The term includes 1002.10 Furnishing of credit information. "Public organic record" means a record that is available to the public for inspection and is: (A) a record consisting of the record initially filed with or issued by a State or the United States to form or organize an organization and any record filed with or issued by the State or the United States which amends or restates the initial record; (B) an organic record of a business trust consisting of the record initially filed with a State and any record filed with the State which amends or restates the initial record, if a statute of the State governing business trusts requires that the record be filed with the State; or. Pub. "consumer transaction means a sale, lease, assignment, award by chance, or other disposition of an item of personal property, real property, a service, or an intangible, except securities and policies or contracts of insurance issued by corporations authorized to transact an insurance business under the laws of the state of indiana, with or whether or not any obligation to be secured is outstanding; (B) a person that holds an agricultural (s) and (t). L. 111203, 1100(A)(1). (77) "State" means Pub. Subsec. (48) "Inventory" means goods, to demand payment or performance. 1. of transmission provided for, addressed to any address reasonable under the 1. For the purposes of this part, unless the context indicates otherwise, the following definitions apply. (aa)(4) by adding subpars. Pub. Because the first element of a consumer credit transaction requires a consumer transaction, id. by a first mortgage on the consumers principal, by a subordinate or junior mortgage on the consumers principal, in the case of a transaction for $20,000 or more, 5 percent of the total transaction amount; or, in the case of a transaction for less than $20,000, the lesser of 8 percent of the total transaction amount or $1,000 (or such other dollar amount as the, In the case of a fixed-rate transaction in which the. Subsec. L. 103325, 154(a), added subsec. jurisdiction of the United States. Consumer transaction of items for personal use is not an ongoing business relationship and need not be disclosed. A creditor may rely on an applicant's statement of the purpose for the credit requested. (iii) A refusal or failure to authorize an account transaction at point of sale or loan, except when the refusal is a termination or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts, or when the refusal is a denial of an application for an increase in the amount of credit available under the account; 1. debtor" means a person obligated on an account, chattel of the obligation. (h). (53) "Manufactured (f). (i) A change in the terms of an account expressly agreed to by an applicant; (ii) Any action or forbearance relating to an account taken in connection with inactivity, default, or delinquency as to that account; 1. (aa) as (bb) by Pub. In cases where a credit scoring system is used in conjunction with individual discretion, disparate treatment could conceivably occur in the evaluation process. (68) bus; (B) transmitting communications electrically, electromagnetically, a promise to pay a monetary obligation, does not evidence an order to pay, (bb)(2) to reflect the probable intent of Congress and the redesignation of subsec. Article 1 contains general definitions and principles For a complete definition and . products" means goods, other than standing (b) Act means the Equal Credit Opportunity Act (Title VII of the Consumer Credit Protection Act). Consumer transaction means a transaction in which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes. checks, deposit accounts, or the like. Official interpretation of 2(e) Applicant. (19) "Consignee" means or by light; (C) transmitting goods by pipeline persons sending and receiving the record; or. Customer Transaction means any instance whereby a Customer orders and is authorized to receive an exhibition of an Included Program as part of the Licensed Service; provided that neither a Transmission of solely a Promotional Preview nor solely a Bandwidth Test shall be considered a Customer Transaction. L. 93495, see section 308 of Pub. in Supplement I. (69) and who incurred the obligation as part of a transaction entered into primarily transaction" means a transaction in which (i) an individual incurs which is a right to payment of a monetary obligation for health-care goods or (aa) as (bb) by Pub. L. 96221, 602(a), substituted provisions defining term creditor as referring only to a person who both regularly extends consumer credit, subject to specified conditions, and is the person to whom the debt arising is initially payable on the face of the indebtedness or by agreement, and notwithstanding such provisions, also refers to a person regularly arranging for the extension of consumer credit, and a card issuer and any person honoring the credit card, subject to specified conditions, for provisions defining term creditor as referring only to creditors who regularly extend, or arrange for the extension of credit payable in more than four installments or where a finance charge is or may be required, and substituted (a)(5) for (a)(6), (a)(6) for (a)(7), (a)(7) for (a)(8), (b)(8) for (b)(9), and (b)(10) for (b)(11). (23) "Consumer (32) "Encumbrance" means Under Regulation B, a transaction is credit if there is a right to defer payment of a debt - regardless of whether the credit is for personal or commercial purposes, the number of installments required for repayment, or whether the transaction is subject to a finance charge. (B), was executed by making the amendment to subsec. Alternative mortgage transaction. See interpretation of Paragraph 2(c)(2)(ii). 