Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part III - Savings Association Bureau
Chapter 34a - CONSUMER LOANS, COMMERCIAL PAPER AND CORPORATE DEBT SECURITIES
Section 34a.1 - Definitions

The following words and terms, when used in this chapter have the following meanings, unless the context clearly indicates otherwise:

Association-A savings association subject to the Code.

Code-The Savings Association Code of 1967 (7 P. S. §§ 6020-1-6020-254).

Closed-end consumer credit-Consumer credit other than open-end consumer credit.

Commercial paper-Any note, draft or bill of exchange which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions and which has a maturity at the time of issuance not exceeding 9 months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.

Consumer credit-Credit extended to a natural person for personal, family or household purposes including loans secured by liens on real estate and chattel liens secured by mobile homes; provided, the association relies substantially upon other factors such as the general credit standing of the borrower, guarantees, or security other than the real estate or mobile home as the primary security for the loan; appropriate evidence to demonstrate justification for such reliance should be retained in the association's files. Among the types of credit included in this term are consumer loans; educational loans; unsecured loans for real property alteration, repair or improvement or for the equipping of real property; loans in the nature of overdraft protection; and credit extended in connection with credit cards.

Consumer credit classified as a loss -Closed-end consumer credit delinquent 120 days or more-5 monthly payments or more-and open-end consumer credit delinquent 180 days or more-seven zero-billing cycles or more. For the purposes of computing delinquency, a payment of 90% or more of the contractual payment will be considered as a full payment. If an association can clearly demonstrate that repayment would occur regardless of delinquency status-for example: the loan is well-secured by collateral and is in the process of collection, the loan is supported by a valid guarantee or insurance, or it is a loan where claims have been filed against a solvent estate-then such loan need not be classified as a loss. The following table illustrates the delinquency computation:

Consumer loan-A secured or unsecured loan to a natural person for personal, family, or household purposes. Such loan-as a type of consumer credit-may be made as either open-end or closed-end consumer credit but does not include credit extended in connection with credit cards and loans in the nature of overdraft protection.

Corporate debt security-A marketable obligation, evidencing the indebtedness of any corporation in the form of a bond, note, or debenture which is commonly regarded as debt security and is not predominantly speculative in nature. A security is marketable if it may be sold with reasonable promptness at a price which corresponds reasonably to its fair market value.

Loans-Obligations and extensions or advances of credit. Any reference to a loan or investment includes an interest in such a loan or investment.

Open-end consumer credit-"Open-end credit" as defined in Regulation Z ( 12 CFR 226.2.

Scheduled items-Slow consumer credit and slow loans other than loans specified in the Definition of "consumer credit classified as a loss."

Slow consumer credit-Closed-end consumer credit delinquent 90 to 119 days-four monthly payments-and open-end consumer credit delinquent 90 to 179 days four to six zero-billing cycles. For the purposes of computing delinquency, a payment of 90% or more of the contractual payment will be considered as a full payment. If an association can clearly demonstrate that repayment would occur regardless of delinquency status-for example: the loan is well-secured by collateral and is in the process of collection, the loan is supported by a valid guarantee or insurance, or it is a loan where the claims have been filed against a solvent estate-then such loan need not be classified as "slow consumer credit." The following table illustrates the delinquency computation:

This section cited in 10 Pa. Code § 34a.4 (relating to scheduled items and consumer credit classified as a loss).