diff --git a/api/src/main/java/ca/bc/gov/educ/api/ruleengine/rule/RegistrationsFailedCrseRule.java b/api/src/main/java/ca/bc/gov/educ/api/ruleengine/rule/RegistrationsFailedCrseRule.java
index 03f8ceb..a67673a 100644
--- a/api/src/main/java/ca/bc/gov/educ/api/ruleengine/rule/RegistrationsFailedCrseRule.java
+++ b/api/src/main/java/ca/bc/gov/educ/api/ruleengine/rule/RegistrationsFailedCrseRule.java
@@ -33,10 +33,12 @@ public class RegistrationsFailedCrseRule extends BaseRule implements Rule {
     @Override
     public RuleData fire() {
         List<StudentCourse> studentCourseList = ruleProcessorData.getStudentCourses();
-
         Calendar cal = Calendar.getInstance(TimeZone.getTimeZone("PST"), Locale.CANADA);
         boolean inProgressCourse = false;
         for (StudentCourse studentCourse : studentCourseList) {
+            if (RuleEngineApiUtils.isCompletedCourse(studentCourse.getCompletedCourseLetterGrade(), studentCourse.getCompletedCoursePercentage())) {
+                continue;
+            }
             try {
                 Date sessionDate = toLastDayOfMonth(RuleEngineApiUtils.parseDate(studentCourse.getSessionDate() + "/01", DATE_FORMAT));
                 String sDate = RuleEngineApiUtils.formatDate(sessionDate, RuleEngineApiConstants.DEFAULT_DATE_FORMAT);
diff --git a/api/src/test/java/ca/bc/gov/educ/api/ruleengine/service/RuleEngineServiceTest.java b/api/src/test/java/ca/bc/gov/educ/api/ruleengine/service/RuleEngineServiceTest.java
index ad5e68a..ef6e447 100644
--- a/api/src/test/java/ca/bc/gov/educ/api/ruleengine/service/RuleEngineServiceTest.java
+++ b/api/src/test/java/ca/bc/gov/educ/api/ruleengine/service/RuleEngineServiceTest.java
@@ -5,9 +5,7 @@
 import java.util.*;
 import java.util.logging.Logger;
 
-import ca.bc.gov.educ.api.ruleengine.dto.RuleData;
 import ca.bc.gov.educ.api.ruleengine.dto.StudentCourse;
-import ca.bc.gov.educ.api.ruleengine.rule.MatchCreditsRule;
 import ca.bc.gov.educ.api.ruleengine.util.RuleProcessorRuleUtils;
 import org.junit.Test;
 import org.junit.runner.RunWith;
@@ -21,7 +19,6 @@
 import ca.bc.gov.educ.api.ruleengine.dto.RuleProcessorData;
 
 import static org.junit.Assert.*;
-import static org.mockito.Mockito.when;
 
 
 @RunWith(SpringRunner.class)
@@ -1207,6 +1204,38 @@ public void testProcessGradAlgorithmRules2018_EN_126187616() {
 		assertFalse(ruleProcessorData.isGraduated());
 	}
 
+	@Test
+	public void testRegistrationsFailedCourseRuleIgnoresFailingInterimWhenFinalExists() {
+		RuleProcessorData ruleProcessorData = getRuleProcessorData("2018-EN-126187616");
+		assertNotNull(ruleProcessorData);
+		ruleProcessorData.setProjected(false);
+		ruleProcessorData.getStudentCourses().add(
+				StudentCourse.builder()
+						.courseCode("ZZZ")
+						.courseName("Regression Test Course")
+						.courseLevel("12")
+						.sessionDate("209912")
+						.credits(4)
+						.gradReqMet("")
+						.gradReqMetDetail("")
+						.completedCoursePercentage(67.0)
+						.completedCourseLetterGrade("C")
+						.interimPercent(42.0)
+						.interimLetterGrade("F")
+						.build()
+		);
+
+		ruleProcessorData = ruleEngineService.processGradAlgorithmRules(ruleProcessorData);
+
+		assertNotNull(ruleProcessorData);
+		StudentCourse preservedCourse = ruleProcessorData.getStudentCourses().stream()
+				.filter(course -> "ZZZ".equals(course.getCourseCode()) && "12".equals(course.getCourseLevel()))
+				.findFirst()
+				.orElse(null);
+		assertNotNull(preservedCourse);
+		assertFalse(preservedCourse.isFailed());
+	}
+
 	@Test
 	public void testProcessGradAlgorithmRules2018_EN_cutoff_rule() {
 		RuleProcessorData ruleProcessorData = getRuleProcessorData("2018-EN-CUTOFF-RULE-DATA");