Can you summarize Agency 104 KSAR?

Short Summary

The provided legal document is a regulation issued by the Kansas Administrative Regulations. It governs consumer-purpose adjustable rate real estate transactions. The regulation applies to creditors who offer consumer-purpose adjustable rate notes secured by a real estate mortgage or consumer-purpose contracts for deed to real estate with an adjustable interest rate provision. It allows creditors to use any interest-rate index that is readily verifiable by the borrower, as long as the adjustment is beyond the control of the creditor. The adjustments to the interest rate must correspond directly to the movement of the index, subject to any rate-adjustment limitations set by the creditor. The creditor has the discretion to decline or decrease the interest rate when the index permits an increase. The adjustments to the interest rate can be implemented through adjustments to the outstanding principal loan balance, loan term, payment amount, or any combination thereof. The regulation prohibits creditors from charging the borrower any costs or fees in connection with regularly-scheduled adjustments to the interest rate, payment, outstanding principal loan balance, or loan term. The term ‘consumer-purpose’ refers to transactions primarily for personal, family, or household purposes. No specific exemptions or penalties are mentioned in this regulation.

Whom does it apply to?

Creditors who offer consumer-purpose adjustable rate notes secured by a real estate mortgage or consumer-purpose contracts for deed to real estate with an adjustable interest rate provision

What does it govern?

Consumer-purpose adjustable rate real estate transactions

What are exemptions?

No specific exemptions are mentioned in this regulation

What are the Penalties?

No specific penalties are mentioned in this regulation

Jurisdiction

Kansas

Source

Agency 104 KSAR [https://reggi.cloud.regology.com/regulations/US-KSAR/US-KSAR_T_104]

• Banking