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U.S. Code as of:
01/19/04
Section 1604. Disclosure guidelines
(a) Promulgation, contents, etc., of regulations
The Board shall prescribe regulations to carry out the purposes
of this subchapter. Except in the case of a mortgage referred to in
section 1602(aa) of this title, these regulations may contain such
classifications, differentiations, or other provisions, and may
provide for such adjustments and exceptions for any class of
transactions, as in the judgment of the Board are necessary or
proper to effectuate the purposes of this subchapter, to prevent
circumvention or evasion thereof, or to facilitate compliance
therewith.
(b) Model disclosure forms and clauses; publication, criteria,
compliance, etc.
The Board shall publish model disclosure forms and clauses for
common transactions to facilitate compliance with the disclosure
requirements of this subchapter and to aid the borrower or lessee
in understanding the transaction by utilizing readily
understandable language to simplify the technical nature of the
disclosures. In devising such forms, the Board shall consider the
use by creditors or lessors of data processing or similar automated
equipment. Nothing in this subchapter may be construed to require a
creditor or lessor to use any such model form or clause prescribed
by the Board under this section. A creditor or lessor shall be
deemed to be in compliance with the disclosure provisions of this
subchapter with respect to other than numerical disclosures if the
creditor or lessor (1) uses any appropriate model form or clause as
published by the Board, or (2) uses any such model form or clause
and changes it by (A) deleting any information which is not
required by this subchapter, or (B) rearranging the format, if in
making such deletion or rearranging the format, the creditor or
lessor does not affect the substance, clarity, or meaningful
sequence of the disclosure.
(c) Procedures applicable for adoption of model forms and clauses
Model disclosure forms and clauses shall be adopted by the Board
after notice duly given in the Federal Register and an opportunity
for public comment in accordance with section 553 of title 5.
(d) Effective dates of regulations containing new disclosure
requirements
Any regulation of the Board, or any amendment or interpretation
thereof, requiring any disclosure which differs from the
disclosures previously required by this part, part D, or part E of
this subchapter or by any regulation of the Board promulgated
thereunder shall have an effective date of that October 1 which
follows by at least six months the date of promulgation, except
that the Board may at its discretion take interim action by
regulation, amendment, or interpretation to lengthen the period of
time permitted for creditors or lessors to adjust their forms to
accommodate new requirements or shorten the length of time for
creditors or lessors to make such adjustments when it makes a
specific finding that such action is necessary to comply with the
findings of a court or to prevent unfair or deceptive disclosure
practices. Notwithstanding the previous sentence, any creditor or
lessor may comply with any such newly promulgated disclosure
requirements prior to the effective date of the requirements.
(f) (!1) Exemption authority
(1) In general
The Board may exempt, by regulation, from all or part of this
subchapter any class of transactions, other than transactions
involving any mortgage described in section 1602(aa) of this
title, for which, in the determination of the Board, coverage
under all or part of this subchapter does not provide a
meaningful benefit to consumers in the form of useful information
or protection.
(2) Factors for consideration
In determining which classes of transactions to exempt in whole
or in part under paragraph (1), the Board shall consider the
following factors and publish its rationale at the time a
proposed exemption is published for comment:
(A) The amount of the loan and whether the disclosures, right
of rescission, and other provisions provide a benefit to the
consumers who are parties to such transactions, as determined
by the Board.
(B) The extent to which the requirements of this subchapter
complicate, hinder, or make more expensive the credit process
for the class of transactions.
(C) The status of the borrower, including -
(i) any related financial arrangements of the borrower, as
determined by the Board;
(ii) the financial sophistication of the borrower relative
to the type of transaction; and
(iii) the importance to the borrower of the credit, related
supporting property, and coverage under this subchapter, as
determined by the Board;
(D) whether the loan is secured by the principal residence of
the consumer; and
(E) whether the goal of consumer protection would be
undermined by such an exemption.
(g) Waiver for certain borrowers
(1) In general
The Board, by regulation, may exempt from the requirements of
this subchapter certain credit transactions if -
(A) the transaction involves a consumer -
(i) with an annual earned income of more than $200,000; or
(ii) having net assets in excess of $1,000,000 at the time
of the transaction; and
(B) a waiver that is handwritten, signed, and dated by the
consumer is first obtained from the consumer.
(2) Adjustments by the Board
The Board, at its discretion, may adjust the annual earned
income and net asset requirements of paragraph (1) for inflation.
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