This regulation does not apply
to the following:
4(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
applicable threshold amount.
(1) Exemption.
(i) Requirements. An extension of credit in which the amount of credit extended exceeds
the applicable threshold amount or in which there is an express written
commitment to extend credit in excess of the applicable threshold
amount, unless the extension of credit is:
(A) Secured by
any real property, or by personal property used or expected to be
used as the principal dwelling of the consumer; or
(B) A private education loan as defined in
section 226.46(b)(5).
(ii) Annual
adjustments. The threshold amount in paragraph (b)(1)(i) of this
section is adjusted annually to reflect increases in the Consumer
Price Index for Urban Wage Earners and Clerical Workers, as applicable.
See the official staff commentary to this paragraph (b) for the threshold
amount applicable to a specific extension of credit or express written
commitment to extend credit.
(2) Transition
rule for open-end accounts exempt prior to July 21, 2011. An
open-end account that is exempt on July 20, 2011 based on an express
written commitment to extend credit in excess of $25,000 remains exempt
until December 31, 2011 unless:
(i) The creditor takes
a security interest in any real property, or in personal property
used or expected to be used as the principal dwelling of the consumer;
or
(ii) The creditor
reduces the express written commitment to extend credit to $25,000
or less.
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(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.).
(g) Employer-sponsored retirement
plans. An extension of credit to a participant in an employer-sponsored
retirement plan qualified under section 401(a) of the Internal Revenue
Code, a tax-sheltered annuity under section 403(b) of the Internal
Revenue Code, or an eligible governmental deferred compensation plan
under section 457(b) of the Internal Revenue Code (26 U.S.C. 401(a);
26 U.S.C. 403(b); 26 U.S.C. 457(b)), provided that the extension
of credit is comprised of fully vested funds from such participant’s
account and is made in compliance with the Internal Revenue Code (26
U.S.C. 1 et seq.).
