2006 Code of Virginia § 6.1-330.86:1 - Use of Rule of 78 prohibited
6.1-330.86:1. Use of Rule of 78 prohibited.
A. On any loan of money made with an initial maturity of greater thansixty-one months or on any sales contract which necessitates such a loan,which is made after January 1, 1991, the Rule of 78 shall not be used todetermine the amount of the rebate of unearned interest where payment of thedebt is anticipated on such loan or contract.
B. On any loan of money made with an initial maturity and correspondingamortization period of sixty-one months or less, payable in equal periodicinstallments, the Rule of 78 may be used to determine the amount of rebate ofunearned interest where payment of the debt is anticipated on such loan orcontract.
(1990, c. 338; 1991, c. 171.)
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