13 1 date (after such effective date) when such account is re 2 newed, but in no case later than one year after such effective 3 date. 4 "(b) This section does not alter or affect the right under 5 State law of a card issuer to attach or otherwise levy upon 6 funds of a cardholder held on deposit with the card issuer 7 if that remedy is constitutionally available to creditors 8 generally. 9 10 "8172. Rights of credit card customers "A card issuer who has issued a credit card to a card11 holder pursuant to an open-end consumer credit plan shall 12 be subject to all claims (other than tort claims) and defenses 13 arising out of any transaction in which the credit card is used 14 as a method of payment or extension of credit if (1) the 15 obligor has made a good faith attempt to obtain satisfactory 16 resolution of a disagreement or problem relative to the trans17 action from the person honoring the credit card; (2) the 18 amount of such initial transaction exceeds $50; (3) the place 19 where the initial transaction occurred was in the same State 20 as the State in which the card issuer maintained a place of 21 business; and (4) the amount of claims or defenses asserted 22 by the cardholder does not exceed: (a) the initial amount 23 of credit extended in connection with the initial transaction 24 giving rise to the claim or defense provided the cardholder 14 1 notifies the card issuer or person honoring the card of such 2 claim or defense within three months from the date of such 3 transaction; or (b) if the cardholder notifies the card issuer or person honoring the card of such claims or defense later 6 5 than six months following the date of such transaction, the amount outstanding with respect to such transaction at the 7 time of such notification. For the purpose of determining such 8 amount outstanding in the preceding sentence, the payments 9 and credits to the cardholder's account are deemed to have 10 been applied, in the order indicated, to the payment of: (i) 11 late charges in the order of their entry to the account; (ii) 12 finance charges in order of their entry to the account; and (iii) debits to the account other than those set forth above, 14 in the order in which each debit entry to the account was 15 made. 13 16 "8173. Relation to State laws 17 "This chapter does not annul, alter, affect, or exempt 18 any person subject to the provisions of this chapter from 19 complying with the laws of any State with respect to credit 20 billing practices, except to the extent that those laws are 21 inconsistent with any provision of this chapter, and then 22 only to the extent of the inconsistency. No State law which 23 provides greater protection for consumers than the protec24 tion provided by this law shall be preempted by this law to 25 the extent of the greater protection. 15 1 8108. Conforming amendments 2 (a) The table of chapters of the Truth in Lending Act is 3 amended by adding immediately under item 3 the following: 4 5 "4. CREDIT BILLING__ 161". (b) Section 111 (d) of such Act (15 U.S.C. 1610 (d)) is amended by striking out "and 130" and inserting in lieu 6 thereof a comma and the following: "130, 166, 167, and 7 168". 8 $109. Effective date 9 This title takes effect upon the expiration of one year 10 after the date of its enactment. 11 TITLE II-AMENDMENTS TO THE TRUTH IN 12 LENDING ACT 13 §201. More-than-four-installment rule 14 (a) The first sentence of section 103 (f) of the Truth 15 in Lending Act (15 U.S.C. 1602 (f)) is amended by in16 serting "which is payable by agreement in more than four 17 installments or" after "credit". 18 (b) Section 121 (a) of the Truth in Lending Act (15 19 U.S.C. 1631 (a)) is amended by striking out all after "ex20 tended" and inserting "the information required under this 21 chapter, where 22 23 24 "(1) a finance charge is or may be imposed, or ment in more than four installments." 96-687-73-4 16 1 202. Agricultural credit exemption 2 Section 104 of the Truth in Lending Act (15 U.S.C. 3 1603) is amended by adding at the end thereof a new 4 paragraph as follows: 5 6 7 9 "(5) Credit transactions primarily for agricultural purposes in which the total amount to be financed exceeds $25,000." § 203. Administrative enforcement (a) Section 108 (a) of the Truth in Lending Act (15 10 U.S.C. 1607 (a)) is amended by striking out paragraph (4) 11 and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively. 12 13 (b) Section 108 (a) of the Truth in Lending Act (15 14 U.S.C. 1607 (a)) is amended by adding at the end thereof a new paragraph as follows: "(7) the Farm Credit Act of 1971, by the Farm Credit Administration with respect to any Federal land bank, Federal land bank association, Federal intermediate credit bank, or production credit association." § 204. Liens arising by operation of State law Section 125 of the Truth in Lending Act (15 U.S.C. 1635) is amended (1) by striking out "is" the first time it appears in the first sentence of subsection (a) and inserting in lieu thereof ", including any such interest arising by opera tion of law, is or will be"; and 1 2 3 4 17 (2) by inserting after "obligor" the second time it appears in the first sentence of subsection (b) the follow 66 ing: ", including any such interest arising by operation of law,". 5 8205. Time limit for right of rescission 6 Section 125 of the Truth in Lending Act (15 U.S.C. 7 1635) is amended by adding at the end thereof a new sub8 section as follows: 9 10 11 "(f) An obligor's right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs earlier, 12 notwithstanding the fact that the disclosures required under 13 this section or any other material disclosures required under 14 this chapter have not been delivered to the obligor." 15 § 206. Good faith compliance 16 Section 130 of the Truth in Lending Act (15 U.S.C. 17 1640) is amended by adding at the end thereof a new 18 subsection as follows: 19 "(f) No provision of this section or section 112 impos20 ing any liability shall apply to any act done or omitted in 21 good faith in conformity with any rule, regulation, or inter22 pretation thereof by the Board, notwithstanding that after 23 such act or omission has occurred, such rule, regulation, or 24 interpretation is amended, rescinded, or determined by judi25 cial or other authority to be invalid for any reason." |