Truth in Lending Act

A federal law, the provisions of which assure individualsapplying for commercial credit information relating to the cost of credit,enabling them to decide which credit source offers them the most favorablecredit terms. Under this law, the commercial lender must inform the borrower ofthe dollar amount of the interest charges and the interest rate, computed on anannual basis according to the specified formula, and must afford borrowers whopledge real property as security for the loan a three-day period in which torescind the transaction.