82938 Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 

organization such as a corporation or a 

government agency or instrumentality. Such 

a lease is not covered by the regulation even 

if the leased property is used (by an 

employee, for example) primarily for 

personal, family or household purposes, or is 

guaranteed by or subsequently assigned to a 

natural person. 

7. Leases of personal property incidental to 

a service. The following leases of personal 

property are deemed incidental to a service 

and thus are not subject to the regulation: 

i. Home entertainment systems requiring 

the consumer to lease equipment that enables 

a television to receive the transmitted 

programming. 

ii. Security alarm systems requiring the 

installation of leased equipment intended to 

monitor unlawful entries into a home and in 

some cases to provide fire protection. 

iii. Propane gas service where the 

consumer must lease a propane tank to 

receive the service. 

8. Safe deposit boxes. The lease of a safe 

deposit box is not a consumer lease under 

§ 1013.2(e). 

9. Threshold amount. A consumer lease is 

exempt from the requirements of this part if 

the total contractual obligation exceeds the 

threshold amount in effect at the time of 

consummation. The threshold amount in 

effect during a particular time period is the 

amount stated in comment 2(e)–1 for that 

period. The threshold amount is adjusted 

effective January 1 of each year by any 

annual percentage increase in the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W) that was in effect 

on the preceding June 1. Comment 2(e)–11 

will be amended to provide the threshold 

amount for the upcoming year after the 

annual percentage change in the CPI–W that 

was in effect on June 1 becomes available. 

Any increase in the threshold amount will be 

rounded to the nearest $100 increment. For 

example, if the annual percentage increase in 

the CPI–W would result in a $950 increase 

in the threshold amount, the threshold 

amount will be increased by $1,000. 

However, if the annual percentage increase in 

the CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900. If a 

consumer lease is exempt from the 

requirements of this part because the total 

contractual obligation exceeds the threshold 

amount in effect at the time of 

consummation, the lease remains exempt 

regardless of a subsequent increase in the 

threshold amount. 

10. No increase in the CPI–W. If the CPI– 

W in effect on June 1 does not increase from 

the CPI–W in effect on June 1 of the previous 

year, the threshold amount effective the 

following January 1 through December 31 

will not change from the previous year. 

When this occurs, for the years that follow, 

the threshold is calculated based on the 

annual percentage change in the CPI–W 

applied to the dollar amount that would have 

resulted, after rounding, if decreases and any 

subsequent increases in the CPI–W had been 

taken into account. 

i. Net increases. If the resulting amount 

calculated, after rounding, is greater than the 

current threshold, then the threshold 

effective January 1 the following year will 

increase accordingly. 

ii. Net decreases. If the resulting amount 

calculated, after rounding, is equal to or less 

than the current threshold, then the 

threshold effective January 1 the following 

year will not change, but future increases 

will be calculated based on the amount that 

would have resulted. 

11. Threshold. For purposes of 

§ 1013.2(e)(1), the threshold amount in effect 

during a particular period is the amount 

stated in the following for that period. 

i. Prior to July 21, 2011, the threshold 

amount is $25,000. 

ii. From July 21, 2011, through December 

31, 2011, the threshold amount is $50,000. 

iii. From January 1, 2012, through 

December 31, 2012, the threshold amount is 

$51,800. 

iv. From January 1, 2013, through 

December 31, 2013, the threshold amount is 

$53,000. 

v. From January 1, 2014, through December 

31, 2014, the threshold amount is $53,500. 

vi. From January 1, 2015, through 

December 31, 2015, the threshold amount is 

$54,600. 

vii. From January 1, 2016, through 

December 31, 2016, the threshold amount is 

$54,600. 

viii. From January 1, 2017, through 

December 31, 2017, the threshold amount is 

$54,600. 

ix. From January 1, 2018, through 

December 31, 2018, the threshold amount is 

$55,800. 

x. From January 1, 2019, through December 

31, 2019, the threshold amount is $57,200. 

xi. From January 1, 2020, through 

December 31, 2020, the threshold amount is 

$58,300. 

xii. From January 1, 2021, through 

December 31, 2021, the threshold amount is 

$58,300. 

xiii. From January 1, 2022, through 

December 31, 2022, the threshold amount is 

$61,000. 

xiv. From January 1, 2023, through 

December 31, 2023, the threshold amount is 

$66,400. 

xv. From January 1, 2024, through 

December 31, 2024, the threshold amount is 

$69,500. 

xvi. From January 1, 2025, through 

December 31, 2025, the threshold amount is 

$71,900. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Benjamin W. McDonough, 

Deputy Secretary of the Board. 

Brian Shearer, 

Assistant Director, Office of Policy Planning 

and Strategy, Consumer Financial Protection 

Bureau. 

[FR Doc. 2024–23276 Filed 10–11–24; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Docket No. R–1843] 

RIN 7100–AG 84 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1026 

Truth in Lending (Regulation Z) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board) and 

Consumer Financial Protection Bureau 

(CFPB). 

ACTION: Final rules, official 

interpretations. 

SUMMARY: The Board and the CFPB 

(collectively, Agencies) are publishing 

final rules amending the official 

interpretations for the Agencies’ 

regulations that implement the Truth in 

Lending Act (TILA). The Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act) 

amended TILA by requiring that the 

dollar threshold for exempt consumer 

credit transactions be adjusted annually 

by the annual percentage increase in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W). 

Based on the annual percentage increase 

in the CPI–W as of June 1, 2024, the 

exemption threshold will increase from 

$69,500 to $71,900 effective January 1, 

2025. Because the Dodd-Frank Act also 

requires similar adjustments in the 

Consumer Leasing Act’s threshold for 

exempt consumer leases, the Agencies 

are making similar amendments to each 

of their respective regulations 

implementing the Consumer Leasing 

Act elsewhere in the Rules section of 

this issue of the Federal Register. 

DATES: This final rule is effective 

January 1, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Board: Vivian W. Wong, Senior 

Counsel, Division of Consumer and 

Community Affairs, Board of Governors 

of the Federal Reserve System, at (202) 

452–3667. For users of TTY–TRS, please 

call 711 from any telephone, anywhere 

in the United States. 

CFPB: George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at 202– 

435–7700 or at: https://reginquiries.

consumerfinance.gov/. If you require 

this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 


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1Although consumer credit transactions above 

the threshold are generally exempt, loans secured 

by real property or by personal property used or 

expected to be used as the principal dwelling of a 

consumer and private education loans are covered 

by TILA regardless of the loan amount. See 12 CFR 

226.3(b)(1)(i) (Board) and 12 CFR 1026.3(b)(1)(i) 

(CFPB). 

