15 U.S.C. § 1602 : US Code - Section 1602: Definitions and rules of construction

      (a) The definitions and rules of construction set forth in this
    section are applicable for the purposes of this subchapter.
      (b) Bureau. - The term "Bureau" means the Bureau of Consumer
    Financial Protection.
      (c) The term "Board" refers to the Board of Governors of the
    Federal Reserve System.
      (d) The term "organization" means a corporation, government or
    governmental subdivision or agency, trust, estate, partnership,
    cooperative, or association.
      (e) The term "person" means a natural person or an organization.
      (f) The term "credit" means the right granted by a creditor to a
    debtor to defer payment of debt or to incur debt and defer its
    payment.
      (g) The term "creditor" refers only to a person who both (1)
    regularly extends, whether in connection with loans, sales of
    property or services, or otherwise, consumer credit which is
    payable by agreement in more than four installments or for which
    the payment of a finance charge is or may be required, and (2) is
    the person to whom the debt arising from the consumer credit
    transaction is initially payable on the face of the evidence of
    indebtedness or, if there is no such evidence of indebtedness, by
    agreement. Notwithstanding the preceding sentence, in the case of
    an open-end credit plan involving a credit card, the card issuer
    and any person who honors the credit card and offers a discount
    which is a finance charge are creditors. For the purpose of the
    requirements imposed under part D of this subchapter and sections
    1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2),
    1637(b)(3), 1637(b)(8), and 1637(b)(10) of this title, the term
    "creditor" shall also include card issuers whether or not the
    amount due is payable by agreement in more than four installments
    or the payment of a finance charge is or may be required, and the
    Bureau shall, by regulation, apply these requirements to such card
    issuers, to the extent appropriate, even though the requirements
    are by their terms applicable only to creditors offering open-end
    credit plans. Any person who originates 2 or more mortgages
    referred to in subsection (aa) of this section in any 12-month
    period or any person who originates 1 or more such mortgages
    through a mortgage broker shall be considered to be a creditor for
    purposes of this subchapter. The term "creditor" includes a private
    educational lender (as that term is defined in section 1650 of this
    title) for purposes of this subchapter.
      (h) The term "credit sale" refers to any sale in which the seller
    is a creditor. The term includes any contract in the form of a
    bailment or lease if the bailee or lessee contracts to pay as
    compensation for use a sum substantially equivalent to or in excess
    of the aggregate value of the property and services involved and it
    is agreed that the bailee or lessee will become, or for no other or
    a nominal consideration has the option to become, the owner of the
    property upon full compliance with his obligations under the
    contract.
      (i) The adjective "consumer", used with reference to a credit
    transaction, characterizes the transaction as one in which the
    party to whom credit is offered or extended is a natural person,
    and the money, property, or services which are the subject of the
    transaction are primarily for personal, family, or household
    purposes.
      (j) The terms "open end credit plan" and "open end consumer
    credit plan" mean a plan under which the creditor reasonably
    contemplates repeated transactions, which prescribes the terms of
    such transactions, and which provides for a finance charge which
    may be computed from time to time on the outstanding unpaid
    balance. A credit plan or open end consumer credit plan which is an
    open end credit plan or open end consumer credit plan within the
    meaning of the preceding sentence is an open end credit plan or
    open end consumer credit plan even if credit information is
    verified from time to time.
      (k) The term "adequate notice," as used in section 1643 of this
    title, means a printed notice to a cardholder which sets forth the
    pertinent facts clearly and conspicuously so that a person against
    whom it is to operate could reasonably be expected to have noticed
    it and understood its meaning. Such notice may be given to a
    cardholder by printing the notice on any credit card, or on each
    periodic statement of account, issued to the cardholder, or by any
    other means reasonably assuring the receipt thereof by the
    cardholder.
      (l) The term "credit card" means any card, plate, coupon book or
    other credit device existing for the purpose of obtaining money,
    property, labor, or services on credit.
      (m) The term "accepted credit card" means any credit card which
    the cardholder has requested and received or has signed or has
    used, or authorized another to use, for the purpose of obtaining
    money, property, labor, or services on credit.
      (n) The term "cardholder" means any person to whom a credit card
    is issued or any person who has agreed with the card issuer to pay
    obligations arising from the issuance of a credit card to another
    person.
      (o) The term "card issuer" means any person who issues a credit
    card, or the agent of such person with respect to such card.
      (p) The term "unauthorized use," as used in section 1643 of this
    title, means a use of a credit card by a person other than the
    cardholder who does not have actual, implied, or apparent authority
    for such use and from which the cardholder receives no benefit.
      (q) The term "discount" as used in section 1666f of this title
    means a reduction made from the regular price. The term "discount"
    as used in section 1666f of this title shall not mean a surcharge.
      (r) The term "surcharge" as used in this section and section
    1666f of this title means any means of increasing the regular price
    to a cardholder which is not imposed upon customers paying by cash,
    check, or similar means."
      (s) The term "State" refers to any State, the Commonwealth of
    Puerto Rico, the District of Columbia, and any territory or
    possession of the United States.
      (t) The term "agricultural purposes" includes the production,
    harvest, exhibition, marketing, transportation, processing, or
    manufacture of agricultural products by a natural person who
    cultivates, plants, propagates, or nurtures those agricultural
    products, including but not limited to the acquisition of farmland,
    real property with a farm residence, and personal property and
    services used primarily in farming.
      (u) The term "agricultural products" includes agricultural,
    horticultural, viticultural, and dairy products, livestock,
    wildlife, poultry, bees, forest products, fish and shellfish, and
    any products thereof, including processed and manufactured
    products, and any and all products raised or produced on farms and
    any processed or manufactured products thereof.
      (v) The term "material disclosures" means the disclosure, as
    required by this subchapter, of the annual percentage rate, the
    method of determining the finance charge and the balance upon which
    a finance charge will be imposed, the amount of the finance charge,
    the amount to be financed, the total of payments, the number and
    amount of payments, the due dates or periods of payments scheduled
    to repay the indebtedness, and the disclosures required by section
    1639(a) of this title.
      (w) The term "dwelling" means a residential structure or mobile
    home which contains one to four family housing units, or individual
    units of condominiums or cooperatives.
      (x) The term "residential mortgage transaction" means a
    transaction in which a mortgage, deed of trust, purchase money
    security interest arising under an installment sales contract, or
    equivalent consensual security interest is created or retained
    against the consumer's dwelling to finance the acquisition or
    initial construction of such dwelling.
      (y) As used in this section and section 1666f of this title, the
    term "regular price" means the tag or posted price charged for the
    property or service if a single price is tagged or posted, or the
    price charged for the property or service when payment is made by
    use of an open-end credit plan or a credit card if either (1) no
    price is tagged or posted, or (2) two prices are tagged or posted,
    one of which is charged when payment is made by use of an open-end
    credit plan or a credit card and the other when payment is made by
    use of cash, check, or similar means. For purposes of this
    definition, payment by check, draft, or other negotiable instrument
    which may result in the debiting of an open-end credit plan or a
    credit cardholder's open-end account shall not be considered
    payment made by use of the plan or the account.
      (z) Any reference to any requirement imposed under this
    subchapter or any provision thereof includes reference to the
    regulations of the Bureau under this subchapter or the provision
    thereof in question.
      (aa) The disclosure of an amount or percentage which is greater
    than the amount or percentage required to be disclosed under this
    subchapter does not in itself constitute a violation of this
    subchapter.
      (bb)(1) A mortgage referred to in this subsection means a
    consumer credit transaction that is secured by the consumer's
    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
          (ii) $400.