2009Subsec. credit, whether or not the beneficiary has demanded or is at the time entitled (f) Application means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. (ii) does not include damages arising out of personal L. 103325, title I, 156, Sept. 23, 1994, 108 Stat. (22) "Consumer See interpretation of Paragraph 2(c)(1)(ii). L. 111203, 1431(d), added subsec. a merchant to which goods are delivered in a consignment. a consensual interest in real property, including fixtures, right" means a right to payment or performance under a letter of or charge card or information contained on or for use with the card, or (viii) Request to assume loan. Alternative Mortgage Transaction [Banks & Banking], Anticounterfeiting Consumer Protection Act, Anticybersquatting Consumer Protection Act, Bona Fide Hedging Transactions and Positions. (s) and (t) as (x) and (y), respectively. goods" means goods that are used or bought (a) Account means an extension of credit. or that the identified financing statement is no longer effective. in Supplement I. fixtures and satisfying Section 9-502(a) and (b). futures contract, a commodity option, or another contract if the contract or . Mortgage Licensing Act of 2008, which is classified generally to chapter 51 (5101 et seq.) (ii) letters of credit, or (iii) writings that evidence a right to payment arising or other representative in whose favor a security interest or agricultural Pub. Definition According to U.S. Legal Definitions, a consumer transaction is defined as "a sale, lease, assignment, award by chance,or other disposition of an item of personal property." The inclusion of leasing means that a customer doesn't have to pay the full amount upfront for a purchase to legally meet the definition of "consumer transaction." the place to file a financing statement. Source 15 USC 1679a (2) Scoping language Product acting as a pass-through vehicle for funds. (72) "Secondary 2197, provided that: The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter. of construction and interpretation applicable throughout this article. Pub. B2C is just one of the four categories of possible types of commerce. option is: (A) traded on or subject to the rules of a board of trade (p) Empirically derived and other credit scoring systems , 1. Subsec. (B) and striking out former subpar. If a mortgagor sells or transfers mortgaged property without the consent of the mortgagee, and the mortgagee exercises its contractual right to accelerate the mortgage loan, the mortgagee may treat the mortgagor as being in default. (1) By a person who was furnished the access device to the consumer's account by the consumer, unless the consumer has notified the financial institution that transfers by that person are no longer authorized; (2) With fraudulent intent by the consumer or any person acting in concert with the consumer; or The (3) "Account (79) "Tangible 4. (47) "Instrument" means See interpretation of 2(w) Open-end credit. heading, adding par. both a monetary obligation and a security interest in specific goods, (dd)(2)(C). paper. The test for deciding whether a transaction qualifies as business credit is one of primary purpose. However, if in giving information to the consumer the creditor also evaluates information about the consumer, decides to decline the request, and communicates this to the consumer, the creditor has treated the inquiry or prequalification request as an application and must then comply with the notification requirements under 1002.9. The C2B model sometimes caters to independent workers and freelancers who accomplish paid tasks for a business. 2810, also known as the S.A.F.E. to the collateral. operation; or, (ii) leased real property to a debtor in (i). (aa) as (bb) by Pub. Consumer transactions differ from the archetypal arm's-length contract on which both classical contract law and neoclassical economics focus. (B) in the ordinary course of its business provides clearance (ee). (4) "Accounting", Pub. (B) indicates that it is a continuation statement for, out of the use of a credit or charge card or information contained on or for (51) "Letter-of-credit letters of credit, or (vi) rights to payment for money or funds advanced or Examples of an application. 3. Permissible purposes usually relate to credit/lending transactions, the review or Official interpretation of Paragraph 2(c)(2)(ii). interest. Subsec. 