your credit
history in the same way that we do now.

When you furnish credit information on this
account, please report all information concerning
the account in both our names.
Account number

Print or type name

(iii) prohibits inquiries or collection of data
required to comply with the Act or this Part;

Print or type name

(iv) prohibits asking age or considering age
in a demonstrably and statistically sound, empiri­
cally derived credit system, to determine a perti­
nent element of creditworthiness, or to favor an
elderly applicant; or

Signature of either spouse
(c) Requests to change manner in which infor­
mation is reported. Within 90 days after receipt
of a properly completed request to change the
manner in which information is reported to con­
sumer reporting agencies and others regarding an
account described in subsection (b), a creditor
shall designate the account to reflect the fact of
participation of both spouses.15 When furnishing
information concerning any such account, the
creditor shall comply with the reporting require­
ments of subsections ( a ) (2 ) and (a )(3 ). The sig­
nature of an applicant or the applicant’s spouse on
a request to change the manner in which infor­
mation concerning an account is furnished shall
not alter the legal liability of either spouse upon
the account or require the creditor to change the
name in which the account is carried.

(v) prohibits inquiries necessary to establish
or administer a special purpose credit program as
defined by section 202.8.
(2)
A determination as to whether a State law
is inconsistent with the requirements of the Act
and this Part will be made only in response to a
request for a formal Board interpretation. All
requests for such interpretations, in addition to
meeting the requirements of section 202.1(d),
shall comply with the applicable provisions of sub­
sections (b)(1) and (2) of Supplement I to this
Part. A determination shall be based on the fac­
tors enumerated in this subsection and, as appli­
cable, subsection (c) of Supplement I. Notice of
the interpretation shall be provided as specified
in subsection (e)(1) of Supplement I, but the
interpretation shall be effective in accordance
with section 202.1. The interpretation shall be
subject to revocation or modification at any time,
as provided in subsection (g)(4) of Supplement I.

(d) Inadvertent errors. A failure to comply with
this section shall not constitute a violation when
caused by an inadvertent error; provided that, on
discovering the error, the creditor corrects it as
soon as possible and commences compliance with
the requirements of this section.

(c) Finance charges and loan ceilings. If mar­
ried applicants voluntarily apply for and obtain
individual accounts with the same creditor, the

15 See footn ote 11.

17

§ 2 0 2 .1 2

accounts shall not be aggregated or otherwise com­
bined for purposes of determining permissible
finance charges or permissible loan ceilings under
any Federal or State law. Permissible loan ceiling
laws shall be construed to permit each spouse to
become individually liable up to the amount of
the loan ceilings, less the amount for which the
applicant is jointly liable.16
(d) State and Federal laws not affected. This
section does not alter or annul any provision of
State property laws, laws relating to the disposi­
tion of decedents’ estates, or Federal or State
banking regulations directed only toward insuring
the solvency of financial institutions.
(e) Exemption for State regulated transactions.
(1) In accordance with the provisions of Supple­
ment I to this Part, any State may apply to the
Board for an exemption from the requirements
of sections 701 and 702 of the Act and the cor­
responding provisions of this Part for any class
of credit transactions within the State. The Board
will grant such an exemption if:
(i) the Board determines that, under the law
of that State, that class of credit transactions is
subject to requirements substantially similar to
those imposed under sections 701 and 702 of the
Act and the corresponding provisions of this Part,
or that applicants are afforded greater protection
than is afforded under sections 701 and 702 of
the Act and the corresponding provisions of this
Part; and
(ii) there is adequate provision for State en­
forcement.
(2)
In order to assure that the concurrent juris­
diction of Federal and State courts created in
section 706(f) of the Act will continue to have
substantive provisions to which such jurisdiction
shall apply; to allow Federal enforcement agencies
to retain their authority regarding any class of
credit transactions exempted pursuant to subsec­
tion (e)(1) and Supplement I; and, generally, to aid
in implementing the Act:
(i) no such exemption shall be deemed to
extend to the civil liability provisions of sections
706 or the administrative enforcement provisions
of section 704 of the Act; and
(ii) after an exemption has been granted, the
requirements of the applicable State law shall
16 F o r example, in a State with a permissible loan
ceiling o f $1,000, if a m arried couple were jointly liable
for unpaid debt in the am ount o f $250, each spouse
could subsequently becom e individually liable for $750.

REGULATION B
constitute the requirements of the Act and this
Part, except to the extent such State law imposes
requirements not imposed by the Act or this Part.
(3)
Exemptions granted by the Board to par­
ticular classes of credit transactions within speci­
fied States will be set forth in Supplement II to
this Part.

SECTION 202.12— RECORD RETENTION
(a) Retention of prohibited information. Reten­
tion in a creditor’s files of any information, the
use of which in evaluating applications is pro­
hibited by the Act or this Part, shall not constitute
a violation of the Act or this Part where such
information was obtained:
(1) from any source prior to March 23, 1977;17
or
(2) at any time from consumer reporting agen­
cies; or
(3) at any time from an applicant or others
without the specific request of the creditor; or
(4) at any time as required to monitor compli­
ance with the Act and this Part or other Federal
or State statutes or regulations.
(b) Preservation of records. (1) For 25 months
after the date that a creditor notifies an applicant
of action taken on an application, the creditor
shall retain as to that application in original form
or a copy thereof:18
(i) any application form that it receives, any
information required to be obtained concerning
characteristics of an applicant to monitor com­
pliance with the Act and this Part or other similar
law, and any other written or recorded informa­
tion used in evaluating the application and not re­
turned to the applicant at the applicant’s request;
(ii) a copy of the following documents if
furnished to the applicant in written form (or, if
furnished orally, any notation or memorandum
with respect thereto made by the creditor):
(A) the notification of action taken; and
i r P ursuant to the O ctober 28, 1975 version o f R egu­
lation B, the applicable d ate for sex and m arital status
in form ation is Ju n e 30, 1976.
18 “ A copy thereof" includes carbo n copies, p h o to ­
copies, microfilm o r m icrofiche copies, o r copies p r o ­
duced by any accurate inform ation retrieval system. A
creditor who uses a com puterized o r m echanized system
need n o t keep a written copy o f a docum ent if it can
regenerate the precise text o f the d ocum ent upon request.

REGULATION B

§ 202.13

(B) the statement of specific reasons for
that receives an application for consumer credit
adverse action; and
relating to the purchase of residential real prop­
(iii)
any written statement submitted by the
erty, where the extension of credit is to be secured
applicant alleging a violation of the Act or this
by a lien on such property, shall request as part
Part.
of any written application for such credit the
(2) For 25 months after the date that a creditor
following information regarding the applicant and
notifies an applicant of adverse action regarding
joint applicant (if any):
an account, other than in connection with an
(i) race/national origin, using the categories
application, the creditor shall retain as to that
American Indian or Alaskan Native; Asian or
account, in original form or a copy thereof:19
Pacific Islander; Black; White; Hispanic; Other
(i) any written or recorded information con­
(Specify);
cerning such adverse action; and
(ii) sex;
(ii) any written statement submitted by the
(iii) marital status, using the categories mar­
applicant alleging a violation of the Act or this
ried, unmarried, and separated; and
Part.
(iv) age.
(3) In addition to the requirements of subsec­
(2)
“Residential real property” means improved
tions (b)(1) and (2), any creditor that has actual
real property used or intended to be used for
notice that it is under investigation or is subject
residential purposes, including single family
to an enforcement proceeding for an alleged vio­
homes, dwellings for from two to four families,
lation of the Act or this Part by an enforcement
and individual units of condominiums and coop­
agency charged with monitoring that creditor’s
eratives.
compliance with the Act and this Part, or that has
been served with notice of an action filed pur­
(b) M ethod of obtaining information. Questions
suant to section 706 of the Act and sections
regarding race/national origin, sex, marital status,
202.1(b) or (c) of this Part, shall retain the in­
and age may be listed, at the creditor’s option,
formation required in subsections (b)(1) and (2)
either on the application form or on a separate
until final disposition of the matter, unless an
form that refers to the application.
earlier time is allowed by order of the agency or
(c) Disclosure to applicant and joint applicant.
court.
The applicant and joint applicant (if any) shall be
(4) In any transaction involving more than one
informed that the information regarding race/
creditor, any creditor not required to comply with
national origin, sex, marital status, and age is being
section 202.9 (notifications) shall retain for the
requested by the Federal government for the
time period specified in subsection (b) all written
purpose of monitoring compliance with Federal
or recorded information in its possession concern­
anti-discrimination statutes and that those statutes
ing the applicant, including a notation of action
prohibit creditors from discriminating against ap­
taken in connection with any adverse action.
plicants on those bases. The applicant and joint
(c)
Failure of compliance. A failure to comply applicant shall be asked, but not required, to
with this section shall not constitute a violation
supply the requested information. If the applicant
when caused by an inadvertent error.
or joint applicant chooses not to provide the in­
formation or any part of it, that fact shall be
noted on the form on which the information is
SECTION 202.13— INFORMATION FOR
obtained.
MONITORING PURPOSES
(d) Substitute monitoring program. Any moni­
(a) Scope and information requested. (1) For
toring program required by an agency charged
the purpose of monitoring compliance with the
with administrative enforcement under section 704
provisions of the Act and this Part, any creditor
of the Act may be substituted for the require­
19 See footn ote 18.
ments contained in subsections (a), (b), and (c).

19

§ 502

STATUTORY APPENDIX
STATUTORY APPEN DIX

§ 701. Prohibited discrimination; reasons for ad­
verse action*

Equal Credit Opportunity Act (as amended
March 23, 1976)

(a) It shall be unlawful for any creditor to dis­
criminate against any applicant, with respect to
any aspect of a credit transaction—
(1) on the basis of race, color, religion, national
origin, sex or marital status, or age (provided the
applicant has the capacity to contract);
(2) because all or part of the applicant’s income
derives from any public assistance program; or
(3) because the applicant has in good faith exer­
cised any right under the Consumer Credit Pro­
tection Act.
(b) It shall not constitute discrimination for
purposes of this title for a creditor—
(1) to make an inquiry of marital status if such
inquiry is for the purpose of ascertaining the
creditor’s rights and remedies applicable to the
particular extension of credit and not to discrimi­
nate in a determination of creditworthiness;
(2) to make an inquiry of the applicant’s age or
of whether the applicant’s income derives from
any public assistance program if such inquiry is
for the purpose of determining the amount and
probable continuance of income levels, credit
history, or other pertinent element of credit­
worthiness as provided in regulations of the
Board;
(3) to use any empirically derived credit system
which considers age if such system is demonstra­
bly and statistically sound in accordance with
regulations of the Board, except that in the opera­
tion of such system the age of an elderly applicant
may not be assigned a negative factor or value; or
(4) to make an inquiry or to consider the age
of an elderly applicant when the age of such ap­
plicant is to be used by the creditor in the exten­
sion of credit in favor of such applicant.
(c) It is not a violation of this section for a
creditor to refuse to extend credit offered pursuant
to—
(1) any credit assistance program expressly
authorized by law for an economically disad­
vantaged class of persons;
(2) any credit assistance program adminis­
tered by a nonprofit organization for its mem­
bers or an economically disadvantaged class of
persons; or

TITLE V— PUBLIC LAW 93-495
Sec.
502.
503.

Findings and purpose.
Amendment to the Consumer Credit Pro­
tection Act.

§ 502. Findings and purpose
The Congress finds that there is a need to insure
that the various financial institutions and other
firms engaged in the extensions of credit exercise
their responsibility to make credit available with
fairness, impartiality, and without discrimination
on the basis of sex or marital status. Economic
stabilization would be enhanced and competition
among the various financial institutions and other
firms engaged in the extension of credit would be
strengthened by an absence of discrimination on
the basis of sex or marital status, as well as by
the informed use of credit which Congress has
heretofore sought to promote. It is the purpose of
this Act to require that financial institutions and
other firms engaged in the extension of credit
make that credit equally available to all credit­
worthy customers without regard to sex or marital
status.
§ 503. Amendment to the Consumer Credit Pro­
tection Act
The Consumer Credit Protection Act (Public
Law 90-321) is amended by adding at the end
thereof a new title VII:

TITLE V II— EQUAL CREDIT OPPORTUNITY
Sec.
701.
702.
703.
704.
705.
706.
707.
708.
709.

