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#1713438 - 06/22/12 07:04 PM Variable Interest Rate Disclosure - LOC
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
We are located in PA but have a borrower who lives in NY. We are making a LOC secured by the borrower's investment account. When we print the docs, the system is giving us a disclosure for a variable rate (kind of like a HELOC disclosure with a historical example). I found another thread and looked up NYCRR Title 3, Part 90, but I'm still not sure if we need to give this disclosure. 90.2 says "This Part applies to open-end accounts which are established by lending institutions and which provide for changes in the rate charged on the account from time to time but not more often than once within any three-month period." Our rate can change monthly.
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#1713495 - 06/22/12 08:10 PM Re: Variable Interest Rate Disclosure - LOC Deena
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,755
Galveston, TX
If you are in PA, why would you be trying to comply with NY law?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1713507 - 06/22/12 08:33 PM Re: Variable Interest Rate Disclosure - LOC Deena
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
Randy, that's why I'm confused (today!). Our doc system included the NY doc with the others so I was asked if we need the disclosure. I know some states have laws that protect consumers beyond what federal law gives them, so I thought maybe this was one of those. If it matters, the loan will close in NY state.
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#1713571 - 06/23/12 01:52 PM Re: Variable Interest Rate Disclosure - LOC Deena
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,755
Galveston, TX
Well, maybe I will then defer to someone from NY as without extensive research it is hard to say whether NY laws are exported in this instance. Do you not have a NY attorney involved in the transaction if you are planning to close the loan in another State. Sounds a little unusual.........
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1713613 - 06/25/12 12:45 PM Re: Variable Interest Rate Disclosure - LOC rlcarey
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
Since the loan isn't secured with RE, we don't have a NY attorney involved. Hopefully, someone from NY will weigh in here. Thanks for trying to help, Randy.
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Opinions expressed are mine and not necessarily those of my employer.

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