                                 CODE OF VIRGINIA

NOTICE OF USE OF RULE OF 78 REBATE METHOD (§ 6.2-402)

Where any loan or sale on credit contains a provision that a rebate of unearned
interest shall be calculated in accordance with the Rule of 78 rebate method as
defined in § 6.2-403, the note or other instrument evidencing the loan or sale
on credit shall contain a notice advising the borrower of the effect of the
interest calculation. The notice shall be in all capital letters and in 10-point
type, and shall be substantially as follows:
		NOTICE: IF YOU PAY THIS LOAN OR SALE ON CREDIT PARTIALLY OR IN FULL BEFORE ITS
DUE DATE, THE AMOUNT OF INTEREST YOU PAY WILL BE GREATER THAN THE AMOUNT OF
INTEREST YOU WOULD PAY FOR A SIMPLE INTEREST LOAN OF THE SAME PRINCIPAL AMOUNT.

HISTORY: 1990, c. 941, § 6.1-330.85:1; 2010, c. 794.