Prohibited discrimination; reasons for ad­
verse action.
Definitions.
Regulations.
Administrative enforcement.
Relation to State laws.
Civil liability.
Annual reports to Congress.
Effective date.
Short title.

* Effective date for am endm ents to section 701 is
M a rch 23, 1977. All other am endm ents are effective upon
enactm ent.
20

STATUTORY APPENDIX

§ 702

(3)
any special purpose credit program of­ requested. Such term does not include a refusal
fered by a profitmaking organization to meet
to extend additional credit under an existing
special social needs which meets standards pre­
credit arrangement where the applicant is delin­
quent or otherwise in default, or where such
scribed in regulations by the Board;
additional credit would exceed a previously estab­
if such refusal is required by or made pursuant
lished credit limit.
to such program.
§ 702. Definitions
(a) The definitions and rules of construction
set forth in this section are applicable for the pur­
poses of this title.
(b) The term “applicant” means any person who
applies to a creditor directly for an extension, re­
newal, or continuation of credit, or applies to a
creditor indirectly by use of an existing credit plan
for an amount exceeding a previously established
credit limit.
(c) The term “Board” refers to the Board of
Governors of the Federal Reserve System.
(d) The term “credit” means the right granted
by a creditor to a debtor to defer payment of debt
or to incur debt and defer its payment or to pur­
chase property or services and defer payment
therefor.
(e) The term “creditor” means any person who
regularly extends, renews, or continues credit; any
person who regularly arranges for the extension,
renewal, or continuation of credit; or any assignee
of an original creditor who participates in the de­
cision to extend, renew, or continue credit.
(f) The term “person” means a natural person,
a corporation, government or governmental sub­
division or agency, trust, estate, partnership, co­
operative, or association.
(g) Any reference to any requirement imposed
under this title or any provision thereof includes
reference to the regulations of the Board under
this title or the provision thereof in question.

(d)(1) Within thirty days (or such longer rea­
sonable time as specified in regulations of the
Board for any class of credit transaction) after
receipt of a completed application for credit, a
creditor shall notify the applicant of its action on
the application.
(2) Each applicant against whom adverse action
is taken shall be entitled to a statement of reasons
for such action from the creditor. A creditor satis­
fies this obligation by—
(A) providing statements of reasons in writing
as a matter of course to applicants against whom
adverse action is taken; or
(B) giving written notification of adverse action
which discloses (i) the applicant’s right to a state­
ment of reasons within thirty days after receipt by
the creditor of a request made within sixty days
after such notification, and (ii) the identity of the
person or office from which such statement may
be obtained. Such statement may be given orally
if the written notification advises the applicant of
his right to have the statement of reasons con­
firmed in writing on written request.
(3) A statement of reasons meets the require­
ments of this section only if it contains the specific
reasons for the adverse action taken.
(4) Where a creditor has been requested by a
third party to make a specific extension of credit
directly or indirectly to an applicant, the notifica­
tion and statement of reasons required by this sub­
section may be made directly by such creditor, or
indirectly through the third party, provided in
either case that the identity of the creditor is dis­
closed.
(5) The requirements of paragraph (2), (3), or
(4) may be satisfied by verbal statements or noti­
fications in the case of any creditor who did not
act on more than 150 applications during the cal­
endar year preceding the calendar year in which
the adverse action is taken, as determined under
regulations of the Board.
(6) For purposes of this subsection, the term
“adverse action” means a denial or revocation of
credit, a change in the terms of an existing credit
arrangement, or a refusal to grant credit in sub­
stantially the amount or on substantially the terms

§ 703. Regulations
(a)
The Board shall prescribe regulations to
carry out the purposes of this title. These regula­
tions may contain but are not limited to such
classifications, differentiation, or other provision,
and may provide for such adjustments and excep­
tions for any class of transactions, as in the judg­
ment of the Board are necessary or proper to ef­
fectuate the purposes of this title, to prevent
circumvention or evasion thereof, or to facilitate
or substantiate compliance therewith. In particu­
lar, such regulations may exempt from one or
more of the provisions of this title any class of
transactions not primarily for personal, family,
21

§ 704
or household purposes, if the Board makes an
express finding that the application of such provi­
sion or provisions would not contribute substan­
tially to carrying out the purposes of this title.
Such regulations shall be prescribed as soon as
possible after the date of enactment of this Act,
but in no event later than the effective date of
this Act.
(b)
The Board shall establish a Consumer Ad­
visory Council to advise and consult with it in the
exercise of its functions under the Consumer
Credit Protection Act and to advise and consult
with it concerning other consumer related matters
it may place before the Council. In appointing
the members of the Council, the Board shall seek
to achieve a fair representation of the interests of
creditors and consumers. The Council shall meet
from time to time at the call of the Board. Mem­
bers of the Council who are not regular full-time
employees of the United States shall, while attend­
ing meetings of such Council, be entitled to re­
ceive compensation at a rate fixed by the Board,
but not exceeding $100 per day, including travel
time. Such members may be allowed travel ex­
penses, including transportation and subsistence,
while away from their homes or regular place of
business.

STATUTORY APPENDIX

(4) The Acts to regulate commerce, by the In­
terstate Commerce Commission with respect to
any common carrier subject to those Acts.
(5) The Federal Aviation Act of 1958, by the
Civil Aeronautics Board with respect to any air
carrier or foreign air carrier subject to that Act.
(6) The Packers and Stockyards Act, 1921 (ex­
cept as provided in section 406 of that Act), by
the Secretary of Agriculture with respect to any
activities subject to that Act.
(7) The Farm Credit Act of 1971, by the Farm
Credit Administration with respect to any Federal
land bank, Federal land bank association, Federal
intermediate credit bank, and production credit
association.
(8) The Securities Exchange Act of 1934, by
the Securities and Exchange Commission with re­
spect to brokers and dealers; and
(9) The Small Business Investment Act of
1958, by the Small Business Administration, with
respect to small business investment companies.
(b) For the purpose of the exercise by any
agency referred to in subsection (a) of its powers
under any Act referred to in that subsection, a
violation of any requirement imposed under this
title shall be deemed to be a violation of a require­
ment imposed under that Act. In addition to its
§ 704. Administrative enforcement
powers under any provision of law specifically
(a)
Compliance with the requirements imposed referred to in subsection (a), each of the agencies
referred to in that subsection may exercise for
under this title shall be enforced under:
the purpose of enforcing compliance with any re­
(1) Section 8 of the Federal Deposit Insurance
quirement imposed under this title, any other
Act, in the case of—
authority conferred on it by law. The exercise of
(A) national banks, by the Comptroller of the
the authorities of any of the agencies referred to
Currency;
in subsection (a) for the purpose of enforcing
(B) member banks of the Federal Reserve Sys­
compliance with any requirement imposed under
tem (other than national banks), by the Board;
this title shall in no way preclude the exercise of
(C) banks insured by the Federal Deposit In­
such authorities for the purpose of enforcing com­
surance Corporation (other than members of the
pliance with any other provision of law not relat­
Federal Reserve System), by the Board of Direc­
ing to the prohibition of discrimination on the
tors of the Federal Deposit Insurance Corporation.
basis of sex or marital status with respect to any
aspect of a credit transaction.
(2) Section 5(d) of the Home Owners’ Loan
Act of 1933, section 407 of the National Housing
(c) Except to the extent that enforcement of
Act, and sections 6 ( i) and 17 of the Federal
the requirements imposed under this title is spe­
Home Loan Bank Act, by the Federal Home Loan
cifically committed to some other Government
Bank Board (acting directly or through the Fed­
agency under subsection (a), the Federal Trade
eral Savings and Loan Insurance Corporation), in
Commission shall enforce such requirements. For
the case of any institution subject to any of those
the purpose of the exercise by the Federal Trade
provisions.
Commission of its functions and powers under
the Federal Trade Commission Act, a violation
(3) The Federal Credit Union Act, by the Ad­
of any requirement imposed under this title shall
ministrator of the National Credit Union Admin­
be deemed a violation of a requirement imposed
istration with respect to any Federal Credit Union.

STATUTORY APPENDIX

§ 705

under that Act. All of the functions and powers
of the Federal Trade Commission under the Fed­
eral Trade Commission Act are available to the
Commission to enforce compliance by any person
with the requirements imposed under this title,
irrespective of whether that person is engaged in
commerce or meets any other jurisdictional tests
in the Federal Trade Commission Act, including
the power to enforce any Federal Reserve Board
regulation promulgated under this title in the
same manner as if the violation had been a viola­
tion of a Federal Trade Commission trade regu­
lation rule.
(d)
The authority of the Board to issue regula­
tions under this title does not impair the authority
of any other agency designated in this section to
make rules respecting its own procedures in en­
forcing compliance with requirements imposed
under this title.
§ 705. Relation to State laws
(a) A request for the signature of both parties
to a marriage for the purpose of creating a valid
lien, passing clear title, waiving inchoate rights
to property, or assigning earnings, shall not con­
stitute discrimination under this title: Provided,
however, That this provision shall not be con­
strued to permit a creditor to take sex or marital
status into account in connection with the evalua­
tion of creditworthiness of any applicant.
(b) Consideration or application of State prop­
erty laws directly or indirectly affecting credit­
worthiness shall not constitute discrimination for
purposes of this title.
(c) Any provision of State law which prohibits
the separate extension of consumer credit to each
party to a marriage shall not apply in any case
where each party to a marriage voluntarily applies
for separate credit from the same creditor: Pro­
vided, That in any case where such a State law is
so preempted, each party to the marriage shall be
solely responsible for the debt so contracted.
(d) When each party to a marriage separately
and voluntarily applies for and obtains separate
credit accounts with the same creditor, those ac­
counts shall not be aggregated or otherwise com­
bined for purposes of determining permissible
finance charges or permissible loan ceilings under
the laws of any State or of the United States.
(e) Where the same act or omission constitutes
a violation of this title and of applicable State
law, a person aggrieved by such conduct may

bring a legal action to recover monetary dam­
ages either under this title or under such State
law, but not both. This election of remedies shall
not apply to court actions in which the relief
sought does not include monetary damages or to
administrative actions.
(f) This title does not annul, alter, or affect,
or exempt any person subject to the provisions
of this title from complying with, the laws of any
State with respect to credit discrimination, except
to the extent that those laws are inconsistent with
any provision of this title, and then only to the
extent of the inconsistency. The Board is author­
ized to determine whether such inconsistencies
exist. The Board may not determine that any State
law is inconsistent with any provision of this title
if the Board determines that such law gives
greater protection to the applicant.
(g) The Board shall by regulation exempt from
the requirements of sections 701 and 702 of this
title any class of credit transactions within any
State if it determines that under the law of that
State that class of transactions is subject to re­
quirements substantially similar to those imposed
under this title or that such law gives greater
protection to the applicant, and that there is ade­
quate provision for enforcement. Failure to com­
ply with any requirement of such State law in
any transaction so exempted shall constitute a
violation of this title for the purposes of section
706.
§ 706. Civil liability
(a) Any creditor who fails to comply with any
requirement imposed under this title shall be liable
to the aggrieved applicant for any actual dam­
ages sustained by such applicant acting either in
an individual capacity or as a member of a class.
(b) Any creditor, other than a government or
governmental subdivision or agency, who fails to
comply with any requirement imposed under this
title shall be liable to the aggrieved applicant for
punitive damages in an amount not greater than
$10,000, in addition to any actual damages pro­
vided in subsection (a), except that in the case
of a class action the total recovery under this sub­
section shall not exceed the lesser of $500,000 or
1 per centum of the net worth of the creditor. In
determining the amount of such damages in any
action, the court shall consider, among other
relevant factors, the amount of any actual dam­
ages awarded, the frequency and persistence of

