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286.7-500 Delinquency charges.
(1)
(2)
Delinquency charges may be made not to exceed five cents ($0.05) for each
dollar ($1) of each installment more than ten (10) days in arrears, and only one
(1) delinquency charge shall be made on any one (1) installment. No
delinquency charge shall exceed five dollars ($5) on any one (1) installment. A
certificate holder and borrower may agree in writing to a deferral of all or part of
one (1) or more unpaid installments, and the certificate holder may make and
collect a charge not exceeding a rate of seven dollars ($7) per one hundred
dollars ($100) per annum. In addition to such charges attorneys' fees not
exceeding fifteen percent (15%) of the unpaid balance and court costs may be
collected, provided that the note is referred to an attorney not a salaried
employee of the holder for collection.
The certificate holder shall permit the borrower to repay his loan in whole or in
part at any time. If a loan is paid in full prior to maturity, the certificate holder
shall make a rebate at a rate not less than in accordance with the Rule of 78s if
the maximum financing charge permitted under KRS 286.7-410 to 286.7-600
has been taken. If a lesser charge has been taken, the rebate shall be at not
less than a proportional rate. Provided, however, the certificate holder shall be
permitted in computing rebates to retain a minimum charge of ten dollars ($10)
to cover its acquisition costs and where the amount of credit for anticipation of
repayment is less than one dollar ($1), no rebate need be made.
History: Amended 1972 Ky. Acts ch. 317, sec. 4. -- Created 1962 Ky. Acts ch. 166,
sec. 6(3) and (4).
Formerly codified as KRS 291.500.
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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