422.421 Variable rate transaction.

241 words·~1 min read·/wi/chapter-422/422-421

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In this section:

(a)“Approved index” means any relevant index approved by the administrator that is beyond the control of the creditor and is verifiable by the customer.

1. “Consummation” with respect to a variable rate transaction other than one pursuant to an open-end credit plan means the time at which a customer becomes contractually obligated on the variable rate transaction.

2. “Consummation” with respect to a variable rate transaction pursuant to an open-end credit plan means the time at which a creditor accepts a customer’s application and authorizes the customer’s participation in the plan or the time at which an amendment to an existing open-end credit plan is accepted by or becomes binding on the customer under sub.

(11)or s. 422.415 .

(c)“Variable rate transaction” means any open-end credit plan and any consumer credit transaction other than one pursuant to an open-end credit plan, the terms of which permit the rate of finance charge to be adjusted from time to time during the term of the plan or transaction other than by an adjustment under s. 422.415 , but does not include any consumer credit transaction the terms of which permit only the rates of finance charge that are initially numerically specified in any document evidencing the plan or transaction.

(2)Variable rate transactions permitted. Creditors may engage in variable rate transactions subject to the conditions and limitations of this section.