electronic benefit transfer system

(2) State and local government electronic benefit transfer systems (A) “Electronic benefit transfer system” defined In this paragraph, the term “electronic benefit transfer system”— (i) means a system under which a government agency distributes needs-tested benefits by establishing accounts that may be accessed by recipients electronically, such as through automated teller machines or point-of-sale terminals; and (ii) does not include employment-related payments, including salaries and pension, retirement, or unemployment benefits established by a Federal, State, or local government agency. (B) Exemption generally The disclosures, protections, responsibilities, and remedies established under this subchapter, and any regulation prescribed or order issued by the Bureau in accordance with this subchapter, shall not apply to any electronic benefit transfer system established under State or local law or administered by a State or local government. (C) Exception for direct deposit into recipient’s account Subparagraph (B) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer system for a deposit directly into a consumer account held by the recipient of the benefit. (D) Rule of construction No provision of this paragraph— (i) affects or alters the protections otherwise applicable with respect to benefits established by any other provision Federal, State, or local law; or (ii) otherwise supersedes the application of any State or local law.


15 USC § 1693b(d)(2)

Scoping language

In this paragraph
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