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FEDERAL RESERVE BANK ©F MEW YORHC KTU RN o, 9 May 8, 1985 BOARD OF GOVERNORS’ SEMIANNUAL REGULATORY AGENDA APRIL 1, 19<§>5 — OCTOBER 1, 19§5 To A ll Depository Institutions in the Second Federal Reserve District: Printed on the following pages is the text of the Board of Governors’ Semi annual Regulatory Agenda for the period April 1, 1985 through October, 1, 1985, which has been reprinted from the Federal Register of April 29,1985. The Agenda provides you with information on those regulatory matters that the Board now has under consideration or anticipates considering over the next six months. It is divided into three parts: (1) regulatory matters that have been proposed and are under Board consideration, and other regulatory matters that the Board may con sider for public comment during the next six months; (2) major regulatory reviews in progress under the Board’s Regulatory Improvement Project scheduled over the next 12 months; and (3) regulatory matters that the Board has completed or is not expected to consider further. Comments or questions regarding any of the Agenda items may be submitted directly to the Board of Governors, or to the Regulations Division of this Bank (Tel. No. 212-791-5914). E. G e r a l d C o r r ig a n , P residen t. & Y il®ndiiv April 2§s 1§Si Part LSSS F(§d]©rsS R eserve S^@t®iin3 S®mre8@inifiTiyal A®®sidlf] ISlffl© Federal Register / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda FFIS FEDERAL RESERVE SYSTEM 12 cm Ch. II Semiannual Regulatory Flexibility A genda A©Ewev: Board of Governors of the Federal Reserve System. ACT0©m: Semiannual agenda. SUEU3M1A0W" The Board is issuing this Agenda under the Regulatory Flexibility Act and the Board’s Statement of Policy Regarding Expanded Rulemaking Procedures. The Board anticipates having under consideration regulatory matters as indicated below during the period from April 1 through October 1, 1985. The next Semiannual Agenda will be published in October 1985. ©ATI: Comments about the form or content of the Agenda may be submitted any time during the next six months. A0DRESS: Comments should be addressed to William W. Wiles, Secretary of the Board, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. F@Ek3FOiHlTH£gS INFORMATION ©@OTACT: A staff contact for each item is indicated with the regulatory description below. SyPPLERSlIWTAKV 0MF@raAY0@l?3S The Board is publishing its April 1985 Agenda as part of the April 1985 Unified Agenda of Federal Regulations, which is coordinated by the Office of Management and Budget under Executive Order 12291. Participation by the Board in the Unified Agenda is on a voluntary basis. The Board’s Agenda is divided into three sections. The first, Current and Projected Rulemakings, reports on regulatory matters that have been proposed and are under Board consideration, and other regulatory matters (designated by a plus sign ( + )) the Board may consider for public comment during the next six months. The second section, Existing Regulations Under Review, reports on any major regulatory reviews under the Board’s Regulatory Improvement Project that are scheduled for the next 12 months. A third section, Completed Rulemaking, reports on regulatory matters the Board has completed or is not expected to consider further. A dot (©) preceding an entry indicates a new matter that was not a part of the Board’s previous Agenda, and which the Board has not completed. Barbara R. Lowrey, A s s o c ia te S e c re ta r y o f th e Board. C u rren t an d P ro jected R u lem akin gs Se quence Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Title Regulation: B - Equal Credit Opportunity (Docket Number: R-0473)...................................................................................... 4 - Regulation: F - Securities of State Member Banks............................................................................................................. 4- Regulation: G - Securities Credit by Persons other than Banks, Brokers, or Dealers (Docket Number: R-0529).......... 4 - Regulation: J - Collection of Checks and Other Items and Wire Transfers of Funds....................................................... Regulation: K - International Banking Operations (Docket Number: R-0498)........................................................................ Regulation: K - International Banking Operations (Docket Number: R-0520)........................................................................ Regulation: Q - Interest on Deposits (Docket Number: R-0514)............................................................................................ -(-Regulation: Q - Interest on Deposits..................................................................................................................................... Regulation: T - Credit by Brokers and Dealers (Docket Number: R-0538)............................................................................ 4- Regulation: U - Credit by Banks For The Purpose of Purchasing or Carrying Margin Stocks (Dobket Number: R0510).......................................................................................................................................................................................... Regulation: Y - Bank Holding Companies and Change in Bank Control (Docket Number: R-0511)................................... Regulation: Y - Bank Holding Companies and Change in Bank Control (Docket Number: R-0491)................................... 4 - Regulation: Y - Bank Holding Companies and Change in Bank Control........................................................................... Regulation: Y - Bank Holding Companies and Change in Bank Control (Docket Number: R-0537)................................... Regulation: Y - Bank Holding Companies and Change in Bank Control (Docket Number: R-0536)................................... Regulations: Y - Bank Holding Companies and Change in Bank Control: Regulation: H - “State Bank Membership”; and Rules of Practice for Hearings (Docket Number: R-0526)............................................................................................. -(-Regulation: Z - Truth in Lending............................................................................................................................................ Regulation: AA - Unfair or Deceptive Acts or Practices (Docket Number: R-0006)............................................................. -(-Regulation: AA - Unfair or Deceptive Acts or Practices.................................................................................................. Regulation: Equal Employment Opportunity (Docket Number: R-0527)................................................................................. Proposals to Reduce Risk on Large Dollar Transfer Systems (Docket Number: R-0515).................................................... Regulation Identifier Number 7100-AA28 7100-AA32 7100-AA54 7100-AA55 7100-AA35 7100-AA44 7100-AA36 7100-AA56 7100-AA53 7100-AA38 7100-AA17 7100-AA40 7100-AA41 7100-AA52 7100-AA51 7100-AA45 7100-AA50 7100-AA42 7100-AA49 7100-AA46 7100-AA47 + Indicates regulatory matter the Board may consider for public comment. Existing Regulations Under Review Se quence Number 22 Title Regulatory Improvement Project..................................................................................................................................... 