{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-403.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-403.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-403.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-403.html"}],"law_id":78834,"edition_id":1,"section_id":78834,"structure_id":14626,"section_number":"6.2-403","catch_line":"The Rule of 78","history":"1987, c. 622, \u00a7 6.1-330.86; 2010, c. 794.","full_text":"A\n\nThe Rule of 78 is so named because the integers one through 12 added together total 78.B\n\nThe amount of the rebate of unearned interest to be credited upon the acceleration or anticipation of a loan on which such rebate is required to be calculated under the Rule of 78 shall be calculated as follows:1\n\nDetermine the denominator of the fraction, to be used as provided in subdivision 3, by adding the integers corresponding to the number of months over which the loan is to be repaid according to its terms, which in the example of a four-year loan would be the sum obtained by adding all of the integers in the series one through 48.2\n\nDetermine the numerator of the fraction, to be used as provided in subdivision 3, by adding in inverse sequence the integers corresponding to the number of months remaining on the loan after payment is anticipated, which in the example of a four-year loan anticipated after the third month, would be the sum obtained by adding all of the integers in the series 45 through one.3\n\nMultiply the original amount of interest that would have been paid over the life of the loan by a fraction that has as its denominator the number determined as in subdivision 1 and as its numerator the number determined as in subdivision 2. The product is the amount of unearned interest to be rebated under the Rule of 78.C\n\nPayment anticipated between scheduled payment dates shall not be considered but instead the succeeding scheduled payment date shall be used in determining the amount of unearned interest to be rebated under the Rule of 78 pursuant to this section.","order_by":null,"text":{"0":{"id":282391,"text":"The Rule of 78 is so named because the integers one through 12 added together total 78.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":282392,"text":"The amount of the rebate of unearned interest to be credited upon the acceleration or anticipation of a loan on which such rebate is required to be calculated under the Rule of 78 shall be calculated as follows:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":282393,"text":"Determine the denominator of the fraction, to be used as provided in subdivision 3, by adding the integers corresponding to the number of months over which the loan is to be repaid according to its terms, which in the example of a four-year loan would be the sum obtained by adding all of the integers in the series one through 48.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":282394,"text":"Determine the numerator of the fraction, to be used as provided in subdivision 3, by adding in inverse sequence the integers corresponding to the number of months remaining on the loan after payment is anticipated, which in the example of a four-year loan anticipated after the third month, would be the sum obtained by adding all of the integers in the series 45 through one.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":282395,"text":"Multiply the original amount of interest that would have been paid over the life of the loan by a fraction that has as its denominator the number determined as in subdivision 1 and as its numerator the number determined as in subdivision 2. The product is the amount of unearned interest to be rebated under the Rule of 78.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":282396,"text":"Payment anticipated between scheduled payment dates shall not be considered but instead the succeeding scheduled payment date shall be used in determining the amount of unearned interest to be rebated under the Rule of 78 pursuant to this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":14626,"edition_id":1,"name":"Late Charges and Rebates of Unearned Interest","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":12854,"metadata":{},"date_created":"2026-06-26 03:48:58","date_modified":"2026-06-26 03:48:58","permalink":{"id":263465,"object_type":"structure","relational_id":14626,"identifier":"1","token":"6.2\/I\/4\/1","url":"\/6.2\/I\/4\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12854,"edition_id":1,"name":"Certain Lending Practices","identifier":"4","label":"chapter","depth":3,"order_by":1,"parent_id":12853,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263463,"object_type":"structure","relational_id":12854,"identifier":"4","token":"6.2\/I\/4","url":"\/6.2\/I\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12853,"edition_id":1,"name":"General Provisions","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263251,"object_type":"structure","relational_id":12853,"identifier":"I","token":"6.2\/I","url":"\/6.2\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85650,"structure_id":14626,"section_number":"6.2-400","catch_line":"Amount of late charge; when charge can be made","url":"\/6.2-400\/","token":"6.2\/I\/4\/1\/6.2-400","metadata":false},{"id":85289,"structure_id":14626,"section_number":"6.2-401","catch_line":"Acceleration clause in note evidencing installment loan; effect of acceleration","url":"\/6.2-401\/","token":"6.2\/I\/4\/1\/6.2-401","metadata":false},{"id":80258,"structure_id":14626,"section_number":"6.2-402","catch_line":"Notice of use of Rule of 78 rebate method","url":"\/6.2-402\/","token":"6.2\/I\/4\/1\/6.2-402","metadata":false},{"id":78834,"structure_id":14626,"section_number":"6.2-403","catch_line":"The Rule of 78","url":"\/6.2-403\/","token":"6.2\/I\/4\/1\/6.2-403","metadata":false},{"id":56171,"structure_id":14626,"section_number":"6.2-404","catch_line":"When use of Rule of 78 prohibited or permitted","url":"\/6.2-404\/","token":"6.2\/I\/4\/1\/6.2-404","metadata":false},{"id":63347,"structure_id":14626,"section_number":"6.2-405","catch_line":"References to sections regulating rebates of unearned interest and prepayment penalties","url":"\/6.2-405\/","token":"6.2\/I\/4\/1\/6.2-405","metadata":false}],"previous_section":{"id":80258,"structure_id":14626,"section_number":"6.2-402","catch_line":"Notice of use of Rule of 78 rebate method","url":"\/6.2-402\/","token":"6.2\/I\/4\/1\/6.2-402","metadata":false},"next_section":{"id":56171,"structure_id":14626,"section_number":"6.2-404","catch_line":"When use of Rule of 78 prohibited or permitted","url":"\/6.2-404\/","token":"6.2\/I\/4\/1\/6.2-404","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-403\/","history_text":"

