[Code of Federal Regulations]
[Title 12, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR34.22]

[Page 390]
 
                       TITLE 12--BANKS AND BANKING
 
   CHAPTER I--COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY
 
PART 34_REAL ESTATE LENDING AND APPRAISALS--Table of Contents
 
                   Subpart B_Adjustable-Rate Mortgages
 
Sec. 34.22  Index.

    If a national bank makes an ARM loan to which 12 CFR 226.19(b) 
applies (i.e., the annual percentage rate of a loan may increase after 
consummation, the term exceeds one year, and the consumer's principal 
dwelling secures the indebtedness), the loan documents must specify an 
index to which changes in the interest rate will be linked. This index 
must be readily available to, and verifiable by, the borrower and beyond 
the control of the bank. A national bank may use as an index any measure 
of rates of interest that meets these requirements. The index may be 
either single values of the chosen measure or a moving average of the 
chosen measure calculated over a specified period. A national bank also 
may increase the interest rate in accordance with applicable loan 
documents specifying the amount of the increase and the times at which, 
or circumstances under which, it may be made. A national bank may 
decrease the interest rate at any time.