12 USC § 3806 - Adjustable rate mortgage caps

---
identifier: "/us/usc/t12/s3806"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 3806 - Adjustable rate mortgage caps"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "3806"
section_name: "Adjustable rate mortgage caps"
chapter_number: 39
chapter_name: "ALTERNATIVE MORTGAGE TRANSACTIONS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662; Pub. L. 102–550, title IX, § 952, Oct. 28, 1992, 106 Stat. 3893.)"
---


# § 3806. Adjustable rate mortgage caps

**(a)** **In general** Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan.

**(b)** **Regulations** The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.

**(c)** **Enforcement** 15 U.S.C. 160115 U.S.C. 160715 U.S.C. 1640

Any violation of this section shall be treated as a violation of the Truth in Lending Act [ et seq.] and shall be subject to administrative enforcement under section 108 [] or civil damages under section 130 [] of such Act, or both.

**(d)** **Definitions** For the purpose of this section—

**(1)** the term “creditor” means a person who regularly extends credit for personal, family, or household purposes; and

**(2)** the term “adjustable rate mortgage loan” means any consumer loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest.

**(e)** **Effective date** August 10, 1987

This section shall take effect upon the expiration of 120 days after .

---

**Source Credit**: (Pub. L. 100–86, title XII, § 1204, Aug. 10, 1987, 101 Stat. 662; Pub. L. 102–550, title IX, § 952, Oct. 28, 1992, 106 Stat. 3893.)

## Editorial Notes

### References in Text

The Truth in Lending Act, referred to in subsec. (c), is title I of , , , which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under  and Tables.

### Codification

Section was enacted as part of the Competitive Equality Banking Act of 1987, and not as part of the Alternative Mortgage Transaction Parity Act of 1982 which comprises this chapter.

### Amendments

1992—Subsec. (d)(2).  substituted “any consumer loan” for “any loan”.