(a) General rule. Any state may apply to the Bureau to exempt a
class of transactions within the state from the requirements of chapter
2 (Credit transactions) or chapter 4 (Credit billing) of the Act and
the corresponding provisions of this part. The Bureau 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 the Act.
(c) Applications. The procedures under which a state may apply for an exemption under
this section are set forth in Appendix B to this part.
