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F ederal

Bank o f Dallas

Circular No. 70-112
May 11, 1970


To All Banks, Other Creditors, and Others Concerned
in the Eleventh Federal Reserve District:
The following is a press release of the Board of Governors of
the Federal Reserve System issued on May 8, 1970:
"The Board of Governors of the Federal Reserve System
announced today that it has exempted certain credit trans­
actions in Oklahoma from the disclosure and rescission pro­
visions of the Federal Truth in Lending Act, effective June 1.
Oklahoma law, which is substantially similar in these pro­
visions to the Federal statute, will apply to all classes of
credit transactions within that State, except for the following:
"1. Transactions in which a federally chartered institu­
tion-such as a federal credit union, federal savings and loan
association, or national bank— is a creditor.

Consumer credit sales of insurance by an insurer.

"3. Transactions under common carrier tariffs in which
the charges for the services involved, the charge for delayed
payment and any discount allowed for early payment are regulated
by a subdivision or agency of the United States or the State of
"^. Transactions in which a licensed pawnbroker is a
"Section 123 of the Truth in Lending Act provides that the
Board shall exempt from the disclosure and rescission require­
ments of the Act any class of transactions within a State if
the State law provides requirements substantially similar to
those imposed by the Federal law, and there is adequate pro­
vision for enforcement.
"In making its determination, the Board considered only
that part of the Oklahoma statute that relates to disclosure
and rescission. The Uniform Consumer Credit Code, which

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Oklahoma adopted, goes beyond these fields and, accordingly,
the action taken by the Board cannot be construed as an en­
dorsement of that Code.
"The Board earlier granted an exemption to Maine for all
classes of credit transactions except those in which a federally
chartered institution is a creditor. Pending applications have
been received from Connecticut, Massachusetts, Utah and Virginia."
The Oklahoma exemption is embodied in an amendment of Supplement
III to Regulation Z. Copies of Supplement III, which contains the earlier
Maine exemption, several procedural matters dealing with state law exemp­
tions, and the amendment granting the Oklahoma exemption, are available
on request to the Regulations Department of this Bank.
Yours very truly,
P. E. Coldwell