New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 90 - Variable Rate Open-end Accounts Established By Lending Institutions
Section 90.3 - Disclosures
Current through Register Vol. 46, No. 12, March 20, 2024
All disclosures required by this Part are to be made in a single, separate document, in plain language and with captioned subdivisions for the information to be disclosed. Such disclosures shall be provided by the lending institution to a customer who is to be primarily liable on the open-end account prior to the date of the first transaction on the account in the case of a new account, or, in the case where an existing open-end account is being amended to provide for the variable rate feature, at least 30 days prior to the effective date of the variable rate amendment. Disclosure shall be made, in any reasonable order, of the following information:
(a) an identification of the index to be used by the lending institution in connection with changing the rate on the open-end account or, if applicable, in connection with changing the individual rates on the loan account and credit account comprising the open-end account, and information where the index figures will be available;
(b) disclosure of the intervals at which the lending institution may change the rate on the open-end account (or, if applicable, the individual rates on the loan account and the credit account), the time(s) or date(s) at which the lending institution will calculate the rate or rates with respect to the index, and any conditions or events on which the changes in the rate or rates are contingent;
(c) the effect an increase in the rate or rates on the open-end account will have on the amount of the monthly payment;
(d) a hypothetical example, illustrative of the type of credit being offered, of the effect of a rate increase on monthly payments (e.g., an example showing such effect or combination of effects for the loan account and the credit account of an open-end account which is comprised of both);
(e) a history of the movements in the index selected for the open-end account, as further provided under section 90.4 of this Part; and
(f) the fact that the customer will receive prior notifications from the lending institution of increases in the rate or rates for the open-end account, and the time periods within which the notifications will be sent.