2Public Law 111–203, sec. 1100E, 124 Stat. 1376, 

2111 (2010). 

3 Id. 

4 76 FR 18354 (Apr. 4, 2011); 76 FR 18349 (Apr. 

4, 2011). 

5See 76 FR 79768 (Dec. 22, 2011); 81 FR 25323 

(Apr. 28, 2016). 

6Section 1029(a) of the Dodd-Frank Act states: 

‘‘Except as permitted in subsection (b), the Bureau 

may not exercise any rulemaking, supervisory, 

enforcement, or any other authority . . . over a 

motor vehicle dealer that is predominantly engaged 

in the sale and servicing of motor vehicles, the 

leasing and servicing of motor vehicles, or both.’’ 

12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act provides that ‘‘[s]ubsection (a) shall not 

apply to any person, to the extent that such 

person—(1) provides consumers with any services 

related to residential or commercial mortgages or 

self-financing transactions involving real property; 

(2) operates a line of business—(A) that involves the 

extension of retail credit or retail leases involving 

motor vehicles; and (B) in which—(i) the extension 

of retail credit or retail leases are provided directly 

to consumers; and (ii) the contract governing such 

extension of retail credit or retail leases is not 

routinely assigned to an unaffiliated third party 

finance or leasing source; or (3) offers or provides 

a consumer financial product or service not 

involving or related to the sale, financing, leasing, 

rental, repair, refurbishment, maintenance, or other 

servicing of motor vehicles, motor vehicle parts, or 

any related or ancillary product or service.’’ 12 

U.S.C. 5519(b). 

7 12 CFR 226.3(b)(1)(ii) (Board) and 12 CFR 

1026.3(b)(1)(ii) (CFPB). 

8See comments 3(b)–1 in supplement I of 12 CFR 

parts 226 and 1026. 

9See 81 FR 86260 (Nov. 30, 2016). 

10The Bureau of Labor Statistics calculates 

consumer-based indices for each month but does 

not report those indices until the middle of the 

following month. As such, the most recently 

reported indices as of June 1, 2024, were reported 

on May 15, 2024, and reflect economic conditions 

in April 2024. 

11 5 U.S.C. 553(b)(B). 

12 5 U.S.C. 603(a), 604(a). 

I. Background 

The Dodd-Frank Act increased the 

threshold in TILA for exempt consumer 

credit transactions,1 and the threshold 

in the Consumer Leasing Act (CLA) for 

exempt consumer leases, from $25,000 

to $50,000, effective July 21, 2011.2 In 

addition, the Dodd-Frank Act requires 

that, on and after December 31, 2011, 

these thresholds be adjusted annually 

for inflation by the annual percentage 

increase in the CPI–W, as published by 

the Bureau of Labor Statistics.3 In April 

2011, the Board issued a final rule 

amending Regulation Z (which 

implements TILA) consistent with these 

provisions of the Dodd-Frank Act, along 

with a similar final rule amending 

Regulation M (which implements the 

CLA) (collectively, Board Final 

Threshold Rules).4

Title X of the Dodd-Frank Act 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from the Board to the 

CFPB, effective July 21, 2011. In 

connection with this transfer of 

rulemaking authority, the CFPB issued 

its own Regulation Z implementing 

TILA, 12 CFR part 1026, substantially 

duplicating the Board’s Regulation Z.5

Although the CFPB has the authority to 

issue rules to implement TILA for most 

entities, the Board retains authority to 

issue rules under TILA for certain motor 

vehicle dealers covered by section 

1029(a) of the Dodd-Frank Act, and the 

Board’s Regulation Z continues to apply 

to those entities.6

The Agencies’ regulations,7 and their 

accompanying official interpretations, 

provide that the exemption threshold 

will be adjusted annually effective 

January 1 of each year based on any 

annual percentage increase in the CPI– 

W that was in effect on the preceding 

June 1. They further provide that any 

increase in the threshold amount will be 

rounded to the nearest $100 increment. 

For example, if the annual percentage 

increase in the CPI–W would result in 

a $950 increase in the threshold 

amount, the threshold amount will be 

increased by $1,000. However, if the 

annual percentage increase in the CPI– 

W would result in a $949 increase in the 

threshold amount, the threshold amount 

will be increased by $900.8 Since 2011, 

the Agencies have adjusted the 

Regulation Z exemption threshold 

annually, in accordance with these 

rules. 

On November 30, 2016, the Agencies 

published a final rule in the Federal 

Register to memorialize the calculation 

method used by the Agencies each year 

to adjust the exemption threshold to 

ensure that, as contemplated by section 

1100E(b) of the Dodd-Frank Act, the 

values for the exemption threshold keep 

pace with the CPI–W (Regulation Z 

Adjustment Calculation Rule).9 The 

Regulation Z Adjustment Calculation 

Rule memorialized the policy that, if 

there is no annual percentage increase 

in the CPI–W, the Agencies will not 

adjust the exemption threshold from the 

prior year. The Regulation Z Adjustment 

Calculation Rule also provided that, in 

years following a year in which the 

exemption threshold was not adjusted 

because there was a decrease in the CPI– 

W from the previous year, the threshold 

is calculated by applying the annual 

percentage change in the CPI–W to the 

dollar amount that would have resulted, 

after rounding, if the decreases and any 

subsequent increases in the CPI–W had 

been taken into account. If the resulting 

amount calculated, after rounding, is 

greater than the current threshold, then 

the threshold effective January 1 the 

following year will increase 

accordingly; if the resulting amount 

calculated, after rounding, is equal to or 

less than the current threshold, then the 

threshold effective January 1 the 

following year will not change, but 

future increases will be calculated based 

on the amount that would have resulted, 

after rounding. 

II. 2025 Adjustment and Official 

Interpretations Revision 

Effective January 1, 2025, the 

exemption threshold amount is 

increased from $69,500 to $71,900. This 

amount is based on the CPI–W in effect 

on June 1, 2024, which was reported on 

May 15, 2024 (based on April 2024 

data).10 The CPI–W is a subset of the 

CPI–U index (based on all urban 

consumers) and represents 

approximately 30 percent of the U.S. 

population. The CPI–W reported on 

May 15, 2024, reflects a 3.4 percent 

increase in the CPI–W from April 2023 

to April 2024. Accordingly, the 3.4 

percent increase in the CPI–W from 

April 2023 to April 2024 results in an 

exemption threshold amount of $71,900, 

after rounding. The Agencies are 

revising the official interpretations to 

their respective regulations to add new 

comment 3(b)–3.xvi to state that, from 

January 1, 2025, through December 31, 

2025, the threshold amount is $71,900. 

