Full text of District Notices (Federal Reserve Bank of Dallas) : Amendment to Regulation W - Consumer Credit

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F e d e r a l

r e s e r v e

b a n k

OF DALLAS

Dallas, Texas, November 26, 1945

AMENDMENT TO REGULATION W— CONSUMER CREDIT

To the A d d ressee:

The Board of Governors of the Federal Reserve System has
adopted Amendment No. 19 to Regulation W, effective Decem­
ber 1, 1945.
The text of the amendment is printed on the reverse side of
this letter.

Yours very truly,
R. R. GILBERT
President

(cmar)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

AMENDMENT NO. 19 TO REGULATION W

ISSUED BY THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
Regulation W is hereby amended in the following respects, effective
December 1, 1945:
1. Section 8 entitled “ Exceptions” is amended by adding thereto a
new subsection reading as follow s:
(p ) Demonstrators.— Any extension of credit which is to be repaid
within not more than 12 months and is made to a bona fide salesman of
automobiles in order to finance the purchase of a new automobile to be
used by him principally as a demonstrator.
2. Section 10 entitled “ Renewals, Revisions, and Additions of Instal­
ment Credit” is amended in two respects, as follows:
(a) By adding the following sentence to footnote 7 attached to
Section 10(a) :
Whenever the Regulation is amended to increase the maximum maturity for any class of
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 o f the amendment.

(b ) By adding at the end of Option 2 of Section 10(b), after the
words “ 12 months,” a comma and the following: or within 18 months in
case the consolidated obligation is an instalment loan and no part of the
proceeds of the additional credit is to be used to purchase any listed article
having a cash price of $15.00 or more.