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FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 9357 ~| September 8, 1982 J TRUTH IN LENDING — Extension of Comment Period on Seller’s Points Proposals — Exemptions for Maine and Connecticut To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District: The Board of Governors of the Federal Reserve System has extended the comment period, to Sep tember 27, 1982, on its proposals regarding the treatment of seller’s points and has granted exemptions, effective October 1, 1982, from certain parts of the Truth In Lending Act to the States of Maine and Con necticut. Seller’ s points Following is the text of a statement issued by the Board announcing the extension of the comment period on the seller’s points proposals: The Federal Reserve Board has announced extension, from August 27 to September 27, of the period for comment on its proposals made in July with respect to methods for the treatment of seller’s points in disclosures made under revised Regulation Z (Truth in Lending). Enclosed is the text of the Board’s official notice in this matter. Comments must be submitted by Sep tember 27, 1982 and may be sent to our Consumer Affairs and Bank Regulations Department. State exemptions Following is the text of a statement issued by the Board regarding State exemptions: The Federal Reserve Board has granted exemptions, effective October 1, 1982, from certain parts of the Federal Truth in Lending Act to the States of Maine and Connecticut. The Board also asked for public comment on requests for exemptions from the States of Massachusetts, Oklahoma and Wyoming. Exemptions from certain requirements of the Truth in Lending Act were granted on the grounds that con sumer credit protection legislation in the States of Maine and Connecticut met the standards of the Act for exemptions. Maine sought an exemption from chapters 2,4, and 5 of the Act for transactions subject to the State’s Consumer Credit Code. These chapters pertain to credit transactions, credit billing and consumer leas ing, respectively. The State of Connecticut sought exemptions from two chapters of the Act for transactions that are subject to the Connecticut Truth in Lending Act. These are exemptions respecting credit transactions and credit billing. (OVER) The Board also requested comment, by September 15, 1982, on proposals to exempt the States of Massachusetts, Oklahoma and Wyoming from certain requirements of the Truth in Lending Act. The proposed exemptions are: — Massachusetts seeks exemption from chapters 2 and 4, credit transactions and credit billing, for transactions that are subject to the State’s Truth in Lending Act; — Oklahoma seeks exemption from chapters 2 and 5, credit transactions and consumer leases, for transactions that are subject to the Oklahoma Consumer Credit Code, and; — Wyoming seeks exemption from chapter 2 for transactions subject to the Wyoming Consumer Credit Code. Enclosed is an excerpt from the Federal Register of August 24, 1982, containing the text of the Board’s order relating to the Maine and Connecticut exemptions. Questions on this matter may be directed to our Consumer Affairs and Bank Regulations Department (Tel. No. 212-791-5914). A nth o n y M. So l o m o n , President. FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Reg. Z ; Docket No. R-0413] TRUTH IN LENDING Treatment of Seller’s Points; Extension of Comment Period AGENCY: Board of Governors of the Federal Reserve System. ACTION: E x te n sio n o f comment p e rio d . SUMMARY: On July 27, 1982, the Board of Governors proposed for comment two methods for the treatment cf seller's points under revised Regulation Z (47 FR 32433). The 30-day comment period ended on August 27, 1982. The Board has received numerous requests for extension of the comment period. In light of the Board’s desire to encourage public participation