§476-28  Regulation of finance charges. 
It shall be unlawful, directly or indirectly, to charge, contract for, collect,
or receive any finance charge, on a credit sale contract except as is provided
by this section.



(1)  If the finance charge is stated as a dollar
amount and is added on or deducted in advance, and the buyer promises to pay a
fixed total of payments, the finance charge shall not exceed the amount of
interest or discount which could lawfully be added on or deducted in advance by
a financial services loan company under article 9 of chapter 412 on a loan to
run for the same period as the credit sale contract, where the actual cash
received by the borrower would be equal in amount to the principal balance of
the credit sale contract, provided that a minimum finance charge of not more
than $10 shall be allowable in a credit sale when the finance charge is stated
in a dollar amount.  Upon maturity of a contract, the rate of finance charge on
the unpaid principal balance of the contract shall be eighteen per cent a year,
unless a lesser rate for after maturity finance charge is specified in the
contract.



(2)  As an alternative to the finance charge
authorized by paragraph (1), a seller may contract for and receive a finance
charge at a rate not exceeding twenty-four per cent a year on the principal
balance remaining unpaid from time to time under the contract, whether or not
the rate of the finance charge under the contract is fixed or variable.  Upon
maturity of a contract, the rate of finance charge on the unpaid principal
balance of the contract may be twelve per cent a year, the original contract
rate of finance charge or, in the case of any extension or deferral, the rate
of finance charge permitted by this chapter on the amount extended or deferred,
whichever is greatest. [L 1961, c 102, pt of §1; Supp, §201A-31; HRS §476-33;
am L 1979, c 212, §1; am and ren L 1984, c 86, pt of §1; am L 1989, c 266, §3;
am L 1993, c 350, §23]