New Jersey § 17:11c-76

§ 17:11c-76.

a. Notwithstanding the provisions of R.S.31:1-1 or any other law to the contrary, a residential mortgage lender may make a closed-end

loan as a secondary mortgage loan, and may charge, contract for, and receive thereon,

interest at an annual percentage rate agreed to by the licensee and the borrower. b. The promissory note evidencing the closed-end loan may provide for a variation

in the interest rate in which adjustments to the interest rate shall correspond directly

to the movement of an interest rate index which is readily available to and verifiable

by the borrower and is beyond the control of the licensee. If the note provides for a variation in the interest rate, that fact shall be clearly

described in plain language, in at least eight-point bold face type on the face of

the note. If the note provides for a final payment which is substantially greater than the

previous installments, that fact, together with a statement that the licensee is under

no obligation to refinance the loan, unless the licensee unconditionally obligates

itself to do so, shall be clearly disclosed in plain language, in at least eight-point

bold face type on the face of the note. No rate increase or decrease shall take effect during the first six months of the

term of the loan. Thereafter, no rate increase or decrease shall take effect unless at least 30 days

prior to the effective date of that increase or decrease, a written notice has been

mailed or delivered to the borrower that clearly and conspicuously describes the increase

or decrease, and unless at least six months have elapsed without any increase in the

rate. c. Upon written request from the borrower, the licensee shall give to the borrower,

without charge, within five days from the date of receipt of that request, a written

statement of the borrower's account, which shall show the dates and amounts of all

installment payments on the closed-end loan credited to the borrower's account, the

dates, amounts and explanation of all other charges or credits to the account and

the unpaid balance thereof. The licensee shall not be required to furnish more than two statements pursuant

to this subsection in any 12-month period.