23

§ 707
failures of compliance by the creditor, the re­
sources of the creditor, the number of persons ad­
versely affected, and the extent to which the
creditor’s failure of compliance was intentional.
(c) Upon application by an aggrieved appli­
cant, the appropriate United States district court
or any other court of competent jurisdiction may
grant such equitable and declaratory relief as is
necessary to enforce the requirements imposed
under this title.
(d) In the case of any successful action under
subsection (a), (b), or (c), the costs of the action,
together with a reasonable attorney’s fee as de­
termined by the court, shall be added to any dam­
ages awarded by the court under such subsection.
(e) No provision of this title imposing any
liability shall apply to any act done or omitted in
good faith in conformity with any official rule,
regulation, or interpretation thereof by the Board
or in conformity with any interpretation or ap­
proval by an official or employee of the Federal
Reserve System duly authorized by the Board to
issue such interpretations or approvals under such
procedures as the Board may prescribe therefor,
notwithstanding that after such act or omission
has occurred, such rule, regulation, interpretation,
or approval is amended, rescinded, or determined
by judicial or other authority to be invalid for
any reason.
(f) Any action under this section may be
brought in the appropriate United States district
court without regard to the amount in controversy,
or in any other court of competent jurisdiction.
No such action shall be brought later than two
years from the date of the occurrence of the vio­
lation, except that—■
(1) whenever any agency having responsibility
for administrative enforcement under section
704 commences an enforcement proceeding
within two years from the date of the occur­
rence of the violation,
(2) whenever the Attorney General com­
mences a civil action under this section within
two years from the date of occurrence of the
violation,
then any applicant who has been a victim of the
discrimination which is the subject of such pro­
ceeding or civil action may bring an action under
this section not later than one year after the com­
mencement of that proceeding or action.
(g) The agencies having responsibility for ad­
ministrative enforcement under section 704, if

STATUTORY APPENDIX
unable to obtain compliance with section 701, are
authorized to refer the matter to the Attorney
General with a recommendation that an appro­
priate civil action be instituted.
(h) When a matter is referred to the Attorney
General pursuant to subsection (g), or whenever
he has reason to believe that one or more cred­
itors are engaged in a pattern or practice in viola­
tion of this title, the Attorney General may bring
a civil action in any appropriate United States
district court for such relief as may be appropri­
ate, including injunctive relief.
(i) No person aggrieved by a violation of this
title and by a violation of section 805 of the
Civil Rights Act of 1968 shall recover under this
title and section 812 of the Civil Rights Act of
1968, if such violation is based on the same trans­
action.
(j) Nothing in this title shall be construed to
prohibit the discovery of a creditor’s credit grant­
ing standards under appropriate discovery proce­
dures in the court or agency in which an action or
proceeding is brought.
§ 707. Annual reports to Congress
Not later than February 1 of each year after
1976, the Board and the Attorney General shall,
respectively, make reports to the Congress con­
cerning the administration of their functions under
this title, including such recommendations as the
Board and the Attorney General, respectively,
deem necessary or appropriate. In addition, each
report of the Board shall include its assessment
of the extent to which compliance with the re­
quirements of this title is being achieved, and a
summary of the enforcement actions taken by
each of the agencies assigned administrative en­
forcement responsibilities under section 704.
§ 708. Effective date
This title takes effect upon the expiration of one
year after the date of its enactment. The amend­
ments made by the Equal Credit Opportunity Act
Amendments of 1976 shall take effect on the date
of enactment thereof and shall apply to any viola­
tion occurring on or after such date, except that
the amendments made to section 701 of the Equal
Credit Opportunity Act shall take effect 12 months
after the date of enactment.
§ 709. Short title
This title may be cited as the “Equal Credit
Opportunity Act.”

APPENDIX A
FEDERAL ENFORCEM ENT AGENCIES
The following list indicates which Federal agency enforces Regulation B for particular classes of cred­
itors. Any questions concerning a particular creditor should be directed to its enforcement agency.
Creditors Subject to Interstate Commerce Com­
mission
Office of Proceedings
Interstate Commerce Commission
Washington, D.C. 20523

National Banks
Comptroller of the Currency
Consumer Affairs Division
Washington, D.C. 20219
State Member Banks
Federal Reserve Bank serving the district in which
the State member bank is located.

Creditors Subject to Packers and Stockyards Act
Nearest Packers and Stockyards Administration
area supervisor.

Nonmember Insured Banks
Federal Deposit Insurance Corporation Regional
Director for the region in which the nonmember
insured bank is located.

Small Business Investment Companies
U.S. Small Business Administration
1441 L Street, N.W.
Washington, D.C. 20416
Brokers and Dealers
Securities and Exchange Commission
Washington, D.C. 20549

Savings Institutions Insured by the FSLIC and
Members of the FHLB System (except for Savings
Banks insured by FDIC)
The Federal Home Loan Bank Board Supervisory
Agent in the district in which the institution is
located.

Federal Land Banks, Federal Land Bank Associa­
tions, Federal Intermediate Credit Banks and
Production Credit Associations
Farm Credit Administration
490 L’Enfant Plaza, S.W.
Washington, D.C. 20578

Federal Credit Unions
Regional office of the National Credit Union Ad­
ministration serving the area in which the Federal
credit union is located.

Retail, Department Stores, Consumer Finance
Companies, All Other Creditors, and AH Nonbank
Credit Card Issuers (Creditors operating on a local
or regional basis should use the address of the
FTC Regional Office in which they operate.)
Federal Trade Commission
Equal Credit Opportunity
Washington, D.C. 20580

Creditors Subject to Civil Aeronautics Board
Director, Bureau of Enforcement
Civil Aeronautics Board
1825 Connecticut Avenue, N.W.
Washington, D.C. 20428

25

APPENDIX B
MODEL APPLICATION FORMS
This Appendix contains five model credit appli­
(2) a request to designate a courtesy title as
cation forms, each designed for use in a particular
authorized in section 202.5(d)(3); or
type of consumer credit transaction as indicated
(3) an inquiry about an applicant’s permanent
by the bracketed caption on each form (which
residence and United States immigration status as
should be removed prior to reproduction). The
authorized by section 202.5(d)(5).
first sample form is intended for use in open end,
The fifth form contained in this Appendix, the
unsecured transactions; the second for closed end,
model residential real estate mortgage loan appli­
secured transactions; the third for closed end
cation, was prepared in conjunction with the Fed­
transactions, whether unsecured or secured; the
eral Home Loan Mortgage Corporation and the
fourth for use in transactions involving commu­
Federal National Mortgage Association. It is sub­
nity property or occurring in community prop­
stantially identical to the joint FHLMC
erty States; and the fifth for use in secured resi­
65/FN M A 1003 (Rev. 3/77) form, except for
dential real estate transactions. The real estate
type face and the inclusion on the FH LM C /
form should be used only when a lender’s repre­
FNMA form of certain items required by the
sentative is available to assist an applicant in com­
Federal Home Loan Mortgage Corporation and
pleting the form.
the Federal National Mortgage Association. If a
The forms contained in this Appendix are
creditor wishes to participate in the secondary
models; their use by creditors is optional. In all
mortgage market involving the Federal Home
instances, the use or modification of these forms
Loan Mortgage Corporation, Federal National
is governed by section 202.5(e) of this Part and
Mortgage Association, or Government National
the directions contained in this Appendix.
Mortgage Association, it should either modify the
In addition to deleting any information request
model form as specified by the Federal Home
printed on the forms or rearranging their format,
Loan Mortgage Corporation and Federal National
as specified in section 202.5(e), a creditor is ex­
Mortgage Association or use form FHLMC
pressly permitted to modify any of the model
6 5 / FNMA 1003 (Rev. 3/77) with supporting
forms contained in this Appendix by adding any
schedule FHLMC 65A /FN M A 1003A. Use of
of the following three items:
(1)
an inquiry about the names in which an the FHLMC 65/FN M A 1003 (Rev. 3/77) form
constitutes full compliance with subsections (c)
applicant has previously received credit as author­
and (d) of section 202.5 of this Part.
ized in section 202.5(c)(3);

[Open end, unsecured credit]

CREDIT APPLICATION
I M P O R T A N T : R ea d the se D irec tio n s befo re co m p letin g this A pplication.
C h ec k
A p p r o p r ia te
Box

□

If y o u a re applying for a n individ ual accou n t in y o u r ow n n am e an d are relying on y o u r ow n in com e o r
assets an d n o t the in com e o r assets o f a n o th er p ers o n as the basis fo r rep a y m en t of the cre dit requested,
com plete only Sections A an d D,

□

If you are applying fo r a jo in t ac c o u n t or an a c co un t th a t yo u and a n o th e r
all Sections, provid ing in f o r m a tio n in B ab o u t the jo in t ap plican t or user.

□

If y ou a re applying f o r an individ ual acco un t, bu t
are relying on in co m e fro m alim ony, child su p po rt, or
s eparate m ainte n an ce o r on the in com e o r assets of a n o th er person as the basis for rep a y m en t of the credit
requested, com plete all Sections to the extent possible, provid ing In fo rm a tio n in B ab o u t the person on whose
alim ony, sup p ort, o r m a in te n an ce p ay m en ts o r in com e or assets you are relying.

person will use,

com plete

SEC TIO N A — IN F O R M A T IO N R E G A R D IN G A P P L IC A N T
Full N a m e (L a st, First, M i d d l e ) : ........................................... ...................................................................................................................... B ir th d a te :
P res en t Street A d d re s s:

/

........................................................................................ ................................................................................................ Y ears th e re :

/
...............

C ity : .................................................................................... S ta te : ......................................... Zip: ......................... T e le p h o n e :................................................................
Social Security N o . :
Prev iou s

D r iv e r ’s License N o . : .............................................................................................

Street A d d re s s:

........................................................................................ ........................................................................................... Y e a rs th e re :

...............

C ity : .................................................................................... S ta te : ....................................... Zip: ...................................
P resen t E m p lo y e r :
P o sitio n o r title:

...................................................................................................Y ears th e r e : .......................... T e le p h o n e :

.........................................................

......................................................................................................N am e of sup erv iso r: ................. .............................................................................

E m p lo y er’s A d d re s s: ................................................................................................................................................................................................................................................
P revio us E m p lo y e r : ................................................................................................................................................................................................. Y ears there:.... ..............
P rev io us E m p lo y e r ’s A d d re s s: ............................................................................................................................................................................................................................
P r e s e n t net sala ry o r com m ission: $......................... p e r

N o. D ep en d en ts :

A ges: ...............................................................

A limony, child s u p po rt, o r separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
A lim ony, child su p po rt, s ep arate m a in te n an ce received under:
O th er in co m e: $

c o u rt o rd er

□

w ritten agreem en t

Q

oral und erstan d ing

□

p e r .................................... S o u r c e ( s ) of o th e r incom e:

Is any in co m e listed in this Section likely to be redu ced in the n ex t tw o years?
□ Yes (E x p lain in detail on a sep arate sheet.) N o □
Have y ou ev e r received credit fro m us? ................................ W h e n ?

Office:

C heckin g A cco u n t N o . ; ..................................................................................

In s titu tio n an d B ra n c h :

Savings A cco u n t N o . : ......................................................................................

In s titu tio n a n d B r a n c h :

........................
........................

N a m e of nea rest relative
n o t living w ith y o u : ..................................................................... ............................................................................................ T e le p h o n e :
R elatio n sh ip : ....................................... A d d res s:

............................................

..............................................................................................................................................................................................

S E C T I O N B — I N F O R M A T I O N R E G A R D I N G J O I N T A P P L I C A N T , U S E R , O R O T H E R P A R T Y (U se sep arate sheets if necessary .)
F u ll N a m e (L ast, First, M i d d l e ) : ........................ ....................................................... ................................................................................. B irth d ate :

/

/

R elatio n sh ip to A p p lic an t (if a n y ) : .......................................................................................................................................................... ...................................................
P res en t Street A d d res s: .......................................................................................................................................................................................... Y ears th e r e :
C it y : ..................................................................................... S ta te :
Social Security N o .:

Z ip :

...............

