(a) Inconsistent requirements. State law requirements that are inconsistent
with the requirements of the act and this part are preempted to the
extent of the inconsistency. A state law is inconsistent if it requires
a depository institution to make disclosures or take actions that
contradict the requirements of the federal law. A state law is also
contradictory if it requires the use of the same term to represent
a different amount or a different meaning than the federal law, requires
the use of a term different from that required in the federal law
to describe the same item, or permits a method of calculating interest
on an account different from that required in the federal law.
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(b) Preemption determinations. A depository institution, state, or other interested party may request
the Bureau to determine whether a state law requirement is inconsistent
with the federal requirements. A request for a determination shall
be in writing and addressed to the Bureau of Consumer Financial Protection,
1700 G Street NW, Washington, DC 20552. Notice that the Bureau intends
to make a determination (either on request or on its own motion) will
be published in the Federal Register, with an opportunity for
public comment unless the Bureau finds that notice and opportunity
for comment would be impracticable, unnecessary, or contrary to the
public interest and publishes its reasons for such decision. Notice
of a final determination will be published in the Federal Register and furnished to the party who made the request and to the appropriate
state official.
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(c) Effect
of preemption determinations. After the Bureau determines that
a state law is inconsistent, a depository institution may not make
disclosures using the inconsistent term or take actions relying on
the inconsistent law.
(d) Reversal of determination. The Bureau reserves the right to
reverse a determination for any reason bearing on the coverage or
effect of state or federal law. Notice of reversal of a determination
will be published in the Federal Register and a copy furnished
to the appropriate state official.
