16a-2-202.   Finance charge for consumer credit salespursuantto open end credit.(1) With respect to a consumer credit sale made pursuant to open endcredit, aseller may charge a finance charge at any rate agreed to by the parties.

      (2)   A charge may be made in each billing cycle which is a percentageof an amount no greater than:

      (a)   The average daily balance of the account, which is the sum ofthe actual amounts outstanding each day during the billing cycle dividedby the number of days in the cycle;

      (b)   the unpaid balance of the account on the last day of the billingcycle.

      (3)   If the billing cycle is monthly, the charges may not exceed 1/12 ofthe annual rate agreed to by the consumer. If the billing cycle is not monthly,the maximum charge is that percentage which bears the same relation to theapplicable monthly percentage as the number of days in the billing cycle bearsto 30. For purposes of this subsection, a variation of not more than four daysfrom month to month is "the last day of the billing cycle."

      (4)   For any period in which a finance charge is due, the parties may agree ona minimum amount.

      (5)   This section does not apply to a sale of an interest in land. Subsection(11) of K.S.A. 16a-2-401, and amendments thereto, governs the limitations onfinance charges for a contract for deed to real estate where the parties agreein writing to make the transaction subject to the uniform consumer creditcode.

      History:   L. 1973, ch. 85, § 17; L. 1980, ch. 77, § 2; L. 1981,ch. 94, § 2; L. 1982, ch. 93, § 2; L. 1983, ch. 79, § 2;L. 1985, ch. 82, § 2;L. 1988, ch. 85, § 4; L. 1988, ch. 86, § 2;L. 1997, ch. 90, § 2;L. 1999, ch. 107, § 11; July 1.