T e le p h o n e :.............................................

............................................................................................... D r iv e r ’s License N o . : ..........................................................................................

P res en t E m p lo y e r : ..................................................................................................... Y ears th e r e : ........................... T e lep h o n e :... .............. ..........................................
P ositio n or title:

.....................................................................................................N a m e o f su perv iso r: ........................................................................................ .......

E m p lo y e r ’s A d d re s s:

................................................................... .................................... .....................................................................................................................................

Prev iou s E m p lo y e r : ................................................................................................................................................................................................. Y ears th e re:
P rev io us E m p lo y e r ’s A d d res s:

...............

...................................................................................................................... ...... ................... .............................................. .........................

P resent net salary o r co m m ission : $ ........................... p e r............................ N o, D ep en d en ts :

A ges: ................................................................

A lim ony, child su pp o rt, o r s e p arate m a in te n an ce in com e need no t be rev ealed if you d o n ot wish to h av e it considered as a basis
fo r repayin g this obligation.
A lim ony, child supp o rt, separate m a in te nance received under: c o u r t o r d e r □
w ritten ag reem en t □
oral und erstand in g □ ________
O th e r in co m e: $

p e r .................................. . S o u r c e ( s ) of o th e r in co m e:

Is any in com e listed in this S ectio n likely to be reduced in the next tw o years?
□ Yes (E x p lain in detail on a separate sheet.)
□ No
Checkin g A cco u n t N o . : ............................................................................................ In s titu tio n an d B ran c h :
Savings A c c o u n t N o .:

............................................................................................ In s titu tio n an d B ran c h :

N a m e of nea rest relative n o t living
w ith J o in t A p plicant, U ser, o r O th e r P a r ty : .........
R elation ship:

T e leph o ne :
A d d ress:

............................................................................................

SECTION C— M A R I T A L S T A T U S
(D o not com plete if this is an application for an individual account.)
A pp lic a n t: □ M a r r ie d
□ S ep ara ted
□ U n m a r r i e d (in clu din g single, divorced, and w idow ed)
O th er P a r ty : □ M a r r ie d
□ S ep ara ted
□ U n m a r r i e d (in c lud in g single, divorced, an d w id o w ed )

27

S E C T I O N D — A S S E T A N D D E B T I N F O R M A T I O N ( I f Section B h as been com pleted, th is S ectio n sh ou ld b e com pleted giving
in f o r m a tio n a b o u t b o th th e A p p lic an t an d J o in t A p p lic an t, U ser, o r O th er P erson. Please m a r k A pplicant-related
in f o r m a tio n with a n "‘A . ” I f Section B was n o t com pleted, only give in f o r m a tio n a b o u t the A p p lic a n t in this Sectio n.)
A S S E T S O W N E D ( U s e sep arate sheet if necessary.)
D escrip tio n of Assets

V alu e

C ash

S ubject to D ebt?
Y es/N o

N am e(s) o fO w n er(s)

$

A uto m o b iles (M ak e, M o del, Y e a r )

C ash Value of Life I n s u ran ce (Issuer,
F ace V alue )
R ea l E s ta te (L oc ation , D a te A cq u ire d )

M a rk etab le Securities (Issuer, Type, N o. of S h ares)

O th er (List)

T o tal Assets

$

O U T S T A N D I N G D E B T S (In clu d e charge accounts, insta lm ent c o ntracts, cre d it cards,
rent, mortgages, etc. Use sep arate sheet if n ecessary.)
Typ e o f D eb t
o r Acct. N o.

1.

(L a n d lo rd or
M o rtgage H o ld e r)

□
□

N a m e in W h ich
Acct. C arried

P resen t
Balance

$ (O m it ren t)

R e n t P ay m e n t
M ortg age

Original
D ebt

$ (O m it rent)

$

C re d ito r

$

M onth ly
P ay m en ts

Past D ue?
Y e s /N o

$

2.

3.

4.

5.

6.

$

T o ta l D eb ts

(C redit Referen ces)

D a te P a id

1

A re you a co-m aker, en do rser, or
g u a r a n to r on any loan or co n tract?
A r e there any unsatisfied
ju d g m ents again st you?

Yes □
Yes □
No □

No □

If “ yes”
fo r w h o m ?

T o w h om ?
If “ yes”
to w h o m ow ed?

Amount $

H a v e you b een declared
Yes □
If “ yes”
b a n k r u p t in the last 14 years?
No □
w here?
O th e r O bligations— (E .g., li ability to p ay alim ony, child sup p ort, s e p arate m ain te nance.

Y ear
Use sep arate sheet if necessary.)

E v e ry th ing th a t I have sta ted in this app lication is c o rre c t to the best of m y kn owledge. I u n d ers ta n d th a t you will retain
this a p p lica tio n w heth er o r n o t it is ap proved. Y o u are autho rized to check my credit an d em plo y m e nt his to ry an d to answ er ques­
tions ab o u t y o u r credit experience w ith me.

A p p lic a n t's Sig nature

D a te

O th e r Signature
(W h e re A pplicable)

28

D a te

[Closed end, secured credit]

C R E D IT A P P L IC A T IO N
I M P O R T A N T : R e a d th e se D irec tio n s b efore com p letin g this A pplication.
Ch eck
A p p r o p r ia te
Box

□

If you are applyin g fo r in dividual credit in y o u r o w n n am e and are relying on y o u r o w n income o r assets
and n ot the in com e or assets o f a n o th e r perso n as the basis fo r repa y m ent o f the credit requested, com plete
Sections A , C, D , an d E, om itting B and the second p a r t o f C.
If this is a n a p p lica tio n for jo in t credit w ith a n o th er person, com plete all Sections, provid ing in fo rm atio n
in B ab o u t the jo in t applicant.
I f y o u are applying fo r individ ual credit, b u t are relying on income fro m alim ony, child su pp o rt, o r s ep a­
rate m a in te n an ce o r on the income or assets of a n o th er person as the basis fo r rep ay m en t of the credit
requested, com plete all Sections to the extent possible, provid in g in fo rm atio n in B ab o u t the perso n
on
whose alim ony, su p po rt, or m a in te n an ce paym en ts o r in com e or assets you are relying.

□
□

A m o u n t R eq u e sted

P a y m e n t D a te D esired

P ro ceed s of C redit

$ ..................................................................................................

T o be Used F o r ................................

...

SEC T IO N A— IN F O R M A T IO N R E G A R D IN G A P P L IC A N T
Full N a m e ( L a st, First, M i d d l e ) : .............................................................................................................................................. ................... B ir th d a te :
P resent Street A d d res s:
C ity :

S tate:

Z ip :

Social Security N o . : ...............................................................................................
Previo us Street A dd ress:

/

/

........................................................................................................................................................................................ Y ears th e re:.... ...............
T e le p h o n e :.............................................

D r iv e r ’s L icense N o . : ...........................................................................................

..................................................................................................................................................................................... Y ears th e r e :

C ity : .................................................................................... S ta te :

...............

Z ip :................

P resen t E m p loy er ......................................................................................................Y e a rs th e re : ............................ T e le p h o n e :...........................................................
Position o r title : ........................................................................................................N a m e of su p erv isor: ................................................................................................
E m p lo y e r ’s A d d res s:

..............................................................................................................................................................................................................................................

Previo us E m p lo y e r : ....................................... ................................................................ ......................................................................................... Y e a r s th e re:
Prev iou s E m p lo y e r ’s A dd ress:

..........

........................................................................................................................................................................................................................ .

P resen t n et sala ry o r co m m issio n: $

p e r ........................... No. D ep en d en ts :

A ges: ................................................................

Alim ony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
A lim ony, child s upport,

separate m a inte n ance

received u nd er: c o u rt o r d e r

□

w ritten agree m e n t □

O th er in c o m e : $ .................................. p e r .................................. . S o u r c e ( s ) of othe r in c om e:

o ral u n d ers ta n d in g □ ________

................................................. ..................................................

I s any in com e listed in this Section likely to be red u c ed before the credit requested is p aid off?
□ Y es (E x p lain in detail on a s e p arate sh eet.) N o Q
H ave you ever receiv ed credit fro m us? .............................. W h e n ?

Office:...........

Checkin g A cco u n t N o ..............................................................................................

I nstitutio n and B r a n c h : ....................................................................................

Savings A cco un t N o ..................................................................................................

In s titu tio n a n d B ran c h :

....................................................................................

N a m e o f n ea rest relative
n o t living w ith y o u : ..................................................................................................................................................................... T e lep h o n e :.............................................
R elatio n sh ip : ......................................... A d d res s:.............................................................................................................................................................................................
S E C T I O N B— I N F O R M A T I O N R E G A R D I N G J O I N T A P P L I C A N T O R O T H E R P A R T Y ( U se sep arate sheets if n ecessary .)
F u ll N a m e ( L a st, First, M i d d l e ) : .................................................................................................................................................................. B irth d ate :

/

/

R elatio n sh ip to A p p lic an t (if a n y ) : ..............................................................................................................................................................................................................
P resen t Street A d d re s s: ........................................................................................................................................................................................ Y e a r s th e re:
C ity : .....................................................................................

S tate:............................................. Zip

......... .

T e le p h o n e : .............................................................

Social Security N o . : ............................................................................................... D r iv e r ’s License N o . : ..........................................................................................
P resen t E m p lo y er:

.................................................................................................... Y ears th e re: ..................... T e le p h o n e :...........................................................

P o sition or title : ........................................................................................................ N a m e of s up erv isor: ..........................................................................................
E m p lo y e r ’s A d d res s:
Previo us E m p lo y e r :

.... ......................................................................................................................................................................................................................................
................................................................................................................................................................................................. Y ears th e r e :

Prev iou s E m p lo y e r ’s A d d res s:

...........

........................................ ..............................................................................................................................................................................

P res en t net salary o r co m m ission : $ .......................... p e r.......................... . N o. D ep en d en ts :

A ges: ................................................... .........

A limony, child support, or separate maintenance incom e need not be revealed If you do not wish to have it considered as a basis
for repaying this obligation.
A lim ony, child su p po rt, sep arate m a in te nance

received under: c o u r t o r d e r

O th er in c o m e: $..................... ............. p e r .................................... S o u rc e (s )

□

w ritten agre em en t □

o ral un d ersta n d ing

□ ________

of o th e r in com e: ....................................... ........................................................ .

Is any in com e listed in this S ectio n likely to b e red u ced b efore the cre dit requested is p aid off?
□ Yes (E x p lain in detail o n a sep arate sheet.) N o □
C heckin g A c c o u n t N o . :

.......................................................................................... I nstitutio n a n d B ra n c h :...................

Savings A cco u n t N o . : ........................................................

In s titu tio n and B ra n c h :....................................

N a m e of n ea rest relative no t living w ith Jo int
A p p lic an t o r O th e r P a r ty : ........................................
R elatio n sh ip :
S E C T IO N C—M A R IT A L STATUS
A p p lic a n t: □ M arrie d
□
O th er P a r ty : □ M a r r ie d

A d d res s:...................................................................................................
S ep ara ted
□ S ep ara ted

□

U n m a r r i e d (in clu din g single, divorc ed, an d w idow ed)
□
U n m a r r i e d (in clu din g single, divorced, an d w id o w ed )

29

S E C T I O N D — A S S E T A N D D E B T I N F O R M A T I O N ( I f Section B h as been com pleted, this Section should be com pleted giving
in fo rm atio n about both the A p p lic an t and J o in t A p p lic an t o r O th er Person. Please m a r k A o p lican t-related in fo rm a ­
tio n with a n “ A.*' If Section B was not com pleted, o n ly give in fo rm atio n ab o u t the A p p lic an t in this Section.)
A S S E T S O W N E D ( U s e separate sheet if n ecessary.)
D escrip tio n of Assets

Sub ject to D ebt?
Y e s /N o

V alue

C ash

N am e (s) o f O wner(s)

$

A u to m o b iles (M ak e, M o d el, Y e a r )

C ash V alu e of Life In suran ce (Issuer,
F a c e V alu e )
Real E s ta te (L o c atio n , D a te A cq uire d)

M a r k e ta b le Securities (Issu er, Type, N o . of S h ares)

O th er (List)

To tal Assets

$

O U T S T A N D I N G D E B T S (In clu de charge accounts, insta lm e n t contracts,
n ecessary.)
T y p e of D eb t
o r Acct. No.

