Sec. 301. Disclosures

656 words·~3 min read·/bill/117/s/4551/is/section-301

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The following disclosures shall be provided to ISA recipients: An ISA provider (regardless of whether the ISA provided is an educational ISA) shall provide, to any individual that applies for or signs an income share agreement, a written document that clearly and simply discloses the information required by this Act. The provisions of this title shall not apply to— income share agreements primarily for business, commercial, or agricultural purposes; government or governmental agencies or instrumentalities; organizations; or transactions for which the Bureau, by rule, determines that coverage under the provisions of this title are not necessary to carry out the purposes of this title.

Not later than 270 days after the date of enactment of this Act, the Bureau shall prescribe regulations to carry out the purposes of this title, which may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions, as in the judgment of the Bureau are necessary or proper to effectuate the purposes of this title, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.

Not later than 270 days after the date of enactment of this Act, the Bureau shall publish a model integrated disclosure for educational ISAs and a model integrated disclosure for income share agreements generally in order to facilitate compliance with the disclosure requirements of this Act and aid ISA recipients in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising the disclosure forms required under subparagraph (A), the Bureau shall consider the use by ISA providers of data processing or similar automated equipment.

Nothing in this title may be construed to require an ISA provider to use any model form or clause published by the Bureau under this section. An ISA provider shall be deemed to be in compliance with the disclosure provisions of this title with respect to other than numerical disclosures if the ISA provider— uses any appropriate model form or clause as published by the Bureau under this section; or uses any such model form or clause and changes the form or clause by— deleting any information that is not required under this title; or rearranging the format, if in making such deletion or rearranging the format, the ISA provider does not affect the substance, clarity, or meaningful sequence of the disclosure.

Model disclosure forms and clauses under this section shall be adopted by the Bureau after notice duly given in the Federal Register and an opportunity for public comment in accordance with section 553 of title 5, United States Code. Any regulation of the Bureau, or any amendment or interpretation thereof, requiring any disclosure which differs from the disclosures previously required by this title or any regulation of the Bureau promulgated under this title shall have an effective date of that October 1 which follows by not less than 6 months the date of promulgation, except that the Bureau may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for ISA providers to adjust their forms to accommodate new requirements or shorten the length of time for ISA providers to make such adjustments when the ISA provider makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices.

Notwithstanding subparagraph (A), any ISA provider may comply with any such newly promulgated disclosure requirements prior to the effective date of the requirements. Notwithstanding any power granted to any Federal agency under this Act, the deference that a court affords to the Bureau with respect to a determination made by the Bureau relating to the meaning or interpretation of any provision of this Act, shall be applied as if the Bureau were the only agency authorized to apply, enforce, interpret, or administer the provisions of this Act.