Rule of 78 definition

Rule of 78 s Receivable" means any Receivable under which the portion of a payment allocable to earned interest (which may be referred to in the related retail installment sale contract as an add-on finance charge) and the portion allocable to the Amount Financed is determined according to the method commonly referred to as the "Rule of 78's" method, the "sum of periodic balances" method, the "sum of monthly balances" method or any equivalent method.

Rule of 78 s Payment" shall mean, with respect to any Precomputed Receivable which provides that, if such Receivable is prepaid in full, the amount payable will be determined according to the Rule of 78's method, an amount (if positive) equal to (i) the amount due allocating payments between principal and interest based upon the Rule of 78's minus (ii) the amount that would be due allocating payments between principal and interest from the date of origination of the Receivable using the Actuarial Method.

Rule of 78 means the method used to calculate the interest adjustment required to recapture interest owed in the event the Commission elects to early terminate an open-ended contract.

Examples of Rule of 78 in a sentence

• All credit accident and health insurance (both individual and group) shall be established and maintained on the basis of not less than the unearned gross premium computed on the basis of the sum of digits formula, common- ly known as the Rule of 78.

• Sum of the balances method," also known as the "Rule of 78," means a method employed with respect to a transaction to determine the portion of the finance charge attributable to a period of time before the scheduled due date of the final instalment of the transaction.

• You may become eligible to retire because you reach the Rule of 78, because you are at least 60 years of age, because you have 30 years of service or because you became permanently disabled.

• An appropriate combination of the pro rata method and the Rule of 78 method or, at the option of the insurer, the pro rata method shall be used for credit life insurance provided as a combination of level and decreasing term coverage and for credit accident and health insurance wherein the insured is covered for a constant maximum indemnity for a given period of time, after which the maximum indemnity begins to decrease in equal amounts per month.

• As an alternative the "Rule of 78" may be applied, in which case its operation shall be explained in the contract.B–7.

• If you request early repayment of the Cash Out Amount, we will charge you a terminationfee of HKD500 by direct debit from the Account, which will be shown in the following monthly statement.In such event, any promotional flat rate under this Program shall not be applicable to the total Cash Out Amount, and the Bank shall apportion the interests and the principal for each Repayment Amount (including those already paid to the Bank) in accordance with the Rule of 78.

• Interest rebate on hire purchase Term charges on hire purchase and leasing transactions are accounted for using the Rule of 78 (sum of digits) method.

• The rebate shall be calculated in accordance with the following Note :* The rebate will be calculated based on the "Rule of 78" or "Sum of Digits" whereby the method of calculation of the proportion of principal and profit payable for the entire Facility assumes that the profit forms a larger percentage of the monthly instalments during the early stage of the financing.

• The above APRs are reference rate which include the basic interest rate and other fees and charges of a product expressed as an annualised rate (if applicable).- The proportion of loan principal to interest in each monthly instalment amount is calculated according to the Rule of 78.

• The refund of any finance charge shall be computed according to the "sum of the balance method", also known as the "Rule of 78".

More Definitions of Rule of 78

Rule of 78 means the mathematical methodology of calculating interest generally known by that name.

Rule of 78 s Payment" shall mean, with respect to any Precomputed Receivable which provides that, if such Receivable is prepaid in full, the amount payable

Rule of 78 s Payment" shall mean, with respect to any Precomputed Receivable which provides that, if such Receivable is prepaid in full, the amount payable will be determined according to the Rule of 78's method, an amount (if positive) equal to (i) the amount due allocating payments between principal and interest based

Rule of 78 s Contract” means a Contract whereby the portion of a Scheduled Payment that is allocated to the payment of interest on a Contract is equal to the product of (i) a fraction (measured as of such date of determination), the numerator of which is Rterm of such Loan Contract and the denominator of which is the Fractional Interest Portions of such Contract (measured as of such date of determination), and (ii) the Original Unearned Interest of such Contract. The remaining amount of the Scheduled Payment, after deducting the portion thereof allocable to the payment of interest, is used to reduce the Principal Balance of such Contract.