Cash Discount Act
PL 97-25 (H.R.31), enacted 07/27/1981

95 STAT. 144 
PUBLIC LAW 97-25—JULY 27, 1981 
Public Law 97-25 
97th Congress 
July 27, 1981 
[H.R, 31] 
Cash Discount 
Act. 
15 use 1601 
note. 
15 use 1605. 
"Regular price. 
15 use 1602 
note. 
94 Stat. 169. 
15 use 1666f 
note. 
Supra. 
An Act 
To amend the Truth in Lending Act to encourage cash discoimts, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. That this Act may be 
cited as the "Cash Discount Act 
TITLE I—CASH DISCOUNTS 
SEC. 101. Section 167(b) of the Truth in Lending Act (15 U.S.C. 
1666f(b)) is amended to read as follows: 
"(b) With respect to any sales transaction, any discount from the 
regular price offered by the seller for the purpose of inducing 
payment by cash, checks, or other means not involving the use of an 
open-end credit plan or a credit card shall not constitute a finance 
charge as determined under section 106 if such discount is offered to 
all prospective buyers and its availability is disclosed clearly and 
conspicuously.". 
SEC. 102. (a) Section 103 of 
the Truth in Lending Act (15 U.S.C. 1602) 
is amended by adding at the end thereof the following: 
"(z) As used in this section and section 167, the term 'regular price' 
means the tag or posted price charged for the property or service if a 
single price is tagged or posted, or the price charged for the property 
or service when payment is made by use of an open-end credit plan or 
a credit card if either (1) no price is tagged or posted, or (2) two prices 
are tagged or posted, one of which is charged when payment is made 
by use of an open-end credit plan or a credit card and the other when 
payment is made b^ use of cash, check, or similar means. For 
purposes of this definition, pajmient by check, draft, or other negoti-
able instrument which may result in the debiting of 
an open-end credit 
plan or a credit cardholder's open-end account shall not be considered 
payment made by use of 
the plan or the account.". 
(b) Effective April 10,1982— 
(1) subsections (x) and (y) of 
section 103 of 
the Truth in Lending 
Act (as redesignated by section 603(b) of Public Law 96-221) are 
redesignated as subsections (y) and (z), respectively; and 
(2) subsection (z) of such section (as added by subsection (a)) is 
redesignated as subsection (x) and is inserted after subsection (w). 
SEC. 103. Any rule or regulation of the Board of Governors of the 
Federal Reserve System pursuant to section 167(b) of the Truth in 
Lending Act, as such section was in effect on the day before the date 
of 
enactment of this Act, is null and void. 
TITLE II—BAN ON CREDIT CARD SURCHARGES 
SEC. 201. Section 3(cX2) of Public Law 94-222 (15 U.S.C. 1666f note) 
is amended to read as follows: 
"(2) The amendments made by paragraph (1) shall cease to be 
effective on February 27,1984.". 
PUBLIC LAW 97-25—JULY 27, 1981 
95 STAT. 145 
SEC. 202. Not later than two years after the date of enactment of 
this Act, the Board of Governors of the Federal Reserve System shall 
prepare a study, on the basis of 
a review and analysis of 
such data and 
studies as it finds appropriate, and shall submit its findings to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives on the effect of charge card transactions 
upon card issuers, merchants, and consumers, including to the extent 
possible— 
(1) the effects of charge card transactions on retail sales; 
(2) the effect of charge card usage on consumers and on 
merchants, including the effects on merchant cost; and 
(3) the effect of charge card usage on the pricing of goods and 
services, with a comparison of the costs resulting from payment 
by (A) currency and coin, (B) by personal check or similar 
instrument, (C) by in-house credit plans, and (D) by charge card. 
TITLE m—MISCELLANEOUS 
SEC. 301. Section 625(c) of Public Law 96-221 is amended by adding 
at the end thereof the following: "Any creditor who elects to comply 
with such amendments and any assignee of such a creditor shall be 
subject to the provisions of sections 130 and 131 of the Truth in 
Lending Act, as amended by sections 615 and 616, respectively, of this 
title.". 
SEC. 302. Section 5137 of the Revised Statutes (12 U.S.C. 29) is 
amended by adding at the end thereof the following new paragraph: 
"Notwithstanding any other provision of this section, any national 
banking association which, on the date of enactment of this para-
graph, held title to and possession of real estate which was carried on 
the association's books at a nominal value on December 31,1979, may 
continue to hold such real estate until December 31, 1982, if the 
earnings from such real estate are separately disclosed in the finan-
cial statements of 
the association.". 
SEC. 303. (a) Section 204 of the Public Health Service Act is 
amended bv inserting after the first sentence the following new 
sentence: The President may appoint to the office of Surgeon 
General an individual who is sixty-four years of age or older.". 
db) Section 211(a)(1) of such Act is amended by adding at the end 
thereof the following new sentence: "This paragraph does not apply 
to the Surgeon General of 
the United States.". 
Approved July 27, 1981. 
Study findings, 
submittal to 
congressional 
committees. 
15 u s e 1601 
note. 
94 Stat. 185. 
15 u s e 1602 
note. 
94 Stat. 180, 182. 
15 u s e 1640, 
1641. 
94 Stat. 186. 
Presidential 
appointee. 
42 u s e 205. 
42 u s e 212. 
LEGISLATIVE HISTORY—H.R. 31 (H.R. 3132) (S. 414): 
HOUSE REPORT No. 97-159 (Oomm. of Oonference). 
SENATE REPORT No. 97-23 accompanying S. 414 (Coram, on Banking, Housing, and 
Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
Feb. 24, considered and passed House. 
Mar. 5, S. 414 considered in Senate. 
Mar. 12, considered and passed Senate, amended, in lieu of S. 414. 
May 4, H.R. 3182 considered and passed House. 
May 20, June 24, House considered and agreed to conference report. 
July 14, Senate agreed to conference report.