old from 2003 but basic idea fed deislosure§ 226.29 12 CFR Ch. II (1–1–03 Edition

§ 226.29 12 CFR Ch. II (1–1–03 Edition)
provisions of this regulation are preempted
to the extent of the inconsistency.
A State law is inconsistent if it
requires a creditor to make disclosures
or take actions that contradict the requirements
of the Federal law. A State
law is contradictory if it requires the
use of the same term to represent a different
amount or a different meaning
than the Federal law, or if it requires
the use of a term different from that
required in the Federal law to describe
the same item. A creditor, State, or
other interested party may request the
Board to determine whether a State
law requirement is inconsistent. After
the Board determines that a State law
is inconsistent, a creditor may not
make disclosures using the inconsistent
term or form.
(2)(i) State law requirements are inconsistent
with the requirements contained
in sections 161 (Correction of
billing errors) or 162 (Regulation of
credit reports) of the Act and the implementing
provisions of this regulation
and are preempted if they provide
rights, responsibilities, or procedures
for consumers or creditors that are different
from those required by the Federal
law. However, a State law that allows
a consumer to inquire about an
open-end credit account and imposes
on the creditor an obligation to respond
to such inquiry after the time allowed
in the Federal law for the consumer
to submit written notice of a
billing error shall not be preempted in
any situation where the time period for
making written notice under this regulation
has expired. If a creditor gives
written notice of a consumer’s rights
under such State law, the notice shall
state that reliance on the longer time
period available under State law may
result in the loss of important rights
that could be preserved by acting more
promptly under Federal law; it shall
also explain that the State law provisions
apply only after expiration of the
time period for submitting a proper
written notice of a billing error under
the Federal law. If the State disclosures
are made on the same side of a
page as the required Federal disclosures,
the State disclosures shall appear
under a demarcation line below
the Federal disclosures, and the Federal
disclosures shall be identified by a
heading indicating that they are made
in compliance with Federal law.
(ii) State law requirements are inconsistent
with the requirements contained
in chapter 4 (Credit billing) of
the Act (other than section 161 or 162)
and the implementing provisions of
this regulation and are preempted if
the creditor cannot comply with State
law without violating Federal law.
(iii) A State may request the Board
to determine whether its law is inconsistent
with chapter 4 of the Act and
its implementing provisions.
(b) Equivalent disclosure requirements.
If the Board determines that a disclosure
required by state law (other than
a requirement relating to the finance
charge, annual percentage rate, or the
disclosures required under § 226.32) is
substantially the same in meaning as a
disclosure required under the act or
this regulation, creditors in that state
may make the state disclosure in lieu
of the federal disclosure. A creditor,
State, or other interested party may
request the Board to determine whether
a State disclosure is substantially
the same in meaning as a Federal disclosure.
(c) Request for determination. The procedures
under which a request for a determination
may be made under this
section are set forth in appendix A.
(d) Special rule for credit and charge
cards. State law requirements relating
to the disclosure of credit information
in any credit or charge card application
or solicitation that is subject to
the requirements of section 127(c) of
chapter 2 of the act (§ 226.5a of the regulation)
or in any renewal notice for a
credit or charge card that is subject to
the requirements of section 127(d) of
chapter 2 of the act (§ 226.9(e) of the
regulation) are preempted. State laws
relating to the enforcement of section
127 (c) and (d) of the act are not preempted.
[Reg. Z, 46 FR 20892, Apr. 7, 1981, as amended
at 54 FR 13867, Apr. 6, 1989; 54 FR 32954, Aug.
11, 1989; 60 FR 15471, Mar. 24, 1995]
§ 226.29 State exemptions.
(a) General rule. Any State may apply
to the Board to exempt a class of transactions
within the State from the requirements
of chapter 2 (Credit transactions)
or chapter 4 (Credit billing) of
VerDate Dec<13>2002 10:49 Mar 04, 2003 Jkt 200035 PO 00000 Frm 00292 Fmt 8010 Sfmt 8010 Y:\SGML\200035T.XXX 200035TFederal Reserve System § 226.31
50 Compliance with this section will constitute
compliance with the disclosure requirements
on limitations on increases in
footnote 12 to §§ 226.6(a)(2) and 226.18(f)(2)
until October 1, 1988.
the Act and the corresponding provisions
of this regulation. The Board
shall grant an exemption if it determines
that:
(1) The State law is substantially
similar to the Federal law or, in the
case of chapter 4, affords the consumer
greater protection than the Federal
law; and
(2) There is adequate provision for
enforcement.
(b) Civil liability. (1) No exemptions
granted under this section shall extend
to the civil liability provisions of sections
130 and 131 of the Act.
(2) If an exemption has been granted,
the disclosures required by the applicable
State law (except any additional requirements
not imposed by Federal
law) shall constitute the disclosures required
by this Act.
(c) Applications. The procedures under
which a State may apply for an exemption
under this section are set forth in
appendix B.
[46 FR 20892, Apr. 7, 1981; 46 FR 29246, June 1,
1981]
§ 226.30 Limitation on rates.
A creditor shall include in any consumer
credit contract secured by a
dwelling and subject to the act and this
regulation the maximum interest rate
that may be imposed during the term
of the obligation 50 when:
(a) In the case of closed-end credit,
the annual percentage rate may increase
after consummation, or
(b) In the case of open-end credit, the
annual percentage rate may increase
during the plan.
[52 FR 43181, Nov. 9, 1987]
Subpart E—Special Rules for Certain
Home Mortgage Transactions
SOURCE: Reg. Z, 60 FR 15471, Mar. 24, 1995,
unless otherwise noted.
§ 226.31 General rules.
(a) Relation to other subparts in this
part. The requirements and limitations
of this subpart are in addition to and
not in lieu of those contained in other
subparts of this part.
(b) Form of disclosures. (1) General.
The creditor shall make the disclosures
required by this subpart clearly and
conspicuously in writing, in a form
that the consumer may keep.
(2) Electronic communication. For rules
governing the electronic delivery of
disclosures, including a definition of
electronic communication, see § 226.36.
(c) Timing of disclosure—(1) Disclosures
for certain closed-end home mortgages.
The creditor shall furnish the disclosures
required by § 226.32 at least three
business days prior to consummation
of a mortgage transaction covered by
§ 226.32.
(i) Change in terms. After complying
with paragraph (c)(1) of this section
and prior to consummation, if the creditor
changes any term that makes the
disclosures inaccurate, new disclosures
shall be provided in accordance with
the requirements of this subpart.
(ii) Telephone disclosures. A creditor
may provide new disclosures by telephone
if the consumer initiates the
change and if, at consummation:
(A) The creditor provides new written
disclosures; and
(B) The consumer and creditor sign a
statement that the new disclosures
were provided by telephone at least
three days prior to consummation.
(iii) Consumer’s waiver of waiting period
before consummation. The consumer
may, after receiving the disclosures required
by paragraph (c)(1) of this section,
modify or waive the three-day
waiting period between delivery of
those disclosures and consummation if
the consumer determines that the extension
of credit is needed to meet a
bona fide personal financial emergency.
To modify or waive the right,
the consumer shall give the creditor a
dated written statement that describes
the emergency, specifically modifies or
waives the waiting period, and bears
the signature of all the consumers entitled
to the waiting period. Printed
forms for this purpose are prohibited,
except when creditors are permitted to