510 
the contract for such extension of credit. Among 
the examples required to be provided under this 
clause is an example that reflects the maximum 
payment amount of the regular required pay-
ments on the extension of credit, based on the 
maximum interest rate allowed under the con-
tract, in accordance with the rules of the Board. 
Prior to issuing any rules pursuant to this 
clause, the Board shall conduct consumer testing 
to determine the appropriate format for pro-
viding the disclosures required under this sub-
paragraph to consumers so that such disclosures 
can be easily understood, including the fact that 
the initial regular payments are for a specific 
time period that will end on a certain date, that 
payments will adjust afterwards potentially to a 
higher amount, and that there is no guarantee 
that the borrower will be able to refinance to a 
lower amount. 
‘‘(D) In any case in which the disclosure state-
ment under subparagraph (A) contains an annual 
percentage rate of interest that is no longer accurate, 
as determined under section 107(c), the creditor shall 
furnish an additional, corrected statement to the bor-
511 
rower, not later than 3 business days before the date 
of consummation of the transaction. 
‘‘(E) The consumer shall receive the disclosures 
required under this paragraph before paying any fee 
to the creditor or other person in connection with the 
consumer’s application for an extension of credit that 
is secured by the dwelling of a consumer. If the disclo-
sures are mailed to the consumer, the consumer is 
considered to have received them 3 business days after 
they are mailed. A creditor or other person may im-
pose a fee for obtaining the consumer’s credit report 
before the consumer has received the disclosures under 
this paragraph, provided the fee is bona fide and rea-
sonable in amount. 
‘‘(F) WAIVER
OF
TIMELINESS
OF
DISCLO-
SURES.—To expedite consummation of a transaction, 
if the consumer determines that the extension of credit 
is needed to meet a bona fide personal financial emer-
gency, the consumer may waive or modify the timing 
requirements for disclosures under subparagraph (A), 
provided that— 
‘‘(i) the term ‘bona fide personal emergency’ 
may be further defined in regulations issued by 
the Board;
512 
‘‘(ii) the consumer provides to the creditor 
a dated, written statement describing the emer-
gency and specifically waiving or modifying 
those timing requirements, which statement shall 
bear the signature of all consumers entitled to re-
ceive the disclosures required by this paragraph; 
and 
‘‘(iii) the creditor provides to the consumers 
at or before the time of such waiver or modifica-
tion, the final disclosures required by paragraph 
(1). 
‘‘(G) The requirements of subparagraphs (B), 
(C), (D) and (E) shall not apply to extensions of 
credit relating to plans described in section 101(53D) 
of title 11, United States Code.’’. 
(b) CIVIL LIABILITY.—Section 130(a) of the Truth in 
Lending Act (15 U.S.C. 1640(a)) is amended— 
(1) in paragraph (2)(A)(iii), by striking ‘‘not 
less than $200 or greater than $2,000’’ and inserting 
‘‘not less than $400 or greater than $4,000’’; and 
(2) in the penultimate sentence of the undesig-
nated matter following paragraph (4)— 
(A) 
by 
inserting 
‘‘or 
section 
128(b)(2)(C)(ii),’’ after ‘‘128(a),’’; and