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The provisions in Sec. 226.12 (a) and (b) governing the issuance of credit
cards and the liability for their unauthorized use apply to all credit
cards, even if the credit cards are issued for use in connection with extensions
of credit that otherwise are exempt under this section.
(a) Business, commercial, agricultural, or
organizational credit. (1) An extension of credit primarily for a business,
commercial or agricultural purpose.
(2) An extension of credit to other than a
natural person, including credit to government agencies or instrumentalities.
(b) Credit over $25,000 not secured by real
property or a dwelling. An extension of credit not secured by real property,
or by personal property used or expected to be used as the principal dwelling
of the consumer, in which the amount financed exceeds $25,000 or in which
there is an express written commitment to extend credit in excess of $25,000.
(c) Public utility credit. An extension of
credit that involves public utility services provided through pipe, wire,
other connected facilities, or radio or similar transmission (including
extensions of such facilities), if the charges for service, delayed payment,
or any discounts for prompt payment are filed with or regulated by any
government unit. The financing of durable goods or home improvements by
a public utility is not exempt.
(d) Securities or commodities accounts. Transactions
in securities or commodities accounts in which credit is extended by a
broker-dealer registered with the Securities and Exchange Commission or
the Commodity Futures Trading Commission.
(e) Home fuel budget plans. An installment
agreement for the purchase of home fuels in which no finance charge is
imposed.
(f) Student loan programs. 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.).
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