9-A §8-104. Regulations; model forms - Maine Statutes

Title 9-A: MAINE CONSUMER CREDIT CODE

Article 8: TRUTH-IN-LENDING

Part 1: GENERAL PROVISIONS

§8-104. Regulations; model forms

1. The administrator shall adopt rules to carry out the purposes of this Article.

A. The rules may contain classifications, differentiations or other provisions, and may provide for those adjustments and exceptions for any class of transactions, that in the judgment of the administrator are necessary or proper to effectuate the purposes of this Article, to prevent circumvention or evasion of this Article and to facilitate compliance with this Article. Rules adopted pursuant to this Article are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. [2009, c. 362, Pt. A, §7 (NEW).]

B. The administrator is authorized to adopt rules substantially similar to, or that afford more protection for consumers than, those codified in 12 Code of Federal Regulations, Part 226, except where this Article expressly directs otherwise. Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. [2009, c. 362, Pt. A, §7 (NEW).]

[ 2009, c. 362, Pt. A, §7 (RPR) .]

2. The administrator shall publish model disclosure forms and clauses for common transactions to facilitate compliance with the disclosure requirements of this Article and to aid the consumer in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising those forms, the administrator shall consider the use by creditors of data processing or similar automated equipment. Nothing in this Article may be construed to require a creditor to use any such model form or clause prescribed by the administrator under this subsection.

A. A creditor shall be deemed to be in compliance with the disclosure provisions of this Article with respect to other than numerical disclosures if the creditor:

(i) Uses any appropriate model form or clause as published by the administrator; or

(ii) Uses any such model form or clause and changes it by:

(a) Deleting any information which is not required by this Article; or

(b) Rearranging the format, if in making such deletion or rearranging the format, the creditor does not affect the substance, clarity or meaningful sequence of the disclosure; [1981, c. 243, §25 (NEW).]

B. Model disclosure forms and clauses shall be adopted by the administrator after notice and an opportunity for public comment in accordance with the Maine Administrative Procedure Act, Title 5, chapter 375. [1989, c. 502, Pt. D, §5 (AMD).]

[ 1989, c. 502, Pt. D, §5 (AMD) .]

3. Any regulation of the administrator, or any amendment or interpretation thereof, requiring any disclosure which differs from the disclosures previously required by this Article shall have an effective date of October 1st which follows by at least 6 months the date of promulgation, or the effective date of the comparable regulatory action taken by the Federal Reserve Board, whichever is earlier. This requirement shall not prevent the administrator from taking action to lengthen the time period for compliance or to shorten the length of time for compliance when he makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices. Any creditor may comply with newly promulgated disclosure requirements prior to the effective date of the requirements.

[ 1981, c. 243, §25 (NEW) .]

4. The administrator may exempt, by rule, from all or part of this Title any class of transactions, other than transactions involving a mortgage described in section 8-103, subsection 1-A, paragraph Q, for which, in the determination of the administrator, coverage under all or part of this Title does not provide a meaningful benefit to consumers in the form of useful information or protection. In determining which classes of transactions to exempt in whole or in part under this subsection, the administrator shall consider the following factors:

A. The amount of the loans and whether the disclosures, right of rescission and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the administrator; [1997, c. 155, Pt. C, §2 (NEW).]

B. The extent to which the requirements of this Title complicate, hinder or make more expensive the credit process for the class of transactions; [1997, c. 155, Pt. C, §2 (NEW).]

C. The status of the borrowers, including:

(1) Any related financial arrangements of the borrowers, as determined by the administrator;

(2) The financial sophistication of the borrowers relative to the type of transaction; and

(3) The importance to the borrowers of the credit, related supporting property and coverage under this Title, as determined by the administrator; [1997, c. 155, Pt. C, §2 (NEW).]

D. Whether a loan is secured by the principal residence of the consumer; and [1997, c. 155, Pt. C, §2 (NEW).]

E. Whether the goal of consumer protection would be undermined by such an exemption. [1997, c. 155, Pt. C, §2 (NEW).]

[ 2007, c. 471, §18 (AFF); 2007, c. 471, §8 (AMD) .]

5. The administrator, by rule, may exempt from the requirements of this Title certain credit transactions if:

A. The transaction involves a consumer:

(1) With an annual earned income of more than $200,000; or

(2) Having net assets in excess of $1,000,000 at the time of the transaction; and [1997, c. 155, Pt. C, §2 (NEW).]

B. A waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer. [1997, c. 155, Pt. C, §2 (NEW).]

The administrator, at the administrator's discretion, may adjust the annual earned income and net asset requirements of this subsection for inflation.

[ 1997, c. 155, Pt. C, §2 (NEW) .]

SECTION HISTORY

1981, c. 243, §§25,26 (NEW). 1981, c. 551, §3 (AMD). 1989, c. 502, §§D4,D5 (AMD). 1997, c. 155, §C2 (AMD). 2007, c. 273, Pt. C, §3 (AMD). 2007, c. 471, §18 (AFF). 2007, c. 471, §8 (AMD). 2009, c. 362, Pt. A, §7 (AMD).