N.Y. Comp. Codes R. & Regs. tit. 3 § 82.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 82.3 - Adjustments to rate, payment, balance or term

Except for such further limitations on adjustment (i.e., "ceilings", "floors" or "initial documents") as may be set forth in the loan contract:

(a) Adjustments to the interest rate shall correspond directly to the movement of an interest rate index or an index that measures the rate of inflation, which index is readily available to and verifiable by the borrower and is beyond the control of the lender; provided that a lender may decrease the interest rate at any time, and provided further, that interest rate adjustments may be rounded to the nearest fraction of a percentage point when so stated in the contract. A lender may also increase the interest rate pursuant to a formula or schedule that specifies the amount of the increase, the time at which it may be made, and which is set forth in the loan contract.

(b) Adjustments to the monthly payment and loan balance may be made to reflect interest rate adjustments and, in the case of a payment adjustment, where the adjustment reflects change in the loan balance or is made pursuant to a formula or a schedule specifying the percentage or dollar change in the payment, as set forth in the contract.

(c) Any combination of indices or a moving average of index values may be used as an index, but a lender may not change or reserve the right to change the index or indices specified in the loan contract unless the initial index or indices specified become(s) unavailable during the term of the loan.

(d) The loan term may be adjusted only to reflect a change in the interest rate, the payment or the loan balance.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 82.3