C red ito r
1.

(L a n d lo r d or
M o rtg ag e H o ld e r)

□
□

credit

N a m e in W h ich
A cct. C arried

Rent P a y m e n t
M ortg age

cards,

rent,

Original
D eb t

m ortgages, etc.

Use

sep arate

M onth ly
P aym ents

Present
Balance

sheet if

P ast D u e ?
Y e s /N o

$ (O m it ren t) $ ( O m it r e n t) $

2.
5.
5

5

$

T o t a l D eb ts

(C redit R eferences)

D ate P aid

17

A re you a co -m ak er, endorser, o r
g u a r a n to r on any loan or co n tract?

Yes □

No □

A r e there any unsatisfied
ju d g m en ts against you?

Yes □
No □

Amount $

H ave y ou been declared
b a n k r u p t in the last 14 years?

Yes □
No □

If “ yes”
fo r w hom ?

T o w hom ?

If “ yes”
w here?

If “ yes”
to w hom owed?

Year

O th er obligations— (E.g ., liability to pay alim ony, child sup p ort, sep arate m aintenance. Use sep arate sheet if n ecessary.)

S E C T I O N E — S E C U R E D C R E D I T Briefly describe the p rop erty to be given as security:

an d list n a m e s a n d addresses o f all co-ow ners o f the p ro p erty :
Nam e

A dd ress

If th e secu rity is real estate, give the full n am e o f y o u r spouse (if any):
Ev erything th at I have stated in this app licatio n is c o rrec t to the best of my knowledge. I u n d ersta n d th a t y o u will retain
this a p p lica tio n w h eth er o r n o t it is app roved. Y ou are au th o rized to check my credit an d e m p lo ym e nt history a n d to answ er q ues­
tions ab o u t y o u r credit experience w ith me.

A p p lic a n t’s Sig nature

O th er Signature
( W h e re A pplicable)

D ate

30

D ate

[Closed end, u n se c u r e d /s e c u r e d credit]

C R E D IT A P P L IC A T IO N
I M P O R T A N T : R e a d th ese D irec tio n s b efo re com ple tin g this A pplication.
C heck
A p p r o p r ia te
Box

□

If y o u ar e applying for individ ual credit in y o u r o w n nam e an d are relying o n your ow n in com e o r assets
an d n o t the in co m e or assets o f a n o th e r p erso n as the
basis for repaym ent of the credit requested, comp le te only Sections A an d D. If the requested credit is to be secured, also com plete the first p a r t of
Section C an d Section E.

□

If yo u are app ly ing fo r jo int credit with a n o th er person, com p lete all Sections except E, prov id in g in f o r m a ­
tion in B about the jo int applicant. If the requ e sted credit is t o be secured, th en com plete Section E.

□

I f you are applying for in dividual credit, b u t are relying on in com e from alim ony, child s u p p o rt, o r s e p a ­
rate m a inte n ance or o n the in com e o r assets of a n o t h e r person as the basis for rep a y m en t of the cre dit
requested, com p lete all Sections except E to the extent possible, providing in fo rm atio n in B ab o u t the
person o n whose alim ony, s u p p o rt, o r m a in te nance paym en ts o r in com e or assets y ou are relying. If the
requested credit is to be secured, then co m p lete Section E.

A m o u n t R e q u e ste d

P a y m e n t D a t e D e s ire d

P ro cee d s o f C re d it

$ .....................................

~~

'

T o be Used F o r .............................................................................................................................................

S E C TIO N A— IN F O R M A T IO N R E G A R D IN G A PP L IC A N T
F u ll N a m e (L a st, First, M i d d l e ) : .................................................................................................................................................................. B irthd ate :

/

P resen t S treet A d d r e s s :

...............

......................................................................................................................................................................................

C ity : ............................................................................ ....... S ta t e : ......................................... Z ip :
Social Security N o . :

Y ears th e re:

/

T e le p h o n e :...............................................................

D r iv e r ’s License N o . : ...........................................................................................

Previo us Street A d d res s:

..................................................................................................................................................................................... Y ears th e re:

...............

C ity : ................................................ ........ .......................... S ta te : ......................................... Z ip:....................................
P resen t E m p lo yer:

..........................................................

Y e a r s th e r e :

T e lep h o n e :.... ........................................................................

P o sition or title: ........................................................................................................ N a m e o f su p erviso r: .................................................................................. ......
E m p lo y er’s

A d d res s:

Previo us E m p lo y e r :

-................................................
................................................................................................................................................................................................. Y ears th e r e :

...............

Prev iou s E m p lo y e r ’s A d d re s s: ............................................................................................................................................................ ...............................................................
P res en t n e t salary o r com m ission: $ ......................... p e r ............................ No. D ep en d en ts :

A ges: ................................................................

A lim ony, child support, or separate maintenance incom e need not be revealed if you d o not wish to have it considered as a basis
for repaying this obligation.
A lim ony,

child su p po rt, sep arate m a in te n a n c e received under:

court order Q

w ritten agreem en t

□

oral und erstand in g

□ ________

O th e r in c o m e : $................................... p e r .. .................................... S o u r c e ( s ) of o th e r in c o m e:.... ..................................................................................................

Is any in c o m e listed i n this S ectio n likely to be red u c ed before th e credit requ ested is p aid off?
□

Y es ( E x p la in in detail o n s e p arate s h eet.)

□

No

H a v e you ever received credit fro m us? .............................. W h e n ?
Ch eck ing A cco u n t N o . : ................................

Office.............

............................................. In s titu tio n and B ra n c h : ...................

S avings A c c o u n t N o . : ...................

I n stitu tio n a n d B ra n c h : ...................

N a m e o f n ea rest relative
n o t living w ith y o u : .....................

T e le p h o n e :

...

R elatio n sh ip : ......................................... A d d re s s:.............................................................................................................................................................................................
S E C T I O N B— I N F O R M A T I O N R E G A R D I N G J O I N T A P P L I C A N T O R O T H E R P A R T Y (U se sep arate sheets if n ecessary.)
F u ll N a m e (Last, First, M i d d l e ) : .................................................................................................................................................................. B irth d ate :

/

/

Relation ship to A p p lic a n t ( if a n y ) ; ..............................................................................................................................................................................................................
P res en t Street A d d r e s s : ......................................................................................................................................................................................... Y e a r s th e re:

City: ..................................................................................... S ta te :

Zip:

Social Security N o . : .............................................................

............

T e le p h o n e : .........................................
D riv e r’s License N o . : ....................... .................... ....................

P resent E m p lo y e r : .....................................................................................

Y e a rs th e re :

T e lep h o n e :........ .........................................

P ositio n o r title: ........................................................................................................ N a m e o f su p erv isor: ............................................................................................
E m p lo y e r ’s
P rev io us

A d d res s:.... ................................................ ......................................................................................................................................................................................

E m p lo y er:.... ................................................................................................. ............................................................................................. Y ears th e re:.... ...........

Previo us E m p lo y e r ’s A dd ress: ........................................................................................................................................................................................................................
P resent net sala ry o r com m issio n : $ ........................... p e r

N o. D ep en d en ts:

A ges:

.........................................

A lim ony, child support, or separate maintenance in com e need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □
O th er in co m e: $

p e r ............................... .

Source(s)

written agreement □

oral understanding □ _______

of oth er in com e:

Is any in com e listed in this Section likely to be red u ced befo re the credit requested is p aid off?
□

Y es ( E x p la in in d etail o n sep arate s h eet.)

□

Ch eck ing A cco u n t N o .: ............................................................................................
Savings A cco u n t N o .:

No
I nstitutio n and B r a n c h :..................

............................................................................................ I nstitutio n and B r a n c h :.................

N a m e of nea rest relative n ot living with
J o in t A p p lic an t o r O th er P a r ty : .............................................................................................................................................. T e le p h o n e :
R elatio n sh ip :

A d d res s:.. ...........................................

31

S E C T I O N C— M A R I T A L S T A T U S
(D o not complete if this is an application for individual unsecured credit.)
A pplicant: □ M a r r ie d
□ S ep ara ted
□
U n m a r r ie d (including single, divorced, an d w id ow ed)
O th er P a r ty : □ M arrie d
□
S ep ara ted
□
U n m a r r ie d (in clu din g single, divorced, and w id o w ed )
S E C T I O N D — A S S E T A N D D E B T I N F O R M A T I O N (If Section B has been com pleted, this Section should be com pleted giving
in fo rm atio n ab o u t b oth the A pp lic ant and Join t A p p lic an t or O th er P erson. Please m a r k A pp lic an t-relate d in form ation
w ith an “ A . ” If Section B was not com pleted, only give in fo rm atio n ab o u t the A pp lic ant in this Section.)
A S S E T S O W N E D ( U s e sep arate sheet if necessary.)
D es crip tio n of Assets

Subject to D ebt?
Y e s /N o

V alu e

Cash

N am e(s) of Owner(s)

$

A u to m ob iles (M ake, M o del, Y ear)

Cash V alu e o f Life I n s u ran ce (Issuer,
F a c e V a lu e )
Real E sta te (L o c ation , D a te A cqu ire d )

M a r k e ta b le Securities (Issu e r, Type, No. of S h ares)

O th er (L ist)

T o ta l Assets

$

O U T S T A N D I N G D E B T S (Include charge accounts, in stalm en t c on tracts,
n ecessary.)
C red ito r
1.

(L a n d lo r d or
M o rtgage H o ld e r)

T ype of D ebt
o r Acct. No.
□
□

credit

N a m e in W hich
Acct. C arried

R en t P ay m e n t
M ortg age

cards,

r e n t,

Original
D ebt

mortgages,

etc.

U se

sep arate

M o n thly
Paym ents

Present
Balance

$ (O m it rent)

$ (O m it rent)

$

P ast D u e ?
Y es/N o

$

$

sheet if

$

2.

3.
T o t a l D eb ts
(C redit References)

D ate Paid

1.

A re you a co-m aker, en d orser, o r
g u a r a n to r o n any lo a n o r con tract?

Y es □

No □

A re there any unsatisfied
judgm ents against you?

Y es □
No □

A m ou n t $

H a v e y o u been declared
b a n k r u p t in the last 14 years?

Yes □
No □

If “ Y es,”
for w h om ?

T o w hom ?

If “ Yes,”
where?

If “ Yes,”
to w h o m owed?
Y ear

O th e r ob ligations— (E .g ., liability to pay alim ony, child support, s e p a r a te m a in ten an ce. U se sep arate sheet if necessary .)

S E C T I O N E — S E C U R E D C R E D I T (C o m p lete only if credit is to be secured.) Briefly describe the p ro p e r ty to be given as security:

and list n a m e s an d addresses of all co-owners of the p rop erty :
N am e

A ddress

If the security is real estate, give the full n am e of y o u r spouse

(if a n y ) :

E v e ry th in g th a t I h ave sta ted in this app lication is c o rrec t to the best o f my know ledge. I un d ers ta n d th a t y ou will retain
this ap plica tion w hether o r n o t it is ap p roved. You are au th orized to check my credit an d e m p lo ym e nt histo ry a n d to answ er q ues­
tions ab o u t y o u r credit experience w ith me.

A p p lic a n t's Signature

D a te

O th er Signature
( W h e re A pplicable)

32

D a te

[C om m u n ity p roperty]

C R E D IT A P P L IC A T IO N
IM PO R T A N T ; Read these Directions before completing this Application.
C h ec k
A p p r o p r ia t e
Box

□

If you ar e applyin g fo r individual credit in y our ow n nam e, are n o t m arried, a n d are n o t relying o n alim ony,
child su p po rt, or separate m a in te nance p ay m en ts or o n the in co m e or assets of a n o th er person as the basis
fo r rep a y m en t o f the credit requested, co m p lete on ly Sections A an d D. If the requested cre d it is to be
secured, also com plete Section E.

