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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” .