+--------+---+-------------------------+------------+-----------------+---+
| # O    | # |                         |            |                 | # |
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|        | 4 |                         |            |                 |   |
|        | - |                         |            |                 |   |
|        | 1 |                         |            |                 |   |
|        | 9 |                         |            |                 |   |
+--------+---+-------------------------+------------+-----------------+---+
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|        | * |                         |            |                 |   |
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+--------+---+-------------------------+------------+-----------------+---+
| ## Com |   |                         |            |                 |   |
| ptroll |   |                         |            |                 |   |
| er of  |   |                         |            |                 |   |
| the Cu |   |                         |            |                 |   |
| rrency |   |                         |            |                 |   |
|        |   |                         |            |                 |   |
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| tional |   |                         |            |                 |   |
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|  Banks |   |                         |            |                 |   |
+--------+---+-------------------------+------------+-----------------+---+
| ## Su  |   | ## Truth in             | ## De      | ## Final Rule   |   |
| bject: |   | Lending (Regulation Z)  | scription: |                 |   |
+--------+---+-------------------------+------------+-----------------+---+

**TO:** Chief Executive Officers and Compliance officers of All National
Banks, Department and Division Heads, and All Examining Personnel

The Federal Reserve Board (Board) published on March 31, 2004, a final
rule to revise Regulation Z and its official staff commentary. The rule
became effective April 1, 2004, with mandatory compliance beginning
October 1, 2004. The revisions include adding an interpretative rule of
construction providing that where the word "amount" is used in the
regulation to describe disclosure requirements, it refers to a numerical
amount. Other changes provide additional guidance on a consumer's right
to rescind certain home-secured loans and several technical revisions to
the staff commentary.

Specific changes to the commentary include:

-   Clarifying that numerical amount disclosures must be expressed as a
    dollar amount unless the regulation text or commentary indicates
    otherwise. Examples are provided when dollar amounts or percentages
    must be disclosed. \[Section 226.2(b)-2\]

-   Stating that when a creditor fails to provide the consumer with an
    address for sending a rescission notification, the consumer's
    delivery to the same person to whom or address where payments
    normally have been sent constitutes delivery to the creditor for
    both open- and closed-end credit. \[Sections 226.15(a)(2)-1 and
    226.23(a)(2)-1\]

-   Clarifying that a consumer's right to rescind is not affected by the
    sequence of the rescission procedures or a court order modifying
    those procedures in both open- and closed-end credit. \[Sections
    226.15(d)(4)-1 and 226.23(d)(4)-1\]

-   Making technical, nonsubstantial changes to comments related to the
    Language of Disclosures and the Requirements for Certain Closed-End
    Home Mortgages. \[Sections 226.27-1 and 226.32(a)(1)(ii)-1\]

The proposed rule issued for comment in December 2003 also asked for
comments on the clear and conspicuous standard and on debt cancellation
and debt suspension agreements. However, the Board decided to not adopt
these proposed changes and will continue to review these two issues
considering options to address commenter's concerns.

A copy of the final rule is attached. You may direct any questions to
your supervisory office, the

Compliance Division at (202) 874-4428, or the Community and Consumer Law
Division at (202) 874-5750.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Ann F. Jaedicke

Deputy Comptroller for Compliance

Attachment: [Final
Rule](http://www.occ.treas.gov/fr/fedregister/69fr16769.pdf)

\[http://www.occ.treas.gov/fr/fedregister/69fr16769.pdf\]