Part 2 CONSUMER CREDIT SALES; MAXIMUM FINANCE CHARGES
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-201.Finance charge for closed end consumer
credit sales.
(1) This section applies only to a closed end
consumer credit sale.
(2) A seller may charge a finance charge at any rate agreed to by
the parties, subject, however, to the limitations on prepaid finance charges
set forth in subsection (3).
(3) A seller may charge a prepaid finance charge:
(a) For a consumer credit sale secured by a security interest in a
manufactured home as defined by 42 U.S.C. 5402(6), in an amount not to exceed
5% of the amount financed for the sole purpose of reducing the interest rate of
the consumer credit sale; or
(b) for any other consumer credit sale, an amount not to exceed the lesser of
2% of the amount financed or $100.
(c) A prepaid finance charge permitted under this subsection is in addition
to finance charges permitted under subsection (2). A prepaid finance charge
permitted under this subsection is fully earned when paid and is nonrefundable,
unless the parties agree otherwise in writing.
(4) If the sale is precomputed:
(a) The finance charge may be calculated on the assumption that all scheduled
payments will be made when due, and the fact that payments are made either
before or after the due date does not affect the amount of finance charge which
the creditor may charge or receive; and
(b) the effect of prepayment is governed by subsection (5).
(5) Rebate upon prepayment:
(a) Except as provided for in this section, upon prepayment in full of a
precomputed consumer credit transaction, the creditor shall rebate to the
consumer an amount not less than the amount of rebate provided in subsection
(b), paragraph (1), or redetermine the earned finance charge as provided in
subsection (b), paragraph (2), and rebate any other unearned charges including
charges for insurance.
The rebate for charges for insurance shall be as prescribed by statute, rules
and regulations and administrative interpretations by the administrator.
If the rebate otherwise required is less than $1, no
rebate need be made.
(b) The amount of rebate and redetermined earned finance charge shall be as
follows:
(1) The amount of rebate shall be determined by applying, according to the
actuarial method, the rate of finance charge which was required to be disclosed
in the transaction:
(i) Where no deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as originally scheduled for the period
following prepayment; and
(ii) where deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as extended by deferral for the period
following prepayment.
The time remaining for the period following prepayment shall be either the
full days following prepayment; or both the full days, counting the date of
prepayment, between the prepayment date and the end of the computational period
in which the prepayment occurs, and the full computational periods following
the date of prepayment to the scheduled due date of the final installment of
the transaction.
(2) The redetermined earned finance charge shall be determined by applying,
according to the actuarial method, the rate of finance charge which was
required to be disclosed in the transaction to the actual unpaid balances of
the amount financed for the actual time the unpaid balances were outstanding as
of the date of prepayment. Any delinquency or deferral charges collected
before the date of prepayment do not become a part of the total finance charge
for purposes of rebating unearned charges.
(c) Upon prepayment, but not otherwise, of a consumer credit transaction
whether or not precomputed, other than a consumer lease, a consumer rental
purchase agreement, or a transaction pursuant to open end credit:
(1) If the prepayment is in full, the creditor may collect or retain a
minimum charge not exceeding $5 in a transaction which had an amount
financed of $75 or less, or not exceeding $7.50 and
in a transaction which had an amount financed of more than
$75, if the finance charge earned at the time of prepayment is
less than the minimum allowed pursuant to this subsection.
(2) If the prepayment is in part, the creditor may not collect or retain a
minimum finance charge.
(d) For the purposes of this section, the following defined terms apply:
(1) "Computational period" means the interval between scheduled due dates of
installments under the transaction if the intervals are substantially equal or,
if the intervals are not substantially equal, one month if the smallest
interval between the scheduled due dates of installments under the transaction
is one month or more, and otherwise one week.
(2) The "interval" between specified dates means the interval between them
including one or the other but not both of them. If the interval between the
date of the transaction and the due date of the first scheduled installment
does not exceed one month by more than fifteen days when the computational
period is one month, or eleven days when the computational period is one week,
the interval may be considered by the creditor as one computational period.
