15 U.S.C. § 57b–4: Good faith reliance on…

Summary

People and companies can use a defense if they are accused of breaking a federal law that the Board of Governors of the Federal Reserve System can make rules about, and they honestly relied on and followed a rule, regulation, interpretation, or approval that the Board issued. That defense applies in any administrative or court case brought by the Commission under this part, or in a case brought by the U.S. Attorney General when the Commission asks. That protection still applies even if the Board later changes or cancels the guidance or a court says it was invalid. If someone asks the Board for a written interpretation or approval about conduct that might be covered by a law the Board can regulate and that the Commission enforces, the Board must act on the request as soon as practical.

Title 15, §57b–4

Commerce and Trade, Source: USLM XML via OLRC

(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.

(c)Applicability of subsection (b)

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statement of interpretation, or statement of approval prescribed or issued by the Board of Governors is amended, rescinded, or held to be invalid by judicial authority or any other authority after a person, partnership, or corporation has engaged in any conduct or practice in good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.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective May 28, 1980, see section 23 of Pub. L. 96–252, set out as an

Effective Date

of 1980 Amendment note under section 45 of this title.

§57b–4 Good Faith Reliance on Actions of Board of Governors

Summary

Title 15, §57b–4

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata