(2) The Standard for savings and loan associations, upon which variations in the interest rate on any note issued under Civil Code Section 1916.6 may be based, shall be on any specific date the arithmetic mean of the weighted average yields of competitive offers for the sale of conventional fixed rate first mortgage or trust deed loans on the single-family residential property accepted by the Federal Home Loan Mortgage Corporation (“FHLMC”), under its immediate delivery program, at all loan auctions held by it during the calendar month preceding that specific date, provided that if during any calendar month to be used shall be the next preceding calendar month during which one or more auctions were held by FHLMC and at which offers were accepted, and provided further that if FHLMC ceases to conduct its auctions for the purchase of these loans, or if no offers are accepted for a period of three months, then the Standard shall be an equivalent Standard designated by the commissioner.

(1) Any increase or decrease in the interest rate of a note issued under Civil Code Section 1916.5 shall not exceed ¼ of 1% per annum in any semiannual period. Any increase in the interest rate of a note issued under Civil Code Sections 1916.5 and 1916.6 shall not result in a rate more than 2.5 percentage points greater than the rate for the first loan payment due after the closing of the loan.

(2) No increase or decrease in the interest rate of a note issued under Civil Code Section 1916.5 in any semiannual period shall be less than ¹/₁₀ of 1% per annum except for increases or decreases not previously invoked in full by reason of the ¼ of 1% per annum maximum limitation. No increase or decrease in the interest rate of a note issued under Civil Code Section 1916.6 in any period of five years shall be less than ¹/₁₀ of 1% per annum.

(3) No change in the rate of interest shall be made effective during the first semiannual period in the case of a note issued under Civil Code Section 1916.6.

(4) In the case of a note issued under Civil Code Section 1916.5, after the first semiannual period there shall be only one change in any one semiannual period. In the case of a note issued under Civil Code Section 1916.6, after the first period of five years there shall be only one change in any one period of five years.

(5) At least six months shall elapse between each change in the interest rate of a note issued under Civil Code Section 1916.5 and at least sixth months shall elapse between each change in the interest rate of a note issued under Civil Code Section 1916.6.

(6) Each change in rate of a note issued under Civil Code Section 1916.5 shall become effective commencing on the date the monthly installment becomes due during the second month following publication of the Standard for each semiannual period. Each change in rate of a note issued under Civil Code Section 1916.6 shall become effective commencing on the date the monthly installment becomes due during the second month following the date that the Standard for each period of five years is established. Notwithstanding the foregoing, an association may provide in a note issued under Civil Code Section 1916.5 that the first change in rate shall become effective with the first loan installment falling due more than 30 days after the first publication of the Standard following expiration of the first semiannual period of the loan, and an association may provide in a note issued under Civil Code Section 1916.6 that the first change in rate shall become effective with the first loan installment falling due more than 30 days after the Standard is established following expiration of the first period of five years.

(7) Decreases shall be mandatory and increases shall be optional with the lender.

(8) The fact that an association may not have invoked a permissible increase, in whole or in part, shall not be deemed a waiver of the association's right to invoke said increase at any time thereafter within the limits imposed by this subchapter.