§ 270.27h-1Exemptions from section 27(h)(4) for certain payments.
(a) For purposes of this section and section 27(h)(4) of the Act (1) “minimum monthly payment, or its equivalent,” shall be the amount of the smallest monthly installment scheduled to be made during the life of the plan; and (2) “quarter” shall be the 3-month period which commences on the date a periodic payment plan is issued and each 3-month period thereafter.
(b) The provisions of section 27(h) (4) (of the Act) shall not apply to:
(1) That portion of the first payment on a periodic payment plan certificate which equals the amount of five minimum monthly payments: Provided, however, That the deduction for sales load on any other payments received during the first quarter after the issuance of the certificate may not exceed the sales load applicable to payments subsequent to the first 48 monthly payments or their equivalent;
(2) A payment or payments received in any subsequent quarter which equals the amount of three minimum monthly payments: Provided, however, That after an amount equivalent to three minimum monthly payments (not including payments of arrears) is received in any such subsequent quarter the deduction for sales load on any additional payments received in such quarter may not exceed the sales load applicable to payments subsequent to the first 48 monthly payments or their equivalent;
(3) Payments of arrears by a certificate holder who is delinquent in his payments; and
(4) Any payments made on a periodic payment plan certificate out of the proceeds of completion insurance received upon the death of the certificate holder.
[36 FR 13139, July 15, 1971]
Title 17 published on 2012-04-01
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