16a-2-502.   (UCCC) Delinquency charges.(1) Theparties to a consumer credit transaction may contract for a delinquency chargeon any installment not paid in full within 10 days after its scheduled ordeferred due date in an amount not exceeding 5% of the unpaid amountof the installment or $25, whichever is less.

      (2)   As an alternative to the delinquency charge set forth in subsection(1), the parties to a consumer credit transaction may contract for adelinquency charge not to exceed $10 on any installment not paid in full within10 days after its scheduled or deferred due date, except that if the scheduledpayment amount is $25 or less, the maximum delinquency charge shall be $5.

      (3)   A delinquency charge may becollected only once on an installment however long it remains in default. Adelinquency charge may be collected at thetime it accrues or at any time thereafter.

      (4)   No delinquency charge may be collected on an installmentwhich ispaid in full within 10 days after its scheduled or deferredinstallment due date even though an earlier maturing installment or adelinquency charge on an earlier installment may not have been paid infull.

      (5)   For delinquency charge purposes, a payment made prior to the due dateof the next installment payment shall be applied to the previous installment. For all other purposes, payments are applied to installments in the order inwhich they fall due.

      (6)   Notwithstanding subsections (1), (2), (4) and (5), the parties to alender credit card agreement may contract for a delinquency charge in an amountagreed to by the consumer and may impose such charge on any installment notpaid in full on the next business day following the scheduled due date of thedelinquent payment.

      (7)   Notwithstanding subsections (1), (2), (4), (5) and (6), no delinquencycharge may be collected on a lender credit card installment which is paid infull on the next business day following the scheduled or deferred due date eventhough an earlier maturing installment or a delinquency charge on an earlierinstallment may not have been paid in full.

      History:   L. 1973, ch. 85, § 30; L. 1975, ch.127, § 3;L. 1988, ch. 85, § 7; L. 1988, ch. 86, § 4; L. 1988, ch. 87, § 4;L. 1992, ch. 46, § 1;L. 1993, ch. 200, § 8;L. 1994, ch. 39, § 1;L. 1996, ch. 166, § 4;L. 1999, ch. 107, § 19; July 1.