PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 45
this annual percentage rate is not readily available or not applicable, then ‘‘(II) the simple interest rate applicable to the amount reaffirmed as of the date the disclosure statement is given to the debtor, or if different simple interest rates apply to different balances, the simple interest rate applicable to each such balance, identifying the amount of such balance included in the amount reaffirmed, or ‘‘(III) if the entity making the disclosure elects, to disclose the annual percentage rate under (I) and the simple interest rate under (II). ‘‘(F) If the underlying debt transaction was disclosed as a variable rate transaction on the most recent disclosure given under the Truth in Lending Act, by stating ‘The interest rate on your loan may be a variable interest rate which changes from time to time, so that the annual percentage rate disclosed here may be higher or lower.’. ‘‘(G) If the debt is secured by a security interest which has not been waived in whole or in part or determined to be void by a final order of the court at the time of the disclosure, by disclosing that a security interest or lien in goods or property is asserted over some or all of the debts the debtor is reaffirming and listing the items and their original purchase price that are subject to the asserted security interest, or if not a purchase-money security interest then listing by items or types and the original amount of the loan. ‘‘(H) At the election of the creditor, a statement of the repayment schedule using 1 or a combination of the following— ‘‘(i) by making the statement: ‘Your first payment in the amount of $lll is due on lll but the future payment amount may be different. Consult your reaffirmation agreement or credit agreement, as applicable.’, and stating the amount of the first payment and the due date of that payment in the places provided; ‘‘(ii) by making the statement: ‘Your payment schedule will be:’, and describing the repayment schedule with the number, amount, and due dates or period of payments scheduled to repay the debts reaffirmed to the extent then known by the disclosing party; or ‘‘(iii) by describing the debtor’s repayment obligations with reasonable specificity to the extent then known by the disclosing party. ‘‘(I) The following statement: ‘Note: When this disclosure refers to what a creditor ‘‘may’’ do, it does not use the word ‘‘may’’ to give the creditor specific permission. The word ‘‘may’’ is used to tell you what might occur if the law permits the creditor to take the action. If you have questions about your reaffirming a debt or what the law requires, consult with the attorney who helped you negotiate this agreement reaffirming a debt. If you don’t have an attorney helping you, the judge will explain the effect of your reaffirming a debt when the hearing on the reaffirmation agreement is held.’. ‘‘(J)(i) The following additional statements: ‘‘ ‘Reaffirming a debt is a serious financial decision. The law requires you to take certain steps to make sure the decision is
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