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Reg. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM INTERPRETATION OF LA>: OR EEGULA'i.ION October 13. 194-1 YJ-95« Questions have been received as to whether a certain plan of repayment meets the requirements of Regulation ¥ regarding 18 months' maximum maturity and equal monthly payments for instalment, loan credit, There is provision for 11 equal monthly payments, and a larger twelfth payment at the end of the twelfth month for the remainder. However, there is an express agreement between the parties that when the twelfth payment falls due. unless the borrower has defaulted on an earlier payment or unless there is a material iinpairment of his credit, only a portion of the twelfth payment will actually be paid and the remaining portion will be refinanced into six equal monthly payments in such manner that the net result will be eighteen substantially.equal monthly payments. Such an arrangement complies with the specified requirements of the regulation.
@FedFRASER