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95 STAT. 144

PUBLIC LAW 97-25—JULY 27, 1981
Public Law 97-25
97th Congress
An Act

July 27, 1981
[H.R, 31]
Cash Discount
Act.
15 u s e 1601
note.

15 u s e 1605.

"Regular price.

15 u s e 1602
note.
94 Stat. 169.

15 u s e 1666f
note.
Supra.

To amend the Truth in Lending Act to encourage cash discoimts, and for other
purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled. That this Act may be
cited as the "Cash Discount Act
TITLE I—CASH DISCOUNTS
SEC. 101. Section 167(b) of the Truth in Lending Act (15 U.S.C.
1666f(b)) is amended to read as follows:
"(b) With respect to any sales transaction, any discount from the
regular price offered by the seller for the purpose of inducing
payment by cash, checks, or other means not involving the use of an
open-end credit plan or a credit card shall not constitute a finance
charge as determined under section 106 if such discount is offered to
all prospective buyers and its availability is disclosed clearly and
conspicuously.".
SEC. 102. (a) Section 103 of the Truth in Lending Act (15 U.S.C. 1602)
is amended by adding at the end thereof the following:
"(z) As used in this section and section 167, the term 'regular price'
means the tag or posted price charged for the property or service if a
single price is tagged or posted, or the price charged for the property
or service when payment is made by use of an open-end credit plan or
a credit card if either (1) no price is tagged or posted, or (2) two prices
are tagged or posted, one of which is charged when payment is made
by use of an open-end credit plan or a credit card and the other when
payment is made b^ use of cash, check, or similar means. For
purposes of this definition, pajmient by check, draft, or other negotiable instrument which may result in the debiting of an open-end credit
plan or a credit cardholder's open-end account shall not be considered
payment made by use of the plan or the account.".
(b) Effective April 10,1982—
(1) subsections (x) and (y) of section 103 of the Truth in Lending
Act (as redesignated by section 603(b) of Public Law 96-221) are
redesignated as subsections (y) and (z), respectively; and
(2) subsection (z) of such section (as added by subsection (a)) is
redesignated as subsection (x) and is inserted after subsection (w).
SEC. 103. Any rule or regulation of the Board of Governors of the
Federal Reserve System pursuant to section 167(b) of the Truth in
Lending Act, as such section was in effect on the day before the date
of enactment of this Act, is null and void.
TITLE II—BAN ON CREDIT CARD SURCHARGES
SEC. 201. Section 3(cX2) of Public Law 94-222 (15 U.S.C. 1666f note)
is amended to read as follows:
"(2) The amendments made by paragraph (1) shall cease to be
effective on February 27,1984.".

PUBLIC LAW 97-25—JULY 27, 1981

95 STAT. 145

SEC. 202. Not later than two years after the date of enactment of
this Act, the Board of Governors of the Federal Reserve System shall
prepare a study, on the basis of a review and analysis of such data and
studies as it finds appropriate, and shall submit its findings to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Banking, Finance and Urban Affairs of the
House of Representatives on the effect of charge card transactions
upon card issuers, merchants, and consumers, including to the extent
possible—
(1) the effects of charge card transactions on retail sales;
(2) the effect of charge card usage on consumers and on
merchants, including the effects on merchant cost; and
(3) the effect of charge card usage on the pricing of goods and
services, with a comparison of the costs resulting from payment
by (A) currency and coin, (B) by personal check or similar
instrument, (C) by in-house credit plans, and (D) by charge card.

Study findings,
submittal to
congressional
committees.
15 u s e 1601
note.

TITLE m—MISCELLANEOUS
SEC. 301. Section 625(c) of Public Law 96-221 is amended by adding
at the end thereof the following: "Any creditor who elects to comply
with such amendments and any assignee of such a creditor shall be
subject to the provisions of sections 130 and 131 of the Truth in
Lending Act, as amended by sections 615 and 616, respectively, of this
title.".
SEC. 302. Section 5137 of the Revised Statutes (12 U.S.C. 29) is
amended by adding at the end thereof the following new paragraph:
"Notwithstanding any other provision of this section, any national
banking association which, on the date of enactment of this paragraph, held title to and possession of real estate which was carried on
the association's books at a nominal value on December 31,1979, may
continue to hold such real estate until December 31, 1982, if the
earnings from such real estate are separately disclosed in the financial statements of the association.".
SEC. 303. (a) Section 204 of the Public Health Service Act is
amended bv inserting after the first sentence the following new
sentence: The President may appoint to the office of Surgeon
General an individual who is sixty-four years of age or older.".
db) Section 211(a)(1) of such Act is amended by adding at the end
thereof the following new sentence: "This paragraph does not apply
to the Surgeon General of the United States.".
Approved July 27, 1981.

LEGISLATIVE HISTORY—H.R. 31 (H.R. 3132) (S. 414):
HOUSE REPORT No. 97-159 (Oomm. of Oonference).
SENATE REPORT No. 97-23 accompanying S. 414 (Coram, on Banking, Housing, and
Urban Affairs).
CONGRESSIONAL RECORD, Vol. 127 (1981):
Feb. 24, considered and passed House.
Mar. 5, S. 414 considered in Senate.
Mar. 12, considered and passed Senate, amended, in lieu of S. 414.
May 4, H.R. 3182 considered and passed House.
May 20, June 24, House considered and agreed to conference report.
July 14, Senate agreed to conference report.

94 Stat. 185.
15 u s e 1602
note.

94 Stat. 180, 182.
15 u s e 1640,
1641.
94 Stat. 186.

Presidential
appointee.
42 u s e 205.
42 u s e 212.


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