§ 6-27-11 - Additional disclosures.
SECTION 6-27-11
§ 6-27-11 Additional disclosures. –In the case of any open-end consumer credit plan secured by a consumer'sprincipal residence, the following provisions shall apply:
(1) The disclosures required by subdivisions (2) and (3) ofthis section shall be provided to the consumer on a separate document on orbefore the closing date.
(2) The following information shall be disclosed:
(i) The annual percentage rate which will be in effect whencredit is first extended in connection with the loan or a description of themanner in which the rate will be computed.
(ii) The manner in which any changes in the annual percentagerate of interest will be made, and the timing of any changes, including anyindex or other rate of interest to which the changes in rates are related.
(iii) Any fee imposed for the availability of the account,including but not limited to, annual fees, application fees, and the feescommonly designated as "points".
(iv) In the case of a variable rate, the maximum annualpercentage rate that may be imposed at any time under the plan and the maximumamount by which the annual percentage rate may change in any one year period.If no limit exists, that fact shall be disclosed.
(v) The maximum interest payment for a thirty (30) day periodat the highest interest rate permitted under the terms of the open-end plan andbased on the maximum amount of credit available under the plan.
(vi) A statement that the plan is secured by the consumer'sdwelling and, in the event of any default, the consumer risks the loss of thehome.
(vii) If applicable, a statement that the disclosures aregood faith estimates of the terms and conditions applicable to the plan, andare subject to change before the plan is opened.
(viii) If applicable, a statement that the creditor has theright to change the terms and conditions during the plan, including the indexand margin used to determine the interest rate and payment amount, at any time.
(ix) If applicable, a statement that although interest-onlypayments may be less on a monthly basis, they retire no principal, prolong theobligation, and result in greater total expenses over the life of the loan.
(3) In addition to the requirements of this chapter, anyadvertisement to aid, promote, or assist, directly or indirectly, the extensionof consumer credit through an open-end credit plan secured by the consumer'sprincipal dwelling that states a specific monthly payment based on a variablerate of interest shall state all of the following terms:
(A) Any maximum or fixed amount which could be imposed; and
(B) The periodic rates expressed as annual percentage rates.
(ii) If any advertisement described in subdivision (3)(i)contains a statement that any interest expense incurred with respect to a planis or may be tax deductible, the advertisement shall include a clear andconspicuous statement that the interest expense may not be completelydeductible for all taxpayers.
(iii) No advertisement described in subdivision (3)(i) withrespect to any home equity loan may refer to the loan as "free money or easymoney."