ࡱ> >@=q ,bjbjt+t+ &AA, ]&&&&&&&jjjjj vj<dfff1  $$\&&&&&d:R&&&&dTd&&d `'yƿjjddJohn J. McKernan, Jr. William N. Lund Governor Superintendent Harry W. Giddinge Deputy Superintendent Jane E. Titcomb Principal Examiners: Commissioner Del Pelton Richard Howard6 Outreach/Research: Michael Brown Senior Examiners: Leslie Washburn Connie Berthiaume George B. Smith III Examiner: Douglas Stark Mary Young David Rolfe  DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION BUREAU OF CONSUMER CREDIT PROTECTION STATE HOUSE STATION 35 AUGUSTA, MAINE 04333-0035 (207)582-8718 Telecopier: 582-5415 ADVISORY RULING #103 MAY 12, 1993 May 12, 1993 Re: Home Equity Account: Conversion From Monthly to Daily Periodic Rate Dear : Your client, a state-chartered supervised financial organization, wishes to change its method of computing interest on existing home equity lines of credit from "monthly periodic rate" to "daily periodic rate." You have asked whether this change would trigger the provisions of 9-A M.R.S.A. 3-204(2)(A), which allows a consumer subject to a change in terms which would "increase any penalty, interest or other charges" to opt out of the proposed change, and refinance their existing balance at the original rate of interest. In my opinion, the bank's proposal would not trigger the statute's opt-out/refinance provisions. This law was enacted to prevent creditors from unilaterally applying drastic increases to existing open-end balances. In your client's case, the change in terms is of a procedural nature, designed to bring computational consistency to the bank's various loan products. In addition, a study of actual existing accounts shows that the change would make only insignificant differences in annual finance charges, and that the number of consumers subject to slightly higher charges is offset by an equal number who would pay less. Your client must provide affected consumers with a minimum of fifteen (15) days' advance written notice of the new method, since Regulation Z, 12 C.F.R. Section 226.9(c)(1) requires such notice whenever a change occurs to