Opinion ID: 444627
Heading Depth: 2
Heading Rank: 2

Heading: The Corporate Maker Exemption

Text: 8 As noted above, the purpose of the Truth in Lending Act is to protect consumers involved in credit transactions. The Act characterizes a consumer transaction as one in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes. 15 U.S.C. Sec. 1602(h). Moreover, the Act provides that it does not apply to [c]redit transactions involving extensions of credit ... to organizations. 15 U.S.C. Sec. 1603(1). The term organization is defined by the Act to include corporations. 15 U.S.C. Sec. 1602(c). 9 Two of the six loans which are not within the agricultural-purpose exemption were made to K/O Ranch, Inc., and are therefore exempt from the coverage of the Act under the corporate-maker exemption of Sec. 1603(1).