SECTION 160:15-2-4. Determination of annual percentage rate

(a)   Accuracy of annual percentage rate.

(1)   The annual percentage rate for the purpose herein regulating disclosure, but not necessarily for the purpose of rate regulation, is a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. The annual percentage rate shall be determined in accordance with either the actuarial method or the United States Rule method. Explanations, equations and instructions for determining the annual percentage rate in accordance with the actuarial method are set forth in 160:15-2-4(b)(1).

(2)   As a general rule, the annual percentage rate shall be considered accurate if it varies in either direction by not more than 1/8 of 1 percentage point from the actual annual percentage rate determined in accordance with (a)(1) of this section.

(b)   Computation tools.

(1)   The Federal Regulation Z Annual Percentage Rate Tables produced by the Board of Governors of the Federal Reserve System may be used to determine the annual percentage rate, and any rate determined from those tables in accordance with the accompanying instructions complies with the requirements of this section.

(2)   Creditors may use any other computation tool in determining the annual percentage rate if the rate so determined equals the rate determined in accordance with 160:15-2-4(b)(1), within the degree of accuracy set forth in (a) of this section.

[Source: Amended at 9 Ok Reg 2267, eff 6-25-92]