§ 6-27-11. Additional disclosures.
In the case of any open-end consumer credit plan secured by a consumer's principal
residence, the following provisions shall apply:
(1) The disclosures required by subdivisions (2) and (3) of this section shall be provided
to the consumer on a separate document on or before the closing date.
(2) The following information shall be disclosed:
(i) The annual percentage rate that will be in effect when credit is first extended in
connection with the loan or a description of the manner in which the rate will be
computed;
(ii) The manner in which any changes in the annual percentage rate of interest will be
made, and the timing of any changes, including any index or other rate of interest
to which the changes in rates are related;
(iii) Any fee imposed for the availability of the account, including but not limited to,
annual fees, application fees, and the fees commonly designated as "points�;
(iv) In the case of a variable rate, the maximum annual percentage rate that may be imposed
at any time under the plan and the maximum amount by which the annual percentage rate
may change in any one-year period. If no limit exists, that fact shall be disclosed;
(v) The maximum interest payment for a thirty-day (30)period at the highest interest rate
permitted under the terms of the open-end plan and based on the maximum amount of
credit available under the plan;
(vi) A statement that the plan is secured by the consumer's dwelling and, in the event
of any default, the consumer risks the loss of the home;
(vii) If applicable, a statement that the disclosures are good-faith estimates of the terms
and conditions applicable to the plan, and are subject to change before the plan is
opened;
(viii) If applicable, a statement that the creditor has the right to change the terms and
conditions during the plan, including the index and margin used to determine the interest
rate and payment amount, at any time; and
(ix) If applicable, a statement that although interest-only payments may be less on a monthly
basis, they retire no principal, prolong the obligation, and result in greater total
expenses over the life of the loan.
(3)(i) In addition to the requirements of this chapter, any advertisement to aid, promote,
or assist, directly or indirectly, the extension of consumer credit through an open-end
credit plan secured by the consumer's principal dwelling that states a specific monthly
payment based on a variable rate of interest shall state all of the following terms:
(A) Any maximum or fixed amount that could be imposed; and
(B) The periodic rates expressed as annual percentage rates.
(ii) If any advertisement described in subdivision (3)(i) contains a statement that any
interest expense incurred with respect to a plan is or may be tax deductible, the
advertisement shall include a clear and conspicuous statement that the interest expense
may not be completely deductible for all taxpayers.
(iii) No advertisement described in subdivision (3)(i) with respect to any home equity loan
may refer to the loan as "free money or easy money.