Virginia Code 6.2-404: When use of Rule of 78 prohibited or permitted
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A. The Rule of 78 shall not be used to determine the amount of unearned interest to be rebated if payment of the debt is anticipated on any (i) loan of money made after January 1, 1991, with an initial maturity of more than 61 months; or (ii) sales contract made after January 1, 1991, that necessitates a loan as described in clause (i).
Terms Used In Virginia Code 6.2-404
- Amortization: Paying off a loan by regular installments.
- Contract: A legal written agreement that becomes binding when signed.
B. On any loan of money made with an initial maturity and corresponding amortization period of 61 months or less and that is payable in equal periodic installments, the Rule of 78 may be used to determine the amount of unearned interest to be rebated if payment of the debt is anticipated on the loan or contract.
1990, c. 338, § 6.1-330.86:1; 1991, c. 171; 2010, c. 794.