Truth in Lending: 8.6.7.2 Change in Terms for Events Provided for in the Contract
A creditor may implement changes set forth in the contract that are contemplated on the occurrence of an event, as long as the triggering event and the resulting change are stated with specificity.434 For example, in an employee loan program, the contract could provide for a higher rate if the consumer’s employment with the creditor ends. Similarly, a creditor also could have a step rate schedule in which specified changes in the rate would occur on certain dates.