(e) This section does not preclude the collection or retention by the
creditor of delinquency charges.
(f) If the maturity is accelerated by any reason and judgment is obtained,
the consumer is entitled to the same rebate as if payment had been made on the
date maturity is accelerated.
(g) Upon prepayment in full of a precomputed consumer credit transaction by
the proceeds of consumer credit insurance, the consumer or the consumer's
estate is
entitled to the same rebate as though the consumer had prepaid the agreement on
the date the proceeds of the insurance are paid to the creditor, but no later
than ten business days after satisfactory proof of loss is furnished to the
creditor.
(6) 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 on finance charges for a contract for deed to real estate where the
parties agree in writing to make the transaction subject to the uniform
consumer credit code.
History: L. 1973, ch. 85, § 16;
L. 1980, ch. 77, § 1; L. 1981,
ch. 94, § 1; L. 1982, ch. 93, § 1; L. 1983, ch. 79, § 1;
L. 1985, ch. 82, § 1;
L. 1988, ch. 85, § 3; L. 1988, ch. 86, § 1; L. 1988, ch. 87,
§ 1;
L. 1993, ch. 200, § 6;
L. 1995, ch. 54, § 1;
L. 1997, ch. 90, § 1;
L. 1998, ch. 107, § 1;
L. 1999, ch. 107, § 10;
L. 2000, ch. 28, § 1; July 1.
Part 2 CONSUMER CREDIT SALES; MAXIMUM FINANCE CHARGES
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-201.Finance charge for closed end consumer
credit sales.
(1) This section applies only to a closed end
consumer credit sale.
(2) A seller may charge a finance charge at any rate agreed to by
the parties, subject, however, to the limitations on prepaid finance charges
set forth in subsection (3).
(3) A seller may charge a prepaid finance charge:
(a) For a consumer credit sale secured by a security interest in a
manufactured home as defined by 42 U.S.C. 5402(6), in an amount not to exceed
5% of the amount financed for the sole purpose of reducing the interest rate of
the consumer credit sale; or
(b) for any other consumer credit sale, an amount not to exceed the lesser of
2% of the amount financed or $100.
(c) A prepaid finance charge permitted under this subsection is in addition
to finance charges permitted under subsection (2). A prepaid finance charge
permitted under this subsection is fully earned when paid and is nonrefundable,
unless the parties agree otherwise in writing.
(4) If the sale is precomputed:
(a) The finance charge may be calculated on the assumption that all scheduled
payments will be made when due, and the fact that payments are made either
before or after the due date does not affect the amount of finance charge which
the creditor may charge or receive; and
(b) the effect of prepayment is governed by subsection (5).
(5) Rebate upon prepayment:
(a) Except as provided for in this section, upon prepayment in full of a
precomputed consumer credit transaction, the creditor shall rebate to the
consumer an amount not less than the amount of rebate provided in subsection
(b), paragraph (1), or redetermine the earned finance charge as provided in
subsection (b), paragraph (2), and rebate any other unearned charges including
charges for insurance.
The rebate for charges for insurance shall be as prescribed by statute, rules
and regulations and administrative interpretations by the administrator.
If the rebate otherwise required is less than $1, no
rebate need be made.
(b) The amount of rebate and redetermined earned finance charge shall be as
follows:
(1) The amount of rebate shall be determined by applying, according to the
actuarial method, the rate of finance charge which was required to be disclosed
in the transaction:
(i) Where no deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as originally scheduled for the period
following prepayment; and
(ii) where deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as extended by deferral for the period
following prepayment.
The time remaining for the period following prepayment shall be either the
full days following prepayment; or both the full days, counting the date of
prepayment, between the prepayment date and the end of the computational period
in which the prepayment occurs, and the full computational periods following
the date of prepayment to the scheduled due date of the final installment of
the transaction.
