6.2-433 - (Effective October 1, 2010) Amendment to open-end credit contract or plan by bank or savings institution.
§ 6.2-433. (Effective October 1, 2010) Amendment to open-end credit contractor plan by bank or savings institution.
A. Any open-end credit plan, as defined in § 6.2-300, by a bank or savingsinstitution may be amended in any respect by the bank or savings institutionat any time and from time to time to modify or delete terms, or to add newterms, which new or modified terms and amendment need not be of a kindpreviously included in or contemplated by such contract or plan, or of a kindintegral to the relationship of the parties, by following the procedures, ifany, set forth in the contract or plan for effecting changes in the termsthereof, subject to the bank's or savings institution's complying with anyapplicable notice requirements under the Truth in Lending Act (15 U.S.C. §1601 et seq.) and regulations promulgated thereunder, as in effect from timeto time.
B. Unless the contract or plan referred to in subsection A otherwiseexpressly provides, a bank or savings institution may amend such contract orplan in any respect at any time and from time to time, whether or not theamendment or the subject of the amendment was originally contemplated oraddressed by the parties or is integral to the relationship between theparties. Without limiting the foregoing, such amendment may change terms bythe addition of new terms or by the deletion or modification of existingterms, whether relating to plan benefits or features, the periodic rate orrates used to calculate finance charges, the manner of calculating periodicrate finance charges or outstanding unpaid indebtedness, variable schedulesor formulas, finance charges other than periodic rate finance charges, othercharges or fees, collateral requirements, methods for obtaining or repayingextensions of credit, attorney fees, plan termination, the manner foramending the terms of the contract or plan, arbitration or other alternativedispute resolution mechanisms, or other matters of any kind whatsoever.Unless the contract or plan otherwise expressly provides, any amendment may,on and after the date upon which it becomes effective as to a particularborrower, apply to all then outstanding unpaid indebtedness in the borrower'saccount under the contract or plan, including any such indebtedness thatarose prior to the effective date of the amendment. A contract or plan may beamended pursuant to this subsection regardless of whether the contract orplan is active or inactive or whether additional borrowings are availablethereunder. Any such amendment may become effective as determined by the bankor savings institution, subject to compliance by the bank or savingsinstitution with any applicable provisions under the Truth in Lending Act (15U.S.C. § 1601 et seq.) and the regulations promulgated thereunder, as ineffect from time to time. Any notice of an amendment sent by the bank orsavings institution may be included in the same envelope with a periodicstatement or as part of the periodic statement or in other materials sent tothe borrower.
(1987, cc. 622, 639, 714, § 6.1-330.63; 1992, Sp. Sess., c. 4; 1997, c. 112;2005, c. 670; 2010, c. 794.)