16a-5-107.   (UCCC) Extortionate extensions of credit.(1) If it is the understanding of the creditor and the consumer at thetime an extension of credit is made that delay in making repayment orfailure to make repayment could result in the use of violence or othercriminal means to cause harm to the person, reputation, or property of anyperson, the repayment of the extension of credit is unenforceable throughcivil judicial processes against the consumer.

      (2)   If it is shown that an extension of credit was made at an annualrate exceeding thirty-six percent (36%) calculated according to theactuarial method and that the creditor then had a reputation for the use orthreat of use of violence or other criminal means to cause harm to theperson, reputation, or property of any person to collect extensions ofcredit or to punish the nonrepayment thereof, there is prima facie evidencethat the extension of credit was unenforceable under subsection (1).

      History:   L. 1973, ch. 85, § 83; Jan. 1, 1974.