K.A.R. Agency 104 | Kan. Admin. Regs. Agency 104 — Consumer Credit Commissioner, Credit Union Administrator, and Bank Commissioner—joint regulations

Article 1 Adjustable Rate Notes

Kan. Admin. Regs. § 104-1-1 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 1982, ch. 94; effective, T-83-29, Sept. 22, 1982; effective May 1, 1983; revoked, T-88-28, Aug. 19, 1987; revoked May 1, 1988.)

Kan. Admin. Regs. § 104-1-2 Consumer-purpose adjustable rate real estate transactions

(a) A creditor may use any interest-rate index that is readily verifiable by the borrower if it is beyond the control of the creditor to adjust the interest rate on any of the following:

(1) consumer-purpose adjustable rate notes secured by a real estate mortgage; or

(2) consumer-purpose contracts for deed to real estate which contain an adjustable interest rate provision.

(b) Adjustments to the interest rate shall correspond directly to the movement of the index, subject to any rate-adjustment limitations that a creditor may provide.

(c) When the movement of the index permits an interest-rate increase, the creditor may decline to increase the interest rate by the indicated amount. The creditor may decrease the interest rate at any time.

(d) The creditor may implement adjustments to the interest rate through adjustments to the outstanding principal loan balance, loan term, payment amount, or any combination of the above.

(e) The creditor shall not charge the borrower any costs or fees in connection with regularly-scheduled adjustments to the interest rate, payment, outstanding principal loan balance, or loan term.

(f) For purposes of this regulation, "consumer-purpose" means primarily for personal, family or household purposes.