Fla. Admin. Code Ann. R. 69U-100.101 - Definitions Concerning Debt Cancellation Products

For the purposes of rules 69U-100.100 through 69U-100.106, F.A.C., the following definitions apply:

(1) "Actuarial method" means the system of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed.

(2) "Closed-end credit" means consumer credit other than open-end credit as defined in these rules.

(3) "Customer" means an individual who obtains an extension of credit from a financial institution primarily for personal, family, or household purposes.

(4) "Debt cancellation products" shall have same meaning as defined in section 655.005(1), F.S.

(5) "Debt suspension agreement" means a loan or lease term, or other contractual arrangement modifying loan or lease terms, under which a financial institution agrees to suspend all or part of a customer's obligation to repay an extension of credit from that financial institution upon the occurrence of a specified event. The agreement may be separate from, or a part of, other loan or lease documents. The term debt suspension agreement does not include loan or lease payment deferral arrangements in which the triggering event is the borrower's unilateral election to defer repayment, or the financial institution's unilateral decision to allow a deferral of repayment.

(6) "Financial institution" shall have the same meaning as defined in section 655.947, F.S.

(7) "Open-end credit" means consumer credit extended by a financial institution under a plan in which:

(a) The financial institution reasonably contemplates repeated transactions;

(b) The financial institution may impose a finance charge from time to time on an outstanding unpaid balance; and,

(c) The amount of the credit that may be extended to the customer during the term of the plan (up to any limit set by the financial institution) is generally made available to the extent that any outstanding balance is repaid.

(8) "Residential mortgage loan" means a loan secured by 1-to-4 family residential real property.

Notes

Fla. Admin. Code Ann. R. 69U-100.101

Rulemaking Authority 655.012(2), 655.947(3) FS. Law Implemented 655.947, 655.954 FS.

New 12-2-08.

New 12-2-08.