2006 Kentucky Revised Statutes - .533   Authorized charges for extension of credit.

286.4-533 Authorized charges for extension of credit. Notwithstanding the provisions of KRS 286.4-530(10) or of any other law, in any extension of credit in accordance with Subtitle 4 of KRS Chapter 286, the licensee may charge and collect the following: (1)  A fee, or premium for insurance, in lieu of perfecting a security interest to the extent that the fee or premium does not exceed the fee payable to public officials for perfecting the security interest; and (2)  A bad check charge of fifteen dollars ($15), or the amount passed on from other financial institutions, whichever is greater, for any check, draft, negotiable order of withdrawal, or like instrument returned or dishonored for any reason by a depository institution, which charge licensee may charge and collect, through regular billing procedures, or otherwise from the borrower; and (3)  A reasonable attorney's fee, in connection with the collection of a loan, actually incurred by the licensee and paid to an attorney who is not an employee of the licensee; (4)  A charge for credit investigations of one dollar ($1) for each fifty dollars ($50) or fraction thereof of the principal amount of the loan. This charge shall be permitted only on the first two thousand dollars ($2,000) of the principal amount of the loan. No charge shall be collected unless a loan has been made as a result of the investigation; and (5)  An alternative to the default charge described in KRS 286.530(4), not to exceed five percent (5%) of each scheduled installment, or ten dollars ($10), whichever is greater. Only one (1) charge may be collected for each scheduled installment. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 157, sec. 4, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 198, sec. 4, effective July 15, 1998. -- Created 1992 Ky. Acts ch. 222, sec. 1, effective July 14, 1992. Formerly codified as KRS 288.533. Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.