A North Carolina licensee hands a borrower an unmodified 2026 program description prepared by a federal agency. How does 04 NCAC 03M .0101 treat this government-prepared material for purposes of its advertising definition?
Correct Answer
C) Not an advertisement: agency-prepared material is excluded
The definition excludes disclosures, program descriptions and other materials prepared or authorized by a state or federal government agency. The scenario specifies an unmodified agency-prepared description, so distributing it does not by itself remove that exclusion. The definition does not impose a $100,000 loan limit, and agency preparation is sufficient without a separate approval of this distribution. This question does not address materials substantively altered by a licensee. Source: 04 NCAC 03M .0101(2)
Why This Is the Correct Answer
The definition excludes disclosures, program descriptions and other materials prepared or authorized by a state or federal government agency. The scenario specifies an unmodified agency-prepared description, so distributing it does not by itself remove that exclusion. The definition does not impose a $100,000 loan limit, and agency preparation is sufficient without a separate approval of this distribution. This question does not address materials substantively altered by a licensee. Source: 04 NCAC 03M .0101(2)
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