Answer:
The "unit period" is one month because that appears to be the only "common period" in the loan. See Paragraph (b)(4) of Reg. Z's Appendix J for a complete explanation of how to determine the length of a unit period.
Please note that it is confusing to refer to closed-end credit using the term "line of credit." In order to avoid wandering in and out of the wrong subparts of Reg. Z, "line", "revolver", and similar terms are best reserved for open-end credit. Construction loans, interim student loans, and certain reverse annuity mortgages are the most common examples of multiple advance closed-end credits. All fall short of the definition of open-end credit, however, because they do not provide for replenishment of available credit as any outstanding balance is repaid.
First published on BankersOnline.com 11/26/12
print
share