Page:United States Statutes at Large Volume 102 Part 5.djvu/724

 102 STAT. 4730

PUBLIC LAW 100-709—NOV. 23, 1988

secured by the consumer's principal dwelling, any information which— "(A) is required to be disclosed under section 127A(a); and "(B) the Board determines is not described in any other paragraph of this subsection.", (c) ADVERTISING REQUIREMENTS.—Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is amended by adding at the end thereof the following new section: 15 USC 1665b.

"SEC. 147. ADVERTISING OF OPEN END CONSUMER CREDIT PLANS SECURED BY THE CONSUMER'S PRINCIPAL DWELLING.

"(a) IN GENERAL.—If any advertisement to aid, promote, or assist, directly or indirectly, the extension of consumer credit through an open end consumer credit plan under which extensions of credit are secured by the consumer's principal dwelling states, affirmatively or negatively, any of the specific terms of the plan, including any periodic payment amount required under such plan, such advertisement shall also clearly and conspicuously set forth the following information, in such form and manner as the Board may require: "(1) LOAN FEES AND OPENING COST ESTIMATES.—Any loan fee the amount of which is determined as a percentage of the credit limit applicable to an account under the plan and an estimate of the aggregate amount of other fees for opening the account, based on the creditor's experience with the plan and stated as a single amount or as a reasonable range. "(2) PERIODIC RATES.—In any case in which periodic rates may be used to compute the finance charge, the periodic rate^ expressed as an annual percentage rate. (3) HIGHEST ANNUAL PERCENTAGE RATE.—The highest annual percentage rate which may be imposed under the plan. "(4) OTHER INFORMATION.—Any other information the Board

may by regulation require. "(b) TAX DEDUCTIBILITY.—If any advertisement described in subsection (a) contains a statement that any interest expense incurred with respect to the plan is or may be tax deductible, the advertisement shall not be misleading with respect to such deductibility. "(c) CERTAIN TERMS PROHIBITED.—No advertisement described in subsection (a) with respect to any home equity account may refer to such loan as 'free money' or use other terms determined by the Board by regulation to be misleading. "(d) DISCOUNTED INITIAL RATE.—

"(1) IN GENERAL.—If any advertisement described in subsection (a) includes an initial annual percentage rate that is not determined by the index or* formula used to make later interest rate adjustments, the advertisement shall also state with equal prominence the current annual percentage rate that would have been applied using the index or formula if such initial rate had not been offered. "(2) QUOTED RATE MUST BE REASONABLY CURRENT.—The annual

percentage rate required to be disclosed under the paragraph (1) rate must be current as of a reasonable time given the media involved. "(3) PERIOD DURING WHICH INITIAL RATE IS IN EFFECT.—Any

advertisement to which paragraph (1) applies shall also state the period of time during which the initial annual percentage rate referred to in such paragraph will be in effect.

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