H.B. 331                                                 VETOES

(2) If the amendment has the effect of increasing the interest, finance
charges, or other charges to be paid by the borrower, the amendment shall become
effective as provided in subsections (c) and (d) of this section.

(c) (1) Subject to the provisions of this paragraph, an amendment made
under this section shall become effective as to a particular borrower on:

(i) The first day of the billing cycle during which the effective date
of the amendment occurs; or

(ii) Any later date specified in the notice of amendment.

[(2) The credit grantor amending the agreement governing a revolving
credit plan under this subsection shall send a second notice in addition to the one
under subsection (b) of this section with the borrower's periodic statement
immediately following the initial notice. The second notice shall comply with all the
requirements of subsection (b) of this section.]

[(3)] (2) After receiving the notice of amendment under subsection (b) of
this section, the borrower may send a signed, written notice of refusal to the creditor
that the borrower refuses to accept the amendment.

[(4)] (3) The notice of refusal sent by the borrower may be accompanied
by a payment on the borrower's account and shall be mailed within 25 days of the
mailing of the notice of amendment.

[(5)] (4) Any borrower who gives timely notice of refusal may use the
account pursuant to its original, unamended terms for:

(i) 1. The duration of the time for which a fee was paid for use of
the plan through the borrower's credit device; or

2. Any longer period of time as determined by the credit
grantor; or

(ii) If no fee is paid for use of the plan or if the remaining time
period for which a fee was paid for use of the plan through the borrower's credit device
is less than 3 months, a period of time of not less than 3 months from the date of
mailing of the notice of refusal.

[(6)] (5) At the expiration of the periods provided under paragraph [(5)]
(4) of this subsection, the borrower who has given a timely notice of refusal may pay
any outstanding unpaid indebtedness in the account under the terms of the
unamended agreement governing the plan.

[(7)](6) [In addition to the requirements of subsection (b) of this
section, a] A credit grantor amending the agreement governing a revolving credit plan
under this subsection shall include in the [initial] notice of amendment under
subsection (b) of this section[, a statement that a second notice will be sent in the
borrower's next periodic statement and shall include in both notices of amendment] a
statement in AT LEAST 10 point type [on a form the Commissioner approves] that:

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