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15 U.S.C. § 1606 — Determination of annual percentage rate
Federal law — U.S. Code and appendices · legal_authorities
Page 1467
TITLE 15—COMMERCE AND TRADE
§ 1607
1 So in original.
priate regulation in order to effect any change included
in the report under paragraph (1), and shall publish the
regulation in the Federal Register before the end of the
1-year period beginning on the date of enactment of
this Act.’’
§ 1606. Determination of annual percentage rate
(a) ‘‘Annual percentage rate’’ defined
The annual percentage rate applicable to any
extension of consumer credit shall be deter-
mined, in accordance with the regulations of the
Bureau,
(1) in the case of any extension of credit
other than under an open end credit plan, as
(A) that nominal annual percentage rate
which will yield a sum equal to the amount
of the finance charge when it is applied to
the unpaid balances of the amount financed,
calculated according to the actuarial meth-
od of allocating payments made on a debt
between the amount financed and the
amount of the finance charge, pursuant to
which a payment is applied first to the accu-
mulated finance charge and the balance is
applied to the unpaid amount financed; or
(B) the rate determined by any method
prescribed by the Bureau as a method which
materially simplifies computation while re-
taining reasonable accuracy as compared
with the rate determined under subpara-
graph (A).1
(2) in the case of any extension of credit
under an open end credit plan, as the quotient
(expressed as a percentage) of the total finance
charge for the period to which it relates di-
vided by the amount upon which the finance
charge for that period is based, multiplied by
the number of such periods in a year.
(b) Computation of rate of finance charges for
balances within a specified range
Where a creditor imposes the same finance
charge for balances within a s
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Page 1467
TITLE 15—COMMERCE AND TRADE
§ 1607
1 So in original.
priate regulation in order to effect any change included
in the report under paragraph (1), and shall publish the
regulation in the Federal Register before the end of the
1-year period beginning on the date of enactment of
this Act.’’
§ 1606. Determination of annual percentage rate
(a) ‘‘Annual percentage rate’’ defined
The annual percentage rate applicable to any
extension of consumer credit shall be deter-
mined, in accordance with the regulations of the
Bureau,
(1) in the case of any extension of credit
other than under an open end credit plan, as
(A) that nominal annual percentage rate
which will yield a sum equal to the amount
of the finance charge when it is applied to
the unpaid balances of the amount financed,
calculated according to the actuarial meth-
od of allocating payments made on a debt
between the amount financed and the
amount of the finance charge, pursuant to
which a payment is applied first to the accu-
mulated finance charge and the balance is
applied to the unpaid amount financed; or
(B) the rate determined by any method
prescribed by the Bureau as a method which
materially simplifies computation while re-
taining reasonable accuracy as compared
with the rate determined under subpara-
graph (A).1
(2) in the case of any extension of credit
under an open end credit plan, as the quotient
(expressed as a percentage) of the total finance
charge for the period to which it relates di-
vided by the amount upon which the finance
charge for that period is based, multiplied by
the number of such periods in a year.
(b) Computation of rate of finance charges for
balances within a specified range
Where a creditor imposes the same finance
charge for balances within a specified range, the
annual percentage rate shall be computed on the
median balance within the range, except that if
the Bureau determines that a rate so computed
would not be meaningful, or would be materially
misleading, the annual percentage rate shall be
computed on such other basis as the Bureau may
be regulation require.
(c) Allowable tolerances for purposes of compli-
ance with disclosure requirements
The disclosure of an annual percentage rate is
accurate for the purpose of this subchapter if
the rate disclosed is within a tolerance not
greater than one-eighth of 1 per centum more or
less than the actual rate or rounded to the near-
est one-fourth of 1 per centum. The Bureau may
allow a greater tolerance to simplify compliance
where irregular payments are involved.
(d) Use of rate tables or charts having allowable
variance from determined rates
The Bureau may authorize the use of rate ta-
bles or charts which may provide for the disclo-
sure of annual percentage rates which vary from
the rate determined in accordance with sub-
section (a)(1)(A) by not more than such toler-
ances as the Bureau may allow. The Bureau may
not allow a tolerance greater than 8 per centum
of that rate except to simplify compliance where
irregular payments are involved.
