                                 CODE OF VIRGINIA

WHEN USE OF RULE OF 78 PROHIBITED OR PERMITTED (§ 6.2-404)

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).

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.

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