Common use of Simple Interest Clause in Contracts

Simple Interest. Each Receivable provides for scheduled monthly payments that fully amortize the Amount Financed by maturity (except for minimally different payments in the first or last month in the life of the Receivable) and provides for a finance charge or yield interest at its APR, in either case calculated based on the Simple Interest Method. Test 3-1: Payments Review the Contract and confirm it reflects a level monthly payment except for the first and final payment, if any. Sum the first payment (if any), the product of the number of payments (or the number of regular payments, if there is a first or final payment) and the Payment Amount and the final payment (if any) and confirm that this amount is equal to the Total of Payments in the Truth in Lending section of the Contract. Test 3-2: Simple Interest Observe the Contact and confirm it is a Simple Interest Method Contract.

Simple Interest. Each Receivable provides for scheduled monthly payments that fully amortize the Amount Financed by maturity (except for minimally different payments in the first or last month in the life of the Receivable) and provides provide for a finance charge or yield interest at its APR, in either case calculated based on the Simple Interest Method. Test 3-1: Payments Review the Contract and confirm it reflects a level monthly payment except for the first and final payment, if any. Sum the first payment (if any), the product of the number of payments (or the number of regular payments, if there is a first or final payment) and the Payment Amount and the final payment (if any) and confirm that this amount is equal to the Total of Payments in the Truth in Lending section of the Contract. Test 3-2: Simple Interest Observe the Contact and confirm it is a Simple Interest Method Contract.