Full text of Federal Reserve Bank of New York Circulars : 3834. Consumer Credit, Amendment No. 7 to Regulation W of the Board of Governors of the Federal Reserve System, Effective March 24, 1952

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FED ERAL R E SE R V E BANK
OF NEW YORK

r Circular N o. 3 8 3 4 * 1
L
March 24, 1952
J

CONSUMER CREDIT

Amendment No. 7 to Regulation W of the Board of Governors
of the Federal Reserve System, Effective March 24, 1952

To all Persons Concerned with Regulation JV
in the Second Federal Reserve D istrict:

The Board o f Governors o f the Federal Reserve System has
adopted Amendment No. 7 to Regulation W , effective March 24, 1952.
Following is the text o f the B oa rd ’s statement announcing the amend­
ment:
The Board of Governors announced today tliat effective immediately
Regulation W — Consumer Credit no longer requires down payments in
connection with home repair and modernization credits.

The maximum

permissible maturity for this type of instalment credit remains, however,
at 36 months.
This change is not expected to have a significant effect upon the
outstanding amount of home repair and modernization credit.

A copy o f Amendment No. 7 to Regulation W is enclosed; addi­
tional copies may be obtained upon request.




A

llan

S proul,

President.

CONSUMER CREDIT
AMENDMENT NO. 7 TO REGULATION W
IS S U E D B Y

TH E

BOARD

OF

GOVERNORS

OF T H E

FE D E R A L RESERVE

SYSTEM

Regulation W is hereby amended in the following respects, effective
March 24, 1952:
1. By amending subsection (c) of section 3 to read as follows:
“ (c) Time of Down Payment.— The down payment shall be
obtained at or before the time of delivery of the listed article.”
2. By deleting the figure “ 5 ” following the words ‘ ‘ cash price’ ’
in the second sentence of subsection ( d ) of section 4 and the foot­
note to said subsection ( d) .
3. By adding at the end of subsection (&) of section 6 the
following new sentence:
“ In the case of an instalment credit for financing the purchase
of an article listed in Group D, this section 6 (6) shall not be
deemed to require compliance to be determined from a date in
advance of completion of the agreed upon repairs, alterations,
or improvements.”
4. By changing the figure “ 5a” at the end of subsection (a)
of section 8 to “ 5 ” and by making the corresponding change in
the footnote.
5. By inserting in the first sentence of Part 1 of the Supplement
to the regulation after the phrase “ maximum loan values are
prescribed,” the language “ for articles listed in Group A, Group B,
and Group C .”
6. By amending the italicized caption “ Group D— 10 per cent
minimum down payment, 90 per cent maximum loan value:” in
Part 1 of the Supplement to the regulation to read as follows:
“ Group D — No prescribed requirem ent as to minimum down
paym ent or maximum loan value
7. By deleting the last paragraph of Part 4 of the Supplement
to the regulation.




P R IN T E D

IN

NEW

VORK