National Credit Union Administration |
 | Sec. 706.5 State exemptions.
(a) If, upon application to the NCUA by an appropriate state agency,
the NCUA determines that:
(1) There is a state requirement or prohibition in effect that
applies to any transaction to which a provision of this rule applies;
and
(2) The state requirement or prohibition affords a level of
protection to consumers that is substantially equivalent to, or greater
than, the protection afforded by this rule; then that provision of this
rule will not be in effect in the state to the extent specified by the
NCUA in its determination, for as long as the state administers and
enforces the state requirement or prohibition effectively.
(b) States that received an exemption from the Federal Trade
Commission's Credit Practices Rule prior to September 17, 1987, are not
required to reapply to NCUA for an exemption under paragraph (a) of this
section provided that the state forwards a copy of its exemption
determination to the appropriate Regional Office. NCUA will honor the
exemption for as long as the state administers and enforces the state
requirement or prohibition effectively. Any state seeking a greater
exemption than that granted to it by the Federal Trade Commission must
apply to NCUA for the exemption.
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