[Federal Register Volume 72, Number 217 (Friday, November 9, 2007)]
[Rules and Regulations]
[Pages 63452-63456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21698]
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FEDERAL RESERVE SYSTEM
12 CFR Part 205
[Regulation E; Docket No. R-1282]
Electronic Fund Transfer
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; official staff interpretation.
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SUMMARY: The Board is amending Regulation E, which implements the
Electronic Fund Transfer Act, and the official staff commentary to the
regulation, to withdraw portions of the interim final rules for the
electronic delivery of disclosures issued March 30, 2001. The interim
final rules addressed the timing and delivery of electronic
disclosures, consistent with the requirements of the Electronic
Signatures in Global and National Commerce Act (E-Sign Act). Because
compliance with the 2001 interim final rules has not been mandatory,
withdrawal of these provisions from the Code of Federal Regulations
reduces confusion about the status of the provisions and simplifies the
regulation. Similar rules are being adopted under other consumer fair
lending and financial services regulations administered by the Board.
DATES: The final rule is effective December 10, 2007. The mandatory
compliance date is October 1, 2008.
FOR FURTHER INFORMATION CONTACT: John C. Wood, Counsel, Division of
Consumer and Community Affairs, at (202) 452-2412 or (202) 452-3667.
For users of Telecommunications Device for the Deaf (TDD) only, contact
(202) 263-4869.
SUPPLEMENTARY INFORMATION:
I. Statutory Background
The purpose of the Electronic Fund Transfer Act (EFTA), 15 U.S.C.
1693 et seq., is to provide a basic framework establishing the rights,
liabilities, and responsibilities of participants in electronic fund
transfer (EFT) systems, and to provide individual consumer rights. The
Board's Regulation E (12 CFR part 205) implements the EFTA. Examples of
types of transfers covered by the EFTA and Regulation E include
transfers initiated through an automated teller machine (ATM), point-
of-sale (POS) terminal, automated clearinghouse (ACH), telephone bill-
payment plan, or remote banking service. The EFTA and Regulation E
require financial institutions to provide certain disclosures to
consumers in writing, including but not limited to initial disclosures
of terms and conditions of an EFT service, documentation of EFTs by
means of terminal receipts and periodic account activity statements,
and change in terms notices. Certain persons other than financial
institutions are also required to comply with specific disclosure
provisions of Regulation E.
The Electronic Signatures in Global and National Commerce Act (the
E-Sign Act), 15 U.S.C. 7001 et seq., was enacted in 2000. The E-Sign
Act provides that electronic documents and electronic signatures have
the same validity as paper documents and handwritten signatures. The E-
Sign Act contains special rules for the use of electronic disclosures
in consumer transactions. Under the E-Sign Act, consumer disclosures
required by other laws or regulations to be provided or made available
in writing may be provided or made available, as applicable, in
electronic form if the consumer affirmatively consents after receiving
a notice that contains certain information specified in the statute,
and if certain other conditions are met.
The E-Sign Act, including the special consumer notice and consent
provisions, became effective October 1, 2000, and did not require
implementing regulations. Thus, financial institutions are currently
permitted to provide in electronic form any disclosures that are
required to be provided or made available to the consumer in writing
under Regulation E if the consumer affirmatively consents to receipt of
electronic disclosures in the manner required by section 101(c) of the
E-Sign Act.
II. Board Proposals and Interim Rules Regarding Electronic Disclosures
On April 4, 2001, the Board published for comment interim final
rules to establish uniform standards for the electronic delivery of
disclosures required under Regulation E (66 FR 17786). Similar interim
final rules for Regulations B, M, Z, and DD (implementing the Equal
Credit Opportunity Act, the Consumer Leasing Act, the Truth in Lending
Act, and the Truth in Savings Act, respectively) were published on
March 30, 2001 (66 FR 17322 and 66 FR 17329) (Regulations M and Z,
respectively), and April 4, 2001 (66 FR 17779 and 66 FR 17795)
(Regulations B and DD, respectively). Each of the interim final rules
incorporated, but did not interpret, the requirements of the E-Sign
Act. Financial institutions and other persons, as applicable, generally
were required to obtain consumers' affirmative consent to provide
disclosures electronically, consistent with the requirements of the E-
Sign Act. The interim final rules also incorporated many of the
provisions that were part of earlier regulatory proposals issued by the
Board regarding electronic disclosures.\1\
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\1\ On May 2, 1996, the Board proposed to amend Regulation E to
permit financial institutions to provide disclosures by sending them
electronically (61 FR 19696). Based on comments received, in 1998
the Board published an interim rule permitting the electronic
delivery of disclosures under Regulation E (63 FR 14528, March 25,
1998) and similar proposals under Regulations B, M, Z, and DD (63 FR
14552, 14538, 14548, and 14533, respectively, March 25, 1998). Based
on comments received on the 1998 proposals, in 1999 the Board
published revised proposals under Regulations B, E, M, Z, and DD (64
FR 49688, 49699, 49713, 49722 and 49740, respectively, September 14,
1999).
