16a-2-201. Finance charge for closed-end consumer credit sales.
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/ks/16a-2-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
16a-2-201. Finance charge for closed-end consumer credit sales.
(1)This section applies only to a closed-end consumer credit sale.
(2)A seller may charge a finance charge at any rate agreed to by the parties, subject, however, to the limitations on prepaid finance charges set forth in subsection (3).
(3)A seller may charge a prepaid finance charge:
(a)For any consumer credit sale, an amount not to exceed the lesser of 2% of the amount financed or $300.
(b)A prepaid finance charge permitted under this subsection is in addition to finance charges permitted under subsection (2). A prepaid finance charge permitted under this subsection is fully earned when paid and is nonrefundable, unless the parties agree otherwise in writing.