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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;
(2) A bad check charge of twenty-five dollars ($25), 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;
(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 and fifty cents ($1.50) 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;
(5) An alternative to the default charge described in KRS 286.4-530(4), not to
exceed five percent (5%) of each scheduled installment, or fifteen dollars ($15),
whichever is greater. Only one (1) charge may be collected for each scheduled
installment; and
(6) Costs or other expenses authorized for a secured party in accordance with
KRS 355.9-207 and 355.9-607.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 28, sec. 21, effective July 15, 2010. -Amended 2008 Ky. Acts ch. 93, sec. 1, effective July 15, 2008. -- 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.
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