2006 Code of Virginia § 6.1-330.80 - Amount of late charge; when charge can be made

6.1-330.80. Amount of late charge; when charge can be made.

A. Any lender or seller may impose a late charge for failure to make timelypayment of any installment due on a debt, whether installment or singlematurity, provided that such late charge does not exceed five percent of theamount of such installment payment and that the charge is specified in thecontract between the lender or seller and the debtor. For the purposes ofthis section, "timely payment" is defined as one made by the date fixed forpayment or within a period of seven calendar days after such due date. Latecharges shall not be deemed to include charges imposed upon acceleration ofthe entire debt or to include costs of collection and attorney's fees asotherwise permitted by law by reason of a default by the debtor.

B. If any federal governmental agency or organization shall adopt any rulesor regulations dealing with the application of late penalties as to loansinsured or guaranteed by such federal agency or organization, then such rulesand regulations shall control as to such loans insured or guaranteed by them.

C. Any provision for late charges in excess of the amount permitted by thissection shall be void as to such excess but shall not otherwise affect thevalidity of the obligation.

(1987, c. 622.)