| SB 0364 | Modifies allowable fees for handling refused instruments |
| Sponsor: | Yeckel | |||
| LR Number: | 0893S.01I | Fiscal Note: | 0893-01 | |
| Committee: | Financial and Governmental Organization, Veterans' Affairs & Elections | |||
| Last Action: | 03/06/03 - SCS SBs 364 & 365 Voted Do Pass S Financial & Govt. | Journal page: | ||
| Org., Veterans' Affairs & Elections Comm. (0893S.02C) | ||||
| Title: | ||||
| Effective Date: | August 28, 2003 | |||
SCS/SBs 364 & 365 - This act increases the allowable handling fee an institution may charge for processing a refused instrument to $25. Currently, an institution may charge up to $15.
A lender on a second mortgage loan is authorized to assess a handling fee for processing a refused instrument of $25. Currently, a lender may assess a fee of up to $15.
This act modifies the allowable charge for a late payment of an installment or minimum payment to $15 or an amount not to exceed 5% of each installment or minimum payment due, whichever is greater. Currently, the allowable charge is $25 or an amount not to exceed 5% of each installment or minimum payment due, which is less.
The default charge on any second mortgage loan for any
payment not paid in full within 15 days of its scheduled due date
is modified to $15 or an amount not to exceed 5% of each
installment or minimum payment due, whichever is greater.
Currently, the allowable charge is $25 or an amount not to exceed
5% of each installment or minimum payment due, which is less.
JIM ERTLE