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Single Payment Obligation

Answered by: 
James W. Bruce, III

Question: 
In 226.20(a)of Reg Z the following is excluded from the term "refinancing" and therefore exempt from disclosure requirements: (1) A renewal of a single payment obligation with no change in the original terms. Does "single-payment" include a loan where principal is due at maturity (e.g. 12 months) but interest is payable periodically (e.g. quarterly)?
Answer: 

According to the Staff Commentary on Reg Z, "This exception applies both to obligations with a single payment of principal and interest and to obligations with periodic payments of interest and a final payment of principal."

First published on BankersOnline.com 2/05/07

First published on 02/05/2007

Filed under: 
Compliance
Filed under compliance as: 
Renewal

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