|Subject:||Regulation M, Consumer Leasing Act|
|Date of Memorandum:||12/08/1998|
|Expiration Date:|| |
|Signed By:||Smith, Roland|
|FCA Contact Person:||Holland, Tom|
|List of Attachments:||Federal Register Notice containing the final rule|
December 8, 1998
To: The Chief Executive Officer
All Farm Credit System Institutions
From: Roland E. Smith, Director /s/
Office of Examination
Subject: Regulation M, Consumer Leasing Act
On September 29, 1998, the Board of Governors of the Federal Reserve System published a final rule amending Regulation M (12 CFR Part 213), which implements the Consumer Leasing Act (Act). The final rule adopts several technical amendments to the regulation and includes commentary concerning lease payments, advertisements, and the treatment of taxes. The Act generally applies to consumer leases of personal property in which the contractual obligation does not exceed $25,000 and has a term of more than 4 months. An automobile lease is the most common type of consumer lease covered by the Act. The rule became effective September 24, 1998, but compliance is optional until October 1, 1999. Attached is a copy of the Federal Register notice containing the final rule. Beginning October 1, 1999, full compliance with these changes is required.
The Farm Credit Administration is providing this information as a courtesy to keep you informed of developments that may affect your institution. If you have any questions regarding this document or similar previous documents, please call Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or correspond on the Internet at e-mail address firstname.lastname@example.org.