11 U.S. Code § 523 - Exceptions to discharge | U.S. Code | US Law

12 CFR § 226.46 – Special disclosure necessities for personal training loans. | CFR | US Law

§ 226.46 Special disclosure necessities for personal training loans.

(a) Coverage. The necessities of this subpart apply to personal training loans as outlined in § 226.46(b)(5). A creditor could, at its choice, adjust to the necessities of this subpart for an extension of credit topic to §§ 226.17 and 226.18 that’s prolonged to a shopper for bills incurred after commencement from a legislation, medical, dental, veterinary, or different graduate college and associated to relocation, research for a bar or different examination, participation in an internship or residency program, or comparable functions.

(1) Relation to different subparts on this half. Except as in any other case particularly supplied, the necessities and limitations of this subpart are along with and never in lieu of these contained in different subparts of this half.

(2) [Reserved]

(b) Definitions. For functions of this subpart, the next definitions apply:

(1) Covered academic establishment means:

(i) An academic establishment that meets the definition of an establishment of upper training, as outlined in paragraph (b)(2) of this part, with out regard to the establishment’s accreditation standing; and

(ii) Includes an agent, officer, or worker of the establishment of upper training. An agent means an institution-affiliated group as outlined by part 151 of the Higher Education Act of 1965 (20 U.S.C. 1019) or an officer or worker of an institution-affiliated group.

(2) Institution of upper training has the identical which means as in sections 101 and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001-1002) and the implementing rules printed by the U.S. Department of Education.

(3) Postsecondary academic bills means any of the bills which might be listed as a part of the price of attendance, as outlined beneath part 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), of a student at a coated academic establishment. These bills embody tuition and charges, books, provides, miscellaneous private bills, room and board, and an allowance for any loan charge, origination charge, or insurance premium charged to a student or mother or father for a loan incurred to cowl the price of the student’s attendance.

(4) Preferred lender association has the identical which means as in part 151 of the Higher Education Act of 1965 (20 U.S.C. 1019).

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(5) Private training loan means an extension of credit that:

(i) Is not made, insured, or assured beneath title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);

(ii) Is prolonged to a shopper expressly, in entire or partly, for postsecondary academic bills, no matter whether or not the loan is supplied by the tutorial establishment that the student attends;

(iii) Does not embody open-end credit any loan that’s secured by actual property or a dwelling; and

(iv) Does not embody an extension of credit during which the coated academic establishment is the creditor if:

(A) The time period of the extension of credit is 90 days or much less; or

(B) an rate of interest is not going to be utilized to the credit stability and the time period of the extension of credit is one yr or much less, even when the credit is payable in additional than 4 installments.

(c) Form of disclosures

(1) Clear and conspicuous. The disclosures required by this subpart shall be made clearly and conspicuously.

(2) Transaction disclosures.

(i) The disclosures required beneath §§ 226.47(b) and (c) shall be made in writing, in a type that the shopper could maintain. The disclosures shall be grouped collectively, shall be segregated from every part else, and shall not include any data indirectly associated to the disclosures required beneath §§ 226.47(b) and (c), which embody the disclosures required beneath § 226.18.

(ii) The disclosures could embody an acknowledgement of receipt, the date of the transaction, and the patron’s identify, tackle, and account quantity. The following disclosures could also be made along with or individually from different required disclosures: the creditor’s id beneath § 226.18(a), insurance or debt cancellation beneath § 226.18(n), and sure safety curiosity prices beneath § 226.18(o).

(iii) The time period “finance charge” and corresponding quantity, when required to be disclosed beneath § 226.18(d), and the rate of interest required to be disclosed beneath §§ 226.47(b)(1)(i) and (c)(1), shall be extra conspicuous than another disclosure, besides the creditor’s id beneath § 228.18(a).

(3) Electronic disclosures. The disclosures required beneath §§ 226.47(b) and (c) could also be supplied to the shopper in digital type, topic to compliance with the shopper consent and different relevant provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.). The disclosures required by § 226.47(a) could also be supplied to the shopper in digital type on or with an utility or solicitation that’s accessed by the shopper in digital type with out regard to the shopper consent or different provisions of the E-Sign Act. The type required to be acquired beneath § 226.48(e) could also be accepted by the creditor in digital type as supplied for in that part.

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(d) Timing of disclosures

(1) Application or solicitation disclosures.

(i) The disclosures required by § 226.47(a) shall be supplied on or with any utility or solicitation. For functions of this subpart, the time period solicitation means a suggestion of credit that doesn’t require the shopper to finish an utility. A “firm offer of credit” as outlined in part 603(l) of the Fair Credit Reporting Act (15 U.S.C. 1681a(l)) is a solicitation for functions of this part.

(ii) The creditor could, at its choice, disclose orally the data in § 226.47(a) in a phone utility or solicitation. Alternatively, if the creditor doesn’t disclose orally the data in § 226.47(a), the creditor should present the disclosures or place them within the mail no later than three enterprise days after the shopper has utilized for the credit, besides that, if the creditor both denies the shopper’s utility or gives or locations within the mail the disclosures in § 226.47(b) no later than three enterprise days after the shopper requests the credit, the creditor needn’t additionally present the § 226.47(a) disclosures.

(iii) Notwithstanding paragraph (d)(1)(i), for a loan that the patron could use for a number of functions together with, however not restricted to, postsecondary academic bills, the creditor needn’t present the disclosures required by § 226.47(a).

(2) Approval disclosures. The creditor shall present the disclosures required by § 226.47(b) earlier than consummation on or with any discover of approval supplied to the shopper. If the creditor mails discover of approval, the disclosures should be mailed with the discover. If the creditor communicates discover of approval by phone, the creditor should mail the disclosures inside three enterprise days of offering the discover of approval. If the creditor communicates discover of approval electronically, the creditor could present the disclosures in digital type in accordance with § 226.46(d)(3); in any other case the creditor should mail the disclosures inside three enterprise days of speaking the discover of approval. If the creditor communicates approval in particular person, the creditor should present the disclosures to the shopper at the moment.

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(3) Final disclosures. The disclosures required by § 226.47(c) shall be supplied after the shopper accepts the loan in accordance with § 226.48(c)(1).

(4) Receipt of mailed disclosures. If the disclosures beneath paragraphs (d)(1), (d)(2) or (d)(3), are mailed to the patron, the shopper is taken into account to have acquired them three enterprise days after they’re mailed.

(e) Basis of disclosures and use of estimates

(1) Legal obligation. Disclosures shall replicate the phrases of the authorized obligation between the events.

(2) Estimates. If any data crucial for an correct disclosure is unknown to the creditor, the creditor shall make the disclosure based mostly on one of the best data fairly out there on the time the disclosure is supplied, and shall state clearly that the disclosure is an estimate.

(f) Multiple collectors; a number of customers. If a transaction includes multiple creditor, just one set of disclosures shall be given and the collectors shall agree amongst themselves which creditor will adjust to the necessities that this half imposes on all or any of them. If there’s multiple shopper, the disclosures could also be made to any shopper who’s primarily liable on the obligation.

(g) Effect of subsequent occasions

(1) Approval disclosures. If a disclosure beneath § 226.47(b) turns into inaccurate due to an occasion that happens after the creditor delivers the required disclosures, the inaccuracy shouldn’t be a violation of Regulation Z (12 CFR half 226), though new disclosures could also be required beneath § 226.48(c).

(2) Final disclosures. If a disclosure beneath § 226.47(c) turns into inaccurate due to an occasion that happens after the creditor delivers the required disclosures, the inaccuracy shouldn’t be a violation of Regulation Z (12 CFR half 226).