(e) Authorization of tolerances in determining
annual percentage rates
In the case of creditors determining the an-
nual percentage rate in a manner other than as
described in subsection (d), the Bureau may au-
thorize other reasonable tolerances.
(Pub. L. 90–321, title I, § 107, May 29, 1968, 82 Stat.
149; Pub. L. 96–221, title VI, § 607, Mar. 31, 1980, 94
Stat. 170; Pub. L. 111–203, title X, § 1100A(2), July
21, 2010, 124 Stat. 2107.)
Editorial Notes
AMENDMENTS
2010—Pub.
L.
111–203
substituted
‘‘Bureau’’
for
‘‘Board’’ wherever appearing.
1980—Subsec. (c). Pub. L. 96–221, § 607(a), substituted
provisions relating to allowable tolerances for purposes
of compliance with disclosure requirements, for provi-
sions relating to rounding off of annual percentage
rates which are converted from single add-on or other
rates.
Subsec. (e). Pub. L. 96–221, § 607(b), struck out ref-
erence to subsection (c) of this section.
Subsec. (f). Pub. L. 96–221, § 607(c), struck out subsec.
(f) setting forth requirements for form of expressing
percentage rates prior to Jan. 1, 1971.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the des-
ignated transfer date, see section 1100H of Pub. L.
111–203, set out as a note under section 552a of Title 5,
Government Organization and Employees.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–221 effective on expiration
of two years and six months after Mar. 31, 1980, with all
regulations, forms, and clauses required to be pre-
scribed to be promulgated at least one year prior to
such effective date, and allowing any creditor to com-
ply with any amendments, in accordance with the regu-
lations, forms, and clauses prescribed by the Board
prior to such effective date, see section 625 of Pub. L.
96–221, set out as a note under section 1602 of this title.
§ 1607. Administrative enforcement
(a) Enforcing agencies
Subject to subtitle B of the Consumer Finan-
cial Protection Act of 2010 [12 U.S.C. 5511 et
seq.], compliance with the requirements imposed
under this subchapter shall be enforced under—
(1) section 8 of the Federal Deposit Insur-
ance Act [12 U.S.C. 1818], by the appropriate
Federal banking agency, as defined in section
3(q) of the Federal Deposit Insurance Act (12
U.S.C. 1813(q)), with respect to—
(A) national banks, Federal savings asso-
ciations, and Federal branches and Federal
agencies of foreign banks;
(B) member banks of the Federal Reserve
System
(other
than
national
banks),
branches and agencies of foreign banks
(other than Federal branches, Federal agen-
cies, and insured State branches of foreign
banks),
commercial
lending
companies
owned or controlled by foreign banks, and
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Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter—
**(a) Definitions of bank and related terms**
(1) **Bank** — The term “bank”—
(A) means any national bank and State bank, and any Federal branch and insured branch;
(B) includes any former savings association.
(2) **State bank** — The term “State bank” means any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which—
(A) is engaged in the business of receiving deposits, other than trust funds (as defined in this section); and
(B) is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia,
including any cooperative bank or other unincorporated bank the deposits of which were insured by the Corporation on the day before August 9, 1989.
(3) **State** — The term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
**(b) Definition of savings associations and related terms**
(1) **Savings association** — The term “savings association” means—
(A) any Federal savings association;
(B) any State savings association; and
(C) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association.
(2) **Federal savings association** — The term “Federal savings association” means any Federal savings association or Federal savings bank which is chartered under [section 1464 of t
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Federal law — U.S. Code and appendices · legal_authorities
Page 966
TITLE 12—BANKS AND BANKING
§ 1813
(B) any other right or remedy against the
Corporation,
against
the
United
States
under applicable law, or against any person
other than a person described in paragraph
(1) participating in such transactions.
This subsection shall not be construed to limit
or alter in any way the immunities that are
available under applicable law for Federal offi-
cials and employees not described in this sub-
section.
(Sept. 21, 1950, ch. 967, § 2[2], 64 Stat. 873; Pub. L.
86–230, § 19, Sept. 8, 1959, 73 Stat. 460; Pub. L.
98–181, title I [title VII, § 702(a)], Nov. 30, 1983, 97
Stat. 1267; Pub. L. 101–73, title II, § 203(a), Aug. 9,
1989, 103 Stat. 188; Pub. L. 102–18, title I, § 103(b),
Mar. 23, 1991, 105 Stat. 60; Pub. L. 104–208, div. A,
title II, § 2243, Sept. 30, 1996, 110 Stat. 3009–419;
Pub. L. 111–203, title III, § 336(a), July 21, 2010, 124
Stat. 1540.)
