New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 91 - Variable Rate Retail Instalment Credit Agreements Established By Retail Sellers
Section 91.4 - Index

(a) General provisions. A single index for the credit account shall be chosen from among the indices approved by the Superintendent of Banks pursuant to Part 334 of this Title. The rate for the credit account may be based directly on the index values or on the index values plus or minus additional percentage points; provided, however, that variations in the rate shall correspond directly to movements in the index. This Part imposes no requirement on creditors to place limitations on the adjustment in the rates for the credit account, as such adjustment would otherwise be allowed by movements in the index. However, any creditor which adopts limitations of any kind on changes in the rate shall provide for equal limitations on both increases and decreases. Similarly, rate adjustments may be rounded to the nearest percentage point or fraction thereof as determined by the creditor, provided that rounding applies equally to decreases and increases in rates. Subject to the rounding provisions, increases in the index need not be used at each rate calculation date but may be accumulated once to the next rate calculation date, but decreases in the index must be reflected at each rate calculation date.

(b) Changes in the index or changes in the spread between the index values and the actual rate charged. A creditor may provide for a substitute index similar to the chosen index only in the event that the initial index becomes unavailable. In any other case, if the creditor proposes to change the index used for the credit account or to change the percentage spread between the index values and the rate charged on the account, application in letter form for permission to do so must be made to the Banking Board, and, in the case of approval for such change, a notification of the change must be sent to customers at least 30 days prior to the change. In the case of a change in the percentage spread between the index values and the actual rate charged, Banking Board permission need only be obtained where the change would be adverse to the account customer.

(c) Information and disclosures with respect to the history of the index. The disclosure shall identify the index and shall contain a statement that past changes in the index are not necessarily predictive of future changes in the index. The retail seller shall provide the high and low figures for the index and the dates at which these levels were reached, for each of the three calendar years preceding the calendar year in which the credit account is opened or when a variable rate provision is added to an existing account. In addition, if a credit account is opened after August 31st of any calendar year or a variable rate provision is added to become effective after August 31st of any calendar year, the disclosure shall include the high and low figures for the index's performance through June 30th of that year, and such disclosure may be used as the disclosure of the high and low in index performance for the calendar year next preceding the calendar year in which the credit account is opened or a variable rate provision becomes effective, prior to March 1st of that year.