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Under the 2001 interim final rules, disclosures could be sent to an
e-mail address designated by the consumer, or could be made available
at another location, such as an Internet Web site. If the disclosures
were not sent by e-mail, financial institutions would have to provide a
notice to consumers (typically by e-mail) alerting them to the
availability of the disclosures. Disclosures posted on a Web site would
have to be available for at least 90 days to allow consumers adequate
time to access and retain the information. Institutions also would be
required to make a good faith attempt to redeliver electronic
disclosures that were returned undelivered, using the address
information available in their files.
Commenters on the interim final rules identified significant
operational and information security concerns with respect to the
requirement to send the disclosure or an alert notice to an e-mail
address designated by the consumer.
[[Page 63453]]
For example, commenters stated that some consumers who choose to
receive electronic disclosures do not have e-mail addresses or may not
want personal financial information sent to them by e-mail. Commenters
also noted that e-mail is not a secure medium for delivering
confidential information and that consumers' e-mail addresses
frequently change. The commenters also opposed the requirement for
redelivery in the event a disclosure was returned undelivered. In
addition, many commenters asserted that making the disclosures
available for at least 90 days, as required by the interim final rule,
would increase costs and would not be necessary for consumer
protection.
In August 2001, in response to comments received, the Board lifted
the previously established October 1, 2001 mandatory compliance date
for all of the interim final rules. (66 FR 41439, August 8, 2001.)
Thus, institutions are not required to comply with the interim final
rules. Since that time, the Board had not taken further action with
respect to the interim final rules on electronic disclosures in order
to allow electronic commerce, including electronic disclosure
practices, to continue to develop without regulatory intervention and
to allow the Board to gather further information about such practices.
In April 2007, the Board proposed to amend Regulation E and the
official staff commentary by (1) withdrawing portions of the 2001
interim final rule that restate or cross-reference provisions of the E-
Sign Act and accordingly are unnecessary; (2) withdrawing other
portions of the interim final rule that the Board now believes may
impose undue burdens on electronic banking and commerce and may be
unnecessary for consumer protection; and (3) adding certain provisions
to provide guidance regarding electronic disclosures. (72 FR 21131,
April 30, 2007.) Similar amendments were also proposed by the Board
under Regulations B, M, Z, and DD. (72 FR 21125, 72 FR 21135, 72 FR
21141, and 72 FR 21155, respectively).
III. Summary of the Final Rule
The Board received about 25 comments on the April 2007 proposal,
primarily from financial institutions and their representatives. Most
of the financial industry commenters generally supported the proposal,
although some provided suggestions for clarifications or changes to
particular elements of the proposal. A comment letter was also
submitted on behalf of four consumer groups. The consumer group
commenters suggested a number of changes to strengthen consumer
protections. The comments are discussed in more detail in the Section-
by-Section Analysis below.
For the reasons discussed below, the Board is now adopting
amendments to Regulation E in final form, largely as proposed in April
2007. As stated in the proposal, because compliance with the 2001
interim final rules has not been mandatory, the final rule will reduce
confusion about the status of the electronic disclosure provisions and
simplify the regulation. (Certain provisions in the 2001 interim rules,
including provisions addressing foreign language disclosures, were not
affected by the lifting of the mandatory compliance date and became
final in 2001; thus, those provisions are not dealt with in this
rulemaking.)
Since 2001, industry and consumers have gained considerable
experience with electronic disclosures. During that period, the Board
has received no indication that consumers have been harmed by the fact
that compliance with the interim final rules is not mandatory. The
Board also has reconsidered certain aspects of the interim final rules,
such as sending disclosures by e-mail, in light of concerns about data
security, identity theft, and ``phishing'' (i.e., prompting consumers
to reveal confidential personal or financial information through
fraudulent e-mail requests that appear to originate from a financial
institution, government agency, or other trusted entity) that have
become more pronounced since 2001. The Board is eliminating certain
aspects of the 2001 interim final rules, such as provisions regarding
the availability and retention of electronic disclosures, as
unnecessary in light of current industry practices.
