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F ed eral r e se r v e Ba n k OF DALLAS Dallas, Texas, July 31, 1951 C O N S U M E R C R E D IT A M E N D M E N T N O. 4 TO R E G U L A T IO N W To the Registrant Addressed and Others Concerned: T h ere is q u oted below th e t e x t o f a statem en t issued b y th e B oa rd o f G ov ern ors o f th e F ed era l R eserv e S ystem in con n ection w ith A m en d m en t N o. 4 to R egu la tion W , effectiv e J u ly 31, 1951: “ T h e B oard o f G ov ern ors to d a y am ended th e te rm s o f R egu la tion W — C onsum er C red it— in a ccord a n ce w ith th e D efen se P ro d u ctio n A c t as revised and extended. The am endm ent, w h ich is e ffectiv e im m ediately, length en s th e m a xim u m m a tu rity appli cable to instalm en t cred it f o r a u tom obiles, h ou seh old appliances, rad io and television sets, and fu rn itu re fr o m 15 to 18 m on th s, and f o r h om e rep a ir and im provem en ts fr o m 30 to 36 m on th s. L o n g er m a xim u m m a tu rities are also p rovid ed f o r con su m er in stal m en t loans f o r oth er p urposes. “ In accord an ce w ith th e n ew legislation , d ow n p aym en t req u irem en ts f o r h ou se hold appliances and f o r ra d io and television sets h ave been red u ced fr o m 25 p er cen t to 15 p er cen t. T h e d ow n p aym en ts requ ired b y th e reg u la tion m a y be m ade in cash, trade-in , or a com bin ation o f trad e-in and cash. T h e 10 p er cen t d ow n p a ym en t requ ired f o r h om e rep a ir and im provem en ts n ow need n ot be obtain ed p rio r to com pletion o f th e w ork . “ Th e fo llo w in g table su m m arizes th e rev ised te rm s o f th e re g u la tio n : Required Down Payment Type of Instalment Credit A u tom ob iles________________________________ ___— -___ H ouseh old appliances, radio, and television sets Maximum Maturity 3 3 i% 18 M on th s _ _ 15% 18 M on th s F u rn itu re__________________________________________ ____ 15% 18 M on th s R esidential rep a irs arid im p rovem en ts__________ . 10% 36 M on th s U nclassified instalm en t loan s____________________ 18 M on th s “ In a ddition , the B oard exem p ted fr o m th e p rovision s o f R egu la tion W a n y instal m ent cred it requ ired f o r th e in stallation o f sew e ra g e and oth er related fa cilitie s , in clu din g p lu m bin g and p lu m b in g fixtu res, w h ere th e h ou seh older is req u ired to m ake such installation b y local, state or fed era l h ealth and san itary reg u la tion s.” (Over) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) The text o f the amendm ent is reproduced below. It is planned that Regulation W will be reprinted in full and a copy o f such reprint will be sent to all registrants on our m ailing list as soon as available. A n y inform ation which m ay be desired concerning the Regulation will be gladly furnished by this bank and its branches in El Paso, Houston, and San Antonio, Texas. Y o u rs v e r y tru ly , R. R. GILBERT P resid en t CONSUM ER CREDIT A M E N D M E N T NO. 4 TO REG U LA TIO N W ISSUED B Y TH E B O ARD OF GOVERNORS OF TH E F E D E R A L R E SE R V E SYSTEM Regulation W is hereby amended in the follow ing respects, effective July 31, 1951: 1. B y inserting in Section 1 follow ing “ Defense Production A ct o f 1950,” the lan guage “ as amended,” . 2. B y amending subsection (c) o f Section 3 to read as follow s: “ Tim e o f Down Paym ent.— The down paym ent shall be obtained at or before the time o f delivery o f the listed article; except that in the case o f an article listed in Group D, neither this Section 3 ( c ) , Section 6 (&), nor Section 6 ( / ) shall be deemed to require compliance in advance o f completion o f the agreed upon repairs, alterations, or im provem ents.” 3. B y inserting in the first sentence o f subsection ( b) o f Section 3 the word “ and” before the figure “ ( 2 ) ” , by changing the comma a fter the word “ m onth” at the end o f clause ( 2 ) to a period, and b y deleting the remainder o f such sentence. 4. B y inserting in the first sentence o f subsection (c) o f Section 4 the word “ and” before the figure “ ( 2 ) ” , by changing the comma after the word “ m onth” at the end o f clause ( 2 ) to a period, and by deleting the remainder o f such sentence. 