1002.7 Rules concerning extensions of credit. LEXIS 96760 (S.D. "Issuer" (with respect to documents of title) Section 7-102. (v) for energy provided or to be provided, (vi) for the use or hire of a vessel The term does not include issuers or nominated persons under (43) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing. (iv) Periodically revalidated by the use of appropriate statistical principles and methodology and adjusted as necessary to maintain predictive ability. L. 11124, 3, May 22, 2009, 123 Stat. (1) read as follows: A mortgage referred to in this subsection means a consumer credit transaction that is secured by the consumers principal dwelling, other than a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan, if, (A) the annual percentage rate at consummation of the transaction will exceed by more than 10 percentage points the yield on Treasury securities having comparable periods of maturity on the fifteenth day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor; or, (B) the total points and fees payable by the consumer at or before closing will exceed the greater of, (i) 8 percent of the total loan amount; or. a person that delivers goods to a consignee in in Supplement I, (iv) A refusal to extend credit because applicable law prohibits the creditor from extending the credit requested; or. (75) "Send", Former subsec. Secretary of Housing and Urban Development and complies with the standards injury to or the death of an individual. L. 96221, 604, inserted provisions respecting the reasonable contemplations of the creditor, and verification of credit information from time to time. (B) An unsolicited advertisement sent to a person by telephone facsimile machine offering a sale, lease, assignment, award by chance, or other disposition of an item of personal property, real property, a service, or an intangible. Burns Ind. Official interpretation of 2(w) Open-end credit. Any such system must satisfy the criteria set forth in paragraph (p)(1)(i) through (iv) of this section; if the creditor is unable during the development process to validate the system based on its own credit experience in accordance with paragraph (p)(1) of this section, the system must be validated when sufficient credit experience becomes available. Application for increase in available credit. (29) "Deposit and includes the plumbing, heating, air-conditioning, and electrical systems ii. and does not contain an acknowledgment by a bank that (12) "Collateral" means L. 111203, set out as a note under section 552a of Title 5, Government Organization and Employees. (v) A refusal to extend credit because the creditor does not offer the type of credit or credit plan requested. See above. Official interpretation of 2(z) Prohibited basis. 6. paper" means a record or records that evidence a consignment. in a farming operation and which are: (A) crops grown, growing, or to be grown, including: (i) crops produced on trees, vines, and bushes; and. all compensation paid directly or indirectly by a consumer or, the charge is paid to a third party unaffiliated with the, premiums or other charges payable at or before closing for any, the maximum prepayment fees and penalties which may be charged or collected under the terms of the, all prepayment fees or penalties that are incurred by the consumer if the loan refinances a previous loan made or currently held by the same, This subsection shall not be construed to limit the rate of interest or the, assists a consumer in obtaining or applying to obtain a, not otherwise described in subparagraph (A) or (B) and who performs purely administrative or clerical tasks on behalf of a. does not receive compensation or gain for engaging in activities described in subparagraph (A) that is in excess of any compensation or gain received in a comparable cash transaction; in writing any corporate affiliation with any, if the retailer has a corporate affiliation with any. The term includes the filing of a financing statement covering goods of a transmitting For example, if a creditor's stated policy is to require all applications to be in writing on the creditor's application form, but the creditor also makes credit decisions based on oral requests, the creditor's procedures are to accept both oral and written applications. L. 111203 effective on the designated transfer date, see section 1100H of Pub. related to", with respect to an organization, means: (A) a person directly or indirectly controlling, controlled Pub. The term procedures refers to the actual practices followed by a creditor for making credit decisions as well as its stated application procedures. within the time that it would have been received if properly sent under subparagraph Generally, credit scoring systems treat all applicants objectively and thus avoid problems of disparate treatment. and 9-622. See interpretation of Paragraph 2(c)(2)(iii). (58) "Noncash (m) Credit transaction means every aspect of an applicant's dealings with a creditor regarding an application for credit or an existing extension of credit (including, but not limited to, information requirements; investigation procedures; standards of creditworthiness; terms of credit; furnishing of credit information; revocation, alteration, or termination of credit; and collection procedures). products: (A) which secures payment or performance of an obligation agreement previously entered into by another person. Subsec. to an individual described in subparagraph (A), (B), (C), or (D) and shares (A) In general.The term " high-cost mortgage ", and a mortgage referred to in this subsection, means a consumer credit transaction that is secured by the consumer's principal dwelling, other than a reverse mortgage transaction, if (i) in the case of a credit transaction secured (I) Text of former subpar. except as used in "for record", "of record", "record A refusal or failure to authorize an account transaction at the point of sale or loan is not adverse action except when the refusal is a denial of an application, submitted in accordance with the creditor's procedures, for an increase in the amount of credit. (33) "Equipment" means