What Is an Electronic Document? (Part II)

by Richard C. Insley, CRCM

When the Federal Reserve Board issued the September 14, 1999 e-Reg proposals, they produced a list of the various "disclose in writing" rules embedded in the 5 regulations subject to the proposal. This list did nothing to affect the substance of the regulations. Instead, the list is useful as a checklist for electronic and e-sign compliance. Each disclosure on the list is now eligible for e-delivery under E-SIGN.

Part II (Part I appeared in the last issue. - Volume 5, Number 13)

Consumer Leasing; Regulation M

• Disclosure at lease signing including information about payments, early termination, purchase options, and fees such as taxes and insurance
• Disclosures when leases are renegotiated or extended

Truth in Lending; Regulation Z - Closed end credit

• Pre-consummation stage:
  • ARM "program disclosures"
  • "CHARM" booklet
  • Estimated cost disclosures (three days after application)

• Transaction disclosures:
  • "Section 32 disclosures"
  • Disclosures for reverse mortgages

• Servicing disclosures
  • Annual notice of ARM rate adjustment

Truth in Savings; Regulation DD

• Account-opening disclosures
• Notice of change in account terms
• Notice of maturity for certificates of deposit
• Periodic statements of account activity

Each of the disclosures listed are based on the existing requirements in compliance regulations. The existing requirements are paper-based, i.e. they were developed with the idea that disclosures, like most business communications, were made on paper. The e-sign bill and electronic developments simply make it possible to provide the same information using electronics instead of paper.

Richard C. Insley, CRCM, President, APR Systems, Inc. richard@aprsystems.com - http://aprsystems.com - (804) 271-2234

Copyright © 2000 Compliance Action. Originally appeared in Compliance Action, Vol. 5, No. 14, 12/00