These revisions are effective January 1, 

2025. 

III. Regulatory Analysis 

Administrative Procedure Act 

Under the Administrative Procedure 

Act, notice and opportunity for public 

comment are not required if the 

Agencies find that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest.11 The amendments in this rule 

are technical and apply the method 

previously set forth in the Board Final 

Threshold Rules and the Regulation Z 

Adjustment Calculation Rule. For these 

reasons, the Agencies have determined 

that publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

Therefore, the amendments are adopted 

in final form. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.12 As noted previously, 


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13 44 U.S.C. 3506; 5 CFR part 1320. 

the Agencies have determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this joint 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

Paperwork Reduction Act 

The Agencies reviewed this final rule 

in accordance with the Paperwork 

Reduction Act of 1995.13 The Agencies 

have determined that this rule does not 

create any new information collections 

or substantially revise any existing 

collections. 

CFPB Congressional Review Act 

Statement 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the CFPB will 

submit a report containing this rule and 

other required information to the U.S. 

Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect. The Office of 

Information and Regulatory Affairs has 

designated this rule as not a ‘‘major 

rule’’ as defined by 5 U.S.C. 804(2). 

List of Subjects 

12 CFR Part 226 

Advertising, Consumer protection, 

Federal Reserve System, Reporting and 

recordkeeping requirements, Truth-inlending. 

12 CFR Part 1026 

Advertising, Banks, Banking, 

Consumer protection, Credit, Credit 

unions, Mortgages, National banks, 

Reporting and recordkeeping 

requirements, Savings associations, 

Truth-in-lending. 

BOARD OF GOVERNORS OF THE 

FEDERAL RESERVE SYSTEM 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Board amends Regulation 

Z, 12 CFR part 226, as set forth below: 

PART 226—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 226 

continues to read as follows: 

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 

1637(c)(5), 1639(l) and 1639h; Pub. L. 111– 

24, section 2, 123 Stat. 1734; Pub. L. 111– 

203, 124 Stat. 1376. 

■ 2. In supplement I to part 226, under 

Section 226.3—Exempt Transactions, 

revise 3(b) Credit over applicable 

threshold amount, to read as follows: 

Supplement I to Part 226—Official Staff 

Interpretations 

* * * * * 

Section 226.3—Exempt Transactions 

* * * * * 

3(b) Credit over applicable threshold 

amount. 

1. Threshold amount. For purposes of 

§ 226.3(b), the threshold amount in effect 

during a particular period is the amount 

stated in comment 3(b)–3 for that period. The 

threshold amount is adjusted effective 

January 1 of each year by any annual 

percentage increase in the Consumer Price 

Index for Urban Wage Earners and Clerical 

Workers (CPI–W) that was in effect on the 

preceding June 1. Comment 3(b)–3 will be 

amended to provide the threshold amount for 

the upcoming year after the annual 

percentage change in the CPI–W that was in 

effect on June 1 becomes available. Any 

increase in the threshold amount will be 

rounded to the nearest $100 increment. For 

example, if the annual percentage increase in 

the CPI–W would result in a $950 increase 

in the threshold amount, the threshold 

amount will be increased by $1,000. 

However, if the annual percentage increase in 

the CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900. 

2. No increase in the CPI–W. If the CPI–W 

in effect on June 1 does not increase from the 

CPI–W in effect on June 1 of the previous 

year, the threshold amount effective the 

following January 1 through December 31 

will not change from the previous year. 

When this occurs, for the years that follow, 

the threshold is calculated based on the 

annual percentage change in the CPI–W 

applied to the dollar amount that would have 

resulted, after rounding, if decreases and any 

subsequent increases in the CPI–W had been 

taken into account. 

i. Net increases. If the resulting amount 

calculated, after rounding, is greater than the 

current threshold, then the threshold 

effective January 1 the following year will 

increase accordingly. 

ii. Net decreases. If the resulting amount 

calculated, after rounding, is equal to or less 

than the current threshold, then the 

threshold effective January 1 the following 

year will not change, but future increases 

will be calculated based on the amount that 

would have resulted. 

3. Threshold. For purposes of § 226.3(b), 

the threshold amount in effect during a 

particular period is the amount stated in the 

following for that period. 

i. Prior to July 21, 2011, the threshold 

amount is $25,000. 

ii. From July 21, 2011, through December 

31, 2011, the threshold amount is $50,000. 

iii. From January 1, 2012, through 

December 31, 2012, the threshold amount is 

$51,800. 

iv. From January 1, 2013, through 

December 31, 2013, the threshold amount is 

$53,000. 

v. From January 1, 2014, through December 

31, 2014, the threshold amount is $53,500. 

vi. From January 1, 2015, through 

December 31, 2015, the threshold amount is 

$54,600. 

vii. From January 1, 2016, through 

December 31, 2016, the threshold amount is 

$54,600. 

viii. From January 1, 2017, through 

December 31, 2017, the threshold amount is 

$54,600. 

ix. From January 1, 2018, through 

December 31, 2018, the threshold amount is 

$55,800. 

x. From January 1, 2019, through December 

31, 2019, the threshold amount is $57,200. 

xi. From January 1, 2020, through 

December 31, 2020, the threshold amount is 

$58,300. 

xii. From January 1, 2021, through 

December 31, 2021, the threshold amount is 

$58,300. 

xiii. From January 1, 2022, through 

December 31, 2022, the threshold amount is 

$61,000. 

xiv. From January 1, 2023, through 

December 31, 2023, the threshold amount is 

$66,400. 

xv. From January 1, 2024, through 

December 31, 2024, the threshold amount is 

$69,500. 

xvi. From January 1, 2025, through 

December 31, 2025, the threshold amount is 

$71,900. 

4. Open-end credit. 

i. Qualifying for exemption. An open-end 

account is exempt under § 226.3(b) (unless 

secured by any real property, or by personal 

property used or expected to be used as the 

consumer’s principal dwelling) if either of 

the following conditions is met: 

A. The creditor makes an initial extension 

of credit at or after account opening that 

exceeds the threshold amount in effect at the 

time the initial extension is made. If a 

creditor makes an initial extension of credit 

after account opening that does not exceed 

the threshold amount in effect at the time the 

extension is made, the creditor must have 

satisfied all of the applicable requirements of 

this part from the date the account was 

opened (or earlier, if applicable), including 

but not limited to the requirements of § 226.6 

(account-opening disclosures), § 226.7 

(periodic statements), § 226.52 (limitations 

on fees), and § 226.55 (limitations on 

increasing annual percentages rates, fees, and 

charges). For example: 

(1) Assume that the threshold amount in 

effect on January 1 is $50,000. On February 

1, an account is opened but the creditor does 

not make an initial extension of credit at that 

time. On July 1, the creditor makes an initial 

extension of credit of $60,000. In this 

circumstance, no requirements of this part 

apply to the account. 