any term required to be initially disclosed to consumers. I trust this is responsive to your request for an Advisory Ruling on this matter. Sincerely, William N. Lund Superintendent WNL/bas 8h]v>M MWbc,Ż0J5CJOJQJ0JCJOJQJ6CJOJQJ5CJOJQJ CJOJQJ CJOJQJ jU6CJOJQJ CJOJQJ 5h,Qv 2Nq%?Mbc$ 0$dh 0 05h,Qv 2Nq%?Mbcx s t #$,4cx s t #$,$$$/ =!"#$X%l.Dd(`8H  c $JA2-‰M38u-D`!-‰M38ub r-xOh#Yzry\nָz!jzM$2w{!Y29${Ɠ7hUe4& sH/1C 3hڃ ̶KкK}Jܭ̔%Uկޟ}d //X^_[Xj366*_U|}SXo?{Q- `VV߇ꭨ+X5R}6i:29B -ms ݕ-Uo:.?`{ Q^rUU*W\rUJhj0K#/QbpY=-ϸ'1^˖g#oἤ4WSfhhOGNDFnqQ3#(6K83C~Dܠd p&Yl}n]YK4HҳR#ByQR3|n2#ZBԫ nf p^3K|:*%tweza7zRxZ ԁ02VXfYɡNgN3}|+EQv3s^7 d{+~PN2VQBN[=41dέN+K01zdWܰ<2L | 2zEB&AX7Wy7f|6H^U~,?u ܍b:8s)s17p_(' ~:JdAΤjp2a &uH6Wa0#/R A^^1#䨟ZN 9RGUE)p& 5 6NŨ,D[ 5Q3;yY„և1Cza<j wck[q*\?cO!|gptrKul9'9T>|J5 c`+cmeg;ד X'R}G h@qybP ~Xo0/`(.d|Ҏ`%/d\vD^vLHZR{/^:!TIf`Qt _^~f!Y%2ul F2c}iˢP${ \bmԩ2OҦYyIgjXP|2PuuRO݋g6&:3%d5efX֟aI:]0Ap fnE9QS̨3GH)6F1YXfu0Jc\KN$[Ȱ r@ElNgf|sqPTIf2lE}FxP*tCQ7Qf`s.V3C =ʞN'\;UU NdSe>bR/!s^D(. 9 ,aqYsbFD@Έ|"ÓԎOoILH7³A*<.~FhKxbC2~xrJJ ;*4N֤T2IKJ[*fӘ{A/; Êؒ 21Ml;1,d4= G6a\FAʆk(64g.Sp}>¥W18$=H<&R-Ho0~^bY%\V/$15AoDTTpٽ_5 ,bLB `#mȰyxxOdl~Ku U2*c$|FPZjBBh؆3M}Аr ]@xi G/c#Lj9Űd3q d PLGHb8Ԏ TS:pDGZ*$՝^ B9b~"R'372D}=Ow041>qq;yf'aLChj`"rb;!2kyL66"̀xV㵸/|.CEGhlŚ0fn6X3wL@Pk\RVH`3.?J|57y0:L3a_{b wpj4U2w:.ʑAYn;GSr[Bb!󙝛e81#36eoa0=CI}iߏOȀOxPm c= |3ܕF `'祴a Lv>vD!s[R'8P8ܹk O1 1WU*@>|Xbl'yn~F?)aɜBzĈ`b0Z4ʋ #'7}b b*r "7A燸R'K:~Q;@|wG7TG9 ꎭ<*-vhwH_u+)=#=3G>`4{ ?i\; M1cKU#>30lGԛ#*bl;Ν$[ ~WX_> J$^uBf@zccʰPq7䓖2x5a3f l=4XЕ+D[\9)A s}~iΘw"'c#:ܤV<+ފhr14t3ֳ1y63:z^R WW9ArLI1좥tYUËCpP9A!RbhQ O 5 "Z]H~cƑ%*`xa~۱sc A_;~QѽJo31 ev14?)B薚= >0dh^ajQ#aUq݈T;Jmc0Ÿ3س#vBvPcBc(jWB~[,Fߐ3!kq3`ڜ]A7ɪ%8F7U.4;;oL)%U215d0U2+f%Q_oy)-)W% 'ؔ'EhF߈Wz0cO <1 * 70ȃHMWȠd2hU#5Rv<ߍcn";C;V6-WX3tx $$lk%dCQ"S`}߆#߰%Îӟ"Z L#`Tԇk'ϔ͏Ǖ QSFl:Yħlx鱽Ȯ|i10|0) x_E.Y4MAtE)x1 X5;5Uޫ|ݜA6]U{U^ H1`B H؊/c}DJ.,+(} Y>wodd !-bW3/!~ kVDٌ{kvA.: >_bP39- dpw;Q?0uӥ` gß`^8( ]!1zFz4_bMr3B6U1lUCt0`7`ca,!nl`]#.km屄qF9`xVuɴ6h} ȵ Ai8a5/ ޿Q`OLp-2[xDc[lӼnGvx2,olypia!*>evaf˃/9mq } _qv4?`WAYC-iIʊØ}3`6 -;7y:h[1o+[`.`0/^ܪRKl=*0c<3gR[ N6j%(A0*1:f]5]a;7V寮G՛z.nc[HAme`\ۓ`܌6 \_pZf\rgo)wΰ~ 62zm,.