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F E D E R A L R ES ER V E BANK O F N EW Y O R K r Circular No. 6 6 2 7 "I October 28, 1970 J AMENDMENT TO REGULATION Z Open End Credit Accounts T o A ll S ta te M e m b er B a n k s, a n d O th ers C on cern ed, in th e S eco n d F e d e ra l R e se rv e D is tr ic t: The Board of Governors of the F ederal Reserve System has amended, effective October 23, 1970, its T ruth in Lending Regulation Z to perm it creditors to reduce the periodic rate or rates applicable to open end credit accounts without the necessity of giving prior notice to the customer. The new provision will apply only when such reductions are the only changes being made in the term s of the accounts. Enclosed is a copy of the amendm ent; additional copies will be furnished upon request. A lfred H ay es, President. Board of Governors of the Federal Reserve System T R U T H IN L E N D IN G A M E N D M E N T TO R E G U L A T IO N Z E ffective O ctober 23, 1970, § 226.7 (e) is am ended to re a d as fo llo w s: S E C T IO N 226.7 — O P E N E N D C R E D IT A C C O U N T S — S P E C I F I C D IS C L O S U R E S * * * (e) C hange in term s. I f a n y change is to be m ade in term s of an open end cred it account p la n p reviously disclosed to th e cus tom er, th e c re d ito r shall m ail or deliver to the custom er w ritte n disclosure of such proposed change n o t less th a n 30 days p rio r to th e effec tive d ate of such change or 30 days p rio r to th e b eg in n in g of the billin g cycle w ith in w hich such change w ill become effective, w hichever is th e e a rlie r date. No notice is necessary if th e only change is a red u ctio n in th e periodic r a te or ra te s applicable to the account. P R IN T E D IN N E W YORK
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