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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 fetv 1 o Regulation W, Consumer Credit, designed t conform the provisions of the regulation t certain regu o o 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 tbihs maximum r t i prices for used automobiles. eal The amendment provides i substance that the maximum amount of money that can be loaned n 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 pcfe centage of the cash price but in no event more than that percentage of the maximum r t i price eal 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; eeiin home improvements, 90 per c n . This restores the form of the provisions applying to maximum loan et values that were i e f c during the l t e part of World War I . n fet atr I 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 s e pcs fetv December 3 , 1951: 1 1 By amending Part 4 o the Supplement t the regulation t . f o 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 rils— 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 ril. The amount of credit extended in connection with any a t c e for which a maximum r t i price i prescribed by ril eal s Federal price authorities s a l in no event exceed the amount hl which would have been permitted i the a t c e had been s l f ril od a the maximum r t i p i e Such required down payment t eal rc. 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 ril itd 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 rc, ) s ubstitute for the cash p i e and in calculating the maximum rc, loan value the Registrant may rely in good faith o a bona fide n, 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 . n t o the regulation. 3 By substituting “Part 4” for “Part 5” in footnote 5 t . o sec io 4 (d) of the regulation. t n 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