(2) Assume that the threshold amount in 

effect on January 1 is $50,000. On February 

1, an account is opened but the creditor does 

not make an initial extension of credit at that 

time. On July 1, the creditor makes an initial 

extension of credit of $50,000 or less. In this 

circumstance, the account is not exempt, and 

the creditor must have satisfied all of the 

applicable requirements of this part from the 

date the account was opened (or earlier, if 

applicable). 

B. The creditor makes a firm written 

commitment at account opening to extend a 

total amount of credit in excess of the 

threshold amount in effect at the time the 


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Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 82941 

account is opened with no requirement of 

additional credit information for any 

advances on the account (except as permitted 

from time to time with respect to open-end 

accounts pursuant to § 226.2(a)(20)). 

ii. Subsequent changes generally. 

Subsequent changes to an open-end account 

or the threshold amount may result in the 

account no longer qualifying for the 

exemption in § 226.3(b). In these 

circumstances, the creditor must begin to 

comply with all of the applicable 

requirements of this part within a reasonable 

period of time after the account ceases to be 

exempt. Once an account ceases to be 

exempt, the requirements of this part apply 

to any balances on the account. The creditor, 

however, is not required to comply with the 

requirements of this part with respect to the 

period of time during which the account was 

exempt. For example, if an open-end credit 

account ceases to be exempt, the creditor 

must within a reasonable period of time 

provide the disclosures required by § 226.6 

reflecting the current terms of the account 

and begin to provide periodic statements 

consistent with § 226.7. However, the 

creditor is not required to disclose fees or 

charges imposed while the account was 

exempt. Furthermore, if the creditor provided 

disclosures consistent with the requirements 

of this part while the account was exempt, 

it is not required to provide disclosures 

required by § 226.6 reflecting the current 

terms of the account. See also comment 3(b)– 

6. 

iii. Subsequent changes when exemption is 

based on initial extension of credit. If a 

creditor makes an initial extension of credit 

that exceeds the threshold amount in effect 

at that time, the open-end account remains 

exempt under § 226.3(b) regardless of a 

subsequent increase in the threshold amount, 

including an increase pursuant to 

§ 226.3(b)(1)(ii) as a result of an increase in 

the CPI–W. Furthermore, in these 

circumstances, the account remains exempt 

even if there are no further extensions of 

credit, subsequent extensions of credit do not 

exceed the threshold amount, the account 

balance is subsequently reduced below the 

threshold amount (such as through 

repayment of the extension), or the credit 

limit for the account is subsequently reduced 

below the threshold amount. However, if the 

initial extension of credit on an account does 

not exceed the threshold amount in effect at 

the time of the extension, the account is not 

exempt under § 226.3(b) even if a subsequent 

extension exceeds the threshold amount or if 

the account balance later exceeds the 

threshold amount (for example, due to the 

subsequent accrual of interest). 

iv. Subsequent changes when exemption is 

based on firm commitment. 

A. General. If a creditor makes a firm 

written commitment at account opening to 

extend a total amount of credit that exceeds 

the threshold amount in effect at that time, 

the open-end account remains exempt under 

§ 226.3(b) regardless of a subsequent increase 

in the threshold amount pursuant to 

§ 226.3(b)(1)(ii) as a result of an increase in 

the CPI–W. However, see comment 3(b)–8 

with respect to the increase in the threshold 

amount from $25,000 to $50,000. If an openend account is exempt under § 226.3(b) based 

on a firm commitment to extend credit, the 

account remains exempt even if the amount 

of credit actually extended does not exceed 

the threshold amount. In contrast, if the firm 

commitment does not exceed the threshold 

amount at account opening, the account is 

not exempt under § 226.3(b) even if the 

account balance later exceeds the threshold 

amount. In addition, if a creditor reduces a 

firm commitment, the account ceases to be 

exempt unless the reduced firm commitment 

exceeds the threshold amount in effect at the 

time of the reduction. For example: 

(1) Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 226.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. If 

during year one the creditor reduces its firm 

commitment to $53,000, the account remains 

exempt under § 226.3(b). However, if during 

year one the creditor reduces its firm 

commitment to $40,000, the account is no 

longer exempt under § 226.3(b). 

(2) Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 226.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. If 

the threshold amount is $56,000 on January 

1 of year six as a result of increases in the 

CPI–W, the account remains exempt. 

However, if the creditor reduces its firm 

commitment to $54,000 on July 1 of year six, 

the account ceases to be exempt under 

§ 226.3(b). 

B. Initial extension of credit. If an open-end 

account qualifies for a § 226.3(b) exemption 

at account opening based on a firm 

commitment, that account may also 

subsequently qualify for a § 226.3(b) 

exemption based on an initial extension of 

credit. However, that initial extension must 

be a single advance in excess of the threshold 

amount in effect at the time the extension is 

made. In addition, the account must continue 

to qualify for an exemption based on the firm 

commitment until the initial extension of 

credit is made. For example: 

(1) Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 226.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. The 

account is not used for an extension of credit 

during year one. On January 1 of year two, 

the threshold amount is increased to $51,000 

pursuant to § 226.3(b)(1)(ii) as a result of an 

increase in the CPI–W. On July 1 of year two, 

the consumer uses the account for an initial 

extension of $52,000. As a result of this 

extension of credit, the account remains 

exempt under § 226.3(b) even if, after July 1 

of year two, the creditor reduces the firm 

commitment to $51,000 or less. 

(2) Same facts as in paragraph 4.iv.B(1) of 

this section except that the consumer uses 

the account for an initial extension of 

$30,000 on July 1 of year two and for an 

extension of $22,000 on July 15 of year two. 

In these circumstances, the account is not 

exempt under § 226.3(b) based on the 

$30,000 initial extension of credit because 

that extension did not exceed the applicable 

threshold amount ($51,000), although the 

account remains exempt based on the firm 

commitment to extend $55,000 in credit. 

