|Subject:||Revisions to Official Staff Commentary to Reg Z|
|Date of Memorandum:||06/23/1998|
|Expiration Date:|| |
|Signed By:||Smith, Roland|
|FCA Contact Person:||Holland, Tom|
|List of Attachments:||Revisions to Regulation Z|
June 23, 1998
To: The Chief Executive Officer
All Farm Credit System Institutions
From: Roland E. Smith, Director /s/
Office of Examination
Subject: Revisions to Official Staff Commentary to Regulation Z
Regulation Z - Notice of Adjustment of Dollar Amount
As Farm Credit System institutions are required to comply with the Truth in Lending Act, the Farm Credit Administration is distributing revisions published by the Board of Governors of the Federal Reserve System (Federal Reserve) to the official staff commentary to Regulation Z, Truth in Lending (12 C.F.R. Part 226). The revisions provide guidance for open-end credit plans that increase rates triggered by late payments or by exceeding credit limits and that have deferred payment features. Also addressed is how creditors may determine whether credit is an open-end plan or a closed-end transaction. While the revisions became effective on March 31, 1998, compliance is optional until October 1, 1998.
Also being distributed is the notice of adjustment to the minimum dollar amount of loan fees and points included in Federal Reserve Regulation 226.32(a)(1)(ii). This amount is used in determining the applicability of Federal Reserve Regulation 226.32. The Federal Reserve adjusted the minimum amount to $435.00, effective January 1, 1998, through December 31, 1998.
If you have questions regarding this Informational Memorandum, please contact Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or at e-mail address email@example.com.