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F E D E R A L R E S E R V E BANK
OF NEW YORK

r Circular No. 3 1 1 9 1
L August 14, 1946 J

C O N SU M ER C R ED IT
AMENDMENT NO. 21 TO REGULATION W OF THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM

To Registrants under Regulation W , and
Others Concerned, in the Second Federal Reserve District:

F or your information we quote below from a statement for the press issued by the
Board o f Governors o f the Federal Reserve System fo r release on August 13, 1946.
The Board of Governors of the Federal Reserve System took action today to amend
Regulation W relating to consumer credit in two respects. The first enlarges the scope of
the regulation by making it applicable to all consumer credits up to $2.000 instead of only
those up to $1,500. The second reduces the maximum maturity from 18 months to 15 months
for instalment loans that are not connected with the purchase of consumers’ durable or
semi-durable goods. Instalment credits for the purchase of such goods remain subject to a
maximum maturity of 12 months, or 15 months in the case of automobiles.
The text o f Amendment No. 21 to Regulation W is printed on the reverse side.
Additional copies may be obtained upon request.




A

llan

S proul,

President.




CONSUMER CREDIT
AMENDMENT NO. 21 TO REGULATION W
ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Regulation W is hereby amended in the following respects, effective
September 3, 1946:
1. Section 1, 2(e), 2(h), 2 (*), 6(a), 6(6), 7(a), 7(6), and 7(c)
are amended by striking out “ $1,500” and inserting in lieu thereof
“ $ 2 ,00 0 ” .

2. Sections 6(6) and 10(6) are amended by striking out
“ 18 months” and inserting in lieu thereof “ 15 months” .
3. Footnote 5 attached to section 7(c) is amended so that it will
read as follows:
5 The maximum maturity is 6, 12, or 15 months from the date o f the
original loan as determined by its purpose, except that 18 months from the
date of the renewal or extension is permissible with a Statement of Necessity
pursuant to section 10(d).

4. The last sentence of footnote 7 attached to section 10(a) is
amended so that it will read as follows :
Whenever the regulation is amended to increase or decrease the maximum
maturity for any class o f transactions, the terms o f repayment **permitted in
the first instance *' in so far as they relate to the maximum maturity for such
class o f transactions shall be deemed to be the terms applicable under the
provisions of the amendment.

5. Section 10(d) is amended by inserting after the words “ except
that” the words “ it may have a maturity of not more than
18 months and” .


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102