(3) Same facts as in paragraph 4.iv.B(1) of 

this section except that, on April 1 of year 

two, the creditor reduces the firm 

commitment to $50,000, which is below the 

$51,000 threshold then in effect. Because the 

account ceases to qualify for a § 226.3(b) 

exemption on April 1 of year two, the 

account does not qualify for a § 226.3(b) 

exemption based on a $52,000 initial 

extension of credit on July 1 of year two. 

5. Closed-end credit. 

i. Qualifying for exemption. A closed-end 

loan is exempt under § 226.3(b) (unless the 

extension of credit is secured by any real 

property, or by personal property used or 

expected to be used as the consumer’s 

principal dwelling; or is a private education 

loan as defined in § 226.46(b)(5)), if either of 

the following conditions is met. 

A. The creditor makes an extension of 

credit at consummation that exceeds the 

threshold amount in effect at the time of 

consummation. In these circumstances, the 

loan remains exempt under § 226.3(b) even if 

the amount owed is subsequently reduced 

below the threshold amount (such as through 

repayment of the loan). 

B. The creditor makes a commitment at 

consummation to extend a total amount of 

credit in excess of the threshold amount in 

effect at the time of consummation. In these 

circumstances, the loan remains exempt 

under § 226.3(b) even if the total amount of 

credit extended does not exceed the 

threshold amount. 

ii. Subsequent changes. If a creditor makes 

a closed-end extension of credit or 

commitment to extend closed-end credit that 

exceeds the threshold amount in effect at the 

time of consummation, the closed-end loan 

remains exempt under § 226.3(b) regardless 

of a subsequent increase in the threshold 

amount. However, a closed-end loan is not 

exempt under § 226.3(b) merely because it is 

used to satisfy and replace an existing 

exempt loan, unless the new extension of 

credit is itself exempt under the applicable 

threshold amount. For example, assume a 

closed-end loan that qualified for a § 226.3(b) 

exemption at consummation in year one is 

refinanced in year ten and that the new loan 

amount is less than the threshold amount in 

effect in year ten. In these circumstances, the 

creditor must comply with all of the 

applicable requirements of this part with 

respect to the year ten transaction if the 

original loan is satisfied and replaced by the 

new loan, which is not exempt under 

§ 226.3(b). See also comment 3(b)–6. 

6. Addition of a security interest in real 

property or a dwelling after account opening 

or consummation. 

i. Open-end credit. For open-end accounts, 

if, after account opening, a security interest 

is taken in real property, or in personal 

property used or expected to be used as the 

consumer’s principal dwelling, a previously 

exempt account ceases to be exempt under 

§ 226.3(b) and the creditor must begin to 

comply with all of the applicable 

requirements of this part within a reasonable 

period of time. See comment 3(b)–4.ii. If a 

security interest is taken in the consumer’s 

principal dwelling, the creditor must also 


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82942 Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 

give the consumer the right to rescind the 

security interest consistent with § 226.15. 

ii. Closed-end credit. For closed-end loans, 

if, after consummation, a security interest is 

taken in any real property, or in personal 

property used or expected to be used as the 

consumer’s principal dwelling, an exempt 

loan remains exempt under § 226.3(b). 

However, the addition of a security interest 

in the consumer’s principal dwelling is a 

transaction for purposes of § 226.23, and the 

creditor must give the consumer the right to 

rescind the security interest consistent with 

that section. See § 226.23(a)(1) and the 

accompanying commentary. In contrast, if a 

closed-end loan that is exempt under 

§ 226.3(b) is satisfied and replaced by a loan 

that is secured by any real property, or by 

personal property used or expected to be 

used as the consumer’s principal dwelling, 

the new loan is not exempt under § 226.3(b) 

and the creditor must comply with all of the 

applicable requirements of this part. See 

comment 3(b)–5. 

7. Application to extensions secured by 

mobile homes. Because a mobile home can be 

a dwelling under § 226.2(a)(19), the 

exemption in § 226.3(b) does not apply to a 

credit extension secured by a mobile home 

that is used or expected to be used as the 

principal dwelling of the consumer. See 

comment 3(b)–6. 

8. Transition rule for open-end accounts 

exempt prior to July 21, 2011. Section 

226.3(b)(2) applies only to open-end accounts 

opened prior to July 21, 2011. Section 

226.3(b)(2) does not apply if a security 

interest is taken by the creditor in any real 

property, or in personal property used or 

expected to be used as the consumer’s 

principal dwelling. If, on July 20, 2011, an 

open-end account is exempt under § 226.3(b) 

based on a firm commitment to extend credit 

in excess of $25,000, the account remains 

exempt under § 226.3(b)(2) until December 

31, 2011 (unless the firm commitment is 

reduced to $25,000 or less). If the firm 

commitment is increased on or before 

December 31, 2011, to an amount in excess 

of $50,000, the account remains exempt 

under § 226.3(b)(1) regardless of subsequent 

increases in the threshold amount as a result 

of increases in the CPI–W. If the firm 

commitment is not increased on or before 

December 31, 2011, to an amount in excess 

of $50,000, the account ceases to be exempt 

under § 226.3(b) based on a firm commitment 

to extend credit. For example: 

i. Assume that, on July 20, 2011, the 

account is exempt under § 226.3(b) based on 

the creditor’s firm commitment to extend 

$30,000 in credit. On November 1, 2011, the 

creditor increases the firm commitment on 

the account to $55,000. In these 

circumstances, the account remains exempt 

under § 226.3(b)(1) regardless of subsequent 

increases in the threshold amount as a result 

of increases in the CPI–W. 

ii. Same facts as paragraph 8.i. of this 

section except, on November 1, 2011, the 

creditor increases the firm commitment on 

the account to $40,000. In these 

circumstances, the account ceases to be 

exempt under § 226.3(b)(2) after December 

31, 2011, and the creditor must begin to 

comply with the applicable requirements of 

this part. 

* * * * * 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

Authority and Issuance 

For the reasons set forth in the 

preamble, the CFPB amends Regulation 

Z, 12 CFR part 1026, as set forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 3. The authority citation for part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 3353, 5511, 5512, 5532, 

5581; 15 U.S.C. 1601 et seq. 

■ 4. In supplement I to part 1026, under 

Section 1026.3—Exempt Transactions, 

revise 3(b)—Credit Over Applicable 

Threshold Amount to read as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Section 1026.3—Exempt Transactions 

* * * * * 

3(b) Credit Over Applicable Threshold 

Amount 

1. Threshold amount. For purposes of 

§ 1026.3(b), the threshold amount in effect 

during a particular period is the amount 

stated in comment 3(b)–3 for that period. The 

threshold amount is adjusted effective 

January 1 of each year by any annual 

percentage increase in the Consumer Price 

Index for Urban Wage Earners and Clerical 

Workers (CPI–W) that was in effect on the 

preceding June 1. Comment 3(b)–3 will be 

amended to provide the threshold amount for 

the upcoming year after the annual 

percentage change in the CPI–W that was in 

effect on June 1 becomes available. Any 

increase in the threshold amount will be 

rounded to the nearest $100 increment. For 

example, if the annual percentage increase in 

the CPI–W would result in a $950 increase 

in the threshold amount, the threshold 

amount will be increased by $1,000. 

