New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 92 - Variable Rate Closed-end Retail Instalment Contracts And Obligations Entered Into By Retail Sellers
Section 92.4 - Index

(a) General provisions. Retail sellers or holders may use any single index from among the indices approved by the Superintendent of Banks pursuant to Part 334 of this Title. The rate on the contract or obligation may be based directly on the index values or upon the index values plus or minus additional percentage points; provided, however, that variations in the rates shall correspond directly to the movements of the index. While only a single index shall be used for the term of a contract or obligation, the retail seller or the holder may provide for the use of a substitute index similar to the initial index in the event that the initial index should become unavailable during the term of the contract or obligation. This Part imposes no requirement on retail sellers or holders to place limitations on the adjustment in the rate, as such adjustment would otherwise be allowed by movements in the index. Rate adjustments may be rounded, as determined by the retail seller or the holder, to the nearest percentage point or fraction thereof, 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) 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 contract or obligation is entered into. In addition, if the contract or obligation is entered into 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 that calendar year in which the contract or obligation is entered into, for any contract or obligation entered into prior to March 1st of that year.