5 Regulation Identifier Number 7100-AA14 F ed eral R egister / V ol. 50, N o. 82 / M onday, April 29, 1985 / U n ified A g en d a 18107 FRS Com pleted Actions Se quence Num ber 23 24 25 26 R egulation: E - E lectro nic Fund Tra n s fe rs (D o c k e t N um ber: R -0 5 0 2 )........................................................................................................ R egulation: J - C o llectio n o f C h e c k s an d O th e r Ite m s a n d W ire Tra n s fe rs o f Fu nd s (D o c k e t N um ber: R -0 3 5 7 a n d R0 5 2 2 ) ................................... ................................................................................................................................................................................................. R egulation: Y - B an k H olding C o m p a n ie s an d C h a n g e in B an k C o n tro l................................................................................................... R egulation: Z - Truth in Lending (D o c k e t N um ber: R - 0 5 0 1 ) ............................................................................................................................ FEDERAL RESERVE SYSTEM (FRS) 1. REGULATION: B - EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R04? 3) Legal Authority: 15 USC 1691b Equal Credit Opportunity Act CFR Citation: 1 2 CFR 2 0 2 Abstract: In March 1985, the Board published for comment proposed revisions to Regulation B (cite not yet available). The proposal stems from the Board’s commitment to review its regulations every five years. The review of Regulation B focussed on how the regulation could be clarified, and whether any burdens on creditors could be reduced without diminishing consumer protections. The proposal contains some technical changes, including a streamlined procedure dealing with incomplete applications and a broader selection of sample forms for informing applicants of the reasons for a credit denial. The proposal also would change the data notation requirements applicable to residential mortgage transactions and revise the definition of “applicant” to give a guarantor (who already has certain protections under Regulation B) legal standing in the courts when there is an alleged violation of the regulation. The Board is also publishing for comment an official staff commentary that would replace existing staff and Board Interpretations. The proposal would apply to all creditors equally. Small (cont) Timstablt:_________________________ Action ANPRM Propose specific revisions for comment Small Entity: No R eg ulation Identifier Num ber Title Dat® 06/21/83 03/01/85 FIR Cit® 48 FR 28285 7 1 0 0 -A A 3 4 7 1 0 0 -A A 4 3 7 1 0 0 -A A 2 6 7 1 0 0 -A A 3 7 Current and Projected Rulemakings Additional Information: ABSTRACT CONT:creditors will incur some additional burden in complying with the expanded monitoring data requirements, but the shortening of the regulation and the clarification and streamlining of other rules such as treatment of incomplete applications, should reduce some burdens and the addition of a staff commentary and sample notice forms should make compliance easier for small creditors. Agency Contact: Lucy Griffin or John Wood, Senior Attorneys, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-2412 RIM: 7100-AA28 2. + REGULATION: F - SECURITIES OP STATE TEMPER BANKS Legal Authority: 15 USC 78(l) Securities Exchange Act of 1934 CFR Citation: 12CFR206 Abstract: The Board will consider issuing for comment a proposal to amend Regulation F to conform that regulation with a series of recent changes in the securities disclosure regulations of the Securities and Exchange Commission. Pursuant to section 12(i) of the Securities Exchange Act of 1934, the Board is required to periodically update its securities disclosure regulations to make them substantially identical to comparable regulations of the Securities and Exchange Commission or to publish reasons why they should not be so revised. A.doption of the proposal is not expected to have a significant economic impact on a substantial number of small member banks, since only a few banks are subject to the Board’s regulation and the revisions of the 6 disclosure requirements are not likely to be severe. Timetable: Action Board will consider issuing for comment a proposal to amend Regulation F by Dat® FR Cit® 10/00/85 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: J. Virgil Mattingly, Associate General Counsel, Legal Division, (202) 452-3430. Agency Contact: Walter McEwen, Attorney, Federal Reserve System, Legal Division, 202 452-3321 RIM: 7100-AA32 3. O + REGULATION: @ - SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS (DOCKET NUMBER: R-0529) Legal Authority: 15 USC 78g Securities Exchange Act of 1934, as amended; 15 USC 78h Securities Exchange Act of 1934, as amended; 15 USC 78w Securities Exchange Act of 1934, as amended CFR Citation: 12 CFR 207 Abstract: The Board will consider proposing for public comment an amendment to Regulation G that would provide an exemption for lenders subject to that regulation who make loans to qualified employee stock option plans (ESOPs). If adopted by the Board, the exemption would parallel one already provided to lenders subject to Regulation U (Credit by Bankers for the Purpose of Purchasing or Carrying Margin Stocks). Currently, Regulation G 18108 Federal Register / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda © y r r e ^ t a n d Pr@J@©t@d R u le m a k in g s FRS lenders must comply with the margin requirements if they iriake loans to ESOPs and secure that loan by margin stock. It is not anticipated that the proposal would have a substantial impact on a significant number of small firms. Tlmttabl©:__________________________ Action Board will consider issuing proposal for public comment by Oat® FR ©it® 04/00/85 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Robert Lord, Attorney, Division of Banking Supervision and Regulation, (202) 4522781. Ag@ncy Contact: Laura Homer, Securities Credit Officer, Federal Reserve System, Div of Banking Supervision and Regulation, 202 4522781 ■— ■ RSN: 7100-AA54 m 4. O + REGULATION: J - COLLECTION ©F ©HECKS AND OTHER ITEMS AMD WIRE TRANSFERS @F FUNDS Legal Authority: 12 USC 342 Federal Re serve Act; 12 USC 248(o) Federal Reserve Act; 12 USC 360 Federal Reserve Act; 12 USC 248(i) Federal Reserve Act CFR Citation: 1 2 CFR 210 A bstract: The Board will consider issuing for public comment proposed amendments to Regulation J intended to clarify certain issues that have arisen regarding Federal Reserve payments mechanism activities. The amendments would include (1) permitting the owner or other subsequent holder injured by a Reserve Bank’s alleged failure to exercise ordinary care in