However, if the annual percentage increase in 

the CPI–W would result in a $949 increase 

in the threshold amount, the threshold 

amount will be increased by $900. 

2. No increase in the CPI–W. If the CPI–W 

in effect on June 1 does not increase from the 

CPI–W in effect on June 1 of the previous 

year, the threshold amount effective the 

following January 1 through December 31 

will not change from the previous year. 

When this occurs, for the years that follow, 

the threshold is calculated based on the 

annual percentage change in the CPI–W 

applied to the dollar amount that would have 

resulted, after rounding, if decreases and any 

subsequent increases in the CPI–W had been 

taken into account. 

i. Net increases. If the resulting amount 

calculated, after rounding, is greater than the 

current threshold, then the threshold 

effective January 1 the following year will 

increase accordingly. 

ii. Net decreases. If the resulting amount 

calculated, after rounding, is equal to or less 

than the current threshold, then the 

threshold effective January 1 the following 

year will not change, but future increases 

will be calculated based on the amount that 

would have resulted. 

3. Threshold. For purposes of § 1026.3(b), 

the threshold amount in effect during a 

particular period is the amount stated in the 

following for that period. 

i. Prior to July 21, 2011, the threshold 

amount is $25,000. 

ii. From July 21, 2011, through December 

31, 2011, the threshold amount is $50,000. 

iii. From January 1, 2012, through 

December 31, 2012, the threshold amount is 

$51,800. 

iv. From January 1, 2013, through 

December 31, 2013, the threshold amount is 

$53,000. 

v. From January 1, 2014, through December 

31, 2014, the threshold amount is $53,500. 

vi. From January 1, 2015, through 

December 31, 2015, the threshold amount is 

$54,600. 

vii. From January 1, 2016, through 

December 31, 2016, the threshold amount is 

$54,600. 

viii. From January 1, 2017, through 

December 31, 2017, the threshold amount is 

$54,600. 

ix. From January 1, 2018, through 

December 31, 2018, the threshold amount is 

$55,800. 

x. From January 1, 2019, through December 

31, 2019, the threshold amount is $57,200. 

xi. From January 1, 2020, through 

December 31, 2020, the threshold amount is 

$58,300. 

xii. From January 1, 2021, through 

December 31, 2021, the threshold amount is 

$58,300. xiii. From January 1, 2022, through 

December 31, 2022, the threshold amount is 

$61,000. 

xiv. From January 1, 2023, through 

December 31, 2023, the threshold amount is 

$66,400. 

xv. From January 1, 2024, through 

December 31, 2024, the threshold amount is 

$69,500. 

xvi. From January 1, 2025, through 

December 31, 2025, the threshold amount is 

$71,900. 

4. Open-end credit. 

i. Qualifying for exemption. An open-end 

account is exempt under § 1026.3(b) (unless 

secured by real property, or by personal 

property used or expected to be used as the 

consumer’s principal dwelling) if either of 

the following conditions is met: 

A. The creditor makes an initial extension 

of credit at or after account opening that 

exceeds the threshold amount in effect at the 

time the initial extension is made. If a 

creditor makes an initial extension of credit 

after account opening that does not exceed 

the threshold amount in effect at the time the 

extension is made, the creditor must have 

satisfied all of the applicable requirements of 

this part from the date the account was 

opened (or earlier, if applicable), including 

but not limited to the requirements of 

§ 1026.6 (account-opening disclosures), 


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Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 82943 

§ 1026.7 (periodic statements), § 1026.52 

(limitations on fees), and § 1026.55 

(limitations on increasing annual percentage 

rates, fees, and charges). For example: 

1. Assume that the threshold amount in 

effect on January 1 is $50,000. On February 

1, an account is opened but the creditor does 

not make an initial extension of credit at that 

time. On July 1, the creditor makes an initial 

extension of credit of $60,000. In this 

circumstance, no requirements of this part 

apply to the account. 

2. Assume that the threshold amount in 

effect on January 1 is $50,000. On February 

1, an account is opened but the creditor does 

not make an initial extension of credit at that 

time. On July 1, the creditor makes an initial 

extension of credit of $50,000 or less. In this 

circumstance, the account is not exempt, and 

the creditor must have satisfied all of the 

applicable requirements of this part from the 

date the account was opened (or earlier, if 

applicable). 

B. The creditor makes a firm written 

commitment at account opening to extend a 

total amount of credit in excess of the 

threshold amount in effect at the time the 

account is opened with no requirement of 

additional credit information for any 

advances on the account (except as permitted 

from time to time with respect to open-end 

accounts pursuant to § 1026.2(a)(20)). 

ii. Subsequent changes generally. 

Subsequent changes to an open-end account 

or the threshold amount may result in the 

account no longer qualifying for the 

exemption in § 1026.3(b). In these 

circumstances, the creditor must begin to 

comply with all of the applicable 

requirements of this part within a reasonable 

period of time after the account ceases to be 

exempt. Once an account ceases to be 

exempt, the requirements of this part apply 

to any balances on the account. The creditor, 

however, is not required to comply with the 

requirements of this part with respect to the 

period of time during which the account was 

exempt. For example, if an open-end credit 

account ceases to be exempt, the creditor 

must within a reasonable period of time 

provide the disclosures required by § 1026.6 

reflecting the current terms of the account 

and begin to provide periodic statements 

consistent with § 1026.7. However, the 

creditor is not required to disclose fees or 

charges imposed while the account was 

exempt. Furthermore, if the creditor provided 

disclosures consistent with the requirements 

of this part while the account was exempt, 

it is not required to provide disclosures 

required by § 1026.6 reflecting the current 

terms of the account. See also comment 3(b)– 

6. 

iii. Subsequent changes when exemption is 

based on initial extension of credit. If a 

creditor makes an initial extension of credit 

that exceeds the threshold amount in effect 

at that time, the open-end account remains 

exempt under § 1026.3(b) regardless of a 

subsequent increase in the threshold amount, 

including an increase pursuant to 

§ 1026.3(b)(1)(ii) as a result of an increase in 

the CPI–W. Furthermore, in these 

circumstances, the account remains exempt 

even if there are no further extensions of 

credit, subsequent extensions of credit do not 

exceed the threshold amount, the account 

balance is subsequently reduced below the 

threshold amount (such as through 

repayment of the extension), or the credit 

limit for the account is subsequently reduced 

below the threshold amount. However, if the 

initial extension of credit on an account does 

not exceed the threshold amount in effect at 

the time of the extension, the account is not 

exempt under § 1026.3(b) even if a 

subsequent extension exceeds the threshold 

amount or if the account balance later 

exceeds the threshold amount (for example, 

due to the subsequent accrual of interest). 

iv. Subsequent changes when exemption is 

based on firm commitment. 

