Organizations

The exclusion of loans to organizations is important.  15 U.S.C. § 1602(c) defines Organizations as follows:

“The term ‘organization’ means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.”

Cases have suggested that a revocable trust created for estate planning purposes may not be the type of trust Congress intended to exempt from TILA under Section 1602(c).  Treating such a loan as a loan to the Trustors, which is subject to TILA and to Section 32 is the best practice until case law clarifies this issue.

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