handling a check to bring suit against the Reserve Bank; (2) establishing a two-year limitation for actions against a Reserve Bank for alleged mishandling of the collection checks or processing wire transfers and for actions against payor institutions for failure to follow the notification of nonpayment requirement; (3) permitting Reserve Banks to require any prior endorser to defend a suit even if the Reserve Bank has not been sued directly; (4) authorizing depository institutions to deposit with Reserve Banks for collection checks drawn on institutions in foreign countries where Reserve Banks have made arrangements for their collection; (5) clarifying that Reserve Banks are not liable for consequential damages in handling wire transfers; (6) adding the northern Mariana Islands to the Twelfth District for (cont) Tim©tabl@: Aetoom Board will consider issuing for comment a proposal to amend Regulation J by 0@t@ FK CSS® 04/00/85 Small Entity: No Additional Information: ABSTRACT If the Board determines to propose regulations affecting foreign banks under the Act, such regulations would not have a significant economic impact on a substantial number of small businesses since the rules would affect only international banks. Timetable: AetSon Oat© FKi Cite Board adopted 02/13/84 regulations implementing the International Lending Supervision Act Of 1983 Board adopted 03/29/84 additional regulations Board may 12/00/85 propose further regulations by 49 FR 5591 49 FR 12192 CONT: check collection purposes; and (7) clarifying the definitions in subpart A by incorporating by reference definitions in the uniform commercial code. It is not expected that the proposals will have a significant economic impact on a substantial number of small entities. Agency Gontaot: Joseph R. Alexander, Attorney, Federal Reserve System, Legal Division, 202 452-2489 AGENCY CONTACT: Kathleen O’Day, Senior Counsel, Legal Division, (202) 452-3786. Agency Contact: Michael G. Martinson, Projects Manager-International Activities, Federal Reserve System, Div of Banking Supervision and Regulation, 202 452-3621 RIM: 7100-AA55 RIN: 7100-AA356 5. REGULATION: K - INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: R=©4§@) Ltgal Authority: 12 USC 3901 et seq 6. REGULATION: K - INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: Small Entity: No Additional Information: ADDITIONAL International Lending Supervision Act, 1983 Legal Authority: 12 USC 601 to 604a; 12 USC 611 et seq; 12 USC 1841 et seq CFR Citation: 12 CFR 211 CFR Citation: 12 CFR 211 Abstract: In February and March 1984, the Board adopted regulations implementing the International Lending Supervision' Act of 1983 (Title IX, Pub. L. 98-181) with respect to maintenance of reserves against certain international assets, disclosure of information on international assets, and accounting rules for fees on certain international loans. In publishing these regulations the Board requested comment on whether and to what extent the Act should apply to U.S. branches, agencies, and commercial lending company subsidiaries of foreign banks. By action of February 13,1984 (49 FR 5587, 5591), the Board left open the comment period on this issue in order to allow for further public comment. Abstract: In June 1984, the Board proposed for comment revisions to its Regulation K governing the international operations of U.S. banking organizations (49 FR 26002, June 25, 1984). The review and proposed revision of the regulation were undertaken pursuant to a provision of the International Banking Act of 1978 which requires a review every five years of the rules governing Edge Corporations. The proposed regulation presents several alternatives designed to enable Edge Corporations to provide a broader range of banking services than is currently permitted in order to improve the competitive position of Edge Corporations. This rule incorporates, 7 Federal R sgista / ¥ol. 50,. No*. 82 / Monday,, April 29, 1985. / Unified Agenda f r s ©yrtrorat asid! Projected Rulemakings . with several modifications, a previousproposal that, was published for comment in February 1979 (44 FR 10509, February 21,19791. Other major provisions include an increase in the Edge Corporation lending limit; a change in the capitalization requirement co conform to the Board!s Capital Adequacy Guidelines; relaxation of the limits on investments in other7 organizations; establishment of procedures governing a change in control of an Edge Corporation; and several (contj Timetable: Action Proposal to improve competitive position of Edge Corporations Earlier proposal included in revised Regulation K Comment period extended until Further Board action by FR Cite Bat® 02/21/79 44- FR 10509 06/25/84 49 FR 26002 10/12/84 49 FR 33895 04/00/85 Small Entity: No Additional Informations ABSTRACT CONT: provisions governing U.S. operations of foreign banks. It is not expected that the revisions would have a significant economic impact on a substantial number of small businesses. The Board will review the public comments, and is expected to take further action within the near future. ADDITIONAL AGENCY CONTACT: James S. Keller, Manager, International Banking Applications, Division of Banking Supervision and Regulation, (202) 452-2523. A®@ney ©ontaot: Kathleen O’Day, Senior Counsel, Federal Reserve System, Legal Division, 202 452-378S R M l 7100-AA44 7. EIEGdULATIOM: Q - INTEREST ®M DEPOSITS (DOCKET NUMBER: R0514) L@®a! Authority: 12 USC 371 b CFf? Citation: 12 CFR 217 A bstract: In March 1984, the Board proposed amendments to its rules concerning advertising interest on deposits to incorporate a policy tmm statement concerning advertisements for split rate time deposits and for deposits-used as Individual Retirement Account (IRA) investments (49 FR 11642, March 27, 1984). Under the proposal, in the case of a split rate account where a schedule of fixed rates to be paid is established in advance and the first rate to be paid is higher than subsequent rates, die Board would regard any advertisement of a rate as misleading unless the advertisement includes each rate to be paid in equal size type together with a conspicuous statement as to bow long each rate will be in effect and a conspicuous statement of the average effective annual yield. In addition, advertisements should refer to IRAs as “tax deferred" and not as “tax exempt-’ or “tax free.” The proposal would not adversely affect small businesses because no additional reporting or recordkeeping requirements are imposed. The Board will review the public comments and is expected to take further action during the next six months. The Board might also request comment on whether additional requirements are necessary to provide depositors with accurate and adequate information in advertisements or at the time of opening an account It. has been, suggested by some that such new requirements should be imposed to enable depositors to evaluate the many deposit options now available as a result of deregulation of interest rates. If the Board proposes any new rules, they are not likely to be severe nor to require reporting or recordkeeping. Therefore, it is expected that any such proposals would not have a significant adverse effect on small entities. Timetable: Agency Oontaefc Johm Harry Jorgenson, Senior Attorney, Federal Reserve System, Legal Division, 202 452=377® Action Board proposed amendments Next Board action by Bat® 03/27/84 FR CS2® 49 FR 11642 10/00/85 imam Entity: No Agency Contact:. Daniel L. Rhoads, Attorney, Federal Reserve System, Legal Division, 2®2 452?3711 IF15G\3:. 