A. General. If a creditor makes a firm 

written commitment at account opening to 

extend a total amount of credit that exceeds 

the threshold amount in effect at that time, 

the open-end account remains exempt under 

§ 1026.3(b) regardless of a subsequent 

increase in the threshold amount pursuant to 

§ 1026.3(b)(1)(ii) as a result of an increase in 

the CPI–W. However, see comment 3(b)–8 

with respect to the increase in the threshold 

amount from $25,000 to $50,000. If an openend account is exempt under § 1026.3(b) 

based on a firm commitment to extend credit, 

the account remains exempt even if the 

amount of credit actually extended does not 

exceed the threshold amount. In contrast, if 

the firm commitment does not exceed the 

threshold amount at account opening, the 

account is not exempt under § 1026.3(b) even 

if the account balance later exceeds the 

threshold amount. In addition, if a creditor 

reduces a firm commitment, the account 

ceases to be exempt unless the reduced firm 

commitment exceeds the threshold amount 

in effect at the time of the reduction. For 

example: 

1. Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 1026.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. If 

during year one the creditor reduces its firm 

commitment to $53,000, the account remains 

exempt under § 1026.3(b). However, if during 

year one the creditor reduces its firm 

commitment to $40,000, the account is no 

longer exempt under § 1026.3(b). 

2. Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 1026.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. If 

the threshold amount is $56,000 on January 

1 of year six as a result of increases in the 

CPI–W, the account remains exempt. 

However, if the creditor reduces its firm 

commitment to $54,000 on July 1 of year six, 

the account ceases to be exempt under 

§ 1026.3(b). 

B. Initial extension of credit. If an open-end 

account qualifies for a § 1026.3(b) exemption 

at account opening based on a firm 

commitment, that account may also 

subsequently qualify for a § 1026.3(b) 

exemption based on an initial extension of 

credit. However, that initial extension must 

be a single advance in excess of the threshold 

amount in effect at the time the extension is 

made. In addition, the account must continue 

to qualify for an exemption based on the firm 

commitment until the initial extension of 

credit is made. For example: 

1. Assume that, at account opening in year 

one, the threshold amount in effect is 

$50,000 and the account is exempt under 

§ 1026.3(b) based on the creditor’s firm 

commitment to extend $55,000 in credit. The 

account is not used for an extension of credit 

during year one. On January 1 of year two, 

the threshold amount is increased to $51,000 

pursuant to § 1026.3(b)(1)(ii) as a result of an 

increase in the CPI–W. On July 1 of year two, 

the consumer uses the account for an initial 

extension of $52,000. As a result of this 

extension of credit, the account remains 

exempt under § 1026.3(b) even if, after July 

1 of year two, the creditor reduces the firm 

commitment to $51,000 or less. 

2. Same facts as in paragraph 4.iv.B.1 of 

this section except that the consumer uses 

the account for an initial extension of 

$30,000 on July 1 of year two and for an 

extension of $22,000 on July 15 of year two. 

In these circumstances, the account is not 

exempt under § 1026.3(b) based on the 

$30,000 initial extension of credit because 

that extension did not exceed the applicable 

threshold amount ($51,000), although the 

account remains exempt based on the firm 

commitment to extend $55,000 in credit. 

3. Same facts as in paragraph 4.iv.B.1 of 

this section except that, on April 1 of year 

two, the creditor reduces the firm 

commitment to $50,000, which is below the 

$51,000 threshold then in effect. Because the 

account ceases to qualify for a § 1026.3(b) 

exemption on April 1 of year two, the 

account does not qualify for a § 1026.3(b) 

exemption based on a $52,000 initial 

extension of credit on July 1 of year two. 

5. Closed-end credit. 

i. Qualifying for exemption. A closed-end 

loan is exempt under § 1026.3(b) (unless the 

extension of credit is secured by real 

property, or by personal property used or 

expected to be used as the consumer’s 

principal dwelling; or is a private education 

loan as defined in § 1026.46(b)(5)), if either 

of the following conditions is met: 

A. The creditor makes an extension of 

credit at consummation that exceeds the 

threshold amount in effect at the time of 

consummation. In these circumstances, the 

loan remains exempt under § 1026.3(b) even 

if the amount owed is subsequently reduced 

below the threshold amount (such as through 

repayment of the loan). 

B. The creditor makes a commitment at 

consummation to extend a total amount of 

credit in excess of the threshold amount in 

effect at the time of consummation. In these 

circumstances, the loan remains exempt 

under § 1026.3(b) even if the total amount of 

credit extended does not exceed the 

threshold amount. 

ii. Subsequent changes. If a creditor makes 

a closed-end extension of credit or 

commitment to extend closed-end credit that 

exceeds the threshold amount in effect at the 

time of consummation, the closed-end loan 

remains exempt under § 1026.3(b) regardless 

of a subsequent increase in the threshold 

amount. However, a closed-end loan is not 

exempt under § 1026.3(b) merely because it 

is used to satisfy and replace an existing 

exempt loan, unless the new extension of 


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82944 Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 

credit is itself exempt under the applicable 

threshold amount. For example, assume a 

closed-end loan that qualified for a 

§ 1026.3(b) exemption at consummation in 

year one is refinanced in year ten and that 

the new loan amount is less than the 

threshold amount in effect in year ten. In 

these circumstances, the creditor must 

comply with all of the applicable 

requirements of this part with respect to the 

year ten transaction if the original loan is 

satisfied and replaced by the new loan, 

which is not exempt under § 1026.3(b). See 

also comment 3(b)–6. 

