15 U.S.C. § 1603

Exempted transactions

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This subchapter does not apply to the following:(1) Credit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes, or to government or governmental agencies or instrumentalities, or to organizations.(2) Transactions in securities or commodities accounts by a broker-dealer registered with the Securities and Exchange Commission.(3) Credit transactions, other than those in which a security interest is or will be acquired in real property, or in personal property used or expected to be used as the principal dwelling of the consumer and other than private education loans (as that term is defined in section 1650(a) of this title), in which the total amount financed exceeds $50,000.11 See Adjustments for Inflation note below.(4) Transactions under public utility tariffs, if the Bureau determines that a State regulatory body regulates the charges for the public utility services involved, the charges for delayed payment, and any discount allowed for early payment.(5) Transactions for which the Bureau, by rule, determines that coverage under this subchapter is not necessary to carry out the purposes of this subchapter.(6) Repealed. Pub. L. 96–221, title VI, § 603(c)(3), Mar. 31, 1980, 94 Stat. 169.(7) Loans made, insured, or guaranteed pursuant to a program authorized by title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq.].(Pub. L. 90–321, title I, § 104, May 29, 1968, 82 Stat. 147; Pub. L. 93–495, title IV, § 402, Oct. 28, 1974, 88 Stat. 1517; Pub. L. 96–221, title VI, § 603(c), Mar. 31, 1980, 94 Stat. 169; Pub. L. 97–320, title VII, § 701(a), Oct. 15, 1982, 96 Stat. 1538; Pub. L. 104–208, div. A, title II, § 2102(a), Sept. 30, 1996, 110 Stat. 3009–398; Pub. L. 110–315, title X, § 1022, Aug. 14, 2008, 122 Stat. 3488; Pub. L. 111–203, title X, §§ 1100A(2), 1100E(a)(1), July 21, 2010, 124 Stat. 2107, 2111.)Editorial NotesReferences in Text

The Higher Education Act of 1965, referred to in par. (7), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Title IV of the Act is classified generally to subchapter IV (§ 1070 et seq.) of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.

Amendments

2010—Par. (3). Pub. L. 111–203, § 1100E(a)(1), substituted “$50,000” for “$25,000”.

Pars. (4), (5). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board”.

2008—Par. (3). Pub. L. 110–315 inserted “and other than private education loans (as that term is defined in section 1650(a) of this title)” after “consumer”.

1996—Pars. (5) to (7). Pub. L. 104–208 added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively.

1982—Par. (6). Pub. L. 97–320 added par. (6).

1980—Par. (1). Pub. L. 96–221, § 603(c)(1), inserted provision relating to applicability to agricultural purposes.

Par. (3). Pub. L. 96–221, § 603(c)(2), substituted provision excepting security interest in real property, or in personal property used as the consumer’s principal dwelling, for provisions excepting real property transactions.

Par. (5). Pub. L. 96–221, § 603(c)(3), struck out par. (5) which related to credit transactions primarily for agricultural purposes where the amount financed exceeds $25,000.

1974—Par. (5). Pub. L. 93–495 added par. (5).

Statutory Notes and Related SubsidiariesEffective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date of 1982 Amendment

Section 701(c) of Pub. L. 97–320, as amended by Pub. L. 97–457, § 31, Jan. 12, 1983, 96 Stat. 2511, provided that: “The amendment made by subsection (a) [amending this section] and subsection (b) [enacting section 1099 of Title 20, Education] shall be effective with respect to loans made prior to, on, and after the date of the enactment of this Act [Oct. 15, 1982].”

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

Effective Date of 1974 Amendment

Amendment by Pub. L. 93–495 effective Oct. 28, 1974, see section 416 of Pub. L. 93–495, set out as an Effective Date note under section 1665a of this title.

Exceptions in Areas Where Major Disaster Exists

Board of Governors of Federal Reserve System authorized to make exceptions to requirements of this subchapter for transactions within an area in which the President has determined that a major disaster exists, if Board determines that exception can reasonably be expected to alleviate hardships to the public that outweigh possible adverse effects, see section 50002 of Pub. L. 105–18, set out as a note under section 4008 of Title 12, Banks and Banking, and similar provisions listed thereunder.

Adjustments for Inflation

Pub. L. 111–203, title X, § 1100E(b), July 21, 2010, 124 Stat. 2111, provided that: “On and after December 31, 2011, the Bureau [of Consumer Financial Protection] shall adjust annually the dollar amounts described in sections 104(3) and 181(1) of the Truth in Lending Act [15 U.S.C. 1603(3), 1667(1)] (as amended by this section), by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as published by the Bureau of Labor Statistics, rounded to the nearest multiple of $100, or $1,000, as applicable.” Threshold amounts in effect during particular periods of time can be found in Code of Federal Regulations, Title 12, Supplement I to Part 1013, under Section 1013.2—Definitions, under 2(e)—Consumer Lease, paragraph 11.

