Tennessee Amends Application of Interest Rates for Industrial Loan and Thrift Companies

Tennessee recently amended provisions relating to certain loans made by industrial loan and thrift companies by changing the application of interest rates to the amount financed instead of the total amount of the loan. These amendments went into effect immediately.

The “amount financed” is defined as the amount financed as disclosed under the federal Truth in Lending Act, which is contained in Title I of the Consumer Credit Protection Act (15 U.S.C. § 1601 et seq.) and Regulation Z (12 C.F.R. Part 1026).

A copy of the amendments can be viewed here.