16101292D Be it enacted by the General Assembly of Virginia: 1. That §6.2-1520 of the Code of Virginia is amended and reenacted as follows: §6.2-1520. Rate of interest; late charges; processing fees. A. A licensee may charge and receive interest on loans
The annual rate of interest shall be charged only upon principal balances outstanding from time to time. Interest shall not be charged on an add-on basis and shall not be compounded or paid, deducted or received in advance. For the purpose of calculating interest under this section, a year may be any period of time consisting of 360 or 365 days. B. A licensee may impose a late charge for failure to make
timely payment of any installment due on a debt, which late charge shall not
exceed the greater of $20
or five percent of the amount of such installment payment.
The late charge shall be specified in the loan contract between the lender and
the borrower. For purposes of this section, "timely payment" means a
payment made by the date fixed for payment or within a period of C. A licensee may charge and receive a processing fee, charged
on the principal amount of the loan, for processing the loan contract. The
processing fee shall be stated in the loan contract. Such processing fee shall
be deemed to constitute interest charged on the principal amount of the loan
for purposes of determining whether the interest charged on a loan 2. That nothing contained in this act shall prohibit the collection of any outstanding loan or extension of credit made under §6.2-1520 of the Code of Virginia in accordance with the terms of a loan agreement made prior to the effective date of this act; however, no additional extensions of credit or advances shall be made on or after the effective date of this act under such a loan agreement that violates the provisions of this act. |