Notes of Decisions

Cited in 238 cases (31 in the last 5 years), 1971–2026 · leading case: Koons Buick Pontiac GMC, Inc. v. Nigh, 543 U.S. 50 (2004).

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Koons Buick Pontiac GMC, Inc. v. Nigh, 543 U.S. 50 (2004). · cites it 2× “" 15 U.S.C. § 1603 . Double-the-finance-charge liability under clause (i) for a TILA violation in connection with an open-end, real-property-secured loan ( e.”

Maurice Symonette v. V.A. Leasing Corp., 648 F. App'x 787 (11th Cir. 2016). “” 15 U.S.C. § 1603 (1). Similarly, the Consumer Leasing Act (“CLA”) applies only to a “consumer lease,” a term which does not include “a lease for agricultural, business, or commercial purposes.”

Robert S. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530 (9th Cir. 1984). · cites it 2× “15 U.S.C. § 1603 (2). Congress premised this exemption on the understanding that the SEC would, pursuant to existing statutory authority, promulgate “substantially similar” disclosure rules in the securities field.”

Onyeoziri v. Spivok, 44 A.3d 279 (D.C. 2012). · cites it 3× “10 TILA does not apply to “[cjredit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes,” 15 U.S.C. § 1603 (1) (2006), or to “[cjredit transactions, other than those in which a security interest is or will be acquired in real…”

Mourning v. Fam. Publications Serv., Inc., 411 U.S. 356 (1973). · cites it 2× “Certain transactions, not here relevant, are exempt under § 104, 15 U. S. C. § 1603 . [8] 15 U. S. C. § 1631 .”

Ella Tower v. Paralee Moss, Plaintiff-Intervenor-Appellant v. Home Constr. Co. of Mobile, Inc., 625 F.2d 1161 (5th Cir. 1980). · cites it 2× “The district court granted summary judgment in favor of the defendant as to the federal claims on the ground that this particular credit transaction was exempt from the Truth in Lending Act disclosure requirements because in its view the transaction was for “business or…”

Johnson v. Farmers & Merchants State Bank of Balaton, 320 N.W.2d 892 (Minn. 1982). · cites it 3× “However, appellant Bank claims the note was an exempted agricultural credit transaction under 15 U.S.C. § 1603 (5) (1976) and Regulation Z, 12 C.”

Antanuos v. First Nat. Bank of Arizona, 508 F. Supp. 2d 466 (E.D. Va. 2007). · cites it 4× “[c]redit transactions, other than those in which a security interest is or will be acquired in real property, or in personal property used or expected to be used as the principal dwelling of the consumer, in which the total amount financed exceeds $25,000.”

Am. Express Co. v. Koerner, 452 U.S. 233 (1981). · cites it 2× “It held that both § 161, which applies only to “an extension of consumer credit,” and § 104 (1), 15 U. S. C. § 1603 (1), which exempts “[cjredit transactions involving extensions of credit for business or commercial purposes” from most of the provisions of the TILA, 5 required…”

Dawson v. Thomas (In Re Dawson), 411 B.R. 1 (D.D.C. 2008). · cites it 2× “However, pointing to representations that Dawson made to them, the defendants contend that the loan is not a consumer credit transaction and is exempt under 15 U.S.C. § 1603 (1) as having been made “primarily for a business, commercial or agricultural purpose.”

Kleiner v. First Nat'l Bank of Atlanta, 97 F.R.D. 683 (N.D. Ga. 1983). · cites it 2× “” 15 U.S.C. § 1603 (3). Moreover, the Bank’s general policy on loans subject to TILA does not provide for interest at a variable or floating rate; and interest on such loans is generally computed on the basis of a 365-day year.”

Doreen M. Cochran v. Paco, Inc., Clara M. Jones v. Paco, Inc., 606 F.2d 460 (5th Cir. 1979). · cites it 2× “Although TIL does not exempt insurance transactions from its coverage, 15 U.S.C. § 1603 , 11 we cannot twist this omission into an affirmative provision that “specifically relates” TIL to the business of insurance.”

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— 15 U.S.C. § 1603(1) — 2 cases

Conrad v. Smith, 712 P.2d 866 (Wash. Ct. App. 1986).

Isabella Pizza Inc., et al. v. Tioga-Franklin Sav. Bank (E.D. Pa. 2026).

— 15 U.S.C. § 1603(4) — 1 case

Holt v. West Virginia-Am. Water Co., 760 S.E.2d 502 (W. Va. 2014).

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