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- Code associated with the District of Columbia
- Commercial Instruments and Deals.
- Chapter 33. Interest and Usury.
- Р’ 28вЂњ3308. Finance fee on direct installment loans.
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(a) On that loan (aside from a loan straight guaranteed on property or perhaps a direct automobile installment loan included in Chapter 36 of the subtitle) to be paid back in equal or substantially equal monthly or any other regular installments, including that loan obtained making use of a check, bank card, or other unit to get into a credit line, any federally insured bank or cost savings and loan relationship working into the District of Columbia may contract for and receive interest during the price allowed under this chapter or, instead of such interest, a finance fee, which if expressed as a yearly portion price, will not surpass an interest rate of 24% per year regarding the unpaid balances for the principal. This area will not restrict or limit the way of contracting for the finance fee, whether by means of discount, add-on, or easy interest, as long as the apr for the finance fee will not surpass that permitted by this part.
(b) If such installment loan is precomputed,
(1) the finance cost can be determined from the presumption that most planned re payments will likely be made whenever due, and
(2) except as supplied in subsection (c), upon prepayment in filled with the unpaid stability of the precomputed installment that is direct, refinancing, or consolidation, a sum no less than the unearned part of the finance cost calculated relating to this area will probably be rebated into the debtor. In the event that rebate otherwise needed is lower than $1, no rebate need be produced.
(c) Upon prepayment in packed with such direct installment loan except that a refinancing or consolidation, whether or not precomputed, the lending company may gather or retain the very least fee inside the limits stated in this area in the event that finance fee attained during the time of prepayment is significantly less than any minimal charge contracted for. The charge that is minimum maybe maybe not surpass the smaller associated with the following: (1) the quantity of the finance cost contracted for, or (2) $5 in a deal which possessed a principal of $75 or less, or $7.50 in a deal which possessed a principal of greater than $75.
(d) The unearned percentage of the finance cost is a small fraction associated with finance cost of that your numerator may be the amount of the periodic balances planned to adhere to the computational duration in that the prepayment does occur, therefore the denominator may be the amount of all regular balances under either the associated loan contract or, if the stability owing resulted from the refinancing or even a consolidation, underneath the relevant refinancing contract or consolidation contract.
( ag e) As found in this area, finance fee, and annual percentage rate shall have the particular definitions beneath the conditions for the Truth-in-Lending Act (82 Stat. 146 et seq.; 15 U.S.C. Р’вЂљ1601 et seq.) therefore the laws and interpretations thereunder; and federally insured bank or cost cost cost savings and loan relationship means an insured bank as defined in part 3 associated with Federal Deposit Insurance Act or an insured organization as defined in part 401 associated with nationwide Housing Act.
This part is referenced in Р’ 28-3301, Р’ 28-3303, and Р’ 28-3802.
Sources in Text
Area 3 for the Federal Deposit Insurance Act and part 401 associated with the nationwide Housing Act, both described in subsection ( e) for this area, are codified in 12 U.S.C. Р’вЂљ1813 and 1724, correspondingly. 12 U.S.C. 1724 ended up being repealed by Pub. L. 101-73, name IV, Р’вЂљ407, August 9, 1989, 103 Stat. 363.
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