Franklin Savings Bank v. Michael T. Bordick

Summary

The court held that a loan secured by a leasehold interest in real property is not exempt from the Truth in Lending Act merely because the property was not the borrowers’ principal dwelling. The court also held that determining whether the loan was primarily for business or commercial purposes requires consideration of the totality of the circumstances and cannot rest solely on the loan documents’ characterization. The judgment for the bank was vacated and the matter remanded for that determination.