□

In all oth er situations, com plete all Sections except E, provid ing in fo rm atio n in B ab o u t yo u r spouse, a
jo in t a p p lica n t or user, o r the p erso n o n whose alim ony, s upport, or m a inte n ance pay m ents o r in co m e or
assets you are relying. If the req uested cre dit is to be secured, also com plete Section E. -

A m o u n t R eq u e sted
P a y m e n t D a te D esired
$....................................................................

P roceeds of C red it
T o be U se d F o r...................... .................................................................... ......................

SEC TIO N A— IN F O R M A T IO N R E G A R D IN G A P P L IC A N T
F u ll N a m e (Last, First, M id d le ) : .................................................................................................................................................................... B ir th d a te :

/

/

P resent Street A ddress ............................................................................................................................................................................................. Y ears there:.... ..... ......
C ity :

State:

Z ip :

Social Security N o .: ................................................................................................. D r iv e r ’s License N o . :
Previo u s Street A d d re s s:

State:

Positio n o r title:

............

Z ip:...............

................................................................................................... Y e a r s th e r e : ............................ T e lep h o n e :........................................................
..................................................................................................... N a m e o f su p erv isor: .............................................................................................

E m p lo y e r ’s A d d ress:
Previo us

.....

..................................................................................................................................................... ............................... Y e a rs there:

City:
P resent E m p lo y e r :

T e le p h o n e :
..................................................................... ..............

...........................................................................................................................................................................................................................................

E m p lo y e r :

....................................................................................................................................................................................... Y ears th e re:

Previo us E m p lo y e r ’s A d d res s:

........ .

....................................... ..............................................................................................................................................................................

P resent net salary o r co m m issio n: $ ........................ p e r........................... . No, D epend en ts: ..................... Ages:.................................................................
Alim ony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
A lim ony, child su pp o rt,

separate m a in te nance received u n d er:

co u rt order □

O th er in c o m e: $ .................................. p e r ....................................... S o u rc e (s )

w ritten ag reem ent □

of o th er in com e:

oral un d ersta n d in g □ _________ _

....................................... ...........................................................

Is a n y in com e listed in this Section likely to be reduced in the next tw o years or before th e credit req ue sted is p a id off7
□ Yes (E xp lain in detail on a separate s h eet.) N o □
H av e you ever received credit f r o m us?

W hen?

Office:....................................

Checkin g A cco u n t N o . : ........................................................................................ I n stitutio n and B ra n c h :.. .............................................
Savings A cco u n t N o . : ............................................................................................ I n stitu tion and B ra n c h :................................................
N a m e of n ea rest relative n o t living w ith you ................................................................................................................... T e lep h on e :
R elatio n sh ip :

A d d res s:

..............................................

SE C T IO N B — IN FO R M A T IO N R E G A R D IN G SPOUSE, JO IN T A PP L IC A N T , U SER, O R O T H E R P A R T Y
necessary.)

(U se s ep arate sheets if

F u ll N a m e (L ast, F irs t, M i d d l e ) : .................................................................................................................................................................. B ir th d a te :

/

R elatio n sh ip to A p p lic a n t (if any): ................................................... ............................................ ................................................................. Y e a r s there:

/
...............

P resen t Street A d d res s: ............................................................................................................... ........................................................................................................................

City: .................................................................................... S ta t e :

Zip:

T e le p h o n e : ................................................

Social Security N o . : .................................................................................................D riv e r’s License N o . : ......................................... ....................................................
P resent E m p lo y e r :

...................................................................................................Y ears th e r e :

............................ T e lep h o n e :...........................................................

P o sition o r title: ................................. ..................................................................... N a m e of supervisor:

...............................................................................................

E m p lo y er’s A d d res s: ...................................................................................................... ........................................................................................................................................
Prev iou s E m p lo y er:

................................................................................................................................................................................................. Y e a r s th e re:

Previo us E m p lo y e r ’s A d d res s:

................

...............

-...............................

P resen t n et salary o r co m m ission : $ ......................... p e r............................. N o. D ep en d en ts :

..................... A ges:...................................................................

A lim ony, child support, or separate maintenance incom e need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
A lim ony,

child s upport,

separate m a in te n an ce received u nd er: c o u rt o rd er

O th er in c om e: $ .................................. p e r ....................................... S o u r c e ( s )

□

w ritten ag re em en t □

o ral u nd ersta n d in g

□ ________

o f o th e r income:

Is any in co m e listed in this Section likely to b e reduced in the nex t tw o years o r before the credit requested is p a id off?
□ Yes (E x plain in detail o n a s e p arate s h eet.) □ N o
Ch eck in g A cco un t N o . : ........................................................................................ I n stitu tion and B ra n c h :.........................................
Savings A ccou n t N o .: ............................................................................................. In s titu tio n an d B ra n c h :.. .........................................
N a m e of nearest relative not living with
Spouse, Jo in t A pp lican t, U ser, o r o th e r P a r ty : ............

T e lep h o n e :

R elatio n sh ip :

A d d res s:

33

.....................................................................

S E C T I O N C— M A R I T A L S T A T U S
A p p lic an t: □
O th er P a r ty :

M arrie d
□ M arrie d

□
□

S ep ara ted
S eparated

□

U n m a rrie d (in clu din g single, divorced, an d w id o w ed )
□ U n m a r r ie d (in clu din g single, divorced, w idow ed)

S E C T I O N D — A S S E T A N D D E B T I N F O R M A T I O N ( If S ectio n B has b ee n com pleted, this Section sh ou ld be com pleted giving
in fo rm atio n ab o u t b o th the A p p lic an t and Spouse, J o in t A p p lican t, User, or O th er P ers on. Please m a r k A pplicantrelate d in fo rm a tio n w ith a n “ A . ” If Section B was n ot com pleted, only give in fo rm atio n ab o u t the A p p lic an t in this
S ection.)
A S S E T S O W N E D ( U s e separate sheet if n ecessary.)
D es crip tio n of Assets

V alu e

C ash

S ubject to D ebt?
Y e s /N o

Nam e(s) of O wner(s)

$

A u to m o b iles (M ak e, M od el, Y ear)

C ash V alu e o f Life I n s u ran ce (Issuer,
F a c e V a lu e )
Real E s ta te (L o c atio n , D a te A cq u ire d )

M a r k e ta b le Securities (Issuer, Type, N o . of Shares)

O th er (L ist)

T o ta l Assets

$

O U T S T A N D I N G D E B T S (Includ e cha rge accounts , in sta lm ent contracts,
n ecessary.)

N a m e o f C red ito r
1.

(L a n d lo r d or
M o rtg ag e H o ld e r )

Typ e of D e b t
o r Acct. No.

credit

N a m e in W h ich
A cct. C arried

cards,

rent,

Original
D ebt

mortgages,

etc.

M o nth ly
Paym ents

Present
Balance

$ (Omit rent)

R en t P ay m e n t
M ortgage

$ (O m it rent)

$

sheet if

Past D u e ?
Y e s /N o

$

$

□
□

U se separate

$

2.

3.

T o t a l D ebts

D a te P aid

(C redit R eferences)

1.

A re y ou a co -m ak er, endorser, o r
g u a r a n to r o n any loan o r co ntract?

Yes

n

No □

A r e th ere any unsatisfied
judgm ents against you?

Y es C
No C

Amount $

H ave you b ee n declared
b a n k ru p t in the last 14 years

Yes □
No □

If “ yes,”
for w hom ?

To w ho m ?

If “ yes,”
w here?

If “ yes,”
to w hom owed?
Y ear

O th e r obligations— (E.g., L iability to p ay alim ony, child su p po rt, s e p a r a t e m a intenan ce. U se sep arate sheet if n ecessary.)

S E C T I O N E — S E C U R E D C R E D I T (C om plete only if credit is to be secured.) Briefly describe the p ro p erty to b e given as security:

a n d list n am es a n d addresses o f all co-ow ners o f the p ro perty:
Nam e

A d dress

Ev erything th a t I have sta ted in this a p p lica tio n is co rrec t t o the best o f my know ledge. I un d ersta n d th a t yo u will retain
this a p plica tion w h eth e r o r n o t it is ap proved. Y o u are autho rized to check my credit a n d em p loy m e n t history a n d to answ er q ues­
tions ab o u t y our cre d it experience w ith me.

A p p lic a n t’s S ig nature

D a te

O th e r S ignature
( W h e re A p p lic a b le )

34

D a te

[R esidential real estate m ortgage loan]

RESIDENTIAL LOAN APPLICATION
□
MORTGAGE
A P P L IE D
□
FOR
SW
P re p ay m e n t O ption

C o n v en tio n al
VA

□

In terest
R ate
%

FHA

□

M o n th ly P a y m e n t
P r i n c i p a l Sl I n t e r e s t
$

No. o f
M onths

___

S

E s c r o w / I m p o u n d s (to b e c o lle cte d m o n th ly )
□

Taxes □

H a z a r d Ins. □

M tg. Ins. □

City

P ro p e rty S treet A ddress

Y e a r B u i Jt

L e g a l D e s c r i p t i o n ( A t t a c h d e s c r i p t i o n if n e c e s s a r y . )

P urpose o f Loan:

□

___

Purchase

□C o n s tru c tio n -P e rm a n e n t

Lot V alue D a ta

C o m p l e t e t h i s l i n e if
C o n stru c tio n -P e rm an e n t
o r C o n stru c tio n L o a n t W

□C o n s tru c tio n

Y ea r A cquired

$

R efinance

□

P resen t V alu e (a)

O r i g i n a l C osl

□

'
I

$

C o m p l e t e t h i s l i n e i f a R e f in an c e L o a n
1 A m i. E x istin g L iens

1
!

E N T E R T O T A L AS
PU R C H A SE P R IC E
IN D E T A IL S O F
■M PURCHASE,

T o ta l ( a - j - b )

! S

^

1 $

1
1

! $ ---------- -— -— ------------

1P u r p o s e o f R e f in a n c e

Y e a r A c q u i r e d 1 O r i g i n a l C DSt
1

O th e r (E x p lain )
C o s t o f Im prov, (b)

!s

1 D escribe Im p ro v em e n ts [

] made

[

] to be made

1
j
M a n n e r in W h i c h T i t l e W i l l B e H e l d

T i t l e W i l l Be H e l d I n W h a t N a m e ( s )

C ost:

$---------------------------------

S o u rce of D o w n P a y m e n t an d S ettlem en t C h arg es

T h i s a p p l i c a t i o n is d e s i g n e d t o b e c o m p l e t e d b y t h e b o r r o w e r ( s ) w i t h t h e l e n d e r ' s a s s i s t a n c e . T h e C o - B o r r o w e r S e c t i o n a n d
a n d t h e a p p r o p r i a t e b o x ( e s ) c h e c k e d if
□
a n o th e r p e r s o n w ill he join tly o b lig a te d w i t h th e B o r r o w e r o n th e lo a n , □
c h ild su p p o r t, o r se p a r a t e m a in te n a n c e o r o n th e in c o m e o r assets o f a n o th e r p e rs o n a s a b a sis f o r r e p a y m e n to f th e lo a n ,
p r o p e r ty is lo c a te d , in a c o m m u n ity p r o p e r ty sta te .

al l o t h e r C o - B o r r o w e r q u e s t i o n s m u s t be c o m p l e t e d
t h e B o r r o w e r is rely in g o n in c o m e f r o m alim ony,
or □
t h e B o r r o w e r is m a r r i e d a n d r e s i d e s , o r t h e

3. CO-BORROWER

2. BORROWER
A ge

N am e

School

Age

N am e

Prese nt Add ress

□

C M y /S u te /Z ip
F orm er
S treet

— —

address

i f le ss

than

.____ — 2

years

at

present

....

School
Y rs .

