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Can you summarize 3 NYCRR Part 90?
General Regulations of the Superintendent > Variable Rate Open-End Accounts Established by Lending Institutions
Short Summary
This legal document, part of the New York Codes, Rules and Regulations, governs variable rate open-end accounts established by lending institutions. Lending institutions must comply with the requirements outlined in this document when offering such accounts. The document specifies that lending institutions must choose an approved index for the open-end account’s rate calculation. The rate can be based directly on the index values or on the index values plus or minus additional percentage points. Lending institutions are not limited in rate adjustments but are required to provide equal limitations on both increases and decreases if they adopt limitations. Rate adjustments may be rounded to the nearest percentage point or fraction, applying equally to decreases and increases. In case the initial index becomes unavailable, lending institutions may propose a substitute index, but any change in the index used requires permission from the superintendent and notification to customers at least 30 days prior to the change. The document also mandates disclosure of the index’s history, including high and low figures and dates, for the three preceding calendar years. If an account is opened or a variable rate provision becomes effective after August 31st of any calendar year, the disclosure should include the index’s performance until June 30th of that year. Lending institutions are required to provide certain disclosures to customers who are primarily liable on the open-end account. These disclosures must be made in a single, separate document, in plain language, and with captioned subdivisions. The required disclosures include identification of the index to be used for changing the rate, disclosure of the intervals at which the rate may change, the effect of rate increases on the monthly payment, a hypothetical example illustrating the effect of a rate increase, a history of the movements in the selected index, and information about prior notifications of rate increases. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Lending institutions, customers who are primarily liable on the open-end account
What does it govern?
Variable rate open-end accounts established by lending institutions
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York