7100-AA36 Timetable: Action Board will consider issuing for comment a proposal to amend Regulation Q by INTEREST Legal Authority: 12 USC 371 b e r a Citation: 12 CFR 217 Abstraet: In March 1984, the Board proposed amendments to its rules concerning advertising interest on deposits to incorporate a policy statement regarding advertisements for split-rate time deposits and for deposits used as Individual Retirement Account investments. (See entry RIN: 7100AA36). In response to comments received in that proceeding, the Board may consider whether, to propose amending Regulation Q further in order to update and incorporate all the Board’s existing requirements governing advertisement of interest on deposits. 8 FR Cl® Small Entity: No KIM: 7100-AA56 8. © RE©ULATS@M: T - CREDIT ®¥ (BROKERS AMD DIALERS (DOCKET MUMSSERl: MSS®) Legal Authority: 15 USC 78g Securities Exchange Act of 1934, as amended; 15 USC 78w Securities Exchange Act of 1934, as amended ©FIR 8..0 + PBE<3ULATi©M: ©M DEPOSITS Bat®. 10/00/85 Citation:. 12 CFR 220 Abstract: In February 1985, the Board proposed for comment an amendment to Regulation T that would set the initial margin requirement for the writing of options on equity securities at the same level, as: the maintenance margin that is required by the. national securities exchange or association and that has been approved hy the Securities and Exchange Commission: (50 FR 5766, February 12,1985). Currently, the margin, requirement for these instruments is set at 30 percent of the value of the underlying securities plus any unrealized loss or minus any unrealized gain. If adopted, the margin for writing options on equity securities will be similar to that of the writing of other options, that is, the initial margin will be identical to that of the 1811(D) Federal Register / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda C u r r e n t a n d P ro je c te d M e m a l k i n g s FRS Securities and Exchange Commission approved maintenance margin. It is not anticipated that this proposal would have a significant impact on a substantial number of small firms. The Board will review the comments and is expected to take further action within the next six months. Timetable: Timetable:_______________________ Small Entity: No Action Additional Information: ADDITIONAL Board requested comment Further Board action by Date 02/12/85 FR Cite 50 FR 5766 10/00/85 Small Entity: No Additional lmf©rma£s@n: ADDITIONAL AGENCY CONTACT: Carolyn Davis, Economist, Division of Research and Statistics, (202) 452-3633. Agency Contact: Laura Homer, Securities Credit Officer, Federal Reserve System, Div. of Banking Supervision and Regulation, 202 4522781 RIM: 7100-AA53 1®. + REGULATION: U = CREDIT BY BANKS FOR TOE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCKS (DOCKET NUMBER: R-0510) Legal Authority: 15 USC 78g Securities Exchange Act of 1934, as amended; 15 USC 78h Securities Exchange Act of 1934, as amended; 15 USC 78w Securities Exchange Act of 1934, as amended CFR Citation: 12CFR221 Abstract: In 1985, the Board may review a proposal submitted on behalf of a banking institution calling for an amendment to Regulation U that would permit banks to extend credit for options transactions in the same manner that broker-dealers may do so under Regulation T (Credit by Brokers and Dealers). In particular, the petitioner has requested the Board to change, if necessary, what is perceived to be a regulatory disparity between the treatment of banks and broker-dealers with respect to the financing of options transactions. It is not anticipated that this proposal would affect a significant portion of the overall lending activities of a substantial number of small firms. Timetable: Action Date Board may review a proposal to amend Regulation U by FR Cite 12/00/85 AGENCY CONTACTS: Robert Lord, Attorney; and Susan S. Meyers, Securities Regulation Analyst, Division of Banking Supervision and Regulation, (202) 452-2781. Agency Contact: Laura Homer, Securities Credit Officer, Federal Reserve System, Div. of Banking Supervision and Regulation, 202 4522781 RIM: 7100-AA38*6 11. REGULATION: Y - BANK HOLDING CO M PANIES AND CHANGE SN BANK CONTROL (DOCKET NUMBER: R- ©511) Legal Authority: 12 USC 1843(c)(8) Bank Holding Company Act Action Board requested comment Further Board action by Date 03/12/84 FR Cite 49 FR 9215 06/00/85 Small Entity: No Additional Information: ABSTRACT CONT: in Regulation Y, although in a more restricted manner. The Board has proposed to define and clarify the insurance agency and underwriting activities generally permissible for bank holding companies so as to conform the regulation to Title VI of the Garn-St. Germain Depository Institutions Act, which was adopted in October 1982. Adoption of the proposal would enable bShk holding com panies to engage in additional activities and would impose no additional burden on any bank holding company. The Board will review the comments and is expected to take further action w ithin the next three months. CFR Citation: 12 CFR 225 A gency C o n tact: James Scott, Attorney, Federal Reserve System, Legal Division, 202 452-3779 Abstract: In March 1984, the Board RSN: 7100-AA1712* proposed for public comment an amendment to Regulation Y that would list certain additional nonbanking activities as generally permissible for bank holding companies under section 4(c)(8) of the Bank Holding Company Act and that may be applied for under the procedures of that section (49 FR 9215, March 12, 1984). The activities proposed to be included in Regulation Y for the first time include: 1. commodity trading advisory services; 2. check guaranty services; 3. consumer financial counseling; 4. armored car services; 5. tax planning and tax preparation; and 6. operating a credit agency and credit bureau. Consum er financial counseling and check guaranty services have been perm itted previously by Board order on individual applications. In addition the Board has proposed to expand the activities of property appraisal and providing advice in connection w ith future commission m erchant activities. These activities have been included previously in the list of perm issible activities (cont) 9 12. REGULATION: Y - BANK HOLDING COMPANIES AND CHANGE SN BANK CONTROL (DOCKET NUMBER: FI0491) Legal Authority: 12 USC 1843(c)(8) Bank Holding Company Act CFR Citation: 12 CFR 225 Abstract: In November 1983, the Board published for comment a proposal to eliminate the requirement in Regulation Y that bank holding companies engaging in credit life and credit accident and health insurance underwriting provide rate reductions or increased