United States Rule definition

United States Rule means that in partial payments on a debt, each payment is applied first to the finance charge and any remainder reduces the principal. Under this rule, accrued but unpaid finance charges cannot be added to the principal and interest cannot be compounded;
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Examples of United States Rule in a sentence

  • With respect to securities issued in the United States, Rule 14b-2 under the 1934 Act requires banks that hold securities for the account of customers to respond to requests by issuers of securities for the names, addresses and holdings of beneficial owners of securities of that issuer held by the bank unless the beneficial owner has expressly objected to disclosure of this information.

  • The Finance Charge is figured at the Annual Percentage Rate on the unpaid balances of the Principal Balance in accordance with the United States Rule method, also known as the simple interest earnings method.

  • The United States Rule is that each installment payment is applied first to Finance Charge and any remainder reduces the Principal Balance.

  • The computation of Finance Charges must comply with the United States Rule as defined in Appendix J of 12 C.F.R. Part 1026 (Regulation Z).