Is there a requirement that the initial index must be disclosed (as a number) on a variable rate commercial note? For instance, are we required to have written on the note that "the account is subject to a variable annual percentage rate equal to the Wall Street Journal Published Prime ("index") in effect on the Change date, plus 0.500 percentage points ("Margin"). The current value of the Index is 4.00%"
Last edited by Bec; 06/29/17 09:20 PM.
So what I am asking is if we can leave out the current value of the index and just state where the index is coming from and what the margin is?