§ 6.2-403. (Effective October 1, 2010) The Rule of 78.
A. The Rule of 78 is so named because the integers one through 12 addedtogether total 78.
B. The amount of the rebate of unearned interest to be credited upon theacceleration or anticipation of a loan on which such rebate is required to becalculated under the Rule of 78 shall be calculated as follows:
1. Determine the denominator of the fraction, to be used as provided insubdivision 3, by adding the integers corresponding to the number of monthsover which the loan is to be repaid according to its terms, which in theexample of a four-year loan would be the sum obtained by adding all of theintegers in the series one through 48.
2. Determine the numerator of the fraction, to be used as provided insubdivision 3, by adding in inverse sequence the integers corresponding tothe number of months remaining on the loan after payment is anticipated,which in the example of a four-year loan anticipated after the third month,would be the sum obtained by adding all of the integers in the series 45through one.
3. Multiply the original amount of interest that would have been paid overthe life of the loan by a fraction that has as its denominator the numberdetermined as in subdivision 1 and as its numerator the number determined asin subdivision 2. The product is the amount of unearned interest to berebated under the Rule of 78.
C. Payment anticipated between scheduled payment dates shall not beconsidered but instead the succeeding scheduled payment date shall be used indetermining the amount of unearned interest to be rebated under the Rule of78 pursuant to this section.
§ 6.2-403. (Effective October 1, 2010) The Rule of 78.
A. The Rule of 78 is so named because the integers one through 12 addedtogether total 78.
B. The amount of the rebate of unearned interest to be credited upon theacceleration or anticipation of a loan on which such rebate is required to becalculated under the Rule of 78 shall be calculated as follows:
1. Determine the denominator of the fraction, to be used as provided insubdivision 3, by adding the integers corresponding to the number of monthsover which the loan is to be repaid according to its terms, which in theexample of a four-year loan would be the sum obtained by adding all of theintegers in the series one through 48.
2. Determine the numerator of the fraction, to be used as provided insubdivision 3, by adding in inverse sequence the integers corresponding tothe number of months remaining on the loan after payment is anticipated,which in the example of a four-year loan anticipated after the third month,would be the sum obtained by adding all of the integers in the series 45through one.
3. Multiply the original amount of interest that would have been paid overthe life of the loan by a fraction that has as its denominator the numberdetermined as in subdivision 1 and as its numerator the number determined asin subdivision 2. The product is the amount of unearned interest to berebated under the Rule of 78.
C. Payment anticipated between scheduled payment dates shall not beconsidered but instead the succeeding scheduled payment date shall be used indetermining the amount of unearned interest to be rebated under the Rule of78 pursuant to this section.
§ 6.2-403. (Effective October 1, 2010) The Rule of 78.
A. The Rule of 78 is so named because the integers one through 12 addedtogether total 78.
B. The amount of the rebate of unearned interest to be credited upon theacceleration or anticipation of a loan on which such rebate is required to becalculated under the Rule of 78 shall be calculated as follows:
1. Determine the denominator of the fraction, to be used as provided insubdivision 3, by adding the integers corresponding to the number of monthsover which the loan is to be repaid according to its terms, which in theexample of a four-year loan would be the sum obtained by adding all of theintegers in the series one through 48.
2. Determine the numerator of the fraction, to be used as provided insubdivision 3, by adding in inverse sequence the integers corresponding tothe number of months remaining on the loan after payment is anticipated,which in the example of a four-year loan anticipated after the third month,would be the sum obtained by adding all of the integers in the series 45through one.
3. Multiply the original amount of interest that would have been paid overthe life of the loan by a fraction that has as its denominator the numberdetermined as in subdivision 1 and as its numerator the number determined asin subdivision 2. The product is the amount of unearned interest to berebated under the Rule of 78.
C. Payment anticipated between scheduled payment dates shall not beconsidered but instead the succeeding scheduled payment date shall be used indetermining the amount of unearned interest to be rebated under the Rule of78 pursuant to this section.
