SECTION 160:45-3-4. Initial disclosure statement

  The creditor shall disclose to the consumer, in terminology consistent with that to be used on the periodic statement, each of the following items, to the extent applicable:

(1)   Finance charge. The circumstances under which a finance charge will be imposed and an explanation of how it will be determined, as follows:

(A)   A statement of when finance charges begin to accrue, including an explanation of whether or not any time period exists within which any credit extended may be repaid without incurring a finance charge. If such a time period is provided, a creditor may, at its option and without disclosure, impose no finance-charge when payment is received after the time period's expiration.

(B)   A disclosure of each periodic rate that may be used to compute the finance charge, the range of balances to which it is applicable, 11/ and the corresponding annual percentage rate. 12/ When different periodic rates apply to different types of transactions, the types of transactions to which the periodic rates apply shall also be disclosed.

(C)   An explanation of the method used to determine the balance on which the finance charge may be computed.

(D)   An explanation of how the amount of any finance charge will be determined, 13/ including a description of how any finance charge other than the periodic rate will be determined.

(2)   Other charges. The amount of any charge other than a finance charge that may be imposed as a part of the plan, or an explanation of how the charge will be determined.

(3)   Security interests. The fact that the creditor has or will acquire a security interest in the property purchased under the plan, or in other property identified by item or type.

(4)   Statement of billing rights. A statement that outlines the consumer's rights and the creditor's responsibilities in accordance with federal regulations, 12 CFR §226.12(c) and §226.13.

(5)   Home-equity plan information. The following disclosures described in 160:45-3-3(4), as applicable:

(A)   A statement of the conditions under which the creditor may take certain action, as described in 160:45-3-3(4)(D)(i), such as terminating the plan or changing the terms.

(B)   The payment information described in 160:45-3-3(4)(E)(i) and (ii) for both the draw period and any repayment period.

(C)   A statement that negative amortization may occur, as described in 160:45-3-3(4)(I).

(D)   A statement of any transaction requirements as described in 160:45-3-3(4)(J).

(E)   A statement regarding the tax implications as described in 160:45-3-3(4)(K).

(F)   A statement that the annual percentage rate imposed under the plan does not include costs other than interest as described in 160:45-3-3(4)(F) and 160:45-3-3(4)(L)(ii).

(G)   The variable-rate disclosures described in 160:45-3-3 (4)(L)(viii), (x), (xi), and (xii), as well as the disclosure described in 160:45-3-3(4)(E)(iii), unless the disclosures provided with the application were in a form the consumer could keep and included a representative payment example for the category of payment option chosen by the consumer.

11/  A creditor is not required to adjust the range of balances disclosure to reflect the balance below which only a minimum charge applies.

12/   If a creditor is offering a variable-rate plan, the creditor shall also disclose: (1) the circumstances under which the rate(s) may increase; (2) any limitations on the increase; and (3) the effect(s) of an increase.

13/   If no finance charge is imposed when the outstanding balance is less than a certain amount, no disclosure is required of that fact or of the balance below which no finance charge will be imposed.

[Source: Amended at 17 Ok Reg 1587, eff 5-25-00; Amended at 18 Ok Reg 2361, eff 6-25-01]