R335-2-3. Permissible Indexes

Related Notices

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(1) Any index may be used in a variable or adjustable rate formula if:

(a) it references a rate or value completely beyond the lender's control, or

(b) it is based entirely on the lender's weighted cost of funds, or

(c) it is a rate used by the lender as a basis for setting the rate on most of its non-consumer loans, provided that at least half the lender's total credit outstanding is not consumer credit during the entire period the rate is an index for any variable or adjustable rate consumer loan; and

(2) All information pertinent to setting or calculating the rate is readily available to the borrower during the entire term of the credit agreement.

                    
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