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- D.C. Law Library
- Code of this District of Columbia
- Commercial Instruments and Deals.
- Chapter 33. Interest and Usury.
- Р’ 28вЂњ3308. Finance cost on direct installment loans.
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(a) On that loan (aside from a loan straight guaranteed on real-estate or perhaps a motor that is direct installment loan included in Chapter 36 of the subtitle) become paid back in equal or substantially equal monthly or any other regular installments, including that loan acquired simply by using a check, bank card, or any other unit to get into a personal credit line, any federally insured bank or cost cost savings and loan relationship working within the District of Columbia may contract for and get interest during the rate allowed under this chapter or, instead of such interest, a finance charge, which if expressed as her explanation a yearly portion price, will not go beyond an interest rate of 24% per year on the unpaid balances associated with principal. This area does not restrict or limit the way of contracting for the finance cost, whether by means of discount, add-on, or interest that is simple as long as the annual percentage rate of this finance cost will not surpass that permitted by this section.
(b) If such installment loan is precomputed,
(1) the finance fee might be calculated regarding the presumption that most planned re payments are going to be made whenever due, and
(2) except as supplied in subsection (c), upon prepayment in packed with the unpaid stability of the precomputed direct installment loan, refinancing, or consolidation, a sum for around the unearned part of the finance fee calculated relating to this area will be rebated towards the debtor. In the event that rebate otherwise needed is lower than $1, no rebate need be manufactured.
(c) Upon prepayment in saturated in such direct installment loan apart from a refinancing or consolidation, whether or perhaps not precomputed, the financial institution may gather or retain the absolute minimum fee inside the limits stated in this part in the event that finance fee attained during the time of prepayment is not as much as any minimal charge contracted for. The charge that is minimum maybe perhaps not surpass small regarding the following: (1) the amount of the finance fee 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 in excess of $75.
(d) The unearned percentage of the finance cost is a small fraction associated with finance cost of that your numerator may be the sum of the regular balances planned to follow along with the computational duration in that the prepayment happens, and also the denominator could be the amount of all regular balances under either the associated loan contract or, in the event that stability owing resulted from a refinancing or perhaps a consolidation, beneath the relevant refinancing contract or consolidation contract.
( ag ag e) As utilized in this area, finance cost, and apr shall have the particular definitions underneath the provisions for the Truth-in-Lending Act (82 Stat. 146 et seq.; 15 U.S.C. Р’вЂљ1601 et seq.) plus the laws and interpretations thereunder; and federally insured bank or cost savings and loan association means an insured bank as defined in area 3 regarding the Federal Deposit Insurance Act or an insured institution as defined in part 401 regarding the nationwide Housing Act.
This part is referenced in Р’ 28-3301, Р’ 28-3303, and Р’ 28-3802.
Sources in Text
Part 3 associated with Federal Deposit Insurance Act and part 401 associated with nationwide Housing Act, both described in subsection ( ag e) for this area, are codified in 12 U.S.C. Р’вЂљ1813 and 1724, correspondingly. 12 U.S.C. 1724 had been repealed by Pub. L. 101-73, name IV, Р’вЂљ407, 9, 1989, 103 Stat august. 363.
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