§ 3806. — Adjustable rate mortgage caps.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3806]
TITLE 12--BANKS AND BANKING
CHAPTER 39--ALTERNATIVE MORTGAGE TRANSACTIONS
Sec. 3806. Adjustable rate mortgage caps
(a) In general
Any adjustable rate mortgage loan originated by a creditor shall
include a limitation on the maximum interest rate that may apply during
the term of the mortgage loan.
(b) Regulations
The Board of Governors of the Federal Reserve System shall prescribe
regulations to carry out the purposes of this section.
(c) Enforcement
Any violation of this section shall be treated as a violation of the
Truth in Lending Act [15 U.S.C. 1601 et seq.] and shall be subject to
administrative enforcement under section 108 [15 U.S.C. 1607] or civil
damages under section 130 [15 U.S.C. 1640] of such Act, or both.
(d) Definitions
For the purpose of this section--
(1) the term ``creditor'' means a person who regularly extends
credit for personal, family, or household purposes; and
(2) the term ``adjustable rate mortgage loan'' means any
consumer loan secured by a lien on a one- to four-family dwelling
unit, including a condominium unit, cooperative housing unit, or
mobile home, where the loan is made pursuant to an agreement under
which the creditor may, from time to time, adjust the rate of
interest.
(e) Effective date
This section shall take effect upon the expiration of 120 days after
August 10, 1987.
(Pub. L. 100-86, title XII, Sec. 1204, Aug. 10, 1987, 101 Stat. 662;
Pub. L. 102-550, title IX, Sec. 952, Oct. 28, 1992, 106 Stat. 3893.)
References in Text
The Truth in Lending Act, referred to in subsec. (c), is title I of
Pub. L. 90-321, May 29, 1968, 82 Stat. 146, as amended, which is
classified generally to subchapter I (Sec. 1601 et seq.) of chapter 41
of Title 15, Commerce and Trade. For complete classification of this Act
to the Code, see Short Title note set out under section 1601 of Title 15
and Tables.
Codification
Section was enacted as part of the Competitive Equality Banking Act
of 1987, and not as part of the Alternative Mortgage Transaction Parity
Act of 1982 which comprises this chapter.
Amendments
1992--Subsec. (d)(2). Pub. L. 102-550 substituted ``any consumer
loan'' for ``any loan''.
Section Referred to in Other Sections
This section is referred to in title 15 section 1639.
