1. In addition to other rule making authority that the administrator may have, he may adopt reasonable rules in accordance with this section governing agreements which are alternative mortgage transactions as defined in the Alternative Mortgage Transaction Parity Act of 1982, the United States Code, title 12, § 3802, subsection 1. In adopting any rule, the administrator shall take into consideration the terms of any similar rules adopted by the Superintendent of Financial Institutions for supervised financial organizations chartered under the laws of this State.

[PL 1987, c. 396, §12 (NEW); PL 2001, c. 44, §11 (AMD); PL 2001, c. 44, §14 (AFF).]

Terms Used In Maine Revised Statutes Title 9-A Sec. 9-302

  • Amortization: Paying off a loan by regular installments.
  • Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
  • Contract: A legal written agreement that becomes binding when signed.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
2. In any rule governing alternative mortgage transactions, the administrator may specify:
A. The maximum amount by which the annual percentage rate may change during a period of time and over the entire term of the agreement; [PL 1987, c. 396, §12 (NEW).]
B. The minimum notice that may be required to be given to the mortgagor prior to a change in the annual percentage rate; [PL 1987, c. 396, §12 (NEW).]
C. Acceptable indices that may be used by creditors for the purpose of determining when, and the amount by which changes in the annual percentage rate may occur and what effects, if any, the choice of index may have on the rate movement allowances specified in paragraph A; [PL 1987, c. 396, §12 (NEW).]
D. Appropriate hypothetical examples to illustrate the effects of changes in the annual percentage rate; [PL 1987, c. 396, §12 (NEW).]
E. Permissible variations in payment schedules, payment amounts, loan amortization and loan term resulting from rate variations or other contract terms; and [PL 1987, c. 396, §12 (NEW).]
F. Permissible limitations on refunds of prepaid finance charges and notice requirements for prepayment. [PL 1987, c. 396, §12 (NEW).]

[PL 1987, c. 396, §12 (NEW).]

SECTION HISTORY

PL 1987, c. 396, §12 (NEW). PL 2001, c. 44, §11 (AMD). PL 2001, c. 44, §14 (AFF).
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