policy benefits in order to engage in this activity (48 FR 53125, November 25, 1983.) The Board took this action as a result of the suggestions of several commenters to the Board’s recent revision of Regulation Y, who advocated elimination of the rate reduction requirement from the regulation. These commenters stated that in their view the requirement puts bank holding companies at a competitive disadvantage with respect to other providers of this service, and that they knew of no significant Federal Register / Vol. 50, No. 8Z / Monday, April 29, 1985 / Unified Agenda FRS Current and Projected Rulemakings evidence that the performance of thi3 activity has resulted in the adverse effects on the public considered by the Board in its 1972 decision approving this activity. It is expected that adoption of this proposal would lead to a relaxation of the regulatory burden, on bank holding companies which engage in this activity. The Board will review the public comments and is expected to take further action within the next three months. Timetable: Action Board requested comment Further Board action by Oats 11/25/83 r a Cite 48 FR 53125 06/00/85 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Michael J. O’Rourke, Attorney, Legal Division, (202) 452-3288. Agency Contact:). Virgil Mattingly, Associate General Counsel, Federal Reserve System, Legal Division, 202 452-3430 R8N: 7100-AA40 13. + REGULATION: Y - BANK HOLDING CO M PANIES AND CHANGE IN BANK CONTROL Legal Authority: 12 USC 1843 Bank Hold ing Company Act; 12 USC 1844(b) Bank Hold ing Company Act CFR Citation: 12 CFR 225 Abstract: A provision of Regulation Y permits a state bank subsidiary of a bank holding company to engage through a nonbank subsidiary in any activity that is permissible under state law for the bank subsidiary itself, subject to the same limits as if the bank engages in the activity directly. (A similar rule applies to national bank subsidiaries regarding activities permissible for such banks under federal law.) The Board received comments on this provision in connection with its general request for comments in May 1983 regarding the proposed revision of Regulation Y. Some of the commenters challenged the Board’s authority to issue this provision, although it has been part of Regulation Y since 1971. In taking final actio n on the revision of Regulation Y, the B oard d e fe rre d consideration of the 18111 comments oa this provision and allowed the existing rule to remain in effect in the interim (49 FR 794, January 5, 1984). The Board plans to review this provision of the regulation in the near future. A determination to reverse the Buie could have an adverse impact on many small banks that are subsidiaries of holding companies because they might be required; to (cont) Timetable: this area w as requested in response to enactm ent of a num ber oT state la w s th at have recently authorized sta te 1 b an k s to conduct a b road array of nonbanking activ ities th at previously w ere n o t authorized for state banks or bank holding com panies, including reaL estate investm ent activities. Until the Board review s the public com m ents on this activity, i t is unclear w hether die Board will act in this area or (pont) Action Action Date Board requested 05/25/83 comments Board allows 01/05/84 existing rule to remain in effect Board will review 10/00/85 further by FR Cite 48 FR 23520 49 FR 794 Small Entity: Yes Additional Information: ABSTRACT CONT: restructure their nonbanking activities or to take other action. Agency Contact: J. Virgil Mattingly, Associate General Counsel, Federal Reserve System, Legal Division, 202 452-3430 RIM: 7100-AA4114 Timetable: ANPRM Further Board action by Date 01/3-1/85 10/00/85 FR. Cite 50 FR 4519 Small Entity: Yes Additional Information: ABSTRACT CONT: w hat specific action the Board may take. Therefore, the effect on small entities cannot be accurately predicted. H ow ever, if the Board should take restrictive m easures, bank holding com panies of all sizes and their subsidiaries participating in this activity w ould be affected. Agency Contact: J. Virgil Mattingly, A ssociate G eneral Counsel, Federal Reserve System, Legal Division, 202 452-343® RiN: 7100-AA52 14. O REG ULATIO N :^ - BANK HOLDING CO M PANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0537) Legal Authority: 12 USC 1841 Bank Hold ing Company Act; 12 USC 221 Federal Re serve Act; 12 USC 3901 International Lending Supervision Act of 1983 CFR Citation: 12 CFR 225 Abstract: In January 1985, the Board requested public comment regarding whether, and to what extent, the Board should exercise its authority under the Bank Holding Company Act, the Federal Reserve Act, and the International Lending Supervision Act to authorize or limit the conduct of real estate investment activities by bank holding companies and their nonbank subsidiaries (50 FR 4519, January 31, 1985). The Board has not proposed a specific regulation at this time, and has only requested comment on the general question of whether, and in what direction Board regulation in this area is appropriate. In the event the Board determines to propose a regulation in this area, the public will be invited to comment on the regulation. Comment in 10 15. 0 REGULATION: Y - BANK HOLDING CO M PANIES AND CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0536) Legal Authority: 12 USC 1841 et seq Bank Holding Company Act CFR Citation: 12 CFR 225. Abstract In January 1985, the Board requested public comment as to whether the Board should permit bank holding companies that own nonbank banks to provide internal administrative services to, and establish management interlocks with, those nonbank banks (50 FR 2057, January 15, 1985). (“Nonbank banks” are institutions that are chartered as banks but which either do not accept demand deposits'or do not make commercial loans.) The Board took this action to resolve a number of questions that had been raised regarding the appropriate scope of relationships between nonbank banks and their affiliates. It is likely that any action the Board might take would primarily affect larger bank holding systems and would relax a requirement or prohibition. Federal Register / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda 18112 C u rre n t m d P ro je c te d R u lem ak in g s FIRS Therefore, it is expected that Board action would not have a significant economic impact on a substantial number of small entities. The Board will review the public comments and take further action within the near future. Timetable: Action Board requested comment Further Board action by Small Entity: FR Cite Date 01/15/85 50 FR 2057 04/00/85 No Carl Howard, Senior Counsel, Federal Reserve System, Legal Division, 202 452-3786 A gency C ontaet: RIN: 7100-AA51 16. REGULATIONS: Y - BANK HOLDING CO M PANIES AND CHANCE BN BANK CONTROL; REGULATION: H “STATE BA NBC M EM BERSH IP”; AND RU LES OF PRACTICE FOR HEARINGS (DOCKET NUMBER: R-0526) Legal Auttorot^: 12 USC 3907 Internation al Lending Supervision Act of 1983; 12 USC 3903 International Lending Supervision Act of 1983; 12 USC 