Finally, as proposed, certain provisions that restate or cross-
reference the E-Sign Act's general rules regarding electronic
disclosures (including the consumer consent provisions) and electronic
signatures are being deleted as unnecessary, because the E-Sign Act is
a self-effectuating statute. The revisions to Regulation E and the
official staff commentary are described more fully below in the
Section-by-Section Analysis.
IV. Section-by-Section Analysis
12 CFR Part 205 (Regulation E)
Section 205.4 General Disclosure Requirements; Jointly Offered Services
Section 205.4 contains the general disclosure requirements under
Regulation E, including provisions relating to the form of disclosure.
Section 205.4(a)(1) generally requires financial institutions to
provide disclosures in writing and in a form that the consumer may
keep. As proposed, the Board is revising Sec. 205.4(a)(1) to clarify
that institutions may provide disclosures to consumers in electronic
form, subject to compliance with the consumer consent and other
applicable provisions of the E-Sign Act. Some institutions may provide
disclosures to consumers both in paper and electronic form and rely on
the paper form of the disclosures to satisfy their compliance
obligations. For those institutions, the duplicate electronic form of
the disclosures may be provided to consumers without regard to the
consumer consent or other provisions of the E-Sign Act because the
electronic form of the disclosure is not used to satisfy the
regulation's disclosure requirements.
Section 205.4(c) in the 2001 interim final rule refers to Sec.
205.17, the section of the interim final rule setting forth general
rules for electronic disclosures. Because the Board is deleting Sec.
205.17, as discussed below, the Board is also deleting Sec. 205.4(c),
as proposed. Sections 205.4(d) (multiple accounts and account holders)
and (e) (services offered jointly) are renumbered as Sec. Sec.
205.4(c) and (d) respectively.
Section 205.17 Requirements for Electronic Communication
Section 205.17 was added by the 2001 interim final rule to address
the general requirements for electronic communications. In the April
2007 proposal, the Board proposed to delete Sec. 205.17 from
Regulation E and the accompanying sections of the staff commentary.
Financial institution commenters largely supported the proposed
deletion, and Sec. 205.17 and the accompanying commentary are deleted
in the final rule, reserving that section for future use.
In the interim rule, Sec. 205.17(a) defined the term ``electronic
communication'' to mean a message transmitted electronically that can
be displayed on equipment as visual text, such as a message displayed
on a personal computer monitor screen. The deletion of Sec. 205.17(a)
does not change applicable legal requirements under the E-Sign Act.
Section 205.17(b) incorporated by reference the provisions of the
E-Sign Act, such as the provision allowing disclosures to be provided
in electronic form. The deletion of this provision has no impact on the
general applicability of the E-Sign Act to Regulation E disclosures.
Section 205.17(e) was added in the 2001 interim final rule to clarify
that persons, other than financial institutions, that are required to
comply
[[Page 63454]]
with the regulation may use electronic disclosures. This provision is
deleted as unnecessary because the E-Sign Act is a self-effectuating
statute and permits any person to use electronic records subject to the
conditions set forth in the Act.
Sections 205.17(c) and (d) addressed specific timing and delivery
requirements for electronic disclosures under Regulation E, such as the
requirement to send disclosures to a consumer's e-mail address (or post
the disclosures on a Web site and send a notice alerting the consumer
to the disclosures). The Board stated in the proposal that it no longer
believed that these additional provisions were necessary or
appropriate. The Board noted that electronic disclosures have evolved
since 2001, as industry and consumers have gained experience with them,
and also noted concerns about e-mail related to data security, identity
theft, and phishing.
The consumer group commenters urged the Board to require the use of
e-mail to provide required disclosures in electronic form, arguing that
e-mail is the only reliable way to ensure that consumers are able to
actually access, receive, and retain disclosures. The consumer groups
also disagreed with the statement that concerns relating to phishing,
identity theft, and data security are a valid reason for not requiring
the use of e-mail, noting that phishing involves gathering information
from the consumer, while disclosures would be provided to the consumer,
and need not include sensitive information.
