Full text of Federal Reserve Bank of New York Circulars : 6661. Proposed Amendment to Regulation Z

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F E D E R A L R E S E R V E BANK
O F NEW YO R K

666 1

< irc u la r N o.
C
1_
D e ce m b e r 22, 197ol

P ROPO SED AMENDMENT TO REGULATION Z
Agricultural Credit T r a n s a c t io n s

To A ll State Member Banks, and Others Concerned,
in the Second Federal Reserve D istrict:

Printed below is an excerpt from the Federal Register of December 17, containing the
text of a proposed amendment issued by the Board of Governors of the Federal Reserve
System to its Truth in Lending Regulation Z. The purpose of the proposed amendment is to
permit farmers to obtain funds, goods, or services in agricultural credit transactions
without waiting for the expiration of the three-day rescission period when their residence is
part of the collateral for credit. Comments thereon should be received no later than January
18, 1971, and may be submitted to our Consumer Information and Securities Regulations
Department.
Additional copies of this circular will be furnished upon request.
Alfred Hayes,
President.

FEDERAL RESERVE SYSTEM
[ 1 2 CFR Part 226 1
[Reg. Z1

TRUTH IN LENDING
Delay of Performance in Agricultural
Credit Transactions Subject to the
Right of Rescission
P u r su a n t to th e a u th o r ity c o n ta in e d
in th e T r u th in L en d in g A ct f 15 U S.C ,

1601), the B oard of Governors is con­
sidering am ending § 226.9<c) of P a rt 226
to read as follows:
Right to r<‘M‘in<) certain *r.-*n>actions.

§ 2 2 6 .9

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<c) Delay of perform ance. Except as
provided in p ara g ra p h (e) of this section,
the creditor in any transaction subject to
this section, other th a n an extension of
credit prim arily for agricultural p u r­




poses, shall n ot perform , or cause or money, goods, or services in ag ricu ltu ral
perm it the perform ance of, any of the credit tran sactio n s involving th e rig h t of
following actions u ntil afte r th e rescis­ rescission w ithout being obliged to w ait
sion period has expired and he h as re a ­ u n til the expiration of th e rescission
sonably satisfied him self th a t th e cus­ period.
tom er has n ot exercised his rig h t of
To aid in th e consideration of this
rescission:
m a tte r by the Board, interested persons
(1) Disburse any money oth er th a n in are invited to subm it relevant data,
escrow ;
views, or argum ents. Any such m aterial
<2) Make any physical changes in the should be subm itted in w riting to the
property of the custom er;
Secretary, Board of G overnors of th e
(3)
Perform any work or service forFederal Reserve System, W ashington,
D.C. 20551, to be received n o t la te r th a n
the custom er; or
<4) Make any deliveries to th e resi­ Ja n u ary 18, 1971. Such m aterial will be
dence of the custom er if th e creditor has m ade available for inspection an d copy­
retained or will acquire a security in te r­ ing upon request, except as provided in
est other th a n one arising by operation of § 261.6(a) of the B o ard ’s rules re g a rd ­
ing availability of inform ation.
law.
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By order of th e B oard of G overnors,
The am endm ent consists of the in ser­ December 10, 1970.
rs e a l !
K e n n e t h A. K e n y o n ,
tion of th e words “other th a n an ex ten ­
D eputy Secretary.
sion of credit prim arily for ag ricu ltu ral
purposes.” T he purpose of th e am end­ |F.R. Doc 70-16902; P ile d , D e c 16. 1970:
8:45 a.m.]
m ent is to p erm it farm ers to obtain