Appendix B to Part 226 - State Exemptions
12:3.0.1.1.7.9.8.1.17 : Appendix B
Appendix B to Part 226 - State Exemptions 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, DC 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 Part 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
enforcement 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.
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.
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.