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§ 107.505. Disclosure.

10 CA ADC § 107.505Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 2. Savings and Loan Commissioner (Refs & Annos)
Subchapter 7. Operations--Loans
Article 5. Loans--Variable Interest Rate Provisions
10 CCR § 107.505
§ 107.505. Disclosure.
Currentness
Each association that offers any loans subject to the provisions of this subchapter shall disclose in a Variable Interest Rate Loans Pamphlet that is made available to prospective borrowers the following information relating to each type of variable interest rate offered:
(a) Disclosure of the fact that the interest rate is subject to increase and the conditions under which the rate may increase, including: (1) identification of the Standard to which an increase in rate is tied; and (2) any limitation on an increase;
(b) Disclosure of how an increase in the interest rate may be effected (such as an increase in payment amounts, number of scheduled monthly payments, or in the amount due at maturity);
(c) If loans are offered under Civil Code Section 1916.5, disclosure of the estimated increase in the amount of monthly payment caused by a hypothetical interest rate increase of ¼ of 1% effective commencing on the date the monthly payment becomes due during the third month following the first semiannual period; and if loans are offered under Civil Code Section 1916.6, disclosure of the estimated increase in the amount of monthly payment caused by a hypothetical interest rate increase of 1 1/4% effective commencing on the date the monthly payment becomes due during the third month following the first period of five years. These disclosures should be based upon an average amount hypothetical loan with a hypothetical interest rate under which the obligation is repayable in substantially equal monthly installments.
(d) If loans are offered under Civil Code Section 1916.5, disclosure of the estimated increase in the number of monthly payments caused by a hypothetical interest rate increase of ¼ of 1% effective commencing on the date the monthly payment becomes due during the third month following the first semiannual period; and if loans are offered under Civil Code Section 1916.6, disclosure of the estimated increase in the number of monthly payments caused by a hypothetical interest rate increase of 1-1/4% effective commencing on the date the monthly installment becomes due during the third month following the first period of five years for a loan under Civil Code Section 1916.6. This disclosure should be based upon an average amount hypothetical loan, with a hypothetical interest rate under which the obligation is repayable in substantially equal monthly installments.

Credits

Note: Authority cited: Section 8053, Financial Code; and Section 1916.5, Civil Code. Reference: Sections 1916.5 and 1916.6, Civil Code.
History
1. Change without regulatory effect renumbering former Section 240.6 to Section 107.505 (Register 87, No. 14). For prior history, see Register 79, No. 21.
2. Change without regulatory effect of Note (Register 87, No. 35).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 10, § 107.505, 10 CA ADC § 107.505
End of Document