I am reviewing a "Personal Line of Credit Change in Terms Agreement" that states:
"Adjustments to the periodic rate and the corresponding APR resulting from changes in the index will take effect daily. “
Today the index is 3.25% per annum and the margin is 1.5% or 4.75%, which is less than the floor of 6%.
Since this line of credit has a floor, which places the index under the control of the bank, per 1026.55(b)(2) I am trying to determine how I can notify the borrower of the increased/changed APR prior to the change becoming effective, if the APR can change daily?
Last edited by peoples; 04/15/15 07:06 PM.