{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-404.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-404.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-404.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-404.html"}],"law_id":56171,"edition_id":1,"section_id":56171,"structure_id":14626,"section_number":"6.2-404","catch_line":"When use of Rule of 78 prohibited or permitted","history":"1990, c. 338, \u00a7 6.1-330.86:1; 1991, c. 171; 2010, c. 794.","full_text":"A\n\nThe 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).B\n\nOn 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.","order_by":null,"text":{"0":{"id":205828,"text":"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).","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":205829,"text":"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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-404\/","history_text":"

This law was first created in 1990. The record of its establishment is cataloged in chapter 338 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 1990 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. 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. Those modifications are as follows: in 1991, chapter 171; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":263483,"object_type":"law","relational_id":56171,"identifier":"6.2-404","token":"6.2\/I\/4\/1\/6.2-404","url":"\/6.2-404\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-404\/","token":"6.2\/I\/4\/1\/6.2-404","dublin_core":{"Title":"When use of Rule of 78 prohibited or permitted","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-404","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 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<\/span> made after January 1, 1991, that necessitates a loan as described in clause (i). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 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<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWHEN USE OF RULE OF 78 PROHIBITED OR PERMITTED (\u00a7 6.2-404)\n\nA. The Rule of 78 shall not be used to determine the amount of unearned interest\nto be rebated if payment of the debt is anticipated on any (i) loan of money\nmade after January 1, 1991, with an initial maturity of more than 61 months; or\n(ii) sales contract made after January 1, 1991, that necessitates a loan as\ndescribed in clause (i).\n\nB. On any loan of money made with an initial maturity and corresponding\namortization period of 61 months or less and that is payable in equal periodic\ninstallments, the Rule of 78 may be used to determine the amount of unearned\ninterest to be rebated if payment of the debt is anticipated on the loan or\ncontract.\n\nHISTORY: 1990, c. 338, \u00a7 6.1-330.86:1; 1991, c. 171; 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}}