(1) Delinquency charges may be made not to exceed five cents ($0.05) for each dollar
($1) of each installment more than ten (10) days in arrears, and only one (1) delinquency
charge shall be made on any one (1) installment. No delinquency charge shall exceed five dollars ($5) on any one (1) installment. A certificate holder and borrower may agree in writing to a deferral of all or part
of one (1) or more unpaid installments, and the certificate holder may make and collect
a charge not exceeding a rate of seven dollars ($7) per one hundred dollars ($100)
per annum. In addition to such charges attorneys' fees not exceeding fifteen percent (15%)
of the unpaid balance and court costs may be collected, provided that the note is
referred to an attorney not a salaried employee of the holder for collection.
(2) The certificate holder shall permit the borrower to repay his loan in whole or
in part at any time. If a loan is paid in full prior to maturity, the certificate holder shall make a
rebate at a rate not less than in accordance with the Rule of 78s if the maximum financing
charge permitted under KRS 286.7-410 to 286.7-600 has been taken. If a lesser charge has been taken, the rebate shall be at not less than a proportional
rate. Provided, however, the certificate holder shall be permitted in computing rebates
to retain a minimum charge of ten dollars ($10) to cover its acquisition costs and
where the amount of credit for anticipation of repayment is less than one dollar ($1),
no rebate need be made.
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