§ 14A-3-302. General disclosure requirements and provisions.

(1)  The disclosures required by this part, including those adopted by Administrator's rule in conformity to subsection (2) of Section 6-104 of this title, shall be made as provided by this title and as provided by rules adopted by the Administrator not inconsistent with the Federal Consumer Credit Protection Act.

(2)  Without limitation to the generality of subsection (1) of this section, required disclosures:

(a)shall be made clearly and conspicuously;

(b)shall be in writing, a copy of which shall be delivered to the debtor;

(c)may use terminology different from that employed in this part if it conveys substantially the same meaning;

(d)need not be contained in a single writing or made in the order set forth in this part;

(e)may be supplemented by additional information or explanations supplied by the lender except as otherwise provided in Section 3-306 of this title and in this section;

(f)need be made only to the extent applicable;

(g)shall be made on the assumption that all scheduled payments will be made when due;

(h)will comply with this part although rendered inaccurate by any act, occurrence, or agreement subsequent to the required disclosure;

(i)shall disclose more conspicuously than other terms, data or information, except information relating to the identity of the lender, the terms "annual percentage rate" and "finance charge";

(j)shall be made to the person who is obligated on a consumer loan, except that in a transaction involving more than one debtor and which is not a transaction under Section 5-204 of this title, a disclosure statement or a copy of any evidence of indebtedness need not be given to more than one of the debtors if the person given disclosure is a primary obligor;

(k)may, in accordance with the regulations of the Administrator, be given in the form of estimates where the provider of any portion of the information required to be disclosed is not in a position to know exact information.  In the case of any consumer credit transaction, with regard to a portion of the interest which is determined on a per diem basis and is to be collected upon the consummation of such transaction, any disclosure with respect to such portion of interest shall be deemed to be accurate for purposes of this title if the disclosure is based on information actually known to the creditor at the time that the disclosure documents are being prepared for the consummation of the transaction;

(l)may, in accordance with the regulations of the Administrator, be within any tolerances for numerical disclosures, other than the annual percentage rate, determined by the Administrator to be necessary to facilitate compliance and to not result in misleading disclosures or disclosures that circumvent the purposes of this part; and

(m)shall be made by the lender or, if more than one, the lender specified in the regulations of the Administrator.

(3)  Subject to subsection (1) of this section and except for loans made by telephone or mail pursuant to Section 3-305 of this title, loans made pursuant to a binding commitment pursuant to subsection (3) of Section 3-306 of this title, a residential mortgage transaction pursuant to Section 3-310 of this title and such other transactions as provided by rule of the Administrator in conformity to subsection (2) of Section 6-104 of this title:

(a)the disclosures required by this part shall be made before credit is extended, but may be made in the loan, refinancing, or consolidation agreement, or other evidence of indebtedness to be signed by the debtor if, to the extent required by rule of the Administrator, in closed-end credit they are conspicuously segregated from all other terms, data, or information provided; and

(b)if an evidence of indebtedness is signed by the debtor, the lender shall give the debtor a copy when the writing is signed.

(4)  Except as provided with respect to rescission by a debtor pursuant to Section 5-204 of this title and civil liability for violations of disclosure provisions pursuant to subsection (4) of Section 5-203 of this title, written acknowledgment of receipt by a debtor to whom a statement is required to be given pursuant to this part:

(a)in an action or proceeding by or against the original lender, creates a presumption that the statement was given; and

(b)in an action or proceeding by or against an assignee without knowledge to the contrary when the assignee acquires the obligation, is conclusive proof of the delivery of the statement and, unless the violation is apparent on the face of the statement, of compliance with this part.

(5)  The information required by Section 3-309.1 of this title shall:

(a)be disclosed in the form and manner which the Administrator shall prescribe by rule; and

(b)as applicable be placed in a conspicuous and prominent location on or with any written application, solicitation, or other document or paper with respect to which such disclosure is required.

(6)  In the rules prescribed under paragraph (a) of subsection (5) of this section, the Administrator shall require that the disclosure of such information shall, to the extent the Administrator determines to be practicable and appropriate, be in the form of a table which:

(a)contains clear and concise headings for each item of such information; and

(b)provides a clear and concise form for stating each item of information required to be disclosed under each such heading.

(7)  In prescribing the form of the table under subsection (6) of this section the Administrator may:

(a)list the items required to be included in the table in a different order than the order in which such items are set forth in subsection (1) or (5)(a) of Section 3-309.1 of this title; and

(b)subject to subsection (8) of this section, employ terminology which is different than the terminology which is employed in subsections (1) through (6) of Section 3-309.1 of this title if such terminology conveys substantially the same meaning.

(8)  Either the heading or the statement under the heading which relates to the time period referred to in paragraphs (g) and (h) of subsection (1) of Section 3-309.1 of this title shall contain the term "grace period".

(9)(a)Except as provided in paragraph (b), the disclosures required under subsection (1) of Section 3-309.2 of this title with respect to any revolving loan account plan which provides for any extension of credit which is secured by the consumer's principal dwelling and the pamphlet required under subsection (3) of Section 3-309.2 of this title shall be provided to any consumer at the time the creditor distributes an application to establish an account under such plan to such consumer.

(b)In the case of telephone applications, applications contained in magazines or other publications, or applications provided by a third party, the disclosures required under subsection (1) of Section 3-309.2 of this title and the pamphlet required under subsection (3) of Section 3-309.2 of this title shall be provided by the creditor before the end of the three-day period beginning on the date the creditor receives a completed application from a consumer.

(c)Except as provided in paragraph (b) of this subsection, the disclosures required under subsection (1) of Section 3-309.2 of this title shall be provided on or with any application to establish an account under a revolving loan account plan which provides for any extension of credit which is secured by the consumer's principal dwelling.

(d)The disclosures required under subsection (1) of Section 3-309.2 of this title shall be conspicuously segregated from all other terms, data, or additional information provided in connection with the application, either by grouping the disclosures separately on the application form or by providing the disclosures on a separate form, in accordance with rules of the Administrator.

(e)The disclosures required by paragraphs (e), (f) and (g) of subsection (1) of Section 3-309.2 of this title shall precede all of the other required disclosures.

(f)Whether or not the disclosures required under subsection (1) of Section 3-309.2 of this title are provided on the application form, the variable rate information described in paragraph (b) of subsection (1) of Section 3-309.2 of this title may be provided separately from the other information required to be disclosed.

(g)In preparing the table required under subparagraph (vii) of paragraph (b) of subsection (1) of Section 3-309.2 of this title, the creditor shall consistently select one rate of interest for each year and the manner of selecting the rate from year to year shall be consistent with the plan.

Added by Laws 1969, c. 352, § 3-302, eff. July 1, 1969.  Amended by Laws 1982, c. 335, § 38, operative Oct. 1, 1982; Laws 1990, c. 260, § 22, operative July 1, 1990; Laws 2000, c. 217, § 8, eff. July 1, 2000.