This law was first created in 1987. The record of its establishment is cataloged in chapter 622 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1987 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2010, chapter 794<\/a>.<\/p>","references":[{"id":78712,"section_number":"6.2-1409","catch_line":"Prepayment by borrower from association; rebates for unearned interest; prepayment penalty","order_by":null,"url":"\/6.2-1409\/"},{"id":68100,"section_number":"6.2-311","catch_line":"Closed-end installment loans by sellers of goods or services","order_by":null,"url":"\/6.2-311\/"},{"id":85289,"section_number":"6.2-401","catch_line":"Acceleration clause in note evidencing installment loan; effect of acceleration","order_by":null,"url":"\/6.2-401\/"},{"id":80258,"section_number":"6.2-402","catch_line":"Notice of use of Rule of 78 rebate method","order_by":null,"url":"\/6.2-402\/"},{"id":61310,"section_number":"6.2-423","catch_line":"Prepayment of loans secured by certain subordinate mortgages or deeds of trust; rebates for unearned interest","order_by":null,"url":"\/6.2-423\/"}],"refers_to":false,"permalink":{"id":263479,"object_type":"law","relational_id":78834,"identifier":"6.2-403","token":"6.2\/I\/4\/1\/6.2-403","url":"\/6.2-403\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-403\/","token":"6.2\/I\/4\/1\/6.2-403","dublin_core":{"Title":"The Rule of 78","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-403","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Rule of 78 is so named because the integers one through 12 added together total 78. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The amount of the rebate of unearned interest to be credited upon the acceleration or anticipation of a loan on which such rebate is required to be calculated under the Rule of 78 shall be calculated as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Determine the denominator of the fraction, to be used as provided in subdivision 3, by adding the integers corresponding to the number of months over which the loan is to be repaid according to its terms, which in the example of a four-year loan would be the sum obtained by adding all of the integers in the series one through 48. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Determine the numerator of the fraction, to be used as provided in subdivision 3, by adding in inverse sequence the integers corresponding to the number of months remaining on the loan after payment is anticipated, which in the example of a four-year loan anticipated after the third month, would be the sum obtained by adding all of the integers in the series 45 through one. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Multiply the original amount of interest that would have been paid over the life of the loan by a fraction that has as its denominator the number determined as in subdivision 1 and as its numerator the number determined as in subdivision 2. The product is the amount of unearned interest to be rebated under the Rule of 78. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Payment anticipated between scheduled payment dates shall not be considered but instead the succeeding scheduled payment date shall be used in determining the amount of unearned interest to be rebated under the Rule of 78 pursuant to this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTHE RULE OF 78 (\u00a7 6.2-403)\n\nA. The Rule of 78 is so named because the integers one through 12 added together\ntotal 78.\n\nB. The amount of the rebate of unearned interest to be credited upon the\nacceleration or anticipation of a loan on which such rebate is required to be\ncalculated under the Rule of 78 shall be calculated as follows:\n\n 1. Determine the denominator of the fraction, to be used as provided in\n subdivision 3, by adding the integers corresponding to the number of months\n over which the loan is to be repaid according to its terms, which in the\n example of a four-year loan would be the sum obtained by adding all of the\n integers in the series one through 48.\n\n 2. Determine the numerator of the fraction, to be used as provided in\n subdivision 3, by adding in inverse sequence the integers corresponding to the\n number of months remaining on the loan after payment is anticipated, which in\n the example of a four-year loan anticipated after the third month, would be\n the sum obtained by adding all of the integers in the series 45 through one.\n\n 3. Multiply the original amount of interest that would have been paid over the\n life of the loan by a fraction that has as its denominator the number\n determined as in subdivision 1 and as its numerator the number determined as\n in subdivision 2. The product is the amount of unearned interest to be rebated\n under the Rule of 78.\n\nC. Payment anticipated between scheduled payment dates shall not be considered\nbut instead the succeeding scheduled payment date shall be used in determining\nthe amount of unearned interest to be rebated under the Rule of 78 pursuant to\nthis section.\n\nHISTORY: 1987, c. 622, \u00a7 6.1-330.86; 2010, c. 794.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}