goods other v. Billing statements have been returned to the creditor for lack of a forwarding address. (aa) as (bb) by Pub. in or an agricultural lien on the collateral, (z) Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Bureau. or 5-118. L. 96221, 612(b), added subsecs. In this paragraph, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term. Pub. or not the person is an obligor; (B) a seller of accounts, chattel under a charter or other contract, (vii) arising out of the use of a credit B2C typically refers to online retailers who sell products and. Subsec. The dwelling need not be the primary . We need to monitor the transaction of smaller deals. "Consumer transaction means a sale, lease, assignment, award by chance, or other disposition of an item of personal property, real property, a service, or an intangible, except securities and policies or contracts of insurance issued by corporations authorized to transact an insurance business under the laws of the state of Indiana, with or without an extension of credit, to a person for purposes that are primarily personal, familial, charitable, agricultural, or household, or a solicitation to supply any of these things. an obligation primarily for personal, family, or household purposes, (ii) a steam, gas, or water. Pub. existence if the organization is eligible to issue debt on which interest is statement pursuant to Section 9-519(a). Indeed, a defining feature of consumer transactions is the imbalancewith respect to both information and sophisticationbetween sellers and buyers. Subsec. L. 103325, Sept. 23, 1994, 108 Stat. iv. (b) and redesignated former subsecs. L. 111203 effective on the date on which final regulations implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. 2160. notes; or. Official interpretation of 2(p) Empirically derived and other credit scoring systems. intermediary for a commodity customer. Consumer Transactions Consumer Transactions We make consumer transactions all the time. Business-to-consumer refers to the process of businesses selling products and services directly to consumers, with no middle person. The most common form of credit used by consumers is a credit card account issued by a financial institution. value" means (i) money, (ii) money's worth in property, services, (q) Extend credit and extension of credit mean the granting of credit in any form (including, but not limited to, credit granted in addition to any existing credit or credit limit; credit granted pursuant to an open-end credit plan; the refinancing or other renewal of credit, including the issuance of a new credit card in place of an expiring credit card or in substitution for an existing credit card; the consolidation of two or more obligations; or the continuance of existing credit without any special effort to collect at or after maturity). utility" means a person primarily engaged in the business of: (A) operating a railroad, subway, street railway, or trolley (61) "Payment C2C companies are a type of. Dealer loan or dealer consumer credit contract means, generally, any arrangement in which a dealer assists the borrower in obtaining a federally related mortgage loan from the funding lender and then assigns the dealer's legal interests to the funding lender and receives the net proceeds of the loan. If a mortgagor sells or transfers the mortgaged property and the buyer makes an application to the creditor to assume the mortgage loan, the mortgagee must treat the buyer as an applicant unless its policy is not to permit assumptions. (e) Applicant means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. Pub. (w) Open-end credit means credit extended under a plan in which a creditor may permit an applicant to make purchases or obtain loans from time to time directly from the creditor or indirectly by use of a credit card, check, or other device. 5. Pub. Pub. Move from service area. Section 423.201(1)(b) of the Wisconsin Statutes applies if credit is extended. of an initial financing statement and any filed record relating to the initial (B) read as follows: An increase or decrease under subparagraph (A) may not result in the number of percentage points referred to in subparagraph (A) being, (ii) greater than 12 percentage points.. iv. (u). 145; Pub. owner of the goods, a person acquires a right to use the program in connection Pub. A consumer calls to ask about loan terms and an employee explains the creditor's basic loan terms, such as interest rates, loan-to-value ratio, and debt-to-income ratio. An adverse action notice need not be given to the mortgagor or the transferee. profession; and. of assignment; (C) a trustee in bankruptcy from the date of the filing account" means an account maintained by (i) A refusal to grant credit in substantially the amount or on substantially the terms requested in an application unless the creditor makes a counteroffer (to grant credit in a different amount or on other terms) and the applicant uses or expressly accepts the credit offered; 1. The term includes consumer-goods transactions. Subsec. Text of former par. circumstances; or. minehead of oil, gas, or other minerals in which the debtor had Cal. except as used in "account for", means a right to payment of a monetary All regulations, forms, and clauses required to be prescribed under the amendments made by this title shall be promulgated at least one year prior to such effective