Days to First Payment -- Who Governs This?
by Andy Zavoina, BOL Guru
Question: Our bank has followed the practice of making first payments on all consumer loans come due no later than 45 days after the note date. I have received conflicting answers on whether this is required under Reg Z or state law. Could you please assist in determining if there is a limit to the time period within which a first payment must be due?
Answer: Reg. Z is basically a disclosure law. The days allowed until a first payment will be determined in your state code and may vary by loan term/type.
First published on BankersOnline.com 1/17/05
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