6. Addition of a security interest in real 

property or a dwelling after account opening 

or consummation. 

i. Open-end credit. For open-end accounts, 

if after account opening a security interest is 

taken in real property, or in personal 

property used or expected to be used as the 

consumer’s principal dwelling, a previously 

exempt account ceases to be exempt under 

§ 1026.3(b) and the creditor must begin to 

comply with all of the applicable 

requirements of this part within a reasonable 

period of time. See comment 3(b)–4.ii. If a 

security interest is taken in the consumer’s 

principal dwelling, the creditor must also 

give the consumer the right to rescind the 

security interest consistent with § 1026.15. 

ii. Closed-end credit. For closed-end loans, 

if after consummation a security interest is 

taken in real property, or in personal 

property used or expected to be used as the 

consumer’s principal dwelling, an exempt 

loan remains exempt under § 1026.3(b). 

However, the addition of a security interest 

in the consumer’s principal dwelling is a 

transaction for purposes of § 1026.23, and the 

creditor must give the consumer the right to 

rescind the security interest consistent with 

that section. See § 1026.23(a)(1) and its 

commentary. In contrast, if a closed-end loan 

that is exempt under § 1026.3(b) is satisfied 

and replaced by a loan that is secured by real 

property, or by personal property used or 

expected to be used as the consumer’s 

principal dwelling, the new loan is not 

exempt under § 1026.3(b), and the creditor 

must comply with all of the applicable 

requirements of this part. See comment 3(b)– 

5. 

7. Application to extensions secured by 

mobile homes. Because a mobile home can be 

a dwelling under § 1026.2(a)(19), the 

exemption in § 1026.3(b) does not apply to a 

credit extension secured by a mobile home 

that is used or expected to be used as the 

principal dwelling of the consumer. See 

comment 3(b)–6. 

8. Transition rule for open-end accounts 

exempt prior to July 21, 2011. Section 

1026.3(b)(2) applies only to open-end 

accounts opened prior to July 21, 2011. 

Section 1026.3(b)(2) does not apply if a 

security interest is taken by the creditor in 

real property, or in personal property used or 

expected to be used as the consumer’s 

principal dwelling. If, on July 20, 2011, an 

open-end account is exempt under 

§ 1026.3(b) based on a firm commitment to 

extend credit in excess of $25,000, the 

account remains exempt under § 1026.3(b)(2) 

until December 31, 2011 (unless the firm 

commitment is reduced to $25,000 or less). 

If the firm commitment is increased on or 

before December 31, 2011, to an amount in 

excess of $50,000, the account remains 

exempt under § 1026.3(b)(1) regardless of 

subsequent increases in the threshold 

amount as a result of increases in the CPI– 

W. If the firm commitment is not increased 

on or before December 31, 2011, to an 

amount in excess of $50,000, the account 

ceases to be exempt under § 1026.3(b) based 

on a firm commitment to extend credit. For 

example: 

i. Assume that, on July 20, 2011, the 

account is exempt under § 1026.3(b) based on 

the creditor’s firm commitment to extend 

$30,000 in credit. On November 1, 2011, the 

creditor increases the firm commitment on 

the account to $55,000. In these 

circumstances, the account remains exempt 

under § 1026.3(b)(1) regardless of subsequent 

increases in the threshold amount as a result 

of increases in the CPI–W. 

ii. Same facts as paragraph 8.i of this 

section except, on November 1, 2011, the 

creditor increases the firm commitment on 

the account to $40,000. In these 

circumstances, the account ceases to be 

exempt under § 1026.3(b)(2) after December 

31, 2011, and the creditor must begin to 

comply with the applicable requirements of 

this part. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Benjamin W. McDonough, 

Deputy Secretary of the Board. 

Brian Shearer, 

Assistant Director, Office of Policy Planning 

and Strategy, Consumer Financial Protection 

Bureau. 

[FR Doc. 2024–23275 Filed 10–11–24; 8:45 am] 

BILLING CODE 6210–01–P; 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2023–2513; Airspace 

Docket No. 23–AGL–26] 

RIN 2120–AA66 

Amendment of Jet Route J–211 and 

Revocation of VOR Federal Airway V– 

41; Youngstown, OH 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule, delay of effective 

date. 

SUMMARY: This action delays the 

effective date of a final rule published 

in the Federal Register on August 19, 

2024, corrected September 30, 2024, 

amending Jet Route J–211 and revoking 

Very High Frequency Omnidirectional 

Range (VOR) Federal Airway V–41. The 

FAA is delaying the effective date to 

allow sufficient time for completing the 

update of all the Instrument Approach 

Procedures (IAP) into Pittsburgh 

International Airport that are affected by 

the revocation of V–41. 

DATES: The effective date of the final 

rule published on August 19, 2024 (89 

FR 66987) and corrected on September 

30, 2024 (89 FR 79429) is delayed from 

October 31, 2024, to December 26, 2024. 

The Director of the Federal Register 

approved this incorporation by 

reference action under 1 CFR part 51, 

subject to the annual revision of FAA 

Order JO 7400.11 and publication of 

conforming amendments. 

FOR FURTHER INFORMATION CONTACT: 

Colby Abbott, Rules and Regulations 

Group, Office of Policy, Federal 

Aviation Administration, 600 

Independence Avenue SW, Washington, 

DC 20597; telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA published a final rule in the 

Federal Register for Docket No. FAA– 

2023–2513 (89 FR 66987, August 19, 

2024, and correction (89 FR 79429; 

September 30, 2024), amending Jet 

Route J–211 and revoking VOR Federal 

Airway V–41 due to the planned 

decommissioning of the VOR portion of 

the Youngstown, OH, VOR/Tactical Air 

Navigation (VORTAC) navigational aid 

(NAVAID). The effective date for that 

final rule is October 31, 2024. After the 

final rule was published, the FAA 

determined that the required update 

actions to all the IAPs into Pittsburgh 

International Airport would not be 

completed in time to meet the original 

planned decommissioning date. 

Therefore, the current IAPs need to 

remain in place, to include VOR Federal 

Airway V–41 which is a transition on 

the JESEY Four Arrival into Pittsburgh 

International Airport, until the next 

chart date. 

The FAA expects the required 

updates for all the IAPs into Pittsburgh 

International Airport to be completed by 

December 26, 2024; therefore, the rule 

amending Jet Route J–211 and revoking 

VOR Federal Airway V–41 is delayed to 

coincide with that date. 

Jet Routes are published in paragraph 

2004 and VOR Federal Airways are 

published in paragraph 6010(a) of FAA 

Order JO 7400.11, Airspace 

Designations and Reporting Points, 

which is incorporated by reference in 14 

CFR 71.1 on an annual basis. This 

document amends the current version of 

that order, FAA Order JO 7400.11J, 

dated July 31, 2024, and effective 

September 15, 2024. FAA Order JO 


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