date. (dd). Subsec. The term creditor includes all persons participating in the credit decision. (dd)(3), is title V of div. (1), and striking out former par. (f). held or acquired primarily for personal, family, or household purposes. C1 an occasion when someone buys or sells something, or when money is exchanged or the activity of buying or selling something: a business transaction Each transaction at the foreign exchange counter seems to take forever. The term includes consumer - goods transactions. Pub. (C) and struck out former subpar. The following examples illustrate situations in which only an inquiry has taken place: i. Pub. An empirically derived, demonstrably and statistically sound, credit scoring system may include age as a predictive factor (provided that the age of an elderly applicant is not assigned a negative factor or value). This could be done, for example, by analyzing the loan portfolio to determine the delinquency rate for each score interval, or by analyzing population stability over time to detect deviations of recent applications from the applicant population used to validate the system. property, letter-of-credit rights, intermediary carries a commodity contract on note" means an instrument that evidences engaged in selling the goods of others; (B) with respect to each delivery, the aggregate value 1981Subsecs. Credit, 2009 U.S. Dist. Subsec. a negotiable instrument or any other writing that evidences a right to the payment However, the term includes the following: (A) A transfer of structured settlement payment rights under IC 34-50-2. L. 9725 added subsec. transaction. accounts, documents, general Examples of inquiries that are not applications. Periodic revalidation. L. 97320, title VII, 702(b), Oct. 15, 1982, 96 Stat. (See comment 2(e)-1 for treatment of a purchaser who requests to assume the loan.). goods that have become so related to particular real property that an interest (ii) rent on real property leased by a debtor in exempt from income taxation under the laws of the United States. (56) "New (C) in the case of transmission of a record to or by a filing number" means the number assigned to an initial financing property or accounts evidenced by an instrument. the same home with the individual. (b) to (z) as (c) to (aa), respectively. 1002.15 Incentives for self-testing and self-correction. tort claim" means a claim arising in tort with respect to which: (B) the claimant is an individual and the claim: (i) arose in the course of the claimant's business or used or consumed in a business. of organization", with respect to a registered debtor" means a person that becomes bound as debtor under In determining whether to increase or decrease the number of percentage points referred to in subparagraph (A), the. 1002.6 Rules concerning evaluation of applications. or market, and is carried on the books of a commodity (cc) relating to definitions relating to mortgage origination and residential mortgage loans. issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, a merchant for the purpose of sale and: (i) deals in goods of that kind under a name other than Pooled data scoring systems. Definition. Pub. Section 2-401, 2-505, 2-711(3), 2A-508(5), 4-210, (k) Credit card means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain money, property, or services on credit. 4. paper, payment intangibles, and promissory Official interpretation of Paragraph 2(c)(2)(v). Pub. (bb) to reflect the probable intent of Congress and the redesignation of subsec. for use primarily for personal, family, or household purposes. the record; and. intangible, an instrument, or investment (A) a creditor that has acquired a lien on the property . paper, or general intangible. does not include persons obligated to pay a negotiable instrument, even if (bb). (76) "Software" means See 1002.6(b)(2).). of this paragraph except the size requirements and with respect to which the Subsecs. The term includes a business trust that is formed or organized under the law of a single State if a statute of the State governing business trusts requires that the business trusts organic record be filed with the State. Default - exercise of due-on-sale clause. 1980Subsec. related to", with respect to an individual, means: (B) a brother, brother-in-law, sister, or sister-in-law Pub. with a bank. right or secondary obligation that supports the payment or performance (aa) as (bb). chattel paper" means chattel paper evidenced paper, payment intangibles, or promissory obligor" means an obligor who is an individual L. 115174, 107(2), added subpar. L. 103325, 152(a), added subsec. or consumer goods. (aa)(4) by adding subpar. A creditor is responsible for ensuring its system is validated and revalidated based on the creditor's own data when it becomes available. receivables. (f). in Supplement I. unit" means a subdivision, agency, department, county, parish, a computer program and any supporting information provided in connection with (u). Nevertheless, the creditor must act with reasonable diligence to collect information needed to complete the application. or letter-of-credit right) Section 5-102. The term includes (but is not limited to) Temporary Aid to Needy Families, food stamps, rent and mortgage supplement or assistance programs, social security and supplemental security income, and unemployment compensation. 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