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FEDERAL RESERVE BANK
OF NEW YORK

r Circular No. 3 8 0 2 1
L December 28, 1951 J

CONSUMER CREDIT

Amendment No. 6 to Regulation W of the Board of Governors
of the Federal Reserve System, Effective January 2, 1952

To all Persons Concerned with Regulation W
in the Second Federal Reserve D istrict:

The Board o f Governors o f the F ederal Reserve System has adopted Amend­
ment No. 6 to Regulation W , effective January 2, 1952. Follow ing is the text o f
the B oa rd ’s statement announcing the amendment, and released fo r publication tod a y :
The Board of Governors announced today that effective January 2, 1952, all 1942
and older model automobiles will be removed from the list of articles subject to the
provisions of Regulation W — Consumer Credit.
Although about 40 per cent o f all passenger automobiles now in use are prewar
models, the change is not expected to have any appreciable effect on the general credit
situation. Greater risk is involved in financing older model cars and as a result terms
actually made available by sellers and lenders have in general been more stringent than
those required under Regulation W.

A copy o f Amendment No. 6 to Regulation W is enclosed; additional copies may
be obtained upon request.




A lla n S proul,

President.

CONSUMER CREDIT
AMENDMENT NO. 6 TO REGULATION W
ISSUED B Y T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE SYSTEM

Regulation W is hereby amended in the following respects, effective
January 2, 1952:
1. By adding after the word ‘ ‘ automobiles ’ ’ in item 1, Group A,
Part 1 of the Supplement to the regulation the words “ of yearmodel later than 1942.”
2. By adding the following sentence at the end of section 6( j ) :
Any credit outstanding in connection with the purchase of any
property used as a trade-in shall be deemed to be credit for
financing the purchase o f the article with respect to which the
trade-in is made.




P R IN T E D

IN

NEW

YORK

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