Downpayment Law and Legal Definition

According to 15 USCS Appx 12 CFR § 226.2 (18), [Title 15. Commerce and Trade; Chapter 41. Consumer Credit Protection; Truth in Lending Regulations. (Regulation Z); Subpart A. General] the term downpayment means “an amount, including the value of any property used as a trade-in, paid to a seller to reduce the cash price of goods or services purchased in a credit sale transaction. A deferred portion of a downpayment may be treated as part of the downpayment if it is payable not later than the due date of the second otherwise regularly scheduled payment and is not subject to a finance charge.”