diff --git a/Builds/VisualStudio2015/RippleD.vcxproj b/Builds/VisualStudio2015/RippleD.vcxproj
index 68a039a45..8944f2dc3 100644
--- a/Builds/VisualStudio2015/RippleD.vcxproj
+++ b/Builds/VisualStudio2015/RippleD.vcxproj
@@ -1191,6 +1191,10 @@
       <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='debug|x64'">True</ExcludedFromBuild>
       <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='release|x64'">True</ExcludedFromBuild>
     </ClCompile>
+    <ClCompile Include="..\..\src\ripple\app\tests\SetRegularKey.test.cpp">
+      <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='debug|x64'">True</ExcludedFromBuild>
+      <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='release|x64'">True</ExcludedFromBuild>
+    </ClCompile>
     <ClCompile Include="..\..\src\ripple\app\tests\SHAMapStore_test.cpp">
       <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='debug|x64'">True</ExcludedFromBuild>
       <ExcludedFromBuild Condition="'$(Configuration)|$(Platform)'=='release|x64'">True</ExcludedFromBuild>
diff --git a/Builds/VisualStudio2015/RippleD.vcxproj.filters b/Builds/VisualStudio2015/RippleD.vcxproj.filters
index a51dcbd59..5a2880c87 100644
--- a/Builds/VisualStudio2015/RippleD.vcxproj.filters
+++ b/Builds/VisualStudio2015/RippleD.vcxproj.filters
@@ -1656,6 +1656,9 @@
     <ClCompile Include="..\..\src\ripple\app\tests\SetAuth_test.cpp">
       <Filter>ripple\app\tests</Filter>
     </ClCompile>
+    <ClCompile Include="..\..\src\ripple\app\tests\SetRegularKey.test.cpp">
+      <Filter>ripple\app\tests</Filter>
+    </ClCompile>
     <ClCompile Include="..\..\src\ripple\app\tests\SHAMapStore_test.cpp">
       <Filter>ripple\app\tests</Filter>
     </ClCompile>
diff --git a/src/ripple/app/tests/SetRegularKey.test.cpp b/src/ripple/app/tests/SetRegularKey.test.cpp
new file mode 100644
index 000000000..691037bb9
--- /dev/null
+++ b/src/ripple/app/tests/SetRegularKey.test.cpp
@@ -0,0 +1,107 @@
+//------------------------------------------------------------------------------
+/*
+    This file is part of rippled: https://github.com/ripple/rippled
+    Copyright (c) 2016 Ripple Labs Inc.
+
+    Permission to use, copy, modify, and/or distribute this software for any
+    purpose  with  or without fee is hereby granted, provided that the above
+    copyright notice and this permission notice appear in all copies.
+
+    THE  SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+    WITH  REGARD  TO  THIS  SOFTWARE  INCLUDING  ALL  IMPLIED  WARRANTIES  OF
+    MERCHANTABILITY  AND  FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+    ANY  SPECIAL ,  DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+    WHATSOEVER  RESULTING  FROM  LOSS  OF USE, DATA OR PROFITS, WHETHER IN AN
+    ACTION  OF  CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+    OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+*/
+//==============================================================================
+
+#include <ripple/protocol/JsonFields.h>
+#include <ripple/protocol/Feature.h>
+#include <ripple/test/jtx.h>
+
+namespace ripple {
+
+class SetRegularKey_test : public beast::unit_test::suite
+{
+public:
+
+    void testDisableMasterKey()
+    {
+        using namespace test::jtx;
+        Env env(*this);
+        Account const alice("alice");
+        Account const bob("bob");
+        env.fund(XRP(10000), alice, bob);
+
+        // Master and Regular key
+        env(regkey(alice, bob));
+        auto const ar = env.le(alice);
+        BEAST_EXPECT(ar->isFieldPresent(sfRegularKey) && (ar->getAccountID(sfRegularKey) == bob.id()));
+
+        env(noop(alice));
+        env(noop(alice), sig(bob));
+        env(noop(alice), sig(alice));
+
+        // Regular key only
+        env(fset(alice, asfDisableMaster), sig(alice));
+        env(noop(alice));
+        env(noop(alice), sig(bob));
+        env(noop(alice), sig(alice), ter(tefMASTER_DISABLED));
+        env(fclear(alice, asfDisableMaster), sig(alice), ter(tefMASTER_DISABLED));
+        env(fclear(alice, asfDisableMaster), sig(bob));
+        env(noop(alice), sig(alice));
+    }
+
+    void testPasswordSpent()
+    {
+        using namespace test::jtx;
+        Env env(*this);
+        Account const alice("alice");
+        Account const bob("bob");
+        env.fund(XRP(10000), alice, bob);
+
+        auto ar = env.le(alice);
+        BEAST_EXPECT(ar->isFieldPresent(sfFlags) && ((ar->getFieldU32(sfFlags) & lsfPasswordSpent) == 0));
+
+        env(regkey(alice, bob), sig(alice), fee(0));
+
+        ar = env.le(alice);
+        BEAST_EXPECT(ar->isFieldPresent(sfFlags) && ((ar->getFieldU32(sfFlags) & lsfPasswordSpent) == lsfPasswordSpent));
+
+        // The second SetRegularKey transaction with Fee=0 should fail.
+        env(regkey(alice, bob), sig(alice), fee(0), ter(telINSUF_FEE_P));
+
+        env.trust(bob["USD"](1), alice);
+        env(pay(bob, alice, bob["USD"](1)));
+        ar = env.le(alice);
+        BEAST_EXPECT(ar->isFieldPresent(sfFlags) && ((ar->getFieldU32(sfFlags) & lsfPasswordSpent) == 0));
+    }
+
+    void testUniversalMaskError()
+    {
+        using namespace test::jtx;
+        Env env(*this);
+        Account const alice("alice");
+        Account const bob("bob");
+        env.fund(XRP(10000), alice, bob);
+
+        auto jv = regkey(alice, bob);
+        jv[sfFlags.fieldName] = tfUniversalMask;
+        env(jv, ter(temINVALID_FLAG));
+    }
+
+    void run()
+    {
+        testDisableMasterKey();
+        testPasswordSpent();
+        testUniversalMaskError();
+    }
+
+};
+
+BEAST_DEFINE_TESTSUITE(SetRegularKey,app,ripple);
+
+}
+
diff --git a/src/ripple/unity/app_tests.cpp b/src/ripple/unity/app_tests.cpp
index 8bdd2097e..9e1dd8002 100644
--- a/src/ripple/unity/app_tests.cpp
+++ b/src/ripple/unity/app_tests.cpp
@@ -35,6 +35,7 @@
 #include <ripple/app/tests/SHAMapStore_test.cpp>
 #include <ripple/app/tests/SusPay_test.cpp>
 #include <ripple/app/tests/SetAuth_test.cpp>
+#include <ripple/app/tests/SetRegularKey.test.cpp>
 #include <ripple/app/tests/OversizeMeta_test.cpp>
 #include <ripple/app/tests/Taker.test.cpp>
 #include <ripple/app/tests/Transaction_ordering_test.cpp>