in this matter, the comment period is extended to September 27, 1982. DATE: Comments must be received on or before September 27, 1982. ADDRESS: Comments (which should refer to Docket No. R-0413) may be mailed to the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, or delivered to Room B-2223, 20th & Constitution Avenue, N.W., Washington, D.C., between 8:45 a.m. and 5:15 p.m. weekdays. Comments may be inspected in Room B— 1122 between 8:45 a.m. and 5:15 p.m. weekdays. All material submitted should refer to Docket No. R-0413. FOR FURTHER INFORMATION CONTACT: Clarence B. Cain or Gerald P. Hurst, Staff Attorneys, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, (202) 452-2412 or (202) 452-3667. By order of the Board of Governors, acting through its Secretary under delegated authority, August 30, 1982. (signed) William W. Wiles William W. Wiles Secretary of the Board [SEAL] [Enc. Cir. No. 9357] FEDERAL RESERVE SYSTEM [R egs. M and Z; Doc. No. R-0394J Consumer Leasing, Truth In Lending; Order Granting Exemptions to the States of Maine and Connecticut a g e n c y : Board of Governors of the Fedteral Reserve System. a c t io n : Order. T h e B o a r d h a s d e te r m in e d th a t th e e x e m p tio n s from th e r e v is e d fe d e r a l T ru th in L en d in g A c t r e q u e ste d b y th e s ta te s o f M a in e a n d C o n n e c tic u t s h o u ld b e g r a n te d . M a in e so u g h t a n e x e m p tio n from c h a p te r s 2 (c r e d it tr a n s a c tio n s), 4 (c re d it b illin g ), a n d 5 (c o n s u m e r le a s e s ) o f th e a c t for tr a n s a c tio n s s u b je c t to th e M a in e C o n su m e r C red it C o d e , w h ile C o n n e c tic u t so u g h t a n e x e m p tio n from c h a p te r s 2 a n d 4 o f th e a c t for tr a n s a c tio n s s u b je c t to th e C o n n e c tic u t T ru th in L en d in g A c t. EFFECTIVE DATE: O c to b e r 1 ,1 9 8 2 . summary: FOR FURTHER INFORMATION CONTACT: Rugenia Silver or Lynn Goldfaden, Staff Attorneys, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551 at (202) 4 5 2 3667 or (202) 4 5 2 -3 8 6 7 . SUPPLEMENTARY INFORMATION: (1) S e c tio n s 1 2 3 ,1 7 1 , a n d 186 o f th e T ru th in L en d in g A c t (15 U .S .C . 1601 et seq.) d ir e c t th e B o a r d to e x e m p t from th e a c t’s r e q u ir e m e n ts tr a n s a c tio n s th a t a r e s u b je c t to c o m p a r a b le s ta te la w s , if c e r ta in c o n d itio n s a re m et. F or p u r p o s e s o f c h a p te r 2 o f th e s ta tu te (c re d it tr a n s a c tio n s), th e B o a r d is d ir e c te d to g ra n t a n e x e m p tio n if it d e te r m in e s th a t th e s ta te la w im p o s e s r e q u ir e m e n ts s u b s ta n tia lly s im ila r to th o s e im p o se d u n d e r c h a p te r 2 a n d th a t th e r e is a d e q u a te p r o v isio n fo r e n fo r c e m e n t. T h e e x e m p tio n s ta n d a r d s fo r c h a p te r 4 (c re d it b illin g ) a n d c h a p te r 5 (c o n s u m e r le a s e s ) a re id e n tic a l to th o s e fo r c h a p te r 2, w ith tw o m o d ific a tio n s . S e c tio n 171 (b ), w h ic h s e ts fo rth e x e m p tio n criteria fo r c h a p te r 4, a u th o r iz e s th e B oa rd to c o n s id e r w h e th e r a s ta te la w g iv e s g r e a te r p r o te c tio n to th e c o n su m e r , w h ile § 186(b ), a d d r e s sin g th e e x e m p tio n criteria for c h a p te r 5, a u th o r iz e s th e B oa rd to c o n sid e r w h e th e r th e s ta te la w g iv e s g r e a te r p r o te c tio n a n d b e n e fit to th e c o n su m e r . T h e T ruth in L en d in g A c t w a s su b s ta n tia lly r e v ise d b y C o n g r e ss on M a rch 3 1 ,1 9 8 0 (T itle V I o f th e D e p o sito r y In stitu tio n s D e r e g u la tio n a n d M o n e ta r y C o n tro l A c t o f 1980, Pub. L. 9 6 -2 2 1 ). P rior to th e r e v is io n o f th e a ct, fiv e s ta t e s — C o n n e c tic u