2021 Oklahoma Statutes
Title 14A. Consumer Credit Code
§14A-2-310.2. Disclosure requirements for revolving charge account plans secured by consumer's principal dwelling.

Disclosure requirements for revolving charge account plans secured by consumer's principal dwelling.

(1) In the case of any revolving charge account 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 (9) of Section 2-302 of this title:

• (a)Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest.
• (b)In the case of a plan which provides for variable rates of interest on credit extended under the plan:
• (i)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;
• (ii)a description of the manner in which any changes in the annual percentage rate will be made, including:
• (aa)any negative amortization and interest rate carryover;
• (bb)the time of any such changes;
• (cc)any index or margin to which such changes in the rate are related; and
• (dd)a source of information about any such index;
• (iii)if an initial annual percentage rate is offered which is not based on an index:
• (aa)a statement of such rate and the period of time such initial rate will be in effect; and
• (bb)a statement that such rate does not include costs other than interest;
• (iv)a statement that the consumer should ask about the current index value and interest rate;
• (v)a statement of the maximum amount by which the annual percentage rate may change in any one-year period or a statement that no such limit exists;
• (vi)a statement of the maximum annual percentage rate that may be imposed at any time under the plan;
• (vii)subject to subsection (9)(g) of Section 2-302 of this title, a table, based on a Ten Thousand Dollar ($10,000.00) extension of credit, showing how the annual percentage rate and the minimum periodic payment amount under each repayment option of the plan would have been affected during the preceding fifteen-year period by changes in any index used to compute such rate;
• (viii)a statement of:
• (aa)the maximum annual percentage rate which may be imposed under each repayment option of the plan;
• (bb)the minimum amount of any periodic payment which may be required, based on a Ten Thousand Dollar ($10,000.00) outstanding balance, under each such option when such maximum annual percentage rate is in effect; and
• (cc)the earliest date by which such maximum annual interest rate may be imposed; and
• (ix)a statement that interest rate information will be provided on or with each periodic statement.
• (c)An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs (including costs commonly described as "points"), and the time when such fees are payable.
• (d)(i)An estimate, based on the creditor's experience with such plans and stated as a single amount or as a reasonable range, of the aggregate amount of additional fees that may be imposed by third parties including but not limited to governmental authorities, appraisers, and attorneys in connection with opening an account under the plan.
• (ii)A statement that the consumer may ask the creditor for a good faith estimate by the creditor of the fees that may be imposed by third parties.
• (e)A statement that:
• (i)any extension of credit under the plan is secured by the consumer's dwelling; and
• (ii)in the event of any default, the consumer risks the loss of the dwelling.
• (f)(i)A clear and conspicuous statement:
• (aa)of the time by which an application must be submitted to obtain the terms disclosed; or
• (bb)if applicable, that the terms are subject to change.
• (ii)A statement that:
• (aa)the consumer may elect not to enter into an agreement to open an account under the plan if any term changes, other than a change contemplated by a variable feature of the plan, before any such agreement is final; and
• (bb)if the consumer makes an election described in division (aa) of this subparagraph, the consumer is entitled to a refund of all fees paid in connection with the application.
• (iii)A statement that the consumer should make or otherwise retain a copy of information disclosed under this subparagraph.
• (g)A statement that:
• (i)under certain conditions, the creditor may terminate any account under the plan and require immediate repayment of any outstanding balance, prohibit any additional extension of credit to the account, or reduce the credit limit applicable to the account; and
• (ii)the consumer may receive, upon request, more specific information about the conditions under which the creditor may take any action described in subparagraph (i) of this paragraph.
• (h)The repayment options under the plan, including:
• (i)if applicable, any differences in repayment options with regard to:
• (aa)any period during which additional extensions of credit may be obtained; and
• (bb)any period during which repayment is required to be made and no additional extensions of credit may be obtained;
• (ii)the length of any repayment period, including any differences in the length of any repayment period with regard to the periods described in divisions (aa) and (bb) of subparagraph (i) of this paragraph; and
• (iii)an explanation of how the amount of any minimum monthly or periodic payment will be determined under each such option, including any differences in the determination of any such amount with regard to the periods described in divisions (aa) and (bb) of subparagraph (i) of this paragraph.
• (i)An example, based on a Ten Thousand Dollar ($10,000.00) outstanding balance and the interest rate, other than a rate not based on the index under the plan, which is, or was recently, in effect under such plan, showing the minimum monthly or periodic payment, and the time it would take to repay the entire Ten Thousand Dollars ($10,000.00) if the consumer paid only the minimum periodic payments and obtained no additional extensions of credit.
• (j)If, under any repayment option of the plan, the payment of not more than the minimum periodic payments required under such option over the length of the repayment period:
• (i)would not repay any of the principal balance; or
• (ii)would repay less than the outstanding balance by the end of such period,
• as the case may be, a statement of such fact, including an explicit statement that at the end of such repayment period a balloon payment as defined in subsection (12) of Section 2-313 of this title would result which would be required to be paid in full at that time.
• (k)If applicable, a statement that:
• (i)any limitation in the plan on the amount of any increase in the minimum payments may result in negative amortization;
• (ii)negative amortization increases the outstanding principal balance of the account; and
• (iii)negative amortization reduces the consumer's equity in the consumer's dwelling.
• (l)(i)Any limitation contained in the plan on the number of extensions of credit and the amount of credit which may be obtained during any month or other defined time period.
• (ii)Any requirement which establishes a minimum amount for:
• (aa)the initial extension of credit to an account under the plan;
• (bb)any subsequent extension of credit to an account under the plan; or
• (cc)any outstanding balance of an account under the plan.
• (m)A statement that the consumer should consult a tax advisor regarding the deductibility of interest and charges under the plan.
• (n)Any other term which the Administrator requires, in rules to be disclosed.

(2) For purposes of this section and Sections 2-310.3 and 2-313 of this title, the term "principal dwelling" includes any second or vacation home of the consumer.

(3) In addition to the disclosures required under subsection (1) of this section with respect to an application to open an account under any revolving charge account plan described in such subsection, the creditor or other person providing such disclosures to the consumer shall provide:

• (a)a pamphlet published by the Board of Governors of the Federal Reserve System pursuant to Section 4 of the Home Equity Consumer Protection Act of 1988; or
• (b)any pamphlet which provides substantially similar information to the information described in such section, as determined by the Administrator.

Added by Laws 1990, c. 260, § 18, operative July 1, 1990.