source:
  type: regulation
  id: tila-15usc-1606
  authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606 — Determination of annual percentage rate
  description: 'TILA (Truth in Lending Act, 15 U.S.C.), §1606 Determination of annual percentage rate. Captured
    section-complete from Cornell LII (verbatim).

    '
obligations:
- id: tila-15usc-1606-a
  canonical_id: tila-15usc-1606-a
  section: 15 U.S.C. §1606(a)
  description: 'Determination of annual percentage rate — (a): (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 perc…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/15/1606
    snapshot_id: 554add0ff8672e6d
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f4fe632d67d83721ca74fec1d9fb941ba1c44084bfd0dffb409fbe781fadbbe1
    paragraph_quote: (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). [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 divided by the amount upon which the finance
      charge for that period is based, multiplied by the number of such periods in a year.
    drafter_attestation: Verbatim slice of 15 U.S.C. §1606 subsection (a) from Cornell LII snapshot 554add0ff8672e6d;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: tila-15usc-1606-b
  canonical_id: tila-15usc-1606-b
  section: 15 U.S.C. §1606(b)
  description: 'Determination of annual percentage rate — (b): (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 ra…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/15/1606
    snapshot_id: 554add0ff8672e6d
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f4fe632d67d83721ca74fec1d9fb941ba1c44084bfd0dffb409fbe781fadbbe1
    paragraph_quote: (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.
    drafter_attestation: Verbatim slice of 15 U.S.C. §1606 subsection (b) from Cornell LII snapshot 554add0ff8672e6d;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: tila-15usc-1606-c
  canonical_id: tila-15usc-1606-c
  section: 15 U.S.C. §1606(c)
  description: 'Determination of annual percentage rate — (c): (c) Allowable tolerances for purposes of compliance
    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 rou…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/15/1606
    snapshot_id: 554add0ff8672e6d
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f4fe632d67d83721ca74fec1d9fb941ba1c44084bfd0dffb409fbe781fadbbe1
    paragraph_quote: (c) Allowable tolerances for purposes of compliance 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
      nearest one-fourth of 1 per centum. The Bureau may allow a greater tolerance to simplify compliance where
      irregular payments are involved.
    drafter_attestation: Verbatim slice of 15 U.S.C. §1606 subsection (c) from Cornell LII snapshot 554add0ff8672e6d;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: tila-15usc-1606-d
  canonical_id: tila-15usc-1606-d
  section: 15 U.S.C. §1606(d)
  description: 'Determination of annual percentage rate — (d): (d) Use of rate tables or charts having allowable
    variance from determined rates The Bureau may authorize the use of rate tables or charts which may provide for
    the disclosure of annual percentage rates which vary from the rate determined in accordance with subsection
    (a)(1)(A) by not more than such…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/15/1606
    snapshot_id: 554add0ff8672e6d
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f4fe632d67d83721ca74fec1d9fb941ba1c44084bfd0dffb409fbe781fadbbe1
    paragraph_quote: (d) Use of rate tables or charts having allowable variance from determined rates The Bureau
      may authorize the use of rate tables or charts which may provide for the disclosure of annual percentage rates
      which vary from the rate determined in accordance with subsection (a)(1)(A) by not more than such tolerances
      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.
    drafter_attestation: Verbatim slice of 15 U.S.C. §1606 subsection (d) from Cornell LII snapshot 554add0ff8672e6d;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: tila-15usc-1606-e
  canonical_id: tila-15usc-1606-e
  section: 15 U.S.C. §1606(e)
  description: 'Determination of annual percentage rate — (e): (e) Authorization of tolerances in determining annual
    percentage rates In the case of creditors determining the annual percentage rate in a manner other than as described
    in subsection (d), the Bureau may authorize other reasonable tolerances. ( Pub. L. 90–321, title I, § 107 ,
    May 29, 1968 , 82 Sta…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: TILA (Truth in Lending Act, 15 U.S.C.) § 1606
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/15/1606
    snapshot_id: 554add0ff8672e6d
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f4fe632d67d83721ca74fec1d9fb941ba1c44084bfd0dffb409fbe781fadbbe1
    paragraph_quote: (e) Authorization of tolerances in determining annual percentage rates In the case of creditors
      determining the annual percentage rate in a manner other than as described in subsection (d), the Bureau may
      authorize 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 .) [1] So in original.
    drafter_attestation: Verbatim slice of 15 U.S.C. §1606 subsection (e) from Cornell LII snapshot 554add0ff8672e6d;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
