Full text of District Notices (Federal Reserve Bank of Dallas) : Consumer Instalment Credit Amendment No. 3 to Regulation W

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F e d e r a l R e s e r v e Ban k
OF DALLAS

Dallas, Texas, March 3, 1949

CONSUM ER IN S T A L M E N T CREDIT
A M E N D M E N T NO. 3 TO R EG U L A TIO N W

To the Registrant Addressed and Others Concerned:

There is quoted below a press statement issued by the Board
of Governors of the Federal Reserve System for release today in
connection with Amendment No. 3 to Regulation W, effective
March 7, 1949.
“ The Board of Governors announced today modifica­
tion of Regulation W, effective next Monday, March 7,
making the maximum maturity uniformly 21 months,
instead of 15 to 18 months, on all extensions of Consumer
Instalment Credit, and reducing down payments on fur­
niture, appliances, etc., from 20 per cent to 15 per cent,
while retaining the 33Yg per cent down payment on auto­
mobiles.
“ This modification is based on continuous study of
the operations of the regulation since it was reinstated
last September, and on the experience of Federal Reserve
Banks and their Branches in its administration in the
field.
“ In recommending last summer that Congress author­
ize reinstatement of the regulation, the Board stated that
the authority would be used flexibly and that the Board
would be ready at all times to tighten or relax the terms
in accordance with the objectives of the authority and
with a view to sound credit conditions. The amendment
also contains two minor modifications of a technical
nature.”
The text of the amendment is printed on the reverse side.
Yours very truly,
R. R. GILBERT
President
(OVER)

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

CONSUMER INSTALMENT CREDIT

AMENDMENT NO. 3 TO REGULATION W

ISSUED BY THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM

Regulation W is hereby amended in the following respects
effective March 7, 1949:
1. By inserting the following immediately after the
words “ structure or” and immediately before the number
“ ( 2 ) ” in section 7 (G) of the Regulation:
“ other entire unit designed for
residential occupancy, or”
2. By changing “ 20 per cent” and “ 80 per cent” in
Part 1, Group B of the Supplement to read, respectively,
“ 15 per cent” and “ 85 per cen t”
3. By changing Part 2 of the Supplement to read as
follows:
“ Part 2. M aturities.— The maximum

maturity for all listed articles and
for unclassified instalment loans is
21 months.”
4. By changing the figure “ 20” to “ 24” in Part 3 of
the Supplement.