t, M a in e. M a s s a c h u s e tts . O k la h o m a a n d W y o m in g — h a d b e e n g r a n te d e x e m p tio n s from c h a p te r 2 o f th e T ru th in L en d in g A c t. A s o f O c to b e r 1 ,1 9 8 2 , General. those exemptions will expire unless renewed in accordance with the revised Truth in Lending Act. T h e s ta te s o f M a in e a n d C o n n e c tic u t a p p lie d to th e B o a r d for a c o n tin u a tio n o f th eir e x e m p tio n s u n d e r th e r e v is e d T ruth in L en d in g A c t. N o tic e o f th o s e e x e m p tio n r e q u e sts, w ith a n o p p o r tu n ity for p u b lic co m m e n t, w a s p u b lis h e d o n A p ril 15, 1982 (47 FR 16210). M a in e ’s e x e m p tio n r e q u e st c o v e r e d ch a p te r s 2, 4 a n d 5 o f th e r e v is e d fe d e r a l s ta tu te a n d R e g u la tio n s Z (T ruth in L en d in g) a n d M (C o n su m e r L ea sin g ). T h e c o m p a r a b le s ta te p r o v isio n s th a t form th e b a s is for its e x e m p tio n r e q u e st a r e c o n ta in e d in A r tic le VIII o f th e M a in e C o n su m e r C red it C o d e (T itle 9 -A , M .R .S .A .) a n d R u le s o f th e A d m in is tr a to r (R u le 0 2 -0 3 0 -2 4 0 ), k n o w n a s R e g u la tio n Z -2 . In its n o tic e , th e B o a r d n o te d s ix v a r ia tio n s from fe d e r a l R e g u la tio n s Z a n d M th a t w e r e n ot in c o r p o r a te d in to M a in e ’s re g u la tio n . In th e B o a r d ’s v ie w , th o se v a r ia tio n s w e r e n o t s u b s ta n tia l a n d w o u ld n o t a d v e r s e ly a ffe c t M a in e ’s e x e m p tio n re q u e st. T h e B o a rd in d ic a te d its b e lie f th at M a in e ’s la w a n d r e g u la tio n w e r e su b s ta n tia lly sim ila r to th e fe d e r a l la w a n d r e g u la tio n a n d th a t th e s ta te h a d d e m o n str a te d a d e q u a te p r o v isio n fo r en fo r c e m e n t. T h e r e fo r e , s u b je c t to c o m m en t, th e B o a rd p r o p o s e d to e x e m p t tr a n sa c tio n s s u b je c t to th e M a in e C o d e a n d R e g u la tio n Z -2 from c h a p te r s 2, 4 a n d 5 o f th e fe d e r a l T ru th in L en d in g A ct. T h e s ta te o f C o n n e c tic u t a p p lie d for a n e x e m p tio n from c h a p te r s 2 a n d 4 o f th e T ru th in L en d in g A c t. T h e b a s is for C o n n e c tic u t’s e x e m p tio n r e q u e st is th e r e v is e d C o n n e c tic u t T ru th in L en d in g A c t (C h a p ter 657 o f th e C o n n e c tic u t G en e ra l S ta tu te s, s e c tio n s 3 6 -3 9 3 th rou gh 3 6 -4 1 7 in c lu s iv e , a s a m e n d e d b y P u b lic A c t 8 1 -1 5 8 ). S u b je c t to co m m e n t, th e B oard in d ic a te d its b e lie f th at C o n n e c tic u t’s la w w a s s u b s ta n tia lly sim ila r to th e fe d e r a l sta tu te a n d th a t th e s ta te h a d d e m o n str a te d a d e q u a te p r o v isio n for e n fo r c e m e n t o f th a t s ta tu te . T h e r e fo r e , th e B oa rd p r o p o s e d to e x e m p t tr a n s a c tio n s s u b je c t to th e C o n n e c tic u t T ruth in L en d in g A c t from c h a p te r s 2 a n d 4 o f th e fe d e r a l T ruth in L en d in g A ct. T h e B oard h a s r e c e iv e d 20 c o m m e n ts reg a rd in g th e e x e m p tio n n o tic e s . S o m e c o m m e n ts a d d r e s s e d th e s p e c ific e x e m p tio n p r o p o s a ls a n d o th e r s d is c u s s e d th e m o re g e n e r a l is s u e o f th e B o a r d ’s sta n d a r d s fo r m e a su r in g th e s u b s ta n tia l sim ila r ity o f a s ta te la w . S e v e r a l c r ed ito r g ro u p s w e r e c o n c e r n e d b y th e B o a r d ’s Finding th a t s u b s ta n tia l sim ila r ity d o e s n o t req u ire a m irror im a g e o f th e fe d e r a l la w in o rd er to su p p o r t a n e x e m p tio n . T h e B oa rd c o n tin u e s to b e lie v e th a t th is d e fin itio n p ro p er ly in te r