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COMPETITIVE EQUALITY BANKING ACT OF 19871
SEC. 1204. (12 U.S.C. 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 and shall be subject to administrative enforcement under section 108 or civil damages under section 130 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 the date of enactment of this Act.
Note: The Competitive Equality Banking Act of 1987 was largely amendatory. Most of the free-standing provisions of such Act, while still in effect, did not have a permanent or long-term application and therefore are not shown in this compilation. Title Vi, the Expedited Funds Availabilty Act, appears under its own heading in this compilation.