6.1-330.89 - (Repealed effective October 1, 2010) Acceleration clause in note evidencing installment loan; effect of acceleration. - Virginia Statutes

§ 6.1-330.89. (Repealed effective October 1, 2010) Acceleration clause innote evidencing installment loan; effect of acceleration.

Any note or other contract evidencing an installment loan or otherinstallment sales obligation with add-on interest may provide that the entireunpaid loan balance, at the option of the holder, shall become due andpayable upon default in payment of any installment without impairing thenegotiability of the note, if otherwise negotiable. Upon such acceleration,the holder of the contract of indebtedness shall not be entitled to judgmentfor unearned interest, but the balance owing shall be computed as if theborrower had made a voluntary prepayment and obtained as of the date ofacceleration an interest credit based upon the Rule of 78 as defined in §6.1-330.86 on a loan with an initial maturity and corresponding amortizationperiod of sixty-one months or less payable in equal periodic installments,and on other loans under a method at least as favorable to the borrower asthe actuarial method. Such accelerated balance shall bear interest at therate shown, or which should have been shown if a consumer credit transactionwere involved, as the annual percentage rate under a truth-in-lendingdisclosure pursuant to federal law.

(1987, c. 622; 1990, c. 338; 1991, cc. 171, 365.)