New Hampshire Revised Statutes 384-G:12 – Amendment of Agreement
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I. Unless the agreement governing a revolving credit plan otherwise provides, a bank may at any time and from time to time amend such agreement in any respect, whether or not the amendment or the subject of the amendment was originally contemplated or addressed by the parties or is integral to the relationship between the parties. Without limiting the foregoing, such amendment may change terms by the addition of new terms or by the deletion or modification of existing terms, whether relating to plan benefits or features, the rate or rates of periodic interest, the manner of calculating periodic interest or outstanding unpaid indebtedness, variable schedules or formulas, interest charges, fees, collateral requirements, methods for obtaining or repaying extensions of credit, attorney’s fees, plan termination, the manner for amending the terms of the agreement, arbitration or other alternative dispute resolution mechanisms, or other matters of any kind whatsoever. Unless the agreement governing a revolving credit plan otherwise expressly provides, any amendment may, on and after the date upon which it becomes effective as to a particular borrower, apply to all then-outstanding unpaid indebtedness in the borrower’s account under the plan, including any such indebtedness that arose prior to the effective date of the amendment. An agreement governing a revolving credit plan may be amended pursuant to this section regardless of whether the plan is active or inactive or whether additional borrowings are available thereunder. Any amendment that does not increase the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 may become effective as determined by the bank, subject to compliance by the bank with any applicable notice requirements under the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and the regulations promulgated thereunder, as in effect from time to time. Any notice of an amendment sent by the bank may be included in the same envelope with a periodic statement or as part of the periodic statement or in other materials sent to the borrower.
II. (a) If an amendment increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4, the bank shall mail or deliver to the borrower, at least 15 days before the effective date of the amendment, a clear and conspicuous written notice that shall describe the amendment and shall also set forth the effective date thereof and any applicable information required to be disclosed pursuant to the provisions of this section.
(b) Any amendment that increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 may become effective as to a particular borrower if the borrower does not, within 15 days of the earlier of the mailing or delivery of the written notice of the amendment or such longer period as may be established by the bank, furnish written notice to the bank that the borrower does not agree to accept such amendment. The notice from the bank shall set forth the address to which a borrower may send notice of the borrower’s election not to accept the amendment and shall include a statement that, absent the furnishing of notice to the bank of nonacceptance within the referenced 15 day or longer time period, the amendment will become effective and apply to such borrower. As a condition to the effectiveness of any notice that a borrower does not accept such amendment, the bank may require the borrower to return to it all credit devices. If, after 15 days from the mailing or delivery by the bank of a notice of an amendment or such longer period as may have been established by the bank as referenced in this section, a borrower uses a plan by making a purchase or obtaining a loan, notwithstanding that the borrower has prior to such use furnished the bank notice that the borrower does not accept an amendment, the amendment may be deemed by the bank to have been accepted and may become effective as to the borrower as of the date that such amendment would have become effective but for the furnishing of notice by the borrower or as of any later date selected by the bank.
(c) Any amendment that increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 may, in lieu of the procedure referenced in N.H. Rev. Stat. § 384-G:12, II(b), become effective as to a particular borrower if the borrower uses the plan after a date specified in the written notice of the amendment that is at least 15 days after the mailing or delivery of the notice (but that need not be the date the amendment becomes effective) by making a purchase or obtaining a loan; provided, that the notice from the bank includes a statement that the described usage after the referenced date will constitute the borrower’s acceptance of the amendment.
(d) Any borrower who furnishes timely notice electing not to accept an amendment in accordance with the procedures referenced in subparagraph II(b) and who does not subsequently use the plan, or who fails to use such borrower’s plan as referenced in subparagraph II(c), shall be permitted to pay the outstanding unpaid indebtedness in such borrower’s account under the plan in accordance with the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 without giving effect to the amendment.
(e) Notwithstanding the other provisions of this chapter, no notice required by this paragraph of an amendment of an agreement governing a revolving credit plan shall be required, and any amendment may become effective as of any date agreed upon between a bank and a borrower, with respect to any amendment that is agreed to in written form between the bank and the borrower.
III. For purposes of this section, the following are examples of amendments that shall not be deemed to increase the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4:
(a) A decrease or increase in the required number or amount of periodic installment payments;
(b) Any change to a plan that increases the rate or rates in effect immediately prior to the change by less than
1/4 of one percentage point per annum; provided that a bank may not make more than one such change in reliance on this paragraph with respect to a plan within any 12-month period;
(c)(1) A change in the schedule or formula used under a variable rate plan under N.H. Rev. Stat. § 384-G:4 that varies the determination date of the applicable rate, the time period for which the applicable rate will apply or the effective date of any variation of the rate, or any other similar change; or
(2) Any other change in the schedule or formula used under a variable rate plan under N.H. Rev. Stat. § 384-G:4; provided, that the initial interest rate that would result from any such change under subparagraph III(c), as determined on the effective date of the change or, if notice of the change is mailed or delivered to the borrower prior to the effective date, as of any date within 60 days before mailing or delivery of such notice, will not be an increase from the rate in effect on such date under the existing schedule or formula;
(d) A change from a variable rate plan to a fixed rate, or from a fixed rate to a variable rate plan so long as the initial rate that would result from such a change, as determined on the effective date of the change, or if the notice of the change is mailed or delivered to the borrower prior to the effective date, as of any date within 60 days before mailing or delivery of such notice, will not be an increase from the rate in effect on such date under the existing plan;
(e) A change from a daily periodic rate to a periodic rate other than daily or from a periodic rate other than daily to a daily periodic rate; and
(f) A change in the method of determining the outstanding unpaid indebtedness upon which periodic interest is calculated, including, without limitation, a change with respect to the date by which or the time period within which a new balance or any portion thereof must be paid to avoid additional periodic interest.
