[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR226.24]

[Page 292]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 226_TRUTH IN LENDING (REGULATION Z)--Table of Contents
 
                       Subpart C_Closed-End Credit
 
Sec.  226.24  Advertising.

    (a) Actually available terms. If an advertisement for credit states 
specific credit terms, it shall state only those terms that actually are 
or will be arranged or offered by the creditor.
    (b) Advertisement of rate of finance charge. If an advertisement 
states a rate of finance charge, it shall state the rate as an ``annual 
percentage rate,'' using that term. If the annual percentage rate may be 
increased after consummation, the advertisement shall state that fact. 
The advertisement shall not state any other rate, except that a simple 
annual rate or periodic rate that is applied to an unpaid balance may be 
stated in conjunction with, but not more conspicuously than, the annual 
percentage rate.
    (c) Advertisement of terms that require additional disclosures. (1) 
If any of the following terms is set forth in an advertisement, the 
advertisement shall meet the requirements of paragraph (c)(2) of this 
section:
    (i) The amount or percentage of any downpayment.
    (ii) The number of payments or period of repayment.
    (iii) The amount of any payment.
    (iv) The amount of any finance charge.
    (2) An advertisement stating any of the terms in paragraph (c)(1) of 
this section shall state the following terms,\49\ as applicable:
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    \49\ An example of one or more typical extensions of credit with a 
statement of all the terms applicable to each may be used.
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    (i) The amount or percentage of the downpayment.
    (ii) The terms of repayment.
    (iii) The annual percentage rate, using that term, and, if the rate 
may be increased after consummation, that fact.
    (d) Catalogs or other multiple-page advertisements; electronic 
advertisements. (1) If a catalog or other multiple-page advertisement, 
or an advertisement using electronic communication, gives information in 
a table or schedule in sufficient detail to permit determination of the 
disclosures required by paragraph (c)(2) of this section, it shall be 
considered a single advertisement if:
    (i) The table or schedule is clearly and conspicuously set forth; 
and
    (ii) Any statement of terms of the credit terms in paragraph (c)(1) 
of this section appearing anywhere else in the catalog or advertisement 
clearly refers to the page or location where the table or schedule 
begins.
    (2) A catalog or other multiple-page advertisement or an 
advertisement using electronic communication complies with paragraph 
(c)(2) of this section if the table or schedule of terms includes all 
appropriate disclosures for a representative scale of amounts up to the 
level of the more commonly sold higher-priced property or services 
offered.

[Reg. Z, 46 FR 20892, Apr. 7, 1981, as amended at 66 FR 17338, Mar. 30, 
2001]