diff --git a/src/scanscalar.cpp b/src/scanscalar.cpp
index bd8fe42..7294ce9 100644
--- a/src/scanscalar.cpp
+++ b/src/scanscalar.cpp
@@ -111,13 +111,8 @@ namespace YAML
 			bool nextMoreIndented = (INPUT.peek() == ' ');
 
 			// for block scalars, we always start with a newline, so we should ignore it (not fold or keep)
-			bool useNewLine = pastOpeningBreak;
-			// and for folded scalars, we don't fold the very last newline to a space
-			if(params.fold && !emptyLine && INPUT.column() < params.indent)
-				useNewLine = false;
-
-			if(useNewLine) {
-				if(params.fold && !emptyLine && !nextEmptyLine && !moreIndented && !nextMoreIndented)
+			if(pastOpeningBreak) {
+				if(params.fold && !emptyLine && !nextEmptyLine && !moreIndented && !nextMoreIndented && INPUT.column() >= params.indent)
 					scalar += " ";
 				else
 					scalar += "\n";
diff --git a/src/scantoken.cpp b/src/scantoken.cpp
index 51bb8bf..cb56225 100644
--- a/src/scantoken.cpp
+++ b/src/scantoken.cpp
@@ -368,6 +368,7 @@ namespace YAML
 		params.fold = (indicator == Keys::FoldedScalar);
 
 		// eat chomping/indentation indicators
+		params.chomp = CLIP;
 		int n = Exp::Chomp.Match(INPUT);
 		for(int i=0;i<n;i++) {
 			char ch = INPUT.get();
diff --git a/yaml-reader/spectests.cpp b/yaml-reader/spectests.cpp
index b31328e..bc3a4d7 100644
--- a/yaml-reader/spectests.cpp
+++ b/yaml-reader/spectests.cpp
@@ -446,7 +446,7 @@ namespace Test {
 				"  home run record in 1998.\n"
 				"stats: |\n"
 				"  65 Home Runs\n"
-				"  0.278 Batting Average";
+				"  0.278 Batting Average\n";
 			std::stringstream stream(input);
 			YAML::Parser parser(stream);
 			YAML::Node doc;
@@ -454,8 +454,8 @@ namespace Test {
 			
 			YAML_ASSERT(doc.size() == 3);
 			YAML_ASSERT(doc["name"] == "Mark McGwire");
-			YAML_ASSERT(doc["accomplishment"] == "Mark set a major league home run record in 1998.");
-			YAML_ASSERT(doc["stats"] == "65 Home Runs\n0.278 Batting Average");
+			YAML_ASSERT(doc["accomplishment"] == "Mark set a major league home run record in 1998.\n");
+			YAML_ASSERT(doc["stats"] == "65 Home Runs\n0.278 Batting Average\n");
 			return true;
 		}