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F e d e r a l R e s e r v e B a n k OF DALLAS D a lla s, T e x a s , June 1 ,1 9 4 5 A M E N D M E N T T O R E G U L A T I O N W — C O N S U M E R C R E D IT T o th e A d d r e s s e e : T h e B oa rd o f G o vern o rs o f th e F ed era l R e se rv e S y s te m h as ad op ted a m en d m e n t N o . 16 to its R e g u la tio n W , re la tin g to con s u m e r credit. T h e a m en d m e n t, w h ich becom es effective June 11, 1 9 4 5 , relates p rim a rily to tra n sa ctio n s fo r financing th e p u rch a se o f m a te r ia ls, a rticles, and. serv ices u sed in rep a irs to or im p r o v e m e n ts o f resid en tial p r o p e r ty . T h e t e x t o f th e a m e n d m e n t is p rin te d on th e fo llo w in g p a g e s. T h e p u rpose o f th e a m e n d m e n t, n o tw ith sta n d in g th e f a c t th a t i t m a k e s certa in c h a n g es o f d etail in d o w n -p a y m e n t and m a tu r ity r e q u ir e m e n ts, is esse n tia lly a d m in istr a tiv e . I t reflects no ch an ge in th e B o a r d ’s c o n su m er credit policy or in th e place o f co n su m er cr e d it r eg u la tio n in th e G o v e r n m e n t’ s a n ti-in fla tio n p r o g r a m . U n d e r th e a m en d m e n t no cred it tra n sa ctio n in th e h o m e -im p r o v e m e n t field is a n y lo n g e r e x em p ted fr o m th e r e g u la tio n by r e a so n o f th e w a y in w h ich it m a y be secured, th e area in w h ich it m a y be located, or th e ty p e o f jo b to w h ich it m a y rela te . F o r all su ch cred it tr a n sa c tio n s, i f th e y relate to resid en tial p ro p erty and a re n o t o v er $ 1 ,5 0 0 , a le n g th -o f-c o n tr a c t req u irem en t is p r e scrib ed , b u t no d o w n -p a y m e n t r e q u ire m e n t is prescribed fo r any o f th e m . T h e m a x im u m m a t u r it y m a y n o t h e r e a fte r ex ceed 18 m o n th s ex cep t th a t f o r certa in “ fu e l co n serv a tio n c r e d its” e x ten d ed d u rin g th e n e x t five m o n th s th e m a x im u m m a tu r ity m a y b e 2 4 m o n th s. H e r e to fo r e so m e su ch tra n sa ctio n s h a v e been a lto g e t h e r e x e m p t, so m e h ave been s u b je c t to a m a tu r ity lim ita tio n o f 12 m o n th s, and o th e rs h a v e been su b je c t to b o th a d o w n -p a y m e n t req u irem en t o f one-third, and a m a tu r ity lim ita tio n o f 12 m o n th s. T h e a m e n d m e n t also con tain s so m e tech n ica l p ro visio n s w h ich r e la te to so-called “ su m m e r p la n s” f o r specified h o m e -im p r o v e m e n t ite m s and o th e rs w h ich rela te to th e ex em p tio n fo r “ d isa s te r c r e d its.” A m e n d m e n ts N o s. 1 4 and 15 concerned fin an cin g in stitu tio n s on ly. T h e r e fo r e , copies o f th o se a m e n d m e n ts w ere se n t o n ly to su ch in stitu tio n s. Y o u r s v e r y tru ly , R . R. G IL B E R T P re sid e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) AMENDMENT NO. 16 TO REGULATION W ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Regulation W is hereby amended in the following respects, effective June 11, 1945. 1. B y changing section 4 ( b ) to read as follow s: (b ) Maximum Maturity.— The maturity shall not exceed the maximum maturity specified for the listed article in section 1 3 ( a ) . 2. B y changing section 6 ( a ) ( 2 ) to read as follow s: (2 ) The maturity shall not exceed the maximum maturity speci fied for the listed article in section 1 3 ( a ) . 3. B y striking out of section 8 ( a ) entitled “ Real Estate Loans” the words “ which is secured by a bona fide first lien on improved real estate duly recorded or.” 4. B y striking out section 8 ( e ) entitled “ Defense H ousing” and sec tion 8 ( m ) entitled “ Fuel Conservation Credits” and by relettering the remaining subsections of section 8 accordingly. 5. B y amending section 8 ( h ) , relettered as section 8 ( g ) , so that it will read as follows : (g ) Disaster Credits.— A n y extension of credit made by the Disaster Loan Corporation; or any extension of credit to finance the repair or replacement of real or personal property damaged or lost as a result of a flood or other similar disaster which the Federal Reserve Bank o f the district in which the disaster occurs finds has created an emergency affecting a substantial number of the inhabitants of the stricken area, pro vided such extension is made prior to the end of the sixth calendar month following the month in which the disaster is found to have occurred and a statement describing the damage or loss is preserved in the Registrant’s files. 6. B y adding to section 12 the following new subsection (o ) : (o ) Summer Plans.— Notwithstanding sections 4 ( c ) and 6 ( c ) ( 2 ) , the payment schedule of an instalment credit made for any o f the purposes specified in section 1 3 ( f ) may reduce or omit payments during the period from the extension of the credit to October 31, 1945, if the other payments are increased in such manner as to meet all the other requirements o f the regulation applicable to such credit. 7. By striking out the names of the articles listed as Items 2, 16, 22, 27, 38, and 39 in Group A of section 1 3 (a ) and inserting after each such number the following parentheses: “ (Deleted— see Group C ) .” 8. By changing Group C in section 1 3 (a ) to read as follow s: Group C— 18 months' maximum maturity: 1. Materials, articles and services (other than articles, whether or not designed for household use, which are of kinds elsewhere listed) in connection with repairs, alterations, or improvements upon urban, suburban or rural real property in connection with existing structures (other than a structure, or a distinct part there o f, which, as so repaired, altered or improved, is designed exclu sively for non-residential u se), provided the deferred balance does not exceed $1 ,5 0 0 .11 9. B y adding to section 13 a new subsection ( f ) to read as follow s: (f) F u el C on serv ation C red its.— Notwithstanding the provi sions of Group C o f section 1 3 ( a ) , any extension of instalment credit made prior to November 1, 1945, to finance the purchase or installation of materials or articles included in Group C that are to be used in ( 1 ) the replacement o f heating equipment that is worn out, damaged beyond re pair, or destroyed, ( 2 ) the installation of loose-fill, blanket or batt-type insulation, or insulating board, within existing structures, or ( 3 ) the installation of storm doors, storm windows, or weather stripping, may have a maturity of not more than 24 months if such extension of credit is otherwise in conformity with the requirements of this regulation. ^Effective June 11, 1945, the following articles were added to this group: Air conditioning systems, furnaces and heating units for furnaces (including oil burners, gas conversion burners and stokers), lighting fixtures, plumbing and sanitary fixtures, water heaters, and water pumps so installed, whether or not designed for household use.
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