N.Y. Comp. Codes R. & Regs. tit. 3 § 33.3
Current through Register Vol. 46, No. 51, December 18, 2024
(a) General provisions. Lending institutions may use any single index from among the indices approved by the Superintendent of Banks pursuant to Part 333 of this Title on the terms stated therein. The loan rates may be based directly on the index values, may be based upon the index values plus or minus additional percentage points, or may be separately established and stated; provided, however, that variations in the rates shall correspond directly to the movements of the index. While only a single index shall be used for the life of a loan, the lending institution may provide for the use of a substitute index similar to the initial index in the event that the initial index should become unavailable during the term of the loan. This Part imposes no requirement on lending institutions to place limitations on the adjustment in the loan rate, as such adjustment would otherwise be allowed by movements in the index. Interest rate adjustments may be rounded, as determined by the lending institution, to the nearest percentage point or fraction thereof, provided that rounding applies equally to decreases and increases in rates. Subject to the rounding provisions, increases in the index need not be reflected on each adjustment date but may be accumulated to the next adjustment date, but decreases in the index must be reflected on each adjustment date.(b) Information and disclosures with respect to the history of the index. The disclosure shall identify the index and shall contain a statement that past changes in the index are not necessarily predictive of future changes in the index. The lending institution shall provide the high and low figures for the index and the dates at which these levels were reached, for each of the three calendar years preceding the calendar year in which the loan is made. In addition, if a loan is made after August 31st of any calendar year, the disclosure shall include the high and low figures for the index's performance through June 30th of that year, and such disclosure may be used as the disclosure of the high and low in index performance for the calendar year next preceding the calendar year in which the loan is made, for any loan made prior to March 1st of a calendar year.N.Y. Comp. Codes R. & Regs. Tit. 3 § 33.3