While the consumer's receipt of an e-mail message that is actually
from the consumer's financial institution would not in general pose a
security risk, consumers might ignore or delete e-mails from financial
institutions (real or purported), in order to avoid falling victim to
fraud schemes. Thus, disclosures sent by consumers' financial
institutions may not receive the attention they should. Consequently,
some financial institutions may be reluctant to communicate by e-mail.
To the extent consumers are instructed not to ignore electronic mail
messages from their financial institutions, the risk of consumers being
victimized by fraudulent e-mail might be increased. In any event, the
Board believes it is preferable not to mandate the use of any
particular means of electronic delivery of disclosures, but instead to
allow flexibility for institutions to use whatever method may be best
suited to particular types of disclosure (for example, account-opening,
periodic statements, or change in terms).
With regard to the requirement to attempt to redeliver returned
electronic disclosures, institutions would be required to search their
files for an additional e-mail address to use, and might be required to
use a postal mail address for redelivery if no additional e-mail
address was available. As stated in the April 2007 proposal, the Board
continues to believe that both requirements would likely be unduly
burdensome.
Under the April 2007 proposed rule, the requirement in the 2001
interim final rule for institutions to maintain disclosures posted on a
Web site for at least 90 days would be deleted. Financial institution
commenters supported the proposed deletion; consumer group commenters
expressed concern about its impact on consumers. As stated in the
proposal, based on a review of industry practices, it appears that many
institutions maintain disclosures posted on an Internet Web site for
several months, and, in a number of cases, for more than a year. For
example, it appears that institutions that offer online periodic
statements to consumers typically make those statements available
without charge for six months or longer in electronic form. This
practice has developed even though Regulation E does not currently
require institutions to maintain disclosures for any specific period of
time. In addition, the Board continues to believe that an appropriate
time period consumers may want electronic disclosures to be available
may vary depending upon the type of disclosure, and is reluctant to
establish specific time periods that would vary depending on the
disclosures, which would increase the compliance burden. Therefore, the
90-day retention provision is deleted as proposed.
Nevertheless, while the Board is not requiring disclosures to be
maintained on an Internet Web site for any specific time period, the
general requirements of Regulation E continue to apply to electronic
disclosures, such as the requirement to provide disclosures to
consumers at certain specified times and in a form that the consumer
may keep. The Board expects institutions to maintain disclosures on Web
sites for a reasonable period of time (which may vary depending upon
the particular disclosure) so that consumers have an opportunity to
access, view, and retain the disclosures. As stated in the April 2007
proposal, the Board will monitor institutions' electronic disclosure
practices with regard to the ability of consumers to retain Regulation
E disclosures and would consider further revisions to the regulation to
address this issue if necessary.
V. Other Issues Raised by Commenters
Clear and Readily Understandable Disclosures
An issue raised in the comments on the April 2007 proposal related
to small hand-held electronic devices through which consumers may
conduct financial transactions using the Internet or other electronic
means (for example, Internet-enabled cellphones, personal digital
assistants, and similar devices). One commenter requested clarification
on whether financial institutions would be deemed to comply with the
requirement to provide disclosures in a clear and readily
understandable form, even when the consumer views them on a small
screen of a hand-held electronic device. The commenter noted that the
institution has no control over what devices consumers choose to use,
for example, to view disclosures on a web page. The Board believes that
disclosures comply with the ``clear and readily understandable''
requirement as long as they are provided in a manner such that they
would be clear and readily understandable when viewed on a typical home
personal computer monitor.
Retainable Form
Several industry commenters requested guidance on how financial
institutions can be sure of meeting the requirement to provide
disclosures in a form that the consumer can keep. The consumer group
commenters were concerned about retainability of disclosures in light
of the deletion of the requirement to maintain disclosures on a Web
site for at least 90 days. They urged that the final regulations
require that disclosures be delivered in a format that is both
downloadable and printable.
The Board believes that institutions satisfy the requirement for
providing electronic disclosures in a form the consumer can retain if
they are provided in a standard electronic format that can be
downloaded and saved or printed on a typical home personal computer.
Typically any document that can be downloaded by the consumer can also
be printed. The Board will, however, monitor financial institutions'
practices to evaluate whether further guidance is needed on this issue.
In a situation where the consumer is provided electronic disclosures
through equipment under the institution's control--such as a terminal
or kiosk in the institution's offices--the institution could, for
example, provide a printer that automatically prints the disclosures.
