15 U.S.C. § 57b–4 — Good faith reliance on actions of Board of Governors

submitted 112 years ago by Pub. L. 96-252 to r/title-15-COMMERCE-AND-TRADE · 372 words · no verdicts yet

in plain englishAI-generated · not legal advice

A business that honestly followed a Federal Reserve Board rule or guidance has a legal defense if the FTC later sues it over the same conduct. This defense still works even if the Board's rule is later changed or struck down. The Board must act promptly on requests for guidance in areas the FTC enforces.

(a) Definition. "Board of Governors" means the Board of Governors of the Federal Reserve System. (b) Good-faith reliance as a defense. If a person, partnership, or corporation violates a federal law that the Board of Governors has rulemaking power over, and they did it while relying in good faith on, and following, a rule, regulation, interpretation, or approval the Board issued under that law, then that good-faith reliance is a legal defense. It applies in any administrative or court proceeding the Commission brings under this subchapter, and in any proceeding the Attorney General brings at the Commission's request under any other law. (c) Defense survives later changes. This defense still applies even if the Board's rule, regulation, interpretation, or approval is later amended, cancelled, or ruled invalid by a court or other authority — as long as the person relied on it in good faith at the time they acted. (d) Requests for guidance. If the Board has rulemaking power over a federal law and the Commission enforces that law, then when a person, partnership, or corporation asks the Board for an interpretation or approval about their own conduct under that law, the Board must handle the request as soon as practicable.

the actual law source: uscode.house.gov ↗public domain

(a) “Board of Governors” defined

For purposes of this section, the term “Board of Governors’ means the Board of Governors” of the Federal Reserve System.

(b) Use as defense

Notwithstanding any other provision of law, if—

(1)

any person, partnership, or corporation engages in any conduct or practice which allegedly constitutes a violation of any Federal law with respect to which the Board of Governors of the Federal Reserve System has rulemaking authority; and

(2)

such person, partnership, or corporation engaged in such conduct or practice in good faith reliance upon, and in conformity with, any rule, regulation, statement of interpretation, or statement of approval prescribed or issued by the Board of Governors under such Federal law;

then such good faith reliance shall constitute a defense in any administrative or judicial proceeding commenced against such person, partnership, or corporation by the Commission under this subchapter or in any administrative or judicial proceeding commenced against such person, partnership, or corporation by the Attorney General of the United States, upon request made by the Commission, under any provision of law.

The provisions of subsection (b) shall apply regardless of whether any rule, regulation, statement of interpretation, or statement of approval prescribed or issued by the Board of Governors is amended, rescinded, or held to be invalid by judicial authority or any other authority after a person, partnership, or corporation has engaged in any conduct or practice in good faith reliance upon, and in conformity with, such rule, regulation, statement of interpretation, or statement of approval.

(d) Request for issuance of statement or interpretation concerning conduct or practice

If, in any case in which—

(1)

the Board of Governors has rulemaking authority with respect to any Federal law; and

(2)

the Commission is authorized to enforce the requirements of such Federal law;

any person, partnership, or corporation submits a request to the Board of Governors for the issuance of any statement of interpretation or statement of approval relating to any conduct or practice of such person, partnership, or corporation which may be subject to the requirements of such Federal law, then the Board of Governors shall dispose of such request as soon as practicable after the receipt of such request.

Source credit: (Sept. 26, 1914, ch. 311, § 23, as added Pub. L. 96–252, § 16, May 28, 1980, 94 Stat. 390.)

history & why it existsrecord from the source credit

1914Enacted · Pub. L. 96-252 · 94 Stat. 390

A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-252 on 1914-09-26.

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