(2) The redetermined earned finance charge shall be determined by applying,
according to the actuarial method, the rate of finance charge which was
required to be disclosed in the transaction to the actual unpaid balances of
the amount financed for the actual time the unpaid balances were outstanding as
of the date of prepayment. Any delinquency or deferral charges collected
before the date of prepayment do not become a part of the total finance charge
for purposes of rebating unearned charges.
(c) Upon prepayment, but not otherwise, of a consumer credit transaction
whether or not precomputed, other than a consumer lease, a consumer rental
purchase agreement, or a transaction pursuant to open end credit:
(1) If the prepayment is in full, the creditor may collect or retain a
minimum charge not exceeding $5 in a transaction which had an amount
financed of $75 or less, or not exceeding $7.50 and
in a transaction which had an amount financed of more than
$75, if the finance charge earned at the time of prepayment is
less than the minimum allowed pursuant to this subsection.
(2) If the prepayment is in part, the creditor may not collect or retain a
minimum finance charge.
(d) For the purposes of this section, the following defined terms apply:
(1) "Computational period" means the interval between scheduled due dates of
installments under the transaction if the intervals are substantially equal or,
if the intervals are not substantially equal, one month if the smallest
interval between the scheduled due dates of installments under the transaction
is one month or more, and otherwise one week.
(2) The "interval" between specified dates means the interval between them
including one or the other but not both of them. If the interval between the
date of the transaction and the due date of the first scheduled installment
does not exceed one month by more than fifteen days when the computational
period is one month, or eleven days when the computational period is one week,
the interval may be considered by the creditor as one computational period.
(e) This section does not preclude the collection or retention by the
creditor of delinquency charges.
(f) If the maturity is accelerated by any reason and judgment is obtained,
the consumer is entitled to the same rebate as if payment had been made on the
date maturity is accelerated.
(g) Upon prepayment in full of a precomputed consumer credit transaction by
the proceeds of consumer credit insurance, the consumer or the consumer's
estate is
entitled to the same rebate as though the consumer had prepaid the agreement on
the date the proceeds of the insurance are paid to the creditor, but no later
than ten business days after satisfactory proof of loss is furnished to the
creditor.
(6) 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 on finance charges for a contract for deed to real estate where the
parties agree in writing to make the transaction subject to the uniform
consumer credit code.
History: L. 1973, ch. 85, § 16;
L. 1980, ch. 77, § 1; L. 1981,
ch. 94, § 1; L. 1982, ch. 93, § 1; L. 1983, ch. 79, § 1;
L. 1985, ch. 82, § 1;
L. 1988, ch. 85, § 3; L. 1988, ch. 86, § 1; L. 1988, ch. 87,
§ 1;
L. 1993, ch. 200, § 6;
L. 1995, ch. 54, § 1;
L. 1997, ch. 90, § 1;
L. 1998, ch. 107, § 1;
L. 1999, ch. 107, § 10;
L. 2000, ch. 28, § 1; July 1.
Part 2 CONSUMER CREDIT SALES; MAXIMUM FINANCE CHARGES
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-201.Finance charge for closed end consumer
credit sales.
(1) This section applies only to a closed end
consumer credit sale.
(2) A seller may charge a finance charge at any rate agreed to by
the parties, subject, however, to the limitations on prepaid finance charges
set forth in subsection (3).
(3) A seller may charge a prepaid finance charge:
(a) For a consumer credit sale secured by a security interest in a
manufactured home as defined by 42 U.S.C. 5402(6), in an amount not to exceed
5% of the amount financed for the sole purpose of reducing the interest rate of
the consumer credit sale; or
(b) for any other consumer credit sale, an amount not to exceed the lesser of
2% of the amount financed or $100.
(c) A prepaid finance charge permitted under this subsection is in addition
to finance charges permitted under subsection (2). A prepaid finance charge
permitted under this subsection is fully