[[Page 63455]]
Exceptions From E-Sign Notice and Consent Requirements
A few commenters suggested that the Board adopt various exceptions
from the E-Sign notice and consent requirements. Some of these
commenters encouraged the Board to allow the delivery of the Regulation
E account-opening disclosures under Sec. 205.7 (as well as similar
disclosures under the other four regulations involved in the parallel
rulemakings) electronically, without regard to the consumer consent
provisions of E-Sign, using the Board's authority under the E-Sign Act
as well as the statutes underlying the regulations. One of the
commenters asserted that, since Internet commerce has expanded greatly
over the past few years, when consumers choose to conduct financial
transactions online, they presume that they will receive related
disclosures online as well. Other suggested exceptions from the E-Sign
consent provisions included (1) the copy of a consumer's written
authorization for recurring debits under Sec. 205.10(b) and (2) the
notice of recurring debits varying in amount under Sec. 205.10(d). The
commenter suggesting the latter exception also recommended that the
regulation permit the notice to be given orally, such as by toll-free
telephone. The Board believes that, at this time, there is insufficient
evidence that the consent requirements are a burden on electronic
commerce in these situations.
VI. Use of ``Plain Language''
Section 722 of the Gramm-Leach-Bliley Act of 1999 requires the
Board to use ``plain language'' in all proposed and final rules
published after January 1, 2000. In the proposal, the Board invited
comments on whether the proposed rules are clearly stated and
effectively organized, and how the Board might make the proposed text
easier to understand. No comments were received on ``plain language''
issues involving Regulation E.
VII. Final Regulatory Flexibility Analysis
The Board prepared an initial regulatory flexibility analysis as
required by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA)
in connection with the April 2007 proposal. The Board received no
comments on its initial regulatory flexibility analysis.
The RFA generally requires an agency to perform an assessment of
the impact a rule is expected to have on small entities. However, under
section 605(b) of the RFA, 5 U.S.C. 605(b), the regulatory flexibility
analysis otherwise required under section 604 of the RFA is not
required if an agency certifies, along with a statement providing the
factual basis for such certification, that the rule will not have a
significant economic impact on a substantial number of small entities.
Based on its analysis and for the reasons stated below, the Board
certifies that the rule will not have a significant economic impact on
a substantial number of small entities.
1. Statement of the need for, and objectives of, the final rule.
The Board is adopting revisions to Regulation E to withdraw the 2001
interim final rule on electronic communication. The Board is also
clarifying that Regulation E disclosures may be provided to consumers
in electronic form in accordance with the consumer consent and other
applicable provisions of the E-Sign Act.
The EFTA was enacted to provide a basic framework establishing the
rights, liabilities, and responsibilities of participants in electronic
fund transfer (EFT) systems. The primary purpose of the act is the
provision of individual consumer rights. 15 U.S.C. 1593. The EFTA
authorizes the Board to prescribe regulations to carry out the purposes
of the statute. 15 U.S.C. 1693b. The Act expressly states that the
Board's regulations may contain ``such classifications,
differentiations, or other provisions, * * * as, in the judgment of the
Board, are necessary or proper to carry out the purposes of [the Act],
to prevent circumvention or evasion [of the Act], or to facilitate
compliance [with the Act].'' 15 U.S.C. 1693b(c). The Board believes
that the revisions to Regulation E discussed above are within
Congress's broad grant of authority to the Board to adopt provisions
that carry out the purposes of the statute.
2. Issues raised by comments in response to the initial regulatory
flexibility analysis. In accordance with section 603(a) of the RFA, the
Board conducted an initial regulatory flexibility analysis in
connection with the proposed rule. The Board did not receive any
comments on its initial regulatory flexibility analysis.
3. Small entities affected by the final rule. The final rule
deletes provisions of Regulation E that are not in effect on a
mandatory basis and, accordingly, the final rule does not change the
legal requirements applicable to any financial institutions, regardless
of their size. Therefore, the final rule would not have a significant
economic impact on small entities. The number of small entities
affected by this final rule is unknown.
4. Other federal rules. The Board believes no federal rules
duplicate, overlap, or conflict with the final revisions to Regulation
E.
5. Significant alternatives to the proposed revisions. The Board
solicited comment on any significant alternatives that could provide
additional ways to reduce regulatory burden associated with the
proposed rule. Commenters did not suggest any significant alternatives
to the proposed rule.
