6.2-402 - (Effective October 1, 2010) Notice of use of Rule of 78 rebate method.
§ 6.2-402. (Effective October 1, 2010) Notice of use of Rule of 78 rebatemethod.
Where any loan or sale on credit contains a provision that a rebate ofunearned interest shall be calculated in accordance with the Rule of 78rebate method as defined in § 6.2-403, the note or other instrumentevidencing the loan or sale on credit shall contain a notice advising theborrower of the effect of the interest calculation. The notice shall be inall capital letters and in 10-point type, and shall be substantially asfollows:
NOTICE: IF YOU PAY THIS LOAN OR SALE ON CREDIT PARTIALLY OR IN FULL BEFOREITS DUE DATE, THE AMOUNT OF INTEREST YOU PAY WILL BE GREATER THAN THE AMOUNTOF INTEREST YOU WOULD PAY FOR A SIMPLE INTEREST LOAN OF THE SAME PRINCIPALAMOUNT.
(1990, c. 941, § 6.1-330.85:1; 2010, c. 794.)