Y rs.
P re sen t A d d iess

Own

_
F orm er

address

address

i f le s s

th a n

2

years

at

present

a d d ress

------------------------------------------------------------------------------------------------

Y ears at fo rm er

□

address

□

Own

□

Rent

Y e a rs a t f o r m e r a ddre ss

Married

D e p e n d e n t! o th e r th a n lilted by
B orrow er
___________

□
U n m a rrie d
( i n c l . s in g l e , d i v o r c e d , w i d o w e d )
N am e and A d d ress o f E m p lo y er

Unmarried

S tatu s

( I n d . si n g l e, d i v o r c e d , w i d o w e d )
Y ea r* e m p lo y e d in th is
o f w o rk o r p ro fessio n ?

Y e a r s e m p l o y e d in t h i s
o f w o rk o r p ro fessio n ?

N a m e a n d A ddress o f E m p lo y e r

Y ea rs on this job _

Y e a rs o n this j o b _

P o sitio n /T itle

T y p e o f Business

S oc ia l S e c u rity N u m b e r

Home

Phone

T y p e of B usiness

Positio n /T itle

B usiness P h o n e

4. GROSS MONTHLY INCOME

lin e

Social

S e c urity N u m b e r

H ome

5. MONTHLY HOUSING EXPENSE

Business Phone

Phone

6. DETAILS OF PURCHASE

C o-B orrow er
B ase

E m pl. In co m e

F irst M o rtg ag e

H azard
R eal

a

(P& I)

O th er F in an c in g

c. P re P a id E sc ro w s (E st.)

Ins urance

E sta te T a x e s

D iv id en d s/In terest

M ortgage

N e t R e n ta l Incom e

P u rc h a s e Price

b . T o ta l C lo sin g C o s ts (E s t.)

<P & I )

H om eow ner Assn

d. T o ta l

(a+b+c)

e. A m o u n t o f M o r t g a g e

Insurance
D ues

f. O t h e r F i n a n c in g

O th e r f ( B e fo r e

g. P r e s e n t E q u i t y i n L o t

c o m p le t in g , s e e no ti ce
un de r D e s c r i b e Ot he r
I n c o m e be lo w .)

h. A m o u n t o f C a s h D e p o s i t

T o ta l M o n th ly Pm t.

i . C l o s i n g C o s t s P a i d b y S e ll e r
.

C a sh R e q d . F o r C lo sin g (E s t.)

7. DESCRIBE OTHER INCOME

o

C -C o-B orrow er

t A lim ony, child support, or separate a a Ja lrn ao rr incom e need not he revealed if the
or Co-Borrower doe* not choose to have It considered as a basis for repaying this loan.

M o n th ly

A mount

8. IF EMPLOYED IN CURRENT POSITION FOR LESS THAN TWO YEARS COMPLETE T H E FOLLOWING
P revious E m ploye r/S c hool

of

Type

D ates F r o m /T o

B usiness

M onthly

Incom e

9. THESE QUESTIONS APPLY TO BOTH BORROWERS
I f a " y e s ” a n s w e r i s g i v e n l o a q u e s t i o n in
th is co lu m n , e sp iain o n an a tta ch e d sheet

B orrow er Y es/N o

B orrow er Y es/N o C o-B orrow er Y es/N o

H a v e y o u an y o u tstan d in g ju d g m e n ts?
I n t h e la s t 14 y e a r s , h a v e y o u b e e n b a n k r u p t ?
H av e you h a d p ro p erty foreclosed u p o n or
g ive n title or a d e ed in lieu th e re o f ?

Do

A r e y o u a p a r t y i n a l a w s u it ?
A r e y o u o b l i g a t e d t o p a y a l i m o n y , c h il d
sup p o rt, o r se p arate m aintenance?

-

D o y o u h a v e m a jo r m e d ic al c o v erag e?

A re you a c o -m a k er or e n d o rser on a note?

y o u hav e health an d accid en t in su ra n ce ?

-

D o you intend to occu p y th e p ro p erty ?
W ill

-

this p r o p e r ty be y o u r p r im a ry resid en c e?

_

H a v e y o u prev io u s ly o w n e d a h om e?

.

S ale p rice o f prev io u s ly o w n e d h o m e

Is any p a rt of the d o w n p a y m e n t b o r ro w e d ?

I .

* A l l P r e s e n t M o n t h l y H o u s i n g E x p e n s e s o f t h e B o r r o w e r a n d C o - B o r r o w e r s h o u l d b e l i s t e d o n a c o m b i n e d b a si s.

35

C o-B orrow er Y es/N o

T h is s ta te m e n t a n d a ny a p p lic a b le s u p p o r tin g sc h edu le s m a y be c o m p le te d jo in tly by b o th m a r r ie d a n d u n m a r r i e d c o - b o r r o w e r s if t h e ir assets
a n d l i a b i l i t i e s a r e s u f fi c ie n tl y j o i n e d so t h a t t h e s t a t e m e n t c a n b e m e a n i n g f u l l y a n d f a i r l y p r e s e n t e d o n a c o m b i n e d b a s i s ; o t h e r w i s e s e p a ­
r a t e s t a t e m e n t s a n d s c h e d u l e s a r e r e q u i r e d . I f t h e C o - B o r r o w e r s e c t i o n w a s c o m p l e t e d a b o u t a s p o u s e , th is s t a t e m e n t a n d s u p p o r t i n g
s c h e d u l e s m u s t b e c o m p l e t e d a b o u t t h a t s p o u s e a ls o.
□
C o m p leted Jo in tly
□
N o t C o m p leted Jo in tly

10. ASSETS
In d ica te

b y (*) those

11. LIABILITIES

li a b i l i t i e s t h a t will b e s a t i s f i e d u p o n

sale

o f r e a l e state o w n ed o r

C r e d i t o r ’s
N am e, A ddress, A cc o u n t N u m b e r

s

C ash D eposit T o w ard Purchase
H e ld By

upon

refinancing

o f p ro p erty .

A c c t. N a m e if N o t
Borrow er(s)

M o. Pm t. and
M o s , le ft t o p a y

I n s ta lm e n t D e b ts (include “ r e v o lv ­
in g ” c h a r g e a cc ounts)

$

P m t./M o s.

s

/

C h e c k i n g a nd Sa vings A c c o u n ts
(N a m e s of In stitutio n s/

Acct. Nos.)

Stocks and B onds ( N o ./d esc rip tio n )

A utom obile

Loans

Real

Loans

L ife I n s u ra n c e N et C a sh V a lu e

Face A m o u n t (S
SU B TO TA L

J

L IQ U ID

E state

ASSETS

R e a l E s t a t e O w n e d (E n te r M a rke t

V alue fro m Sch ed u le o f Real
E sta te O w n ed)
O th e r D e b t, Inclu d in g S to ck Pledges

V ested I n te r e s t in R e tir e m e n t F u n d
N e t W o rth o f Business O w ned

(A tta c h F inancial S t at.)
A u to m o b iles ( M a k e an d Y ear)

A lim ony. C h ild Su p p o rt, an d M a in te n an c e
P aym ents (O w ed T o )

Fu rn itu re and Personal P ro p erty
O th e r A sse ts

(Item ize)

TOTAL

M ONTHLY

X

$

PAYM ENTS

TOTAL
TOTAL

A SSETS

N E T W O R T H ( A minus B )

L IA B IL IT IE S

S

S C H E D U L E O F R E A L E S T A T E O W N E D (If A d d iti o n a l P r o p e r tie s O w n e d A tta c h S e p a r a te S chedu le)
A ddre ss of P r o p e rty
(In d i c a te S if So ld , P S if P e n d in g S a le
o r R if R e n ta l b ein g h eld fo r in co m e)

f l

\y

T ype of
Property

Present
M a rk e t V alue

A m ount of
M o rtg ag es
& L iens

G ro ss
R e nta l
In co m e

M ortgage
P ay m en ts

T ax e s, Ins.
M ain ten an ce
a n d Mi sc .

N et
R e n ta l
Incom e

S

$

$

$

s

$

TOTALS

s

$

S

s

$

$

12 . L I S T P R E V I O U S C R E D I T R E F E R E N C E S
0

B -B orrow er

L ist any

C -C o-B orrow er

a d d itio n al

j

C r e d ito r 's N am e

and

A ddre ss

A ccount N u m b er

n a m es u n d e r w h ich cre d it has p reviously been

Purpose

Signatui

D ate

P a id

r e c e iv e d

A G R E E M E N T : T h e U n d e r s i g n e d a p p l i e s f o r t h e l o a n i n d i c a t e d in t h i s a p p l i c a t i o n , t o b e s e c u r e d
t h e p r o p e r t y d e s c r i b e d h e r e i n , a n d r e p r e s e n t s t h a t t h e p r o p e r t y w ill n o t b e u s e d f o r a n y i ll e g a l o r
m a d e in t h i s a p p l i c a t i o n a i e t r u e a n d a r e m a d e f o r t h e p u r p o s e o f o b t a i n i n g t h e l o a n . V e r i f i c a t i o n
i n t h i s a p p l i c a t i o n . T h e o r i g i n a l o r a c o p y o f t h i s a p p l i c a t i o n w ill b e r e t a i n e d b y t h e l e n d e r , e v e n

B orro w e r's

H ig h e s t Balance

C o - B o r r o w e r 's

by a fir st m o r t g a g e o r d e e d o f t r u s t o n
r e s t r i c t e d p u r p o s e a n d t h a t al l s t a t e m e n t s
m a y be o b t a i n e d f r o m a n y s o u r c e n a m e d
if th e lo a n is n o t gr a n te d .

S ignature

V O L U N T A R Y INFO R M ATIO N FOR G O VERNM ENT M ONITORING PURPOSES
I f t h i s l o a n is f o r p u r c h a s e o r c o n s t r u c t i o n o f a h o m e , t h e f o l l o w i n g i n f o r m a t i o n is r e q u e s t e d b y t h e F e d e r a l G o v e r n m e n t t o m o n i t o r t h i s
l e n d e r ’s c o m p l i a n c e w i t h E q u a l C r e d i t O p p o r t u n i t y a n d F a i r H o u s i n g L a w s . T h e la w p r o v i d e s t h a t a l e n d e r m a y n e i t h e r d i s c r i m i n a t e o n th e
b a s i s o f t h i s i n f o r m a t i o n n o r o n w h e t h e r o r n o t it i s f u r n i s h e d , F u r n i s h i n g th i s i n f o r m a t i o n is o p t i o n a l . I f y o u d o n o t w i s h t o f u r n i s h t h e
fo llo w in g in f o r m a t io n , p le a s e initial b e lo w .
B O R R O W E R : I d o n o t w i s h t o f u r n i s h th is i n f o r m a t i o n ( in it i a ls )

C O - B O R R O W E R : 1 d o n o t w is h t o f u r n i s h th is i n f o r m a t i o n ( in it i a ls )

R a c e / N a t i o n a l O r ig in
□
□

A m e ric an In d ian , A la sk an N ativ e
A sia n , P a cific I s la n d e r
□
B lack

□

Other (specify)

R a c e / N a t i o n a l Or ig in
SEX
□
F em ale
□
H isp an ic
Q

□
M ale
W h ite

□
□

A m e ric an In d ian , A la sk an N ativ e
A s i a n , P a c if i c I s l a n d e r
□
B lack

□

Other (specify)

F O R L E N D E R ’S U S E O N L Y

Reverse

36

SEX
□
Fe m a le
Q H isp an ic
□

□
M ale
W h ite

SUPPLEMENT I
SUPPLEM ENT I

to, or provide greater protection to applicants
than, provisions of sections 701 and 702 of the
Act regarding the class of credit transactions and
explaining why any differences are not inconsis­
tent with the provisions of sections 701 and 702
of the Act and do not result in a diminution in
the protection otherwise afforded applicants; and
a statement that no other State laws (including
administrative or judicial interpretations) are re­
lated to, or would have an effect upon, the State
law that is being considered by the Board in mak­
ing its determination.

Procedures and criteria under which a State
may apply for an exemption pursuant to section
705(g) of the Act and section 202.11(e) of this
Part.
(a) Application. Any State may apply to the
Board pursuant to the provisions of this Supple­
ment and the Board’s Rules of Procedure (12 CFR
262) for a determination that, under the laws of
that State,1 a class of credit transactions2 within
the State is subject to requirements that are sub­
stantially similar to, or provide greater protection
for applicants than, those imposed under sections
701 and 702 of the Act,3 and that there is ade­
quate provision for State enforcement of such re­
quirements. The application shall be in writing,
addressed to the Board, signed by the Governor,
Attorney General, or State official having primary
enforcement or interpretive responsibilities under
the State law that is applicable to the class of credit
transactions, and shall be supported by the docu­
ments specified in subsection (b).
(b) Supporting documents. The application shall
be accompanied by:

(3) A copy of the full text of the State law
that provides for enforcement of the State law
referred to in subsection ( b ) ( 1 ) .
(4) A comparison of the provisions of the
State law that provides for enforcement with the
provisions of sections 704 and 706 of the Act,
together with reasons supporting the claim that
such State law provides for:
(i) administrative enforcement of the State
law referred to in subsection ( b )(1 ) that is sub­
stantially similar to, or more extensive than, the
enforcement provided under section 704 of the
Act;

(1) A copy of the full text of the State law
that is claimed to contain requirements substan­
tially similar to those imposed under sections 701
and 702 of the Act, or to provide greater protec­
tion to applicants than sections 701 and 702 of
the Act, regarding the class of credit transactions
within that State.
(2) A comparison of each provision of sections
701 and 702 of the Act with the corresponding
provision of the State law, together with reasons
supporting the claim that the corresponding pro­
visions of the State law are substantially similar

(ii) civil liability for a failure to comply
with the requirements of the State law that is
substantially similar to, or more extensive than,
that provided under section 706 of the Act, in­
cluding class action liability and the ability of the
State Attorney General or other appropriate State
official to commence a civil action under circum­
stances substantially similar to those prescribed in
section 706 of the Act, except that such State law
may provide a greater damage remedy or other,
more extensive remedies;
(iii) a statute of limitations that prescribes
a period for civil actions of substantially similar
duration to that provided under section 706(f) of
the Act, or a longer period; and

1 Any reference to State law in this Supplem ent in ­
cludes a reference to any regulations th at implement
State law an d fo rm al interpretations thereof by a court
of com petent jurisdiction or duly authorized agency of
that State.
2 As applicable, references to “ class o f credit transac­
tions” in this Supplem ent include one or more such
classes of credit transactions.
3 Any reference in this Supplem ent to sections 701 and
702 o f the Act includes a reference to the corresponding
an d im plementing provisions o f this Part, the B oa rd’s
form al interpretations thereof, an d official interpretations
or approvals issued by an authorized official or employee
of the F ederal Reserve System. Additionally, any refer­
ence to sections 701 and 702 o f the A ct includes a
reference to sections 7 0 5 ( a ), ( b ) , ( c ) , and ( d ) of the Act
and the corresponding provisions o f this Part, which,
though technically not a p a rt o f sections 701 and 702,
im plem ent and relate to substantive requirem ents of sec­
tions 701 and 702.

(iv) a scope of discovery relating to a credi­
tor’s credit granting standards under appropriate
discovery procedures in a court action or agency
proceeding that is substantially similar to, or more
extensive than, that provided under section 706(j)
of the Act.
(5) A statement identifying the office desig­
nated or to be designated to administer the State
law referred to in subsection (b)(1), together with
complete information regarding the fiscal arrange­
ments for administrative enforcement (including

37

SUPPLEMENT I
the amount of funds available or to be provided),
the number and qualifications of personnel en­
gaged or to be engaged in enforcement, and a
description of the procedures under which such
State law is to be administratively enforced, in­
cluding, if relevant, administrative enforcement
regarding Federally-chartered creditors.4 The
statement should also include reasons to sup­
port the claim that there is adequate provision
for enforcement of such State law.

702; however, required references to State law
may be substituted for the references to Federal
law required in this Part. Notification requirements
under State law in additional circumstances or
with additional detail that do not frustrate any
of the purposes of the Act may be determined by
the Board to be consistent with sections 701 and
702 of the Act.

(iii) Creditors take all affirmative actions
and abide by obligations substantially similar to or
(c)
Criteria for determination. The Board will more extensive than those prescribed by sec­
tions 701 and 702 of the Act under substantially
consider the criteria set forth below, and any
similar or more stringent conditions and within
other relevant information, in determining
the same or more stringent time periods as are
whether the law of a State is substantially similar
prescribed in sections 701 and 702 of the Act.
to, or provides greater protection to applicants
than, the provisions of sections 701 and 702 of
(iv) Creditors abide by the same or more
the Act regarding the class of transactions within
stringent prohibitions as are prescribed by sections
that State, and whether there is adequate pro­
701 and 702 of the Act.
vision for State enforcement of such law. In
(v) Obligations or responsibilities imposed
making that determination, the Board primarily
on applicants are no more costly, lengthy, or
will consider each provision of the State law in
burdensome relative to applicants’ exercising any
comparison with each corresponding provision
of the rights or gaining the benefits of the pro­
in sections 701 and 702 of the Act, and not the
tections provided in the State law than correspond­
State law as a whole in comparison with the Act
ing obligations or responsibilities imposed on ap­
as a whole.
plicants in sections 701 and 702 of the Act.
(1)
In order for provisions of State law to be
(vi) Applicants’ rights and protections are
substantially similar to, or provide greater pro­
substantially similar to, or more favorable than,
tection to applicants than, the provisions of sec­
those provided by sections 701 and 702 of the
tions 701 and 702 of the Act, the provisions of
Act under conditions or within time periods that
State law 5 at least shall provide that:
are substantially similar to, or more favorable to
(i) Definitions and rules of construction, as
applicants than, those prescribed by sections 701
applicable, import the same meaning and have
and 702 of the Act.
the same application as those prescribed by sec­
(2)
In determining whether provisions for en­
tions 701 and 702 of the Act.
forcement of the State law referred to in subsec­
(ii) Creditors provide all of the applicable
tion (b ) (1 ) are adequate, consideration will be
notifications required by the provisions of sections
given to the extent to which, under State law,
701 and 702 of the Act, with the content and in
provision is made for:
the terminology, form, and time periods pre­
(i) administrative enforcement, including nec­
scribed by this Part pursuant to sections 701 and
essary facilities, personnel, and funding;
* T ransactions within a State in which a Federallychartered institution is a creditor shall n o t be consid­
ered subject to exemption, and such F ederally-chartered
creditors shall rem ain subject to the requirem ents o f the
A ct and administrative enforcem ent by the appropriate
F ederal authority under section 704 of the Act, unless
a State establishes to the satisfaction o f the B oard th at
appro p riate arrangem ents have been m ade with such
F ederal authorities to assure effective enforcem ent o f the
requirem ents o f State laws regarding such creditors.
5 This subsection is not to be construed as indicating
that the B oard would consider adversely any additional
requirem ents o f State law that are not inconsistent with
the purpose o f the A ct o r the requirem ents im posed
u nd er sections 701 an d 702 o f the Act.

(ii) civil liability for a failure to comply with
the requirements of such a State law that is sub­
stantially similar to, or more extensive than, that
provided under section 706 of the Act;
(iii) a statute of limitations for civil liability
of substantially similar or longer duration as that
provided under section 706 of the Act; and
(iv) a scope of discovery relating to a credi­
tor’s credit granting standards that is substantially
similar to, or more extensive than, that provided
under section 706(j) of the Act.

SUPPLEMENT I
(d) Public notice of filing and proposed rule
making. In connection with any application that
has been filed in acordance with the requirements
of subsections (a) and (b) of this Supplement and
following initial review of the application, a notice
of such filing and proposed rule making shall be
published by the Board in the Federal Register,
and a copy of such application shall be made
available for examination by interested persons
during business hours at the Board and at the
Federal Reserve Bank for each Federal Reserve
District in which the State making the application
is situated. A period of time shall be allowed
from the date of such publication for interested
parties to submit written comments to the Board
regarding that application.
(e) Exemption from requirements. If the Board
determines on the basis of the information before
it that, under the law of a State, a class of credit
transactions is subject to requirements substan­
tially similar to, or that provide greater protection
to applicants than, those imposed under sections
701 and 702 of the Act and that there is adequate
provision for State enforcement, the Board will
exempt the class of credit transactions in that
State from the requirements of sections 701 and
702 of the Act in the following manner and sub­
ject to the following conditions:
(1) Notice of the exemption shall be published
in the Federal Register, and the Board shall fur­
nish a copy of such notice to the State official
who made application for such exemption, to each
Federal authority responsible for administrative
enforcement of the requirements of sections 701
and 702 of the Act, and to the Attorney Genera]
of the United States. Additionally, the Board shall
include any exemption granted in an appropriate
listing in Supplement II to this Part. Any exemp­
tion granted shall be effective 90 days after the
date of publication of such notice in the Federal
Register.
(2) The appropriate official of any State that
receives an exemption shall inform the Board
in writing within 30 days of any change in the
State laws referred to in subsections (b)(1) and
(b)(3). The report of any such change shall contain
copies of the full text of that change, together
with statements setting forth the information and
opinions regarding that change that are specified
in subsections (b)(2) and (b)(4). The appropriate
official of any State that has received such an
exemption also shall file with the Board from time
to time such reports as the Board may require.

(3) The Board shall inform the appropriate
official of any State that receives such an exemp­
tion of any subsequent amendments of the Act
(including the implementing provisions of this
Part, the Board’s formal interpretations, and inter­
pretations or approvals issued by an authorized
official or employee of the Federal Reserve Sys­
tem) that might necessitate the amendment of
State law for the exemption to continue.
(4) No exemption shall extend to the adminis­
trative enforcement or civil liability provisions of
sections 704 and 706 of the Act. After an ex­
emption is granted, the requirements of the appli­
cable State law shall constitute the requirements
of sections 701 and 702 of the Act, except to
the extent such State law imposes requirements
not imposed by the Act or this Part.
(f) Adverse determination. (1) If, after publica­
tion of a notice in the Federal Register as pro­
vided under section (d), the Board finds on the
basis of the information before it that it cannot
make a favorable determination in connection
with the application, the Board shall notify the
appropriate State official of the facts upon which
such findings are based and shall afford that State
authority a reasonable opportunity to demonstrate
or achieve compliance.
(2)
If, after having afforded the State author­
ity such opportunity to demonstrate or achieve
compliance, the Board finds on the basis of the
information before it that it still cannot make a
favorable determination in connection with the
application, the Board shall publish in the Federal
Register a notice of its determination regarding
the application and shall furnish a copy of such
notice to the State official who made application
for such exemption.
(g) Revocation of exemption. (1) The Board
reserves the right to revoke any exemption granted
under the provisions of this Supplement if at any
time it determines that the State law does not,
in fact, impose requirements that are substantially
similar to, or that provide greater protection to
applicants than, those imposed under sections 701
and 702 of the Act or that there is not, in fact,
adequate provision for State enforcement.
(2)
Before revoking any such exemption, the
Board shall notify the appropriate State official
of the facts or conduct that, in the Board’s opin­
ion, warrants such revocation, and shall afford
that State such opportunity as the Board deems

39

SUPPLEMENT I
appropriate in the circumstances to demonstrate
or achieve compliance.
(3)
If, after having been afforded the oppor­
tunity to demonstrate or achieve compliance, the
Board determines that the State has not done so,
notice of the Board’s intention to revoke such
exemption shall be published as a notice of pro­
posed rule making in the Federal Register. A
period of time shall be allowed from the date of
such publication for interested persons to submit
written comments to the Board regarding the pro­
posed rule making.

(4)
If such exemption is revoked, notice of
such revocation shall be published by the Board
in the Federal Register, and a copy of such notice
shall be furnished to the appropriate State official,
to the Federal authorities responsible for enforce­
ment of the requirements of the Act, and to the
Attorney General of the United States. The revo­
cation shall become effective, and the class of
transactions affected within that State shall be­
come subject to the requirements of sections 701
and 702 of the Act, 90 days after the date of
publication of the notice in the Federal Register.