~ws?h}+S0EaQϼ2MF{J]a[,0։q8@z7X5t: +wGWE m``:؟rX*Tu+х[?6. FSfm@Ɲ.bXkOA0Z[yT` pd`J% ƻoV`۱(gjkTUd4!0}bpJYY ZJڏXQeS^Y~kQ]cVG0Ԧ*0SіUd QMQݨH*'tTbAnDzzb\qa}rV6+טnh}rkyaD:f|[1[pu91։>Ef ApyQq^$%b,L<0:Bp{Y`0r2N]b2rmǍ`a0("-kKn2=ۯQ(ԳU1Վڒ=ns+ICC_;?M:$R+e0Z9' W`XtFqޫwknD}FqOmA\qg;J+|W`ܴWKx i)No=bZoY2 w`⚬Lgg9I&W+`MgO95Sqoh<6鰏ȼca0ѾS=օwxRPSq#Z G݃)}N,[I/ek' $]3`X-վ$8n&xȁ~HZ'5 Y*b;rs `Up0H{h5ȎP/{dCk7gr}¤5mXVR* !lO쌆sٰсOK. cY^K bb}O#1aFx,jp¾?9M2AoiG"M/\.p>z? L.=ۗy218;Tl`XnxTkb$?l:qJhwIU#*VwP7 Z&ͽ/"7h?PU̇i@Ξ8z\>摚ȱק/2tMW#n>!><4y>u0#:Lmnf08 =^fG[7{;<V$zzj'q+ |~?p ҷ 'vWٿ7Y1҉֒b:8$=!\~ -O ,''=n9JL7lc9?;ts]n%C|a*@atꚲ@ǝ?F <9y=z7mEg+fuc^{@ Wm<B"C ލj G@:%dY 'v@]pBk7f` }0~Yttx*+z;!ÌtFߖ>&Y( Nx@*F#OÿC9+*G<1햨mOG5O9f wF۠hcֱ%͊:C:z/8Dcouu_T:YNIw-eGqʀ@0!ܣ#Lc CW}1PǪbf0Rױ&o"S˺M!?5 ,btGRR0Ƹkh~Obs3 {k}rvgΠw=môpCShZj9[)|1\`Ô"2hː(R4ͱp-\L\' mV()zw*mH_QJu׌ຜ`1g MhZclzH-P2I =a}Ey S +X`G/ndK ?$qҗ uzW>t*e!&ӟO( S:+y 8D.L&錘]|hHM(ph136*^2 úM !n2)(} Es2̬ 㦍 i^7 #r{7 GśX6Z+|xJ2kQ렘ד [_TBю'x?yMJr3g,(K ]!}j3.1X#JLm `ab^ҵkh1 ZV'``uG `F`t:HrN+JFHqw'1 -7)W+#pntXW'xím kndX`,-NZ|tZsFɓAx4YL:Y칎qR+ӟ!CcŤ 'l#0t]:Zpp;W Q@mqy)196gL |0^Ӄ c nG?HY?!c5/jKjnhnn'|b8TJWd~DZ)2lu8+\"0Q*tbHIgwal60MXvC:>ɩn!7<IqMqּ'(49ur'ƕ5wj85LMfۑAL0>$'4h0sHUO0 gA{; #Ij{y/,N" ;]{]OV={zWz!0: l{T/JNsC0kOaTP89fbޜVN*¿P\S/WpyWɵbN_ JeċeɈ8tJОBtyF8Т`Uev|'~^T# #:5yl Sj ?<~άkk-{}$嫿J`!ʌybޒX'ayXayXayXYZ&5w]Ϟ1)9 [4@4NormalCJOJQJkHmH <A@<Default Paragraph Font@O@ Default TextCJOJQJkHmH @O@ InitialStyle@B*CJOJQJkH, !  , ,c, , . Qg$CGfn.  Dir of MISG:\RULES\ADVISORY\Ar103.doc@\\PFRSCB\ccrhpNe01:winspoolHP LaserJet 4 Plus\\PFRSCB\ccrhppsXXLetter 76''''\\PFRSCB\ccrhppsXXLetter 76''''d+, @GTimes New Roman5Symbol3& ArialMCentury Schoolbook71Courier"SEw[$20dB Rhonda Mckinney Dir of MISOh+'0`   ( 4@HPXssRhonda Mckinneyhon Normal.dotn Dir of MISn3r Microsoft Word 8.0@F#@ţGWO@*yƿw[՜.+,D՜.+,, hp|  PFRB 1  Title 6> _PID_GUIDAN{14C29D89-31B0-11D4-9493-0004AC77A502}  !"#$&'()*+,./012346789:;<?Root Entry F esgyƿAData  l.1Table%WordDocument&SummaryInformation(-DocumentSummaryInformation85CompObjjObjectPoolgyƿgyƿ  FMicrosoft Word Document MSWordDocWord.Document.89q