Application
Any state may apply to the Board for a determination that
a class of transactions subject to state law is exempt from the requirements
of the act and this regulation. An application shall be in writing
and addressed to the Secretary, Board of Governors of the Federal
Reserve System, Washington, D.C. 20551, and shall be signed by the
appropriate state official. The application shall be made pursuant
to the procedures herein and the Board’s Rules of Procedure (12 CFR
262).
Supporting Documents
An application shall be accompanied by:
(1) The text of the state statute or regulation
that is the subject of the application, and any other statute, regulation,
or judicial or administrative opinion that implements, interprets,
or applies it.
(2)
A comparison of the state law with the corresponding provisions of
the federal law.
(3)
The text of the state statute or regulation that provides for civil
and criminal liability and administrative enforcement of the state
law.
(4) A statement
of the provisions for enforcement, including an identification of
the state office that administers the relevant law, information on
the funding and the number and qualifications of personnel engaged
in enforcement, and a description of the enforcemnt procedures to
be followed, including information on examination procedures, practices,
and policies. If an exemption application extends to federally chartered
institutions, the applicant must furnish evidence that arrangements
have been made with the appropriate federal agencies to ensure adequate
enforcement of state law in regard to such creditors.
(5) A statement of reasons to support the
applicant’s claim that an exemption should be granted.
6-984
Public Notice of Application
Notice of an application will be published, with an opportunity
for public comment, in the Federal Register, unless the Board
finds that notice and opportunity for comment would be impracticable,
unnecessary, or contrary to the public interest and publishes its
reasons for such decision.
Subject to the Board’s Rules Regarding
Availability of Information (12 CFR part 261), all applications made,
including any documents and other material submitted in support of
the applications, will be made available for public inspection and
copying. A copy of the application also will be made available at
the Federal Reserve Bank of each District in which the applicant is
situated.
Favorable Determination
If the Board determines on the basis of the information
before it that an exemption should be granted, notice of the exemption
will be published in the Federal Register, and a copy furnished
to the applicant and to each federal official responsible for administrative
enforcement.
The appropriate state official shall inform the Board
within 30 days of any change in its relevant law or regulations. The
official shall file with the Board such periodic reports as the Board
may require.
The Board will inform the appropriate state official of
any subsequent amendments to the federal law, regulation, interpretations,
or enforcement policies that might require an amendment to state law,
regulation, interpretations, or enforcement procedures.
6-985
Adverse Determination
If the Board makes an initial determination
that an exemption should not be granted, the Board will afford the
applicant a reasonable opportunity to demonstrate further that an
exemption is proper. If the Board ultimately finds that an exemption
should not be granted, notice of an adverse determination will be
published in the Federal Register and a copy furnished to the
applicant.
Revocation of Exemption
The Board reserves the right to revoke an exemption if
at any time it determines that the standards required for an exemption
are not met.
Before taking such action, the Board will notify the appropriate
state official of its intent, and will afford the official such opportunity
as it deems appropriate in the circumstances to demonstrate that revocation
is improper. If the Board ultimately finds that revocation is proper,
notice of the Board’s intention to revoke such exemption will be published
in the Federal Register with a reasonable period of time for
interested persons to comment.
Notice of revocation of an exemption will be
published in the Federal Register. A copy of such notice will
be furnished to the appropriate state official and to the federal
officials responsible for enforcement. Upon revocation of an exemption,
creditors in that state shall then be subject to the requirements
of the federal law.
