Madison County Democrat. (London, Ohio) 19??-1958, 1951-02-06

amount equal to $500 for each
family unit multiplied by the num-
ber Of family units. In determin-
ing such cost there is considered
only the amount of costs incurred
within any twelve consecutive
months. Repairs made within that
period must be included in COM
putting the costs of major ad-
ditions.
Under the terms of the regula-
ton, States may accord rights and
preferences to eligible veterans by
extending, guaranteeing or insur-
ing real estate construction. credit
provided the terms of such extern
sions of credit are not more liber-
al than are currently permitted
in the case of comparable loans in
sured or guaranteed under the
Servicemen's Readjustment Act
of 1914
In addition to provisions relat-
ing to multi-unit residences,
number of other amendments
have been introduced in the regu-
lation for purpose of Qualification,
Although the regulation pro-
vides that a person must be regis
tered to engage in the business of
extending real estate construction
credit, all persons engaged in the
business will automatically be
deemed to be registered for pres
ent purposes and no action on
their part to secure registration is
now required. However, the regu-
lation provides that the Board
may later, by public announce
ment, require registration state
ments to be filed by persons af-
fected.
During the formulation Of the
ne Wamendments to Regulation K
and concurrent companion restric-
tions on gOvernment-aided housing
credit, consultations and meetings
were held with representatives of
the various business and consumer
groups affected. Such groups in
cluded manufacturers of and deal
ers in building supplies and mater
ials, labor and veterans and other
consumer organizations, bank and
trust companies, builders, real es-
tate dealers, and others interested
in construction and mortgage fl
nance.
Inquiries in regard to Regula-
ton X should be directed to one
of the twelve Federal reserve.
banks and their twenty-four
branches through which the regu-
lation is administered.
Instructions to field officers
for processing government-aided
housing loans under the new reg
ulations have been issued by the
Federal Housing Administration
and the Veterans Administration
in their respective fields.
Regulation w
Concerning the Federal Reserve
Boards statement on Regulation
w, the Gidney statement con-
tinued thus:
The import of this statement is
that even a straight rental plan"
must now be considered as coming
within the definition of install
ment Sale in Section 8 ID (5)
and must comply with the provi-
sions of the regulation pertinent
thereto. Distinctions previously
made with respect to the absence
or presence of an option to pur-
chase, an obligation on the part
of the lessee to pay rental sub
stantially equivalent to the pur-
chase price, or in provision for the
application of rental payments to
purchase price are no longer sig
nificant.
If Registrant leases a listed
article and receives payment in
instalments, he must collect from
the lessee an initial payment or
deposit equal to the down payment
that would be required if the
article were being sold on an in
stalment basis, and he must ar
range rental payments of a size
and character that would satisfy
the maturity and instalment pay
ment requirements of Regulation
w if the article were being so
sold. 1t should be observed that
the initial payment is equivalent
to a down payment" and may not
be borrowed from a Registrant.
The excess Of the initial and in
stalment payments thus required
over the value of the rent for the
article may be refunded upon
termination of the lease and re-
turn of the article. Other provi-
sions of the regulation pertain
ing to in S ia ! me mt sale S
will, of course, also apply.
Large scale transactions such
as the rental of automobiles To
fleet operators may be outside the
regulation by virtue of Section Z
(a) or Section 8 tj) 50 If The
total value of articles leased TO one
consumer in one transaction ex-
eeeds the limits set forth therein.
Registrars engaging in such
transactions should apply to the
Consumer Credit Department Of
this bank at its offices located in
Cleveland, Ohio. Ohio, or Pitts