1844(b) Bank Holding Compa ny Act; 12 USC 1818 Financial Institutions Su pervisory Act of 1966; 12 USC 248 Federal Reserve Act; 12 USC 324 Federal Reserve Act; 12 USC 329 Federal Reserve Act CFR Citation: 12 CFR 208, Appendix A; 12 CFR 225, Appendix A; 12 CFR 263 Absfliraef: In July 1984, the Board proposed for comment amended Capital Adequacy Guidelines for bank holding companies and State member banks as well as a regulation embodying procedures to enforce these Guidelines (49 FR 30317, July 30, 1984). This proposal is designed to implement the requirement in the International Lending Supervision Act of 1983 that the Board "cause banking institutions to achieve and maintain adequate capital.” The proposal seeks to establish uniform minimum capital levels for all federally regulated banks (in conjunction with the Federal Deposit Insurance Corporation and the Comptroller of the Currency). The proposal would also raise the minimum capital requirements for larger regional and multinational state member banks and bank holding companies, and would establish a uniform minimum capital level for large and small banks and bank holding companies. The impact on small institutions would be a slight easing of minimum primary capital requirements. The Board will review the comments and is expected to take further action within the near future. Timetebli®: Action Board requested comment Further Board action by Oats 07/30/84 FR Cite 49 FR 30317 03/00/85 Small Entity: No Additional Information: ADDITIONAL AGENCY CONTACT: Richard Spillenkothen, Assistant Director, Division of Banking Supervision and Regulation, (202) 452-2594. Agency Contact: James E. Scott, Senior Attorney, Federal Reserve System, Legal Division, 202 452-3513 RIN: 7100-AA45 17. © + REGULATION: 2 - TRUTH IN LENDING Legal Authority: 15 USC 1604, as amend ed Truth in Lending Act CFR Citation: 12 CFR 226 A bstract: Regulation Z currently requires that creditors provide information to consumers regarding variable rate features in credit transactions. In the last several years, adjustable rate mortgages have become increasingly common and complex, and concern has been expressed in Congress and elsewhere as to whether Truth in Lending disclosures adequately convey to consumers the terms and potential costs of these mortgages. The Board, as the agency charged with implementing the Truth in Lending Act, is considering whether to propose more extensive disclosure of the variable rate feature in order to provide consumers with the information needed for informed credit decisions, in keeping with the purpose of Truth in Lending. It is likely that any proposed amendment would involve an expansion of section 226.18(f) of the regulation, which outlines the required variable rate information, and that such an amendment might be limited to mortgage transactions. The Board is also concerned about the creditor burdens associated with compliance with the variable rate regulations of several federal agencies and will 11 consider what actions could be taken to minimize (cont) Timetable: Action Board to determine appropriate action by Date FR Cite 10/00/85 Small Entity: Yes Additional Information: ABSTRACT CONT: the burdens of overlapping regulation in this area. If the Board adopts revisions, mortgage creditors, including small business engaged in mortgage lending, could incur some costs in implementing the revised disclosure by revising and reprinting forms and changing certain procedures to comply with the requirement. Before any final action, the Board would consider appropriate actions to minimize the burdens and costs of compliance. Agency Contact: Margaret Stewart or Susam Werthan, Senior Attorneys, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-2412 RSN: 7100-AA50 18. REGULATION: AA - UNFAIR OR DECEPTIVE ACTS OR PRACTICES (DOCKET NUMBER: R-0006) Legal Authority: 15 USC 57a Federal Trade Commission Act CFR Citation: 12 CFR 227 Abstract: The Federal Trade Commission (FTC) Act requires that whenever the FTC enacts a rule covering unfair or deceptive acts or practices, the Federal Reserve Board must, within 60 days of the rule’s effective date, promulgate a substantially similar rule governing banks. The Board may decline to issue such a rule only if the Board determines that such acts or practices of banks are not unfair or deceptive or that implementation of the rule with respect to banks would seriously conflict with essential monetary and payment systems policies of the Board. In March 1984, the FTC published a trade regulations rule known as the Credit Practices Rule (49 FR 7740, March 1,1984), which will prohibit certain provisions that sometimes appear in consumer credit contracts to aid in the collection of unpaid debts. It Federal Register / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda F IR S C u rr e n t a n d P ro je c te d IR u le m a k sn g s will also impose certain specific disclosure and contractual requirements on creditors. The rule will go into effect on March 1, 1985 and will apply only to non-financial institution creditors. When the FTC first published the proposed Credit Practices Rule in 1975, the Board published a substantially similar (cont) Timetable: Bat® Action FR at© F T C prop osed C redit P ra ctic es R ule 0 4 /0 0 /7 5 4 0 FR 1 6 3 4 7 S im ilar proposal published by Board 0 4 /0 0 /7 5 4 0 FR 1 9 4 9 5 F T C ad o p ted C redit P ra ctic es R ule 0 3 /0 1 /8 4 4 9 FR 7 7 4 0 B oard published 1 1 /3 0 /8 4 sim ilar proposal B o a rd to d e te rm in e ac tion by 4 9 FR 4 7 0 4 1 0 5 /0 0 /8 5 from the rule’s "dealer” definition. This conclusion was based upon the determination that banks do not engage in the sale of used motor vehicles in a retail sales environment, and, absent such an environment, the risk of the deceptive practices found to be characteristic of used car sales presentations was substantially diminished. The FTC Act, generally, requires the Federal Reserve Board to issue a substantially similar rule to prohibit substantially similar acts or practices of banks within 60 days of the effective date of an FTC rule covering unfair or deceptive acts or practices. The Act provides that the Board may decline to issue a rule if the Board determines that such acts or practices of banks are not unfair or deceptive or that (cont) Timetable: Action Additional information: ABSTRACT CONT: proposal (40 FR 19495). The Board received public comments and made them available to the FTC. In November 1984, the Board published for comment a proposal substantially similar to the FTC’s final Credit Practices Rule (49 FR 47041, November 30, 1984), and requested comment on whether the FTC’s rule should apply to banks. The Board will review the public comments and is expected to take further action within the near future. Agency Contact Steven Zeise! or Richard Garabedian, Staff Attorneys, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-3867 RIN: 7100-AA42 19. O -(-REGULATION: AA - UNFAIR OR DECEPTIVE ACTS OR PRACTICES Legal Authority: 15 T ra d e C om m issio n A ct USC 57a F e deral CFR Citation: 12CFR227 Abstract: In N