(a) General rule. (1) An appropriate state agency may apply to the Board for a determination that:
(1) An appropriate state agency may apply to the Board for a determination that:
(i) There is a state requirement or prohibition in effect that applies to any transaction to which a provision of this subpart applies; and
(ii) 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 subpart.
(2) If the Board makes such a determination, the provision of this subpart will not be in effect in that state to the extent specified by the Board in its determination, for as long as the state administers and enforces the state requirement or prohibition effectively.
(b) Applications. The procedures under which a state agency may apply for an exemption under this section are the same as those set forth in appendix B to Regulation Z (12 CFR part 226). Subpart C [Reserved]
Sec. Supplement I to Part 227--Official Staff Commentary
Subpart A--General Provisions for Consumer Protection Rules
Sec. 227.1 Authority, purpose, and scope.
1(c) Scope
1. Penalties for noncompliance. Administrative enforcement of the rule for banks may involve actions under section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), including cease-and-desist orders requiring that actions be taken to remedy violations and civil money penalties.
2. Industrial loan companies. Industrial loan companies that are insured by the Federal Deposit Insurance Corporation are covered by the Board's rule. [75 FR 7926, Feb. 22, 2010]