6518. Interpretation of Regulation Z
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FEDERAL RESERVE BANK OF NEW YORK I C ir c u la r N o. 6518 A pril 7, 1970 INTERPRETATION OF REGULATION Z To All State Member B anks, and Others Concerned, in the Second F ederal R eserve D istrict: P rin te d below is an e x c e rp t fro m th e F e d e ra l R e g is te r of A p ril 4, c o n tain in g th e te x t of an in te rp re ta tio n by th e B o a rd of G o v e rn o rs of th e F e d e ra l R e s e rv e S y ste m of p ro v is io n s in its T ru th in L ending R eg u latio n Z. A d d itio n al c o p ie s of th is c ir c u la r w ill be fu rn ish e d upon re q u e s t. A lfre d H ay es, P re s id e n t.
Title 12— BANKS AND BANKING Chapter II— Federal Reserve System SUBCHAPTER A— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM [Reg. Z] PART 226— TRUTH IN LENDING Reduction in Annual Percentage Rate § 226.817 Reduction in annual percent age rale.
(a) Section 226.8(j) specifies that if any existing extension of credit is re financed, such transaction shall be con sidered a new transaction subject to the disclosure requirements of Regulation Z. The question arises as to whether a re duction in the annual percentage rate applicable to an existing extension of credit, when no other credit terms are changed, constitutes a refinancing under § 226.8(j).
(b) When no other credit terms are changed, a reduction in the annual per centage rate applicable to an existing extension of credit does not constitute a refinancing under § 226.8(j), and no dis closures are required.
(Interprets and applies 15 U.S.C. 1638 and 15 U.S.C. 1639) By order of the Board of Governors, March 31, 1970.
[seal] K enneth A. K enyon, D epu ty Secretary.
[F.R. Doc. 70-4112;
Piled, Apr. 3, 1970;
8:46 a.m.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis