As a professional, I have researched and found that the agreement for payment plans that is not subject to TILA is the agreement between a borrower and a lender that involves an extension of credit primarily for a business, commercial, or agricultural purpose.
The Truth in Lending Act (TILA) is a federal law that requires lenders to disclose the terms and conditions of any loan to the borrower. The law applies to all consumer loans, which means loans that are primarily for personal, family, or household purposes. These loans include mortgages, credit cards, personal loans, and auto loans.
However, TILA does not apply to loans that are primarily for business, commercial, or agricultural purposes. If the borrower is an individual and the loan is primarily for business, commercial, or agricultural purposes, then the loan is exempt from TILA disclosures.
For example, if a small business owner wants to borrow money from a bank to purchase new equipment for their business, the loan would be exempt from TILA. Similarly, if a farmer wants to borrow money from a bank to purchase new land or equipment for their farm, the loan would also be exempt from TILA.
It is important to note that TILA does not apply to all loans that are used for business, commercial, or agricultural purposes. If the loan is primarily for personal, family, or household purposes, then TILA will apply, even if the loan is technically being used for a business, commercial, or agricultural purpose.
In conclusion, the agreement for payment plans that is not subject to TILA is the agreement between a borrower and a lender that involves an extension of credit primarily for a business, commercial, or agricultural purpose. It is important for borrowers and lenders to understand when TILA applies and when it does not, in order to stay compliant with federal law and ensure that borrowers are fully informed of the terms and conditions of their loans.