Page:United States Statutes at Large Volume 119.djvu/227

 PUBLIC LAW 109–8—APR. 20, 2005

119 STAT. 209

(1) CREDIT APPLICATIONS.—Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended— (A) in subsection (a), by adding at the end the following: ‘‘(15) In the case of a consumer credit transaction that is secured by the principal dwelling of the consumer, in which the extension of credit may exceed the fair market value of the dwelling, a clear and conspicuous statement that— ‘‘(A) the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and ‘‘(B) the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.’’; and (B) in subsection (b), by adding at the end the following: ‘‘(3) In the case of a credit transaction described in paragraph (15) of subsection (a), disclosures required by that paragraph shall be made to the consumer at the time of application for such extension of credit.’’. (2) CREDIT ADVERTISEMENTS.—Section 144 of the Truth in Lending Act (15 U.S.C. 1664) is amended by adding at the end the following: ‘‘(e) Each advertisement to which this section applies that relates to a consumer credit transaction that is secured by the principal dwelling of a consumer in which the extension of credit may exceed the fair market value of the dwelling, and which advertisement is disseminated in paper form to the public or through the Internet, as opposed to by radio or television, shall clearly and conspicuously state that— ‘‘(1) the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and ‘‘(2) the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.’’. (c) REGULATORY IMPLEMENTATION.— (1) IN GENERAL.—The Board shall promulgate regulations implementing the amendments made by this section. (2) EFFECTIVE DATE.—Regulations issued under paragraph (1) shall not take effect until the later of— (A) 12 months after the date of enactment of this Act; or (B) 12 months after the date of publication of such final regulations by the Board.

15 USC 1637a note.

SEC. 1303. DISCLOSURES RELATED TO ‘‘INTRODUCTORY RATES’’.

(a) INTRODUCTORY RATE DISCLOSURES.—Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the following: ‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRODUCTORY RATES’.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), an application or solicitation to open a credit card account and all promotional materials accompanying such application or solicitation for which a disclosure is required under paragraph (1), and that offers a temporary annual percentage rate of interest, shall—

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