§14A-3-109. Definition: "Loan finance charge".
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(a)"Loan finance charge" means a finance charge composed
of the sum of:
(i)all charges payable directly or indirectly by the
debtor and imposed directly or indirectly by the
lender as an incident to the extension of credit,
including any of the following types of charges,
which are applicable: interest or any amount
payable under a point, discount, or other system
of charges, however denominated, premium or other
charge for any guarantee or insurance protecting
the lender against the debtor's default or other
credit loss; and
(ii)charges incurred for investigating the collateral
or credit worthiness of the debtor or for
commissions or brokerage for obtaining the
credit, irrespective of the person to whom the
charges are paid or payable unless the lender had
no notice of the charges when the loan was made.
(b)The term does not include charges as a result of
default, additional charges under Sections 3-202 and
subsection
(4)of 3-508A of this title, delinquency
charges under Section 3-203 of this title, deferral
charges under Section 3-204 of this title, charges of
a type payable in a comparable cash transaction, or
sellers points. The finance charge shall not include
fees and amounts imposed by third-party closing
agents, including settlement agents, attorneys, and
escrow and title companies, if the creditor does not
require the imposition of the charges or the services
provided and does not retain the charges. Examples of
charges which are included in the finance charge
include any of the following types of charges which
are applicable:
(i)Interest, time price differential, and any amount
payable under a point, discount, or other system
of additional charges;
(ii)Service or carrying charge;
(iii)Loan fee, finder's fee, or similar charge;
(iv)Fee for an investigation or credit report;
(v)Premium or other charge for any guarantee or
insurance protecting the creditor against the
obligor's default or other credit loss; and
(vi)Borrower-paid mortgage broker fees, including
fees paid directly to the broker or the lender,
for delivery to the broker, whether such fees are
paid in cash or financed.
(2)If a lender makes a loan to a debtor by purchasing or satisfying obligations of the debtor pursuant to a lender credit card or similar arrangement, and the purchase or satisfaction is made at less than the face amount of the obligation, the discount is not part of the loan finance charge. Added by Laws 1969, c. 352, § 3-109, eff. July 1, 1969. Amended by Laws 1982, c. 335, § 35, operative June 1, 1982; Laws 2000, c. 217, § 5, eff. July 1, 2000; Laws 2002, c. 249, § 3, eff. Nov. 1, 2002; Laws 2021, c. 142, § 2, eff. Nov. 1, 2021.