Answer:
The two factors you look at to determine whether the Truth in Lending Act applies are whether l) the applicant/borrower is an individual; and 2) whether the purpose of the loan is primarily a personal, family, or household purpose. If the answer to both questions is yes, TILA generally will apply (unless, of course, the amount is over $25,000 and the loan is not secured by real property or a principal dwelling).
If what you really meant to ask was whether the right of rescission would be applicable to the type of loan you describe, the answer is that it would not because the loan would not be secured by a consumer's principal dwelling.
First published on BankersOnline.com 04/07/03
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