Article 8: Annual Percentage Rate (APR)

The APR must include all mandatory charges or costs under a Consumer Financing as shown in the relevant advertising notices or materials. The Financing Contract must stipulate the use of the declining balance method in distributing the Term Cost over the maturity period, which means that the Term Cost is allocated pro-rata to installments based on the remaining balance of the Amount of Financing at the beginning of the period for which an installment is due. The Term Cost is fixed.