p r e ts th e c o n g r e s s io n a l s ta n d a r d , b a la n c in g th e n e e d s o f s ta te s to a d d r e s s lo c a l c o n c e r n s w ith th e n e e d s o f c r e d ito r s a n d c o n su m e r s fo r g e n e r a l u n ifo rm ity in tru th in le n d in g d is c lo s u r e s a n d p r o te c tio n s . T h e B oa rd n o te s th a t th is sta n d a r d , p er m ittin g c e r ta in m in o r v a r ia tio n s in e x e m p t s ta t e s ’ la w s , r e p r e se n ts a c o n tin u a tio n o f th e sa m e sta n d a r d a p p lie d in th e o rig in a l e x e m p tio n s g r a n te d in 1970. In a c c o r d a n c e w ith A p p e n d ix B o f R e g u la tio n Z a n d A p p e n d ix A o f R e g u la tio n M , th e B oa rd r e s e r v e s th e righ t to r e v o k e a n e x e m p tio n if a t a n y tim e it d e te r m in e s th a t th e sta n d a r d s re q u ire d for a n e x e m p tio n are n o t m et. T h e s ta te r e c e iv in g a n e x e m p tio n u n d e r ta k e s to in fo rm th e B oa rd w ith in 30 d a y s o f a n y c h a n g e in its r e le v a n t la w or r e g u la tio n s. T h e B o a rd w ill in fo rm th e a p p r o p ria te s ta te o ffic ia l o f a n y r e v is io n s in th e fe d e r a l sta tu te or r e g u la tio n th a t m u st b e a d o p te d b y th e s ta te in th e fu tu re in o rd er to m a in ta in its e x e m p tio n . S h o u ld a n a m e n d m e n t or o th er r e v is io n to a s ta te la w b e c o m e n e c e s s a r y b e c a u s e o f a c o r r e sp o n d in g c o n g r e s s io n a l or B o a rd a c tio n , th e B o a rd w ill a llo w su ffic ie n t tim e to th e s ta te to r e v is e its la w s a n d r e g u la tio n s in o rd er to p r e se r v e s u b s ta n tia l sim ila r ity . (2) Order o f exemption. T h e fo llo w in g o rd er s e ts forth th e te rm s o f th e M a in e a n d C o n n e c tic u t e x e m p tio n s . N o tic e o f th e e x e m p tio n s w ill b e in c lu d e d in th e o ffic ia l s ta ff c o m m e n ta r ie s o n R e g u la tio n s Z a n d M . Order T h e s ta te s o f M a in e a n d C o n n e c tic u t h a v e a p p lie d fo r e x e m p tio n s from th e fe d e r a l T ru th in L en d in g A c t a s r e v ise d o n M arch 3 1 ,1 9 8 0 (T itle V I o f th e D e p o sito r y In stitu tio n s D e r e g u la tio n a n d M o n e ta r y C o n tro l A c t o f 1980, P ub. L 9 6 -2 2 1 ). P u rsu a n t to s e c tio n s 1 2 3 ,1 7 1 , a n d 186 o f th e a ct, th e B o a rd h a s d e te r m in e d th a t th e la w s o f th o se s ta te s a re s u b s ta n tia lly sim ila r to th e fe d e r a l la w a n d th a t th ere is a d e q u a te p r o v isio n for e n fo r c e m e n t. T h e B oa rd h e r e b y g r a n ts th o se e x e m p tio n s a s fo llo w s : Maine. Effective October 1,1982, credit or lease transactions that are subject to Article VIII of the Maine Consumer Credit Code (Title 9-A , M .R .S.A.) and its implementing regulations are exempt from chapter 2 (credit transactions), chapter 4 (credit billing), and chapter 5 (consumer leases) of the federal Truth in Lending Act. This exemption does not apply to transactions in which a federally chartered institution is a creditor or lessor. Connecticut. Effective O ctober 1,1982, credit transactions that are subject to the Connecticut Truth in Lending Act (Chapter 657 o f the Connecticut General Statutes, sections 36-393 through 36-417 inclusive, as amended by Public Act 81-158) are exempt from chapter 2 (credit transactions) and chapter 4 (credit billing) of the federal Truth in Lending Act. This exemption does not apply to transactions in which a federally chartered institution is a creditor. By order o f the Board of Governors o f the Federal Reserve System, August 20,1982. William W. Wiles, Secretary o f the Board. [FR Doc. 82-23243 Filed 8-23-82; 8:45 am] [Enc. Cir. No. 9357]
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