Editorial Notes
REFERENCES IN TEXT
The Securities Act of 1933, referred to in subsec. (f)(1),
is act May 27, 1933, ch. 38, title I, 48 Stat. 74, which is
classified generally to subchapter I (§ 77a et seq.) of
chapter 2A of Title 15, Commerce and Trade. For com-
plete classification of this Act to the Code, see section
77a of Title 15 and Tables.
PRIOR PROVISIONS
Section is derived from subsec. (b) of former section
264 of this title. See Codification note set out under
section 1811 of this title.
AMENDMENTS
2010—Subsec. (a)(1)(B). Pub. L. 111–203, § 336(a)(1), sub-
stituted ‘‘Director of the Consumer Financial Protec-
tion Bureau’’ for ‘‘Director of the Office of Thrift Su-
pervision’’.
Subsec. (d)(2). Pub. L. 111–203, § 336(a)(2), amended par.
(2) generally. Prior to amendment, text read as follows:
‘‘In the event of a vacancy in the office of the Co
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Termination of insurance**
(1) **Voluntary termination** — Any insured depository institution which is not—
(A) a national member bank;
(B) a State member bank;
(C) a Federal branch;
(D) a Federal savings association; or
(E) an insured branch which is required to be insured under subsection (a) or (b) 11 See References in Text note below. of [section 3104 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3104&num=0&edition=prelim),
may terminate such depository institution’s status as an insured depository institution if such insured institution provides written notice to the Corporation of the institution’s intent to terminate such status not less than 90 days before the effective date of such termination.
(2) **Involuntary termination**
(A) *Notice to primary regulator* — If the Board of Directors determines that—
(i) an insured depository institution or the directors or trustees of an insured depository institution have engaged or are engaging in unsafe or unsound practices in conducting the business of the depository institution;
(ii) an insured depository institution is in an unsafe or unsound condition to continue operations as an insured institution; or
(iii) an insured depository institution or the directors or trustees of the insured institution have violated any applicable law, regulation, order, condition imposed in writing by the Corporation in connection with the approval of any application or other request by the insured depository institution, or written agreement entered into between the insured depository institution and the Corporation,
the Board of Directors shall notify the appropriate Federal banking agency with respect to such institution (if other than the Corp
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Federal law — U.S. Code and appendices · legal_authorities
Page 1006
TITLE 12—BANKS AND BANKING
§ 1818
1 See References in Text note below.
‘‘(c) For a period of not less than 5 years after the
date of the enactment of this title [July 21, 2010], the
Federal Deposit Insurance Corporation shall make
available to the public the reserve ratio and the des-
ignated reserve ratio using both estimated insured de-
posits and the assessment base under [former] section
7(b)(2)(C) of the Federal Deposit Insurance Act [12
U.S.C. 1817(b)(2) does not contain a subpar. (C)].
‘‘(d) RESERVE RATIO.—Notwithstanding the timing re-
quirements of section 7(b)(3)(E)(ii) of the Federal De-
posit Insurance Act [12 U.S.C. 1817(b)(3)(E)(ii)], the Cor-
poration shall take such steps as may be necessary for
the reserve ratio of the Deposit Insurance Fund to
reach 1.35 percent of estimated insured deposits by Sep-
tember 30, 2020.
‘‘(e) OFFSET.—In setting the assessments necessary to
meet the requirements of subsection (d), the Corpora-
tion shall offset the effect of subsection (d) on insured
depository institutions with total consolidated assets
of less than $10,000,000,000.’’
[For definitions of terms used in section 334(c)–(e) of
Pub. L. 111–203, set out above, see section 5301 of this
title.]
