Page:United States Statutes at Large Volume 102 Part 5.djvu/719

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PUBLIC LAW 100-000—MMMM. DD, 1988

PUBLIC LAW 100-709—NOV. 23, 1988

102 STAT. 4725

Public Law 100-709 100th Congress An Act To fimend the Truth in Lending Act to establish additional disclosure, advertising, and other requirements for home equity loans.

Nov. 23, 1988 [H.R. 3011]

Be it enacted by the Senate and Houslp of Representatives of the Home Equity United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the "Home Equity Loan Consumer Protection Act of 1988".

Loan Consumer Protection Act of 1988. 15 USC 1601 note.

SEC. 2. DISCLOSURE AND ADVERTISING REQUIREMENTS FOR HOME EQUITY LOANS.

(a) DISCLOSURE REQUIREMENTS.—Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 127 the following new section: "SEC. 127A. DISCLOSURE REQUIREMENTS FOR OPEN END CONSUMER CREDIT PLANS SECURED BY THE CONSUMER'S PRINCIPAL DWELLING.

"(a) APPLICATION DISCLOSURES.—In the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b): "(1) FIXED ANNUAL PERCENTAGE RATE.—Each annual percent-

age rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest. "(2) VARIABLE PERCENTAGE RATE.—In the case of a plan which provides for variable rates of interest on credit extended under the plan— "(A) a description of the manner in which such rate will be computed and a statement that such rate does not include costs other than interest; "(B) a description of the manner in which any chemges in the annual percentage rate will be made, including— "(i) any negative amortization and interest rate carryover; "(ii) the timing of any such changes; "(iii) any index or margin to which such changes in the rate are related; and "(iv) a source of information about any such index; "(C) if an initial annual percentage rate is offered which is not based on an index— "(i) a statement of such rate and the period of time such initial rate will be in effect; and "(ii) a statement that such rate does not include costs other than interest;

15 USC 1637a.