6.2-404 - (Effective October 1, 2010) When use of Rule of 78 prohibited or permitted. - Virginia Statutes

§ 6.2-404. (Effective October 1, 2010) When use of Rule of 78 prohibited orpermitted.

A. The Rule of 78 shall not be used to determine the amount of unearnedinterest to be rebated if payment of the debt is anticipated on any (i) loanof money made after January 1, 1991, with an initial maturity of more than 61months; or (ii) sales contract made after January 1, 1991, that necessitatesa loan as described in clause (i).

B. On any loan of money made with an initial maturity and correspondingamortization period of 61 months or less and that is payable in equalperiodic installments, the Rule of 78 may be used to determine the amount ofunearned interest to be rebated if payment of the debt is anticipated on theloan or contract.

(1990, c. 338, § 6.1-330.86:1; 1991, c. 171; 2010, c. 794.)