IV. The procedures for amendment by a bank of the terms of a plan to which a borrower other than an individual borrower is a party may, in lieu of the provisions of this section, be as the agreement governing the plan may otherwise provide.
II. (a) If an amendment increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4, the bank shall mail or deliver to the borrower, at least 15 days before the effective date of the amendment, a clear and conspicuous written notice that shall describe the amendment and shall also set forth the effective date thereof and any applicable information required to be disclosed pursuant to the provisions of this section.
Terms Used In New Hampshire Revised Statutes 384-G:12
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(b) Any amendment that increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 may become effective as to a particular borrower if the borrower does not, within 15 days of the earlier of the mailing or delivery of the written notice of the amendment or such longer period as may be established by the bank, furnish written notice to the bank that the borrower does not agree to accept such amendment. The notice from the bank shall set forth the address to which a borrower may send notice of the borrower’s election not to accept the amendment and shall include a statement that, absent the furnishing of notice to the bank of nonacceptance within the referenced 15 day or longer time period, the amendment will become effective and apply to such borrower. As a condition to the effectiveness of any notice that a borrower does not accept such amendment, the bank may require the borrower to return to it all credit devices. If, after 15 days from the mailing or delivery by the bank of a notice of an amendment or such longer period as may have been established by the bank as referenced in this section, a borrower uses a plan by making a purchase or obtaining a loan, notwithstanding that the borrower has prior to such use furnished the bank notice that the borrower does not accept an amendment, the amendment may be deemed by the bank to have been accepted and may become effective as to the borrower as of the date that such amendment would have become effective but for the furnishing of notice by the borrower or as of any later date selected by the bank.
(c) Any amendment that increases the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 may, in lieu of the procedure referenced in N.H. Rev. Stat. § 384-G:12, II(b), become effective as to a particular borrower if the borrower uses the plan after a date specified in the written notice of the amendment that is at least 15 days after the mailing or delivery of the notice (but that need not be the date the amendment becomes effective) by making a purchase or obtaining a loan; provided, that the notice from the bank includes a statement that the described usage after the referenced date will constitute the borrower’s acceptance of the amendment.
(d) Any borrower who furnishes timely notice electing not to accept an amendment in accordance with the procedures referenced in subparagraph II(b) and who does not subsequently use the plan, or who fails to use such borrower’s plan as referenced in subparagraph II(c), shall be permitted to pay the outstanding unpaid indebtedness in such borrower’s account under the plan in accordance with the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4 without giving effect to the amendment.
(e) Notwithstanding the other provisions of this chapter, no notice required by this paragraph of an amendment of an agreement governing a revolving credit plan shall be required, and any amendment may become effective as of any date agreed upon between a bank and a borrower, with respect to any amendment that is agreed to in written form between the bank and the borrower.
III. For purposes of this section, the following are examples of amendments that shall not be deemed to increase the rate or rates of periodic interest charged by a bank to a borrower under N.H. Rev. Stat. § 384-G:3 or N.H. Rev. Stat. § 384-G:4:
(a) A decrease or increase in the required number or amount of periodic installment payments;
(b) Any change to a plan that increases the rate or rates in effect immediately prior to the change by less than
1/4 of one percentage point per annum; provided that a bank may not make more than one such change in reliance on this paragraph with respect to a plan within any 12-month period;
(c)(1) A change in the schedule or formula used under a variable rate plan under N.H. Rev. Stat. § 384-G:4 that varies the determination date of the applicable rate, the time period for which the applicable rate will apply or the effective date of any variation of the rate, or any other similar change; or
(2) Any other change in the schedule or formula used under a variable rate plan under N.H. Rev. Stat. § 384-G:4; provided, that the initial interest rate that would result from any such change under subparagraph III(c), as determined on the effective date of the change or, if notice of the change is mailed or delivered to the borrower prior to the effective date, as of any date within 60 days before mailing or delivery of such notice, will not be an increase from the rate in effect on such date under the existing schedule or formula;
(d) A change from a variable rate plan to a fixed rate, or from a fixed rate to a variable rate plan so long as the initial rate that would result from such a change, as determined on the effective date of the change, or if the notice of the change is mailed or delivered to the borrower prior to the effective date, as of any date within 60 days before mailing or delivery of such notice, will not be an increase from the rate in effect on such date under the existing plan;
(e) A change from a daily periodic rate to a periodic rate other than daily or from a periodic rate other than daily to a daily periodic rate; and
(f) A change in the method of determining the outstanding unpaid indebtedness upon which periodic interest is calculated, including, without limitation, a change with respect to the date by which or the time period within which a new balance or any portion thereof must be paid to avoid additional periodic interest.
IV. The procedures for amendment by a bank of the terms of a plan to which a borrower other than an individual borrower is a party may, in lieu of the provisions of this section, be as the agreement governing the plan may otherwise provide.