5. B y deleting the last sentence o f paragraph (2) o f subsection (a) o f Section 5. 6 . B y deleting the last sentence o f the first paragraph o f subsection ( b) o f Sec tion 5. 7. B y a m en din g item (3 ) in su bsection (c ) o f S ection 6 to rea d as fo llo w s : “ (3 ) T h e am ou nt o f th e p u rch a se r’ s d ow n p a y m e n t (i) in ca sh and (ii) in p rop e r ty accep ted as trade-in , to g e th e r w ith a b r ie f d escrip tion id e n tify in g su ch p ro p e rty and sta tin g th e m on eta ry value a ssign ed th e re to in g o o d f a i t h ;” . 8. B y a m en din g th e last tw o sen ten ces o f su bsection ( c ) o f S ection 6 to read as fo llo w s : “ T h e record need n o t include a d escrip tion o f th e article i f it is purch ased b y m eans o f a coupon book or sim ilar m ediu m o f in sta lm en t cre d it upon w h ich th ere has been m ade a dow n p a y m en t at least as g re a t as th e dow n p a ym en t req u ired b y th is reg u la tion on th e article sold b y th e R e g istra n t. T h e reco rd need n o t include th e in fo r m a tion called f o r b y item s (2 ) and (4 ) i f th e R e g istra n t is one w h o, w ith resp ect to th e article, cu stom a rily q u otes to th e p u blic a tim e price on ly w h ich includes th e finance or o th er ch a rg es i f any, p rov id ed he sets fo r t h su ch tim e p rice in such record , and p rovid ed h e obtain s a dow n p a ym en t w h ich is a t le a st as la rg e as w ould b e requ ired i f th e p ercen ta g e specified f o r th e a rticle in th e Supplem en t w ere applicable to th e tim e p rice .” 9. B y a m en din g su bsection ( / ) o f S ection 6 to read as f o llo w s : “ (j) T rad e-in .— A n y p ro p e rty w h ich th e seller o f a listed a rticle bu ys o r receives in exch a n ge, or arra n ges to h ave b ou g h t or so receiv ed , fr o m th e p u rch a ser a t o r abou t th e tim e o f th e p u rch a se o f th e listed a rticle shall be reg a rd ed as a trad e-in f o r th e p u rp oses o f th is reg u la tion .” 10. B y a dd in g at th e end o f S ection 7 a n e w su bsection (m ) rea d in g as f o llo w s : “ (m ) C redit f o r S ew era g e In stallation s.— A n y cre d it f o r th e p u rp ose o f financing th e in stallation o f sew era ge and n ecessa ry related fa cilitie s (in clu d in g p lu m b in g and p lu m b in g fix tu r e s ), req u ired in ord er to co m p ly w ith a statute, ordinan ce, o r reg u la tion o f th e U nited States, a state o r p olitical su bd iv ision th e re o f, p erta in in g to health and san itation , w h ere th e R e g istra n t a ccep ts in g o o d fa ith a w ritten sta tem en t signed b y th e o b lig o r c e r tify in g th a t such cre d it is f o r th e a bove p u rp o se .” 11. B y ch a n g in g “ 2 5 p e r cent” and “ 75 p er cen t” in P a rt 1, G rou p B o f th e Sup p lem en t to read, resp ectively, “ 15 p er cent” and “ 8 5 p e r c e n t ” 12. B y ch a n gin g th e m a xim u m m a tu rity stated in P a rt 2 o f th e S u pplem ent fo r a rticles listed in G roup A , G roup B, G roup C and f o r unclassified in stalm en t loans, resp ectiv ely , fr o m “ 15 m o n th s” to “ 18 m o n th s” , and f o r a rticles listed in G roup D fr o m “ 30 m on th s” to “ 36 m o n th s” . 13. B y ch a n g in g th e figu re “ 18” to “ 21” in P a rt 3 o f th e Supplem ent. 14. B y d eletin g fr o m th e last sen ten ce in th e first p aragrap h o f P a rt 4 o f th e Sup p lem en t th e lan gu a ge “ in th e case o f an a u tom ob ile” . 15. B y a m en din g th e first p a ra gra p h o f P a rt 5 o f th e Supplem en t to read as f o llo w s : “ P a rt 5. C alculation o f D ow n P a y m en ts f o r A r tic le s in G rou ps B, C, and D .— In th e case o f a n y article listed in G roup B, G rou p C, o r G roup D, th e requ ired dow n p a ym en t and th e m a xim u m loan value shall be th e specified p ercen ta ge o f th e cash p rice o f th e article. Such requ ired d ow n p aym en t m a y b e obtain ed in th e fo r m o f cash, trade-in , or b o th .”
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