6. The plaintiff next states that the document violates 12 C.F.R. § 226.8(d)(1) because it does not itemize individually the amount of $10.00 charged for "filing, recording and releasing" the security interest on the plaintiff's personal property. The plaintiff complains that the disclosure amount does not disclose what part of the $10 fee is used to file the security interest, what part is used to record the security interest, and what part is used to release the security interest after the debt is repaid. Filing, recording, and releasing are just stages of the whole process of obtaining a security interest for a period of time, and one stage is not so distinct and independent of any other that individual listing is required to comply with 12 C.F.R. § 216.8(d)(1) or for "clear and conspicuous" disclosure under 12 C.F.R. § 226.6(a).
7. The plaintiff's next argument is that the document's disclosure that credit insurance is not required is not clear and conspicuous. According to 12 C.F.R. § 226.6(a), all required disclosures must be clear and conspicuous, and the terms "finance charge" and "annual percentage rate" must be more conspicuous than other terms. The disclosure that credit life insurance is not required is made in the center of the document, under a separate heading entitled "INSURANCE", and is obvious to the reader of the document. While the typeface of the disclosure itself is neither larger nor smaller than that of much of the surrounding language, the line on which it appears is separated from the preceding and following lines by unusually large spaces between lines. In view of the document's total appearance, we find that the creditors disclosed clearly and conspicuously that credit insurance was not required, and that the disclosure does not violate 12 C.F.R. § 226.6(a) or § 226.4(a)(5).
8. The plaintiff also alleges that the defendant's failure to include the cost of credit life insurance ($24.34) in the finance charge violates Regulation Z, 12 C.F.R. § 226.4(a)(5) which requires such inclusion unless the document states that such insurance coverage is not required and the debtor gives "specific dated and separately signed affirmative written indication" that he desires insurance coverage, § 226.4(a)(5)(ii). We find that the creditor's failure to include in the finance charge the cost of credit life insurance does not violate Regulation Z, § 226.4(a)(5) for at least two reasons. First, the disclosure fits within the exception to § 226.4(a)(5) because the creditor properly disclosed that insurance coverage was not required and because the debtor clearly expressed her desire for credit life insurance by signing the disclosure document in a separate location apart from her signature at the bottom of the document. Second, the cost of credit life insurance is clearly and conspicuously disclosed on the document and included in the "amount financed."
9. The plaintiff complains that the defendant's computation of the "annual percentage rate" is in error because, if the cost of credit life insurance had been included in the finance charge as it allegedly should have been, a different, "annual percentage rate" would have resulted. Our prior holding that the regulations do not require the creditor to include the cost of credit life insurance in the finance charge disposes of this argument a fortiori.
10. The plaintiff argues that the security agreement violates Pennsylvania law, and hence Regulation Z, 12 C.F.R. § 226.8(b)(5) by covering "replacement of collateral" which the plaintiff contends is "after acquired property" and is not a proper subject of a security interest in Pennsylvania. After-acquired property, however, may be the subject of a security interest is the debtor acquires an interest in such property within 10 days after the secured party gives value to the debtor, 12A Pa. Stat. Ann. § 9-204(4)(b). In the security agreement involved here, the defendant's interest in "replacement of collateral" is limited to property "of like kind acquired within 10 days" of the loan and, accordingly, does not violate 12A Pa. Stat. Ann. § 9-204(4)(b).
Even if the security agreement did violate Pennsylvania law, we would not accept the plaintiff's contention that the disclosure of a security interest which is invalid under state law inevitably amounts to a violation of Regulation Z, § 226.8(b)(5). First, the language of § 226.8(b)(5) does not even impliedly state that violations of state law provisions constitute violations of that section. Second, since the language of § 226.8(b)(5) does not expressly require agreements to comport with state law, such a requirement could exist only by judicial implication. It is questionable whether the violation of an implied duty of § 226.8(b)(5) triggers the remedies of the Truth in Lending Act, see Kessler v. Assoc. Fin. Serv. Co. of Hawaii, Inc., 405 F. Supp. 122, 125-26 (D. Hawaii 1975). Third, the judicial decisions which suggest that state law violations constitute an implied violation of § 226.8(b)(5) involve disclosure documents which, in addition to clearly violating state law, also are misleading on their face. Accordingly, it is difficult to determine whether these cases hold that security agreements violate § 226.8(b)(5) because they violate state law or because they violate the expressed requirement of § 226.8(b)(5) that the security agreement should clearly identify the property it covers, see, e.g., Tinsman v. Moline Beneficial Finance Co., 531 F.2d 815 (7th Cir. 1976); Pollock v. General Finance Corp., 535 F.2d 295 (5th Cir. 1976).
In this case, the disclosure document clearly identifies the collateral which secures the loan and thus does not violate 12 C.F.R. § 226.8(b)(5) on the grounds of facial ambiguity or deception. Moreover, at the time of the loan agreement, the creditor had no reason to believe that the security agreement violated Pennsylvania law. Therefore, even if the security agreement claimed did violate some aspect of Pennsylvania law, we would find that the language of the agreement does not violate the expressed language of Regulation Z, § 226.8(b)(5) because it clearly identifies the property to which the security agreement relates.
As a final contention, the plaintiff states that the whole document is confusing. After reviewing the entire document, we believe that the document clearly and conspicuously sets forth all of the information important to the plaintiff's credit agreement.
In sum, for two distinct and independent reasons, we deny the plaintiff's motion for summary judgment. First, the alleged technical deficiencies of the document bear no relationship to the achievement of the Congressional purposes of the Truth in Lending Act. Second, none of the plaintiff's allegations amount to a violation of the Act or its regulations. Because no material issue of fact remains and because we have resolved all issues of law in favor of the non-moving defendant, we exercise our authority to grant summary judgment in the defendants' favor, see Missouri Pacific Railroad Co. v. National Milling Co., 409 F.2d 882 (3d Cir. 1969); B & P Development v. Walker, 420 F. Supp. 704 (W.D. Pa. 1976); 6 Moore's Federal Practice para. 56.12 at 56-331 (1977 Supp.).
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