Page:United States Statutes at Large Volume 85.djvu/696

 666

PUBLIC LAW 92-200-DEC. 17, 1971

[85 STAT.

"(1) the finance charge may be calculated on the assumption that all scheduled payments will be made when due, and "(2) except as provided in subsection (c), upon prepayment in full of the unpaid balance of a precomputed direct installment loan, refinancing, or consolidation, an amount not less than the unearned portion of the finance charge calculated according to this section shall be rebated to the debtor. If the rebate otherwise required is less than $1, no rebate need be made. "(c) Upon prepayment in full of such direct installment loan other than a refinancing or consolidation, whether or not precomputed, the lender may collect or retain a minimum charge within the limits stated in this section if the finance charge earned at the time of prepayment is less than any minimum charge contracted for. The minimum charge may not exceed the smaller of the following: (1) the amount of the finance charge contracted for, or (2) $5 in a transaction which had a principal of $75 or less, or $7.50 in a transaction which had a principal of more than $75. " (d) The unearned portion of the finance charge is a fraction of the finance charge of which the numerator is the sum of the periodic balances scheduled to follow the computational period in which the prepayment occurs, and the denominator is the sum of all periodic balances under either the related loan agreement or, if the balance owing resulted from a refinancing or a consolidation, under the related refinancing agreement or consolidation agreement. Definitions. " (e) As uscd in this section, 'finance charge', and 'annual percentage rate' shall have the respective meanings under the provisions of the 84 Stat. 112 6. Truth-in-Leuding Act (82 Stat. 146 et seq.; 15 U.S.C. 1601 et seq.) and the regulations and interpretations thereunder; and 'federally insured bank or savings and loan association' means an insured bank as 64 Stat. 873. defined in section 3 of the Federal Deposit Insurance Act or an 12 USC 1813. 'insured institution' as defined in section 401 of the National Housing 48 Stat. 1255.

Act."

78 sta?. 66?!' S^^' 4- Subtitle II of title 28, District of Columbia Code, is amended D.c. Code 28- by adding at the end thereof the following chapters: "Chapter 36.—DIRECT MOTOR VEHICLE INSTALLMENT LOANS

" c * CQJJ 40901. ' " '

Post, p. 667.

"The provisions of the Act approved April 22, 1960 (Public Law . 8 ^ 3 1, 74 Stat. 69; D.C. Code, 1967 ed., chapter 9 of title 40), covering installment sales of motor vehicles, as amended, and the regulations issued thereunder, shall apply to the extent appropriate to, a direct installment loan, secured by a security interest in a motor vehicle, made by a federally insured bank or savings and loan association doing business in the District of Columbia, subject to section 28-3602.
 * § 28-5601. Direct motor vehicle installment loans

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