ovem ber 1984, the Federal T rade Commission (FTC) published a final trade regulation rule on the sale of used m otor vehicles, know n as the "Used Car Rule,” (49 FR 45692 N ovem ber 29, 1984), effective M ay 9, 1985. In adopting the U sed Car Rule, the FTC specifically excluded banks and other financial institutions Date F T C a d o p te d th e “ U s e C ar R u le ” 1 1 /2 9 /8 4 B oa rd to d e te rm in e ap p ro p ria te action by 0 4 /0 0 /8 5 Small! Entity: Yes 18113 FR CSt© 49 FR 4 5 6 9 2 The Board is currently examining the rule, the FTC’s conclusion, and its responsibilities under the FTC Act to determ ine w hether any action by the Board w ould be n ecessary or appropriate. To the extent that the Board takes any action, it is unlikely th at the action w ould have a significant im pact on a substantial num ber of sm all entities. A gency C o n tact: G erald Hurst, Senior Attorney, Federal Reserve System, Division of Consum er and Community Affairs, 2 0 2 4 5 2 - 3 6 6 7 7 1 0 0 -A A 4 9 -. — a I .... — It is not expected th at this proposal w ould have a significant economic im pact on a substantial num ber of small entities as it focuses prim arily on Board personnel and m anagem ent policies and practices. The Board will review the public com ments and is expected to take further action during the next six months. Action Additional Information: ABSTRACT CONT: im plem entation of the rule with respect to banks w ould seriously conflict w ith essential m onetary and paym ent system s policies of the Board. i issued for public comment proposals to revise and expand its Equal Employment Opportunity regulation for the following purposes: (1.) to conform the regulation in so far as possible to existing regulations of the Equal Employment Opportunity Commission governing the substantive rights of employees and applicants for employment with Federal agencies; (2.) to designate clear responsibility for equal employment opportunity functions in light of changes in the Board’s organizational structure: and (3.) to prohibit discrimination against the handicapped in programs and activities conducted by the Board. Timetable: Small Entity: No RIM: Abstract: In August 1984, the Board — a — mm ■ ■— ■. ■■ ■ ......i 20. REGULATION: EQUAL EMPLOYMENT OPPORTUNITY (DOCKET NUMBER: R-0527) Legal Authority: 12 R e s e rv e Act, S e c 11 (I) USC CFR Citation: 12CFR268 12 2 4 8 (l) Fe d e ra l Bat® B oard re q u ested co m m e n t 0 8 /2 4 /8 4 Fu rther B oard action by 1 0 /0 0 /8 5 Small Entity: FR Cits 4 9 FR 3 3 8 2 2 No Additional Information: ADDITIONAL AGENCY CONTACT: Stephen L. Siciliano, Senior Counsel, Legal Division, (202) 452-3920. Agency Contact: Portia Thompson, EEO Programs Officer, Federal Reserve System, Office of Staff D irector for M anagem ent, 202 452-3549 R8N: 7 1 0 0 -A A 4 6 21. P R O P O SA L S TO R ED U C E R IS K ON LA R G E D O LLA R T R A N S F E R S Y S T E M S (D O C KET NUMBER: R-0515) Legal Authority: 12 U S C 221 e t seq Abstract: In April 1984, the Board requested public comment on several proposals to reduce risks on largedollar wire transfer systems (49 FR 13186, April 3, 1984). The Board took this action in response to its concern that developments that might arise in connection with such networks could destabilize financial markets and the economy. The proposals, if adopted, M 1M Federal E©g!§teff / Vol. 50, No. 82 / Monday, April 29, 1985 / Unified Agenda FlHiS Current send! Projected would likely apply only to financial institutions, although customers of such institutions may be affected indirectly. Because large-dollar funds transfer systems are typically used frequently only by the largest financial institutions, It is not anticipated that these proposals, if adopted, would have a significant economic impact on a substantial number of small entities. The Board will review the public comments and is expected to take further action within the next three months. Action Timetable: Small Entity: No Acttera 0 s 3q FR ©fit© Board requested 04/03/84 49 FR 13186 eomrnent Board extended 10/29/84 49 FR 24595 comment period until FEDERAL RESERVE SVSTIRfl (FRS| 22. REGULATORY IMPROVEMENT i» J IE © T USC 3501 Financial Regulation Simplification Act off 1980; 5 USC 605 Regulatory Flexibility Act ■ A(b©tr©©t: The Board’s Regulatory Improvement Project involves, among other things, a substantive, zero-based review of all Federal Reserve regulations that affect the public to determine: (1} the fundamental objectives of the regulation and the extent to which it is meeting current policy goals, (2) nonregulatory alternatives that would accomplish the objectives, (3) costs and benefits qf the regulation, (4} unnecessary burdens imposed by the regulation, and (5) the clarity of the regulation. The Project also participates in the development of proposals listed in this agenda to ensure that the objectives of the Project are m et Since publication of the last semiannual Agenda, specific revision of Regulation B (“Equal Credit Opportunity”] has been proposed. (See Entry RIM 7100L e g a l A u th o rity : 12 Legal Authority: 15 USC 1603b Electronic Fund Transfer Act CFR Citation: 12 CFR 205 Afestraefe In January 1984, the Board published for comment two proposed amendments to Regulation E (49 FR 2204, January 18,1984]. The first proposal would bring within the definition of an electronic fund transfer, FR © o3q 06/00/85 Agency ©©pteeS: Edward C. Ettin, Deputy Director, Federal Reserve System, Division of Research and Statistics, * 452-33ES RUM: 7100-AA47 Existing Regulations Under Review AA28). In addition, comments on a proposed revision of Regulation K (“International Banking Operations”] are being reviewed. (See Entry RIN 71QQ-AA44). It is expected that both of these reviews will be completed during the next twelve months. Consideration will be given to commencing within the next twelve months the zero-based (cont) Timetable: Action ANPRM Regulation B Revision off Regulation K proposed for comment Revision off Equal Employment Opportunity Regulation proposed for comment Revision of Regulation B proposed for comment Safi© FR ©53© 06/21/83 48 FR 28285 06/25/84 49 FR 26002 00/24/84 49 FR33822 03/01/85 Spill] Entity: No Additional Isifermation: ABSTRACT CONT: review of the following regulation: P--“Minimum Security Devices and Procedures” (12 CFR 216); Q - “Interest on Deposits” (12 CFR 217); R--“Relations with Dealers in Securities under Section 32, Banking Act of 1933” (12 CFR 218); and AA--“Un£air or Deceptive Acts or Practices” (12 CFR 227). Consideration will also be given to beginning major reviews of the Board’s “Rules of Procedure” (12 CFR 262) and the "Rules Regarding Availability of Information” (12 CFR 261), and to developing a simplified draft of the Board’s “Equal Employment Opportunity” regulation (12 CFR 268). Commenters are invited to submit any suggestions they may have for possible changes in this regulatory agenda for the next twelve months. Agency ©®nta©8: Barbara EL Lowrey, Associate Secretary, Federal Reserve System, Office of the Secretary, 2®2 452-2S742 RSN: 7100-AA14 