Full text of Federal Reserve Bank of New York Circulars : 3659. Consumer Credit, Amendment No. 2 to Regulation W of the Board of Governors of the Federal Reserve System, Effective February 26, 1951

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FED ERAL R E SER VE BANK
OF NEW YORK

r Circular N o. 3 6 5 9 "1
L February 23, 1951 J

CONSUMER CREDIT
Am endm ent No. 2 to Regulation W o f the Board o f Governors o f the
Federal Reserve System, Effective February 26, 1951

T o all Persons Concerned with R egulation W
in the Second Federal R eserve D istrict:

The Board o f Governors of the Federal Reserve System has adopted Amendment No. 2
to Regulation W , effective February 26, 1951. Following is the text of the statement issued by
the Board of Governors relating to the amendment:
F or immediate release

February 21, 1951.

The B oard o f Governors o f the Federal Reserve System has today adopted Amendm ent No. 2 to
Regulation W — Consumer Credit, effective Monday, February 26, 1951. The amendment exempts from
the down payment and m onthly payment requirements o f Regulation W certain short-term, non­
renewable leases which neither extend beyond three months nor involve a delivery in connection with
subsequent leasing or sale arrangements.
Regulation W , as reissued by the Board o f Governors effective September 18, 1950, prescribes
down paym ent and monthly payment requirements fo r leasing arrangements, instalment sales, and
other instalment financing o f automobiles, household electrical appliances, furniture, m ajor consumer
durable goods, and consumer instalment loans in general. The amendment serves to relax the regula­
tion with respect to certain seasonal and other specialized short-term leases.

A printed copy of Amendment No. 2 to Regulation W is enclosed; additional copies may
be obtained upon request.




A

llan

S

proul,

President.

AM E N D M E N T NO. 2 TO R E G U L A T IO N W

ISSUED B Y T H E BOARD OF GOVERNORS OF T H E FEDERAL RESERVE SYSTEM

Effective February 26, 1951, section 7 o f Regulation W is hereby
amended by adding, at the end thereof after the present subsection ( k ),
a new subsection (I) reading as follow s:
(I )
Certain Tem porary Rentals.— A n y contract or similar
arrangement fo r the rental, leasing or bailment o f a listed article
for a specified period o f not more than 3 months if (1 ) the trans­
action is to be terminated, and the article returned to the Regis­
trant, on or before the expiration o f the specified period, and ( 2 )
the transaction is not renewable and does not directly or indirectly
relate to or involve any subsequent lease, use of, or other interest
in, the article or any similar article.




P R IN T E D IN

NEW YORK