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Informational Memorandum
Subject:Amendments to Federal Reserve Regulations B, M, and Z Regarding Electronic Delivery of Required Disclosures
Date of Memorandum:09/07/2001
Expiration Date:
Signed By:Smith, Roland
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:


September 7, 2001

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director
Office of Examination

Subject: Amendments to Federal Reserve Regulations B, M, and Z Regarding Electronic Delivery of Required Disclosures

The Board of Governors of the Federal Reserve System (FRB) recently issued interim final rules amending Federal Reserve Regulations B (Equal Credit Opportunity), M (Consumer Leasing), and Z (Truth in Lending) to establish uniform standards for the electronic delivery of Federally mandated disclosures. The rules became effective March 30, 2001; however, to allow time for any necessary operational changes, the mandatory compliance date is October 1, 2001.

The interim final rules, consistent with the requirements of the Electronic Signatures in Global and National Commerce Act (E-Sign Act; see FCA Bookletter BL-041 issued on September 21, 2000), establish that creditors generally must obtain consumers’ consent to provide disclosures electronically. The interim final rules also provide uniform requirements for the timing and delivery of electronic disclosures. Disclosures may be sent by electronic mail (e-mail) to an electronic address designated by the consumer, or they may be made available at another location, such as an Internet Web site. If the disclosures are not sent by e-mail, consumers must receive a notice notifying them that the disclosures are available. Disclosures posted on a Web site must be available for at least 90 days, to allow consumers adequate time to access the information. For disclosures that must be provided at the time of application, applicants using an electronic format are required to access the disclosures before becoming obligated. Under the interim final rules, institutions must make a good faith attempt to redeliver electronic disclosures that are returned undelivered, using the address information available in their files.

The interim final rules for these three regulations can be found at the following links:

Regulation B

Regulation M

Regulation Z

The Farm Credit Administration (FCA) Board is planning to consider amendments to FCA regulations for the electronic delivery. We are considering amendments to Farm Credit Administration (FCA) for the electronic delivery of borrower disclosures unique to Farm Credit System institutions in a manner conceptually similar to the FRB’s treatment of consumer lending disclosures. To help support this effort, we ask that you provide us comments and suggestions that you may have about the electronic delivery of borrower-related disclosures required by FCA regulations and any other electronic commerce issues. Please submit your comments and suggestions electronically to our "" electronic mail address. Alternatively, you can mail them to Thomas G. McKenzie, Director, Regulation and Policy Division, Office of Policy and Analysis, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090 or write on the Internet at e-mail address

If you have any questions about this memorandum, please call Tom Glenn, Special Examination and Supervision Division, Office of Examination, at (703) 883-4412, or write on the Internet at e-mail address