Completed Aetisns FEDERAL RESERVE SYSTEM CFRS) COMPLETED RULEM AKIN GS 23. REGULATION: UE ° ELECTRONIC FUND TR A N SFER S (DOCKET NUMBER: R-0502) Further Board action by 0s3© and thus within the coverage of the Electronic Fund Transfer Act and the regulation, transfers resulting from point-of-sale debit card transactions that are processed electronically but do not involve an electronic terminal at the point of sale. In addition, it would provide additional time in these cases for error resolution. The second proposal would give financial Institutions the option to disclose charges for electronic fund transfers - on periodic statements ~ either on a transaction-by-transaction 13 basis, or as a total sum. After considering the public comments the Board, in October 1984, adopted the second proposal as proposed- and the first proposal with some changes (49 FR 40794, October 18,1984). As adopted, the first proposal brings within the definition of an electronic fund transfer all transfers resulting from debit card transactions; extends the time periods for error resolution for all point-of-sale transactions; (cont) Federal Register / VoL 50, No. 82 / Monday, April 29, 1985 / Unified Agenda 18115 FIRS T 8 r o © t i ) b B © : _________________ _ Action Date Board published 01/18/84 for comment two proposed amendments to Regulation E Board adopted 10/18/84 amendments PR Cite 49 FR 2204 49 FR 40794 Small Entity: No Additional Informations ABSTRACT CONT: and provides an exemption from the debit card requirement that an account be provisionally recredited with the amount of an unresolved error within 10 or 20 business days, if the account is subject to the Board’s Regulation T. The amendments are not expected to have a significant economic impact on a substantial number of small entities since the compliance requirements are unlikely to be very burdensome and in some cases such as the longer error resolution times, compliance burdens are being reduced. Ag©n@y Cfonflaigt: Gerald! Hurst, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs, 202 452-3667 R8N: 7100-AA34 24. REGULATIONS J - C O LLEC T IO N OF C H E C K S AN D O TH ER STEMS AN D W IR E T R A N S F E R S O F FU N D S P O C K E T N U M iE R s R=@35? A N D 630522) Legal Authority: 12 USC 342 Federal Re serve Act; 12 USC 248(o) Federal Reserve Act; 12 USC 360 Federal Reserve Act; 12 USC 248(i) Federal Reserve Act C FR Citations 1 2 CFR2 1 0 Abstracts In February 1985, the Board adopted a proposal to improve the process by which checks are returned. The Board has amended Subpart A of Regulation J to require the paying bank to provide timely notice to the depository institution at which the check was originally deposited that the check is being returned unpaid (50 FR 5734, February 12, 1985). The Federal Reserve Banks will enhance the notification service they currently provide to assist paying banks in meeting this requirement, and also will make an enhanced notification service available to depository institutions for checks collected outside the Federal Reserve. The proposal that was adopted is a change in an earlier Board proposal issued in May 1981 and adopted in part by the Board in August 1981 (46 FR 42059, August 19,1981). At that time the Board deferred action on three proposals: two have been incorporated in the proposal that was adopted and the other (an amendment incorporating provisions for collecting coupons and other securities similar to provisions regarding the payment and return of cash items) has been deferred pending further study. The Board has concluded that the proposal that was (cont) Tim©tab>B©s Action Board solicited comment on proposals to amend Subpart A Board adopted one proposal and deferred action on others Board requested comment on revised proposals Board adopted revised proposal Date 05/01/81 FR Cite existing procedures to these applications and believes that the Board may adequately continue to do so without need for further regulation. Therefore, an amendment to Regulation Y is no longer being considered. TlmefabS©: Action) Date FR Site Board action not 02/27/85 expected Small Entity: No Ageney C@ota©t: J. Virgil Mattingly, A ssociate General Counsel, Federal Reserve System, Legal Division, 202 452-343® RSN: 7100-AA26 46 FR 24576 2®. REGULATION: 2 - TRUTH IN LENDING (D O C KET NUMBER: 63-0501) 08/19/81 46 FR 42059 Legal Authority: 15 USC 1604, as amend ed Truth in Lending Act C FR Citation: 12 CFR 226 06/28/84 49 FR 26597 02/12/85 50 FR 5734 Small Entity: No Additional Information: ABSTRACT CONT: adopted should not have a significant economic impact upon a substantial number of small entities. Ag©n©y C@nta©ts Robert G. Ballen, Attorney, Federal Reserve System, Legal Division, 202 452-3265 RINs 7100-AA43 25. REGULATION: V - BA N K HOLDING C O M P A N IE S AN D C H AN G E IN SSANCC CONTROL L@gal Authority: 12 USC 1861 Bank Serv ice Corporation Act C FR Citation:' 12 CFR 225 Abstract: The October 1984 Agenda referred to a possible proposal to amend Regulation Y by adding authority for member banks to invest individually or jointly in bank service corporations under an amendment to the Bank Service Corporation Act made by section 709 of the Garn-St Germain Depository Institutions Act of 1982. The Board’s staff has been processing applications under this Act by adapting 14 Abstract: In January 1984, the Board published for comment a proposed amendment to Regulation Z, which would clarify that all credit cards issued for use in transactions that are generally exempt from Regulation Z are still subject to the Regulation Z provisions that prohibit the unsolicited issuance of credit cards and that limit the cardholder’s liability for unauthorized use to a maximum of $50 (49 FR 2210, January 18, 1984). Following review of public comments, the Board in November 1984 adopted the proposal in substantially the form proposed (49 FR 46989, November 30. 1984). The vast majority of the credit cards that are affected by this amendment are telephone credit cards; therefore, the entities most affected will be in the telecommunications industry. However, cards issued for use with other types of exempt transactions (such as those issued for use with fixed credit lines over $25,000 that are not secured by real estate or a dwelling) are also subject to the provisions on issuance and liability for unauthorized use. The amendment should not (cont) TIm©1tabS©: Aeittein! Board requested comment Board adopted amendment Oat® FR Cite 01/18/84 49 FR 2210 11/30/84 49 FR 46989 M2L1© Federal Register / Vol. 50, No. @2 / Monday,’ April 29, 1985 / Unified Agenda ©@mpS<it®d! Aettong FF1S Small Entity: No Additional Oratotfraalfcinis ABSTRACT complying with the unsolicited issuance prohibition. CQNT: have a significant adverse impact on small entities. To facilitate compliance, the Board set a delayed effective date of January 29,1985 for Agency Ccintect: Ruth R. Amberg, Senior Attorney, Federal Reserve System, Division of Consumer and Community Affairs, 282 452-36S7 KIM: 7100-AA37 [FR Doc. 85-6886 Filed 04-26-85; 8:45am] SILLING CODE 5210-91-T 15
@FedFRASER