32(c). 15 U.S.C. § 1602(v); 12 C.F.R. § 226.23(a)(3), footnote 48; Official Staff Commentary § 226.

Count Six, for violations of the TILA mortgage originator rules, fails for all of the same reasons as described above in Section I.A. TILA mortgage originator rules are not applicable because those rules only apply to “residential mortgage loans” that are “consumer credit transactions,” and PACE transactions are neither. 15 U.S.C. §§ 1602 (cc)(2), (5). Beyond that, Count Six also must be dismissed because it is based on a fundamental misunderstanding of the cited statutory provision.

Count Five, for violations of the TILA mortgage originator rules, fails for all the same reasons described above in Section I.A. TILA mortgage originator rules are Case 5:16-cv-02478-AB-KK Document 60-1 Filed 03/08/17 Page 23 of 33 Page ID #:861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16 not applicable because those rules only apply to “residential mortgage loans” that are “consumer credit transactions,” and PACE transactions are neither. 15 U.S.C. §§ 1602(cc)(2), (5). Beyond that, Count Five also must be dismissed because it is based on a fundamental misunderstanding of the cited statutory provision.

Count Six, for violations of the TILA mortgage originator rules, fails for all of the same reasons described above in Section I.A. TILA mortgage originator rules are not applicable because those rules only apply to “residential mortgage loans” that are “consumer credit transactions,” and PACE transactions are neither. 15 U.S.C. §§ 1602(cc)(2), (5). Beyond that, Count Six also must be dismissed because it is based on a fundamental misunderstanding of the cited statutory provision.

This allegation seeks to create liability based on the last sentence of the same “creditor” definition, which provides: Any person who originates 2 or more mortgages referred to in subsection (aa) [HOEPA] of this section in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor . . .. 15 U.S.C. § 1602(g). Loya apparently believes that this final sentence creates an alternative, standalone definition of “creditor,” separate from the two-part test specified in the beginning of § 1602(g), which by its terms sets out the “only” standard for “creditor.”

24 Defendant operates a used vehicle lot located at 3000 E. Lake Mead Blvd., North Las Vegas, NV 89030; Defendant is registered with the Nevada Secretary of State, and Defendant is licensed as a “dealer” with the Nevada Department of Motor Vehicles. In 2010 alone, Defendant 22 15 U.S.C. § 1602(e). 23 See July 24, 2010 Motor Vehicle Purchase Order and Federal Disclosure Statement (described herein as “the July 24, 2010 retail installment sales contract), attached hereto as Exhibit 1.

It was thus unclear—at the time—whether a label stating the cash price and a percentage or dollars-and- cents surcharge for credit cards satisfied the rule that “two prices [be] tagged or posted.” See 15 U.S.C. § 1602(y). In the end, many of the ambiguities that afflicted the federal surcharge law were never resolved.

Op. and Order, p. 6 n. 2. Yet Plaintiff inexplicably relies on a TILA provision, 15 U.S.C. §1602(g), in asserting that Chase “does not have standing to challenge the rescission.” Pl.’s Mot.

TILA defines “credit” as “the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.” See 15 U.S.C. § 1602(f). The Consumer Financial Protection Bureau’s official staff interpretations of TILA expressly exclude “tax liens” and “tax assessments” from the definition of consumer “credit.”

TILA defines “credit” as “the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.” See 15 U.S.C. § 1602(f). The Consumer Financial Protection Bureau’s official staff interpretations of TILA expressly exclude “tax liens” and “tax assessments” from the definition of Case 5:16-cv-02491-AB-KK Document 33-1 Filed 01/19/17 Page 25 of 28 Page ID #:367 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 – 19 – MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEFENDANT SAN BERNARDINO ASSOCIATED GOVERNMENTS’ MOTION TO DISMISS PLAINTIFF'S COMPLAINT R EE D S M IT H L LP A li m ite d lia bi lit y pa rtn er sh ip fo rm ed in th e St at e of D el aw ar e consumer “credit.”