Answer:
First, let me say that this is somewhat controversial. I'm not sure why as I believe that it is very clear that TIL does NOT apply to anything that is not a natural person, but I have read several articles that seem to pull some trusts into this coverage. Let's look at Reg Z.
Section 226.1(c) states:
In general, this regulation applies to each individual or business that offers or extends credit when four conditions are met:
1. The credit is offered or extended to consumers;
2. The offering or extension of credit is done regularly;
3. The credit is subject to a finance charge or is payable by a written agreement in more than 4 installments; and
4. The credit is primarily for personal, family, or household purposes.
Section 226.2(a)(12) also tells us Consumer credit means credit offered or extended to a consumer primarily for personal, family, or household purposes.
Exempt transactions are covered in section 226.3(a) & (b) where it says:
This regulation does not apply to the following:
1. Business, commercial, agricultural, or organizational credit.
(a) An extension of credit primarily for a business, commercial or agricultural purpose.
(b) An extension of credit to other than a natural person, including credit to government agencies or instrumentalities.
First published on BankersOnline.com 10/21/02
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