12 USC 3806; 101 Stat.
662; Pub. L. 100-86 (August 10, 1987)
6-1124.5
SECTION 1204—Adjustable Rate Mortgage Caps(a) 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) The Board of
Governors of the Federal Reserve System shall prescribe regulations
to carry out the purposes of this section.
(c)
Any violation of this section shall be treated as a violation of the
Truth in Lending Act and shall be subject to administrative enforcement
under section 108 or civil damages under section 130 of such Act,
or both.
(d) For 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) This section
shall take effect upon the expiration of 120 days after the date of
enactment of this Act.
[12 USC 3806. As amended
by act of Oct. 28, 1992 (106 Stat. 3893).]
