{"data":{"id":"us-ky/krs-360.150","jurisdiction":"us-ky","citation":"KRS 360.150","heading":"Manufactured home financing.","body":"(1) As used in this section, unless the context otherwise requires:\n(a) \"Lender\" means a person regularly engaged in the business of selling or\nfinancing manufactured homes:\n1. Who is an arranger of credit; or\n2. Who regularly extends consumer credit that is s ubject to a finance\ncharge or is payable by written agreement in more than four (4)\ninstallments (not including a down payment) and to whom the obligation\nis initially payable, either on the face of the note or contract, or by\nagreement when there is no note or contract;\n(b) \"Interest\" means finance charge expressed as an annual percentage rate. The\nfinance charge is the cost of consumer credit as a dollar amount. It includes\nany charge payable directly or indirectly by the lender as an incident to or a\ncondition of the extension of credit;\n(c) \"Manufactured home\" means a moveable dwelling unit, designed and\nconstructed for permanent occupancy by a single family, which dwelling\ncontains permanent eating, cooking, sleeping, and sanitary facilities; or a\nprefabricated dwelling that is manufactured in two (2) or more modules at a\nlocation other than a homesite and which is designed to be used as a residence\nwhen the modules are transported to the homesite, and the modules are joined\ntogether and installed on a p ermanent foundation system. The term includes\nthe plumbing, heating, air conditioning, and electrical systems contained in the\nstructure; and\n(d) \"Manufactured home financing transaction\" shall include both the credit sale\nof a manufactured home and a dire ct loan used to finance the purchase of a\nmanufactured home.\n(2) A manufactured home financing transaction may provide for a fixed rate of interest\npayable in substantially equal successive installments over a fixed term, or may\nprovide that the rate of in terest may be adjusted at certain regular intervals. In this\nlatter event, the manufactured home financing transaction shall be subject to the\nprovisions in this section.\n(3) Adjustments in the interest rate charged must be based on changes in a specific\nindex, as set forth in the financing agreement. The index may be only:\n(a) The monthly average yield on United States Treasury securities adjusted to a\nconstant maturity of five (5) years; or\n(b) An index approved by the Federal Home Loan Bank Board or by the Office of\nthe Comptroller of the Currency, Department of the Treasury, for adjustable or\nvariable interest rates on residential mortgage loans.\n(4) The rate of interest shall not increase or decrease during the six (6) month period\nbeginning with the date of execution of the financing agreement, and at least six (6)\nmonths shall elapse between changes.\n(5) Adjustments, either up or down, to the rate of interest on each adjustment date shall,\nfor the initial adjustment, be equal to the difference between the index value in\neffect on the first day of the second calendar month preceding the adjustment date\nand the value in effect on the first day of the month in which the financing\nagreement is executed. For adjustments aft er the initial adjustment, adjustments\nshall be equal to the difference between the index value in effect on the first day of\nthe second month preceding the adjustment date and the index value in effect on the\nfirst day of the second month preceding the da te of the immediately preceding rate\nadjustment.\n(6) Where the stated regular interval between rate adjustments is six (6) months, an\nadjustment to the interest rate may not result in a rate of interest which is more than\none (1) percentage point greater o r less than the interest rate in effect prior to such\nadjustment. If the stated regular interval between rate adjustments exceeds six (6)\nmonths, then the maximum adjustment either up or down shall be one (1)\npercentage point multiplied by the number of wh ole consecutive six (6) month\nperiods in the interval between rate adjustments.\n(7) Any increase in the rate of interest permitted by this section shall be optional with\nthe creditor. Decreases in the rate of interest shall be mandatory whenever the total\ndecrease in the index value equals or exceeds one -quarter (1/4) of one (1)\npercentage point.\n(8) If the creditor agrees to impose limitations on interest rate changes that are more\nrestrictive than the limitations specified in this section, then such limit ations shall\napply to both increases and decreases.\n(9) Any changes in the index which are not reflected in a rate adjustment may, by\nagreement of the parties, be carried over to subsequent rate adjustment periods, and\nbe implemented to the extent not offset by opposite movement in the index.\n(10) By agreement of the parties, adjustments to the rate of interest may result in changes\nin the amount of regular installment payments due under the financing agreement,\nor in changes in the term of the financing ag reement, or in a combination of such\nchanges in amount and term. Adjustments to the amount of installment payments\nmay be made less frequently than adjustments to the interest rate.\n(11) For all manufactured home financing transactions under this section, the creditor\nshall comply with all applicable requirements and disclosures pursuant to Part I of\nthe Consumer Protection Act (Truth -In-Lending Act), 15 U.S.C. secs. 1601 et seq.,\nas amended, and as implemented by Regulation Z promulgated by the Board of\nGovernors of the Federal Reserve System.\n(12) The creditor shall send written notification of any rate adjustment, by first class\nmail, postage prepaid, at least one (1) month before the date that the new rate of\ninterest shall take effect.\n(13) Notwithstanding any of the requirements and limitations set forth by subsections (3)\nthrough (12) of this section, the parties may agree on any terms or provisions in the\nmanufactured housing financing agreement as may be authorized or permitted in\nany program for residential mortgage loans by the Federal Home Loan Bank Board\nor by the Office of the Comptroller of the Currency, Department of the Treasury, or\nany other federal department, agency or board. In such event, the creditor shall\ncomply with all applicable limi tations, requirements and disclosures of the agency\nthat relate thereto.","path":["KRS Chapter 360"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34182","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:53Z","sha256":"235ba7342c19e393c1a3446978ab4380dbdd92a2349d6261c6fe2280f7c19da0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-360.100","next":"us-ky/krs-360.2-902"},"notice":"GroundRules: Original legal text. Not legal advice."}