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FEDERAL RESERVE BANK
OF NEW YORK
rC ircu la r N o. 3 7 9 9
L Decem ber 21, 1951 J

CONSUMER CREDIT

Amendment No. 5 to Regulation W of the Board of Governors
of the Federal Reserve System, Effective December 31, 1951

To all Persons Concerned with R egulation W
in the Second Federal R eserve D istrict:

The B oard o f G overnors o f the F ederal R eserve System has approved Am endm ent No. 5
to Regulation W , effective Decem ber 31, 1951. F ollow in g is the text o f the statement issued by
the B oa rd o f G overnors on the amendment, and released fo r publication Decem ber 24, 1951:

The Board of Governors has adopted e f c i e December 3 , 1951, a technical amendment t
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1
o
Regulation W, Consumer Credit, designed t conform the provisions of the regulation t certain regu­
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l t o s of the O f c of Price S a i i a i n including Ceiling Price Regulation 9 , which es a l s e
ain
fie
tblzto,
4
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maximum r t i prices for used automobiles.
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The amendment provides i substance that the maximum amount of money that can be loaned
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for the purchase of a l s e a t c e subject t Regulation W s a l be not more than the s e i i d per­
itd ril
o
hl
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centage of the cash price but in no event more than that percentage of the maximum r t i price
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established by Federal au h r t e . The s c fi d maximum loan value percentages are unchanged:
toiis
pe i e
for automobiles, 66% per cent;household appliances, radios and t l v s o , and furniture, 85 per cent;
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home improvements, 90 per c n . This restores the form of the provisions applying to maximum loan
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values that were i e f c during the l t e part of World War I .
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A printed cop y o f Am endm ent No. 5 to R egulation W is enclosed; additional copies may
be obtained upon request.




A

llan

S proul,

President.

CONSUMER CREDIT
AMENDMENT NO. 5 TO REGULATION W
ISSUED BY T H E BOARD OF GOVERNORS OP T H E FEDERAL RESERVE SYSTEM

Regulation W i hereby amended in the following r s e t , e f c i e
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December 3 , 1951:
1
1 By amending Part 4 o the Supplement t the regulation t
.
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o
read as follows:
Part 4. Calculation of Down Payment and Maximum Loan
Value for Listed A t c e . The required down payment and
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maximum loan value for a l s e a t c e s a l be the s e i i d
itd ril hl
pcfe
percentage of the cash price of the a t c e
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The amount of credit extended in connection with any
a t c e for which a maximum r t i price i prescribed by
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eal
s
Federal price authorities s a l in no event exceed the amount
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which would have been permitted i the a t c e had been s l
f
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od
a the maximum r t i p i e Such required down payment
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may be obtained in the form of c s , t d - n or both.
a h ra e i ,
If the cash price of an a t c e l s e in Group D cannot be
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determined at the time the required down payment must be
obtained or a the time of the l a , ( the Registrant may
t
o n 1)
s
ubstitute for the cash price in calculating such down payment
a bona fide estimated cash p i e or (2 the borrower may
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)
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ubstitute for the cash p i e and in calculating the maximum
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loan value the Registrant may rely in good faith o a bona fide
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estimated cash price as so stated in the Statement of th
e
Borrower.
2 By deleting i i s entirety Part 5 of the Supplement t
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the regulation.
3 By substituting “Part 4” for “Part 5” in footnote 5 t
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sec io 4 (d) of the regulation.
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4 By substituting “Part 4” for “Parts 4 and 5” in the
.
language in parenthesis in the f r t sentence of Part 1 of the
is
Supplement to the regulation.




PR IN T E D

IN

NEW

YORK

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