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SEC. 2605. CONSUMER LEASING ACT AMENDMENTS.
(a) CONGRESSIONAL FINDINGS AND DECLARATION
OF PURPOSES.—
(1) FINDINGS.—The Congress finds that—
(A) competition among the various finan-
cial institutions and other firms engaged in the
business of consumer leasing is greatest when
there is informed use of leasing;
(B) the informed use of leasing results
from an awareness of the cost of leasing by con-
sumers; and
(C) there has been a continued trend to-
ward leasing automobiles and other durable
goods for consumer use as an alternative to in-
stallment credit sales and that leasing product
advances have occurred such that lessors have
been unable to provide consistent industry-wide
disclosures to fully account for the competitive
progress that has occurred.
(2) PURPOSES.—The purposes of this section
are—
(A) to assure a simple, meaningful disclo-
sure of leasing terms so that the consumer will
be able to compare more readily the various
leasing terms available to the consumer and
avoid the uninformed use of leasing, and to pro-
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tect the consumer against inaccurate and unfair
leasing practices;
(B) to provide for adequate cost disclo-
sures that reflect the marketplace without im-
pairing competition and the development of new
leasing products; and
(C) to provide the Board with the regu-
latory authority to assure a simplified, mean-
ingful definition and disclosure of the terms of
certain leases of personal property for personal,
family, or household purposes so as to—
(i) enable the lessee to compare more
readily the various lease terms available to
the lessee;
(ii) enable comparison of lease terms
with credit terms, as appropriate; and
(iii) assure meaningful and accurate
disclosures of lease terms in advertise-
ments.
(b) REGULATIONS.—
(1) IN GENERAL.—Chapter 5 of the Truth in
Lending Act (15 U.S.C. 1667 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 187. REGULATIONS.
‘‘(a) REGULATIONS AUTHORIZED.—
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‘‘(1) IN GENERAL.—The Board shall prescribe
regulations to update and clarify the requirements
and definitions applicable to lease disclosures and
contracts, and any other issues specifically related to
consumer leasing, to the extent that the Board de-
termines such action to be necessary—
‘‘(A) to carry out this chapter;
‘‘(B) to prevent any circumvention of this
chapter; or
‘‘(C) to facilitate compliance with the re-
quirements of the chapter.
‘‘(2) CLASSIFICATIONS, 
ADJUSTMENTS.—Any
regulations prescribed under paragraph (1) may con-
tain classifications and differentiations, and may
provide for adjustments and exceptions for any class
of transactions, as the Board considers appropriate.
‘‘(b) MODEL DISCLOSURE.—
‘‘(1) PUBLICATION.—The Board shall establish
and publish model disclosure forms to facilitate com-
pliance with the disclosure requirements of this
chapter and to aid the consumer in understanding
the transaction to which the subject disclosure form
relates.
‘‘(2) USE OF AUTOMATED EQUIPMENT.—In es-
tablishing model forms under this subsection, the
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Board shall consider the use by lessors of data proc-
essing or similar automated equipment.
‘‘(3) USE OPTIONAL.—A lessor may utilize a
model disclosure form established by the Board
under this subsection for purposes of compliance
with this chapter, at the discretion of the lessor.
‘‘(4) EFFECT OF USE.—Any lessor who prop-
erly uses the material aspects of any model disclo-
sure form established by the Board under this sub-
section shall be deemed to be in compliance with the
disclosure requirements to which the form relates.’’.
(2) EFFECTIVE DATE.—
(A) IN GENERAL.—Any regulation of the
Board, or any amendment or interpretation of
any regulation of the Board issued pursuant to
section 187 of the Truth in Lending Act (as
added by paragraph (1) of this subsection),
shall become effective on the first October 1
that follows the date of promulgation of that
regulation, amendment, or interpretation by not
less than 6 months.
(B) LONGER PERIOD.—The Board may, at
the discretion of the Board, extend the time pe-
riod referred to in subparagraph (A) in accord-
ance with subparagraph (C), to permit lessors
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to adjust their disclosure forms to accommodate
the requirements of section 127 of the Truth in
Lending Act (as added by paragraph (1) of this
subsection).
(C) SHORTER
PERIOD.—The Board may
shorten the time period referred to in subpara-
graph (A), if the Board makes a specific finding
that such action is necessary to comply with the
findings of a court or to prevent an unfair or
deceptive practice.
(D) 
COMPLIANCE
BEFORE
EFFECTIVE
DATE.—Any lessor may comply with any means
of disclosure provided for in section 127 of the
Truth in Lending Act (as added by paragraph
(1) of this subsection) before the effective date
of such requirement.
(E) DEFINITIONS.—For purposes of this
subsection, the term ‘‘lessor’’ has the same
meaning as in section 181 of the Truth in
Lending Act.
(3) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 5 of title I of the Truth in Lending
Act (15 U.S.C. 1601 et seq.) is amended by insert-
ing after the item relating to section 186 the follow-
ing new item:
‘‘187. Regulations.’’.
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(c) CONSUMER LEASE ADVERTISING.—Section 184
of the Truth in Lending Act (15 U.S.C. 1667c) is amend-
ed—
(1) by striking subsections (a) and (c);
(2) by redesignating subsection (b) as sub-
section (c); and
(3) by inserting before subsection (c), as so re-
designated, the following:
‘‘(a) IN
GENERAL.—If an advertisement for a
consumer lease includes a statement of the amount of any
payment or a statement that any or no initial payment
is required, the advertisement shall clearly and conspicu-
ously state, as applicable—
‘‘(1) the transaction advertised is a lease;
‘‘(2) the total amount of any initial payments
required on or before consummation of the lease or
delivery of the property, whichever is later;
‘‘(3) that a security deposit is required;
‘‘(4) the number, amount, and timing of sched-
uled payments; and
‘‘(5) with respect to a lease in which the liabil-
ity of the consumer at the end of the lease term is
based on the anticipated residual value of the prop-
erty, that an extra charge may be imposed at the
end of the lease term.
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‘‘(ii) a list of the existing activities
and investments of the partnership;
‘‘(iii) a commitment to comply with
this paragraph;
‘‘(iv) a commitment to comply with
section 7 of the Federal Deposit Insurance
Act with respect to any acquisition of con-
trol of an insured depository institution oc-
curring after date of enactment of this
paragraph; and
‘‘(v) a commitment to be subject, to
the same extent as if the qualified family
partnership were a bank holding com-
pany—
‘‘(I) to examination by the Board
to assure compliance with this para-
graph; and
‘‘(II) to section 8 of the Federal
Deposit Insurance Act.’’.
SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY
INSTITUTIONS AND FARMERS AND RANCH-
ERS IN DROUGHT-STRICKEN AREAS.
(a) FINDINGS.—The Congress hereby finds the fol-
lowing: