16a-5-107. (UCCC) Extortionate extensions of credit.
16a-5-107
16a-5-107. (UCCC) Extortionate extensions of credit.
(1) If it is the understanding of the creditor and the consumer at the
time an extension of credit is made that delay in making repayment or
failure to make repayment could result in the use of violence or other
criminal means to cause harm to the person, reputation, or property of any
person, the repayment of the extension of credit is unenforceable through
civil judicial processes against the consumer.
(2) If it is shown that an extension of credit was made at an annual
rate exceeding thirty-six percent (36%) calculated according to the
actuarial method and that the creditor then had a reputation for the use or
threat of use of violence or other criminal means to cause harm to the
person, reputation, or property of any person to collect extensions of
credit or to punish the nonrepayment thereof, there is prima facie evidence
that the extension of credit was unenforceable under subsection (1).
History: L. 1973, ch. 85, § 83; Jan. 1, 1974.