VIII. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Ch. 3506; 5 CFR Part 1320 Appendix A.1), the Board reviewed the rule
under the authority delegated to the Board by the Office of Management
and Budget (OMB). The collection of information that is subject to the
PRA by this final rulemaking is found in 12 CFR Part 205. The Federal
Reserve may not conduct or sponsor, and an organization is not required
to respond to, this information collection unless it displays a
currently valid OMB control number. The OMB control number is 7100-
0200.
Section 904 of the Electronic Fund Transfer Act (EFTA) (15 U.S.C.
1693b) authorizes the Board to issue regulations to carry out the
purposes of the Act. This information collection is mandatory. Since
the Federal Reserve does not collect any information, no issue of
confidentiality normally arises. However, in the event the Board were
to retain records during the course of an examination, the information
may be protected from disclosure under exemptions (b)(4), (6), and (8)
of the Freedom of Information Act (5 U.S.C. 552 (b)(4), (6), and (8)).
The disclosures required by the rule and information about error
allegations and their resolution are confidential between the
institution and the consumer.
The EFTA and Regulation E are designed to ensure adequate
disclosure of basic terms, costs, and rights relating to electronic
fund transfer (EFT) services provided to consumers. Institutions
offering EFT services must disclose to consumers certain information,
including: initial and updated EFT terms, transaction information,
periodic statements of activity, the consumer's potential liability for
unauthorized transfers, and error resolution rights and procedures.
These disclosures are triggered by certain events specified in the EFTA
and Regulation E. Institutions are required to retain evidence of
compliance for not less than two years from the date that disclosures
are required to be made or action is required to be taken; however, the
[[Page 63456]]
regulation does not specify the types of records that must be retained.
To ease institutions' burden and cost of complying with the disclosure
requirements of Regulation E (particularly for small entities), the
Federal Reserve publishes model forms and disclosure clauses.
Regulation E applies to all financial institutions that engage in EFT
transactions. The Board has determined that no new requirements or
revisions to existing requirements are contained in this final
rulemaking.
The estimated annual burden for the entities supervised by the
Federal Reserve is approximately 74,141 hours for the 1,172 financial
institutions that are deemed respondents for purposes of the PRA. As
mentioned in the Preamble, on April 30, 2007, a notice of proposed
rulemaking was published in the Federal Register (72 FR 21131). No
comments specifically addressing the burden estimate were received.
The Federal Reserve has a continuing interest in the public's
opinions of our collections of information. At any time, comments
regarding the burden estimate, or any other aspect of this collection
of information, including suggestions for reducing the burden, may be
sent to: Secretary, Board of Governors of the Federal Reserve System,
20th and C Streets, NW., Washington, DC 20551; and to the Office of
Management and Budget, Paperwork Reduction Project (7100-0200),
Washington, DC 20503.
List of Subjects in 12 CFR Part 205
Consumer protection, Electronic fund transfers, Federal Reserve
System, Reporting and recordkeeping requirements.
0
For the reasons set forth in the preamble, the Board amends 12 CFR part
205 as set forth below:
PART 205--ELECTRONIC FUND TRANSFERS (REGULATION E)
0
1. The authority citation for part 205 continues to read as follows:
Authority: 15 U.S.C. 1693b.
0
2. Section 205.4 is amended by revising paragraph (a)(1), removing
paragraph (c), and redesignating paragraph (d) as paragraph (c), and
paragraph (e) as paragraph (d), respectively, as follows:
Sec. 205.4 General disclosure requirements; jointly offered services.
(a)(1) Form of disclosures. Disclosures required under this part
shall be clear and readily understandable, in writing, and in a form
the consumer may keep. The disclosures required by this part may be
provided to the consumer in electronic form, subject to compliance with
the consumer consent and other applicable provisions of the Electronic
Signatures in Global and National Commerce Act (E-Sign Act)(15 U.S.C.
7001 et seq.). A financial institution may use commonly accepted or
readily understandable abbreviations in complying with the disclosure
requirements of this part.
* * * * *
Sec. 205.17 [Removed]
0
3. Section 205.17 is removed and reserved.
0
4. In Supplement I to Part 205, section 205.17--Requirements for
Electronic Communication is removed and reserved.
By order of the Board of Governors of the Federal Reserve
System, October 31, 2007.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7-21698 Filed 11-8-07; 8:45 am]
BILLING CODE 6210-01-P