REPORT TO CONGRESS ON REFUNDS, DIVIDENDS, AND
CREDITS FROM DEPOSIT INSURANCE FUND
Pub. L. 109–173, § 5, Feb. 15, 2006, 119 Stat. 3606, re-
quired that any determination under former subsection
(e)(2)(E) of this section be submitted to the Committee
on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House
of Representatives not later than 270 days after making
such determination and provided that the report sub-
mitted include a detailed explanation for the deter-
mination and a discussion of th
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Study** Not later than the end of the 180-day period beginning on the date of the enactment of this Act, and annually thereafter, the Comptroller General of the United States shall conduct a study of financial services regulations, including activities of the Bureau. Such study shall include an analysis of—
(1) the impact of regulation on the financial marketplace, including the effects on the safety and soundness of regulated entities, cost and availability of credit, savings realized by consumers, reductions in consumer paperwork burden, changes in personal and small business bankruptcy filings, and costs of compliance with rules, including whether relevant Federal agencies are applying sound cost-benefit analysis in promulgating rules;
(2) efforts to avoid duplicative or conflicting rulemakings, including an evaluation of the consultative process under subparagraphs (B) and (C) of [section 5512(b)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5512/b/2&num=0&edition=prelim), information requests, and examinations; and
(3) other matters related to the operations of financial services regulations deemed by the Comptroller General to be appropriate.
**(b) Report** Not later than the end of the 30-day period following the completion of a study conducted pursuant to subsection (a), the Comptroller General shall issue a report to the Congress containing a detailed description of all findings and conclusions made by the Comptroller General in carrying out such study, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.
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Federal law — U.S. Code and appendices · legal_authorities
Page 1955
TITLE 12—BANKS AND BANKING
§ 5512
tion], or the amendments made by this subtitle, shall
be construed to require the Bureau of Consumer Finan-
cial Protection to collect or make publicly available
additional information under the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5481 et seq.), beyond in-
formation that was collected or made publicly avail-
able under that Act, as of the day before the date of en-
actment of this Act [Dec. 23, 2022].’’
§ 5499. Open data publication
All public data assets published by the Bureau
shall be—
(1) made available as an open Government
data asset (as defined in section 3502 of title
44);
(2) freely available for download;
(3) rendered in a human-readable format;
and
(4) accessible via application programming
interface where appropriate.
(Pub. L. 111–203, title X, § 1019, as added Pub. L.
117–263, div. E, title LVIII, § 5851(a)(2), Dec. 23,
2022, 136 Stat. 3433.)
Statutory Notes and Related Subsidiaries
RULE OF CONSTRUCTION REGARDING NO NEW
DISCLOSURE REQUIREMENTS
Enactment of section not to be construed to require
certain additional information to be collected or dis-
closed, see section 5853 of Pub. L. 117–263, set out as a
note under section 5498 of this title.
PART B—GENERAL POWERS OF THE BUREAU
§ 5511. Purpose, objectives, and functions
(a) Purpose
The Bureau shall seek to implement and,
where applicable, enforce Federal consumer fi-
nancial law consistently for the purpose of en-
suring that all consumers have access to mar-
kets for consumer financial products and serv-
ices and that markets for consumer financial
products and services are fair, transparent, and
competitive.
(b) Objectives
The Bureau is authorized to exercise its au-
thorities under Federal consumer financial law
fo
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Federal law — U.S. Code and appendices · legal_authorities
**(a) “Annual percentage rate” defined** The annual percentage rate applicable to any extension of consumer credit shall be determined, in accordance with the regulations of the Bureau,
(1) in the case of any extension of credit other than under an open end credit plan, as
(A) that nominal annual percentage rate which will yield a sum equal to the amount of the finance charge when it is applied to the unpaid balances of the amount financed, calculated according to the actuarial method of allocating payments made on a debt between the amount financed and the amount of the finance charge, pursuant to which a payment is applied first to the accumulated finance charge and the balance is applied to the unpaid amount financed; or
(B) the rate determined by any method prescribed by the Bureau as a method which materially simplifies computation while retaining reasonable accuracy as compared with the rate determined under subparagraph (A).11 So in original.
(2) in the case of any extension of credit under an open end credit plan, as the quotient (expressed as a percentage) of the total finance charge for the period to which it relates divided by the amount upon which the finance charge for that period is based, multiplied by the number of such periods in a year.
**(b) Computation of rate of finance charges for balances within a specified range** Where a creditor imposes the same finance charge for balances within a specified range, the annual percentage rate shall be computed on the median balance within the range, except that if the Bureau determines that a rate so computed would not be meaningful, or would be materially misleading, the annual percentage rate shall be computed on such other basis as the Bureau may be regulation require.
**(c) Allowable tolerances for
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