      (2)(A) After the 2-year period beginning on the effective date of
    the regulations promulgated under section 155 of the Riegle
    Community Development and Regulatory Improvement Act of 1994, and
    no more frequently than biennially after the first increase or
    decrease under this subparagraph, the Bureau may by regulation
    increase or decrease the number of percentage points specified in
    paragraph (1)(A), if the Bureau determines that the increase or
    decrease is - 
        (i) consistent with the consumer protections against abusive
      lending provided by the amendments made by subtitle B of title I
      of the Riegle Community Development and Regulatory Improvement
      Act of 1994; and
        (ii) warranted by the need for credit.

      (B) An increase or decrease under subparagraph (A) may not result
    in the number of percentage points referred to in subparagraph (A)
    being - 
        (i) less that 8 percentage points; or
        (ii) greater than 12 percentage points.

      (C) In determining whether to increase or decrease the number of
    percentage points referred to in subparagraph (A), the Bureau shall
    consult with representatives of consumers, including low-income
    consumers, and lenders.
      (3) The amount specified in paragraph (1)(B)(ii) shall be
    adjusted annually on January 1 by the annual percentage change in
    the Consumer Price Index, as reported on June 1 of the year
    preceding such adjustment.
      (4) For purposes of paragraph (1)(B), points and fees shall
    include - 
        (A) all items included in the finance charge, except interest
      or the time-price differential;
        (B) all compensation paid to mortgage brokers;
        (C) each of the charges listed in section 1605(e) of this title
      (except an escrow for future payment of taxes), unless - 
          (i) the charge is reasonable;
          (ii) the creditor receives no direct or indirect
        compensation; and
          (iii) the charge is paid to a third party unaffiliated with
        the creditor; and

        (D) such other charges as the Bureau determines to be
      appropriate.

      (5) This subsection shall not be construed to limit the rate of
    interest or the finance charge that a person may charge a consumer
    for any extension of credit.
      (cc) The term "reverse mortgage transaction" means a nonrecourse
    transaction in which a mortgage, deed of trust, or equivalent
    consensual security interest is created against the consumer's
    principal dwelling - 
        (1) securing one or more advances; and
        (2) with respect to which the payment of any principal,
      interest, and shared appreciation or equity is due and payable
      (other than in the case of default) only after - 
          (A) the transfer of the dwelling;
          (B) the consumer ceases to occupy the dwelling as a principal
        dwelling; or
          (C) the death of the consumer.