Florida Regulations 69U-100.101: Definitions Concerning Debt Cancellation Products
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For the purposes of rules 69U-100.100 through 69U-100.106, F.A.C., the following definitions apply:
(1) “”Actuarial method”” means the system of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed.
(2) “”Closed-end credit”” means consumer credit other than open-end credit as defined in these rules.
(3) “”Customer”” means an individual who obtains an extension of credit from a financial institution primarily for personal, family, or household purposes.
(4) “”Debt cancellation products”” shall have same meaning as defined in Florida Statutes § 655.005(1)
(5) “”Debt suspension agreement”” means a loan or lease term, or other contractual arrangement modifying loan or lease terms, under which a financial institution agrees to suspend all or part of a customer’s obligation to repay an extension of credit from that financial institution upon the occurrence of a specified event. The agreement may be separate from, or a part of, other loan or lease documents. The term debt suspension agreement does not include loan or lease payment deferral arrangements in which the triggering event is the borrower’s unilateral election to defer repayment, or the financial institution’s unilateral decision to allow a deferral of repayment.
(6) “”Financial institution”” shall have the same meaning as defined in Florida Statutes § 655.947
(7) “”Open-end credit”” means consumer credit extended by a financial institution under a plan in which:
(a) The financial institution reasonably contemplates repeated transactions;
(b) The financial institution may impose a finance charge from time to time on an outstanding unpaid balance; and,
(c) The amount of the credit that may be extended to the customer during the term of the plan (up to any limit set by the financial institution) is generally made available to the extent that any outstanding balance is repaid.
(8) “”Residential mortgage loan”” means a loan secured by 1-to-4 family residential real property.
Rulemaking Authority Florida Statutes § 655.012(2), 655.947(3) FS. Law Implemented 655.947, 655.954 FS. History-New 12-2-08.
Terms Used In Florida Regulations 69U-100.101
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) Source: OCC
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(2) “”Closed-end credit”” means consumer credit other than open-end credit as defined in these rules.
(3) “”Customer”” means an individual who obtains an extension of credit from a financial institution primarily for personal, family, or household purposes.
(4) “”Debt cancellation products”” shall have same meaning as defined in Florida Statutes § 655.005(1)
(5) “”Debt suspension agreement”” means a loan or lease term, or other contractual arrangement modifying loan or lease terms, under which a financial institution agrees to suspend all or part of a customer’s obligation to repay an extension of credit from that financial institution upon the occurrence of a specified event. The agreement may be separate from, or a part of, other loan or lease documents. The term debt suspension agreement does not include loan or lease payment deferral arrangements in which the triggering event is the borrower’s unilateral election to defer repayment, or the financial institution’s unilateral decision to allow a deferral of repayment.
(6) “”Financial institution”” shall have the same meaning as defined in Florida Statutes § 655.947
(7) “”Open-end credit”” means consumer credit extended by a financial institution under a plan in which:
(a) The financial institution reasonably contemplates repeated transactions;
(b) The financial institution may impose a finance charge from time to time on an outstanding unpaid balance; and,
(c) The amount of the credit that may be extended to the customer during the term of the plan (up to any limit set by the financial institution) is generally made available to the extent that any outstanding balance is repaid.
(8) “”Residential mortgage loan”” means a loan secured by 1-to-4 family residential real property.
Rulemaking Authority Florida Statutes § 655.012(2), 655.947(3) FS. Law Implemented 655.947, 655.954 FS. History-New 12-2-08.