Opinion ID: 449053
Heading Depth: 2
Heading Rank: 2

Heading: Regulation Y.

Text: 16 Plaintiff buys and sells new and used IBM computer equipment and arranges leases on new and used computer equipment. In late 1973 and early 1974, plaintiff entered three transactions, which formed the basis of this suit, with Decimus Computer Leasing Corporation, a company that also arranges leases of computer equipment. As a subsidiary of a bank holding company, Decimus is subject to the provisions of Regulation Y, promulgated by the Federal Reserve Board. Among other things, Regulation Y has required, and continues to require, that banks and bank holding company subsidiaries that lease personal property must receive a minimum level of return on their leases. 12 C.F.R. Sec. 225.25(b)(5) (1984). See also 12 C.F.R. Sec. 225.4(a)(6) (1983). The determination of the requisite level of return encompasses a variety of factors, including the length of the lease and the amounts of both the rental payments and any penalties for early termination.