02-029-145 Me. Code R. § 2

Current through 2024-51, December 18, 2024

Section 029-145-2 - AUTHORITY

1. Pursuant to Title 9-A M.R.S.A. §8-104(4), the Administrator may by rule exempt from all or part of Title 9-A any class of transactions (other than transactions involving a mortgage described in § 8-103, sub-§ 1-A, paragraph(P) for which, in the determination of the Administrator, coverage under all or part of Title 9-A M.R.S.A. 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 Title 9-A M.R.S.A. §8-104(4), 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;

B. The extent to which the requirements of Title 9-A M.R.S.A. complicate, hinder or make more expensive the credit process for the class of transactions;

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 Title 9-A M.R.S.A., as determined by the Administrator;

D. Whether a loan is secured by the principal residence of the consumer; and

E. Whether the goal of consumer protection would be undermined by such an exemption.

*Pursuant to Public Law 2011, Chapter 427, the provisions of Article 8 of Title 9-A, including § 8-104(4), were repealed. This Public Law replaced Article 8 with a new Article 8-A wherein § 8-504(2) provides that rules may contain classifications, differentiations or other provisions and may provide for adjustments and exceptions for any class of transactions subject to Title9-A that in the judgment of the administrator are necessary or proper to effectuate the purposes of Title 9-A, or to prevent circumvention or evasion of or to facilitate compliance with, the provisions of Title 9-A. The Bureaus now rely upon § 8-504(2) as authority for this Chapter.

2. Title 9-A M.R.S.A. §6-104(1) paragraph E permits the Administrator to adopt, amend, and repeal rules to carry out the specific provisions of Title 9-A M.R.S.A.

3. Title 9-A M.R.S.A. §§6 - 103 and 1 - 301(2) state that, except in cases in which a supervised financial organization is the creditor, the Administrator is the Superintendent of the Bureau of Consumer Credit Protection. In cases in which a supervised financial organization is the creditor, the Administrator is the Superintendent of the Bureau of Financial Institutions.

4. Title 9-B M.R.S.A. §215 permits the Superintendent of the Bureau of Financial Institutions to implement rules relating to the supervision of financial institutions or their subsidiaries, or financial institution holding companies or their subsidiaries.

02-029 C.M.R. ch. 145, § 2