Keystone Bank
May 19, 2004
Mr. Robert E. Feldman, Executive Secretary
Attention: Comments/Executive Secretary Section
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
Re: RIN 3064—AC81
12 CFR Part 334
Notice of Proposed Rulemaking Regarding Medical Privacy
Dear Mr. Feldman:
In the matter of this proposed rulemaking, we respectfully make the
suggestions following.
The FDIC and the other financial institution regulatory agencies
would best serve all of the financial institutions by agreeing on one
set of regulations under the Fair and Accurate Credit Transactions Act
of 2003 rather than proposing a separate set of regulations by each of
the several financial institution regulatory agencies. The savings in
paper, in handling, in confusion (caused by slight disparities), and in
forward regulation maintenance, etc.; would be quite meaningful we
believe.
Specifically with respect to proposed Part 334 of Chapter III of
Title 12 of the Code of Federal Regulations, our understanding of
Subsections (a), (b), and (c), including the examples set forth therein,
indicates that in the event a creditor receives medical information
disclosing a medical condition which would reasonably indicate the
inability of the proposed borrower to continue to receive income
sufficient to make the required payments to the proposed creditor, the
creditor may not take that information into consideration in the loan
approval process. If a loan decision is based solely upon collateral
value of security pledged, this result is reasonable.
However, prudent banking decisions to grant credit are generally
based upon the ability of the proposed borrower to repay an obligation
out of current income. According to our interpretation of these
Subsections, the creditor would be precluded from electing to disapprove
in this situation and required to make a loan contrary to safe and sound
banking practice.
We suggest appropriate modification to these Subsections.
Thank you.
Yours very sincerely,
Robert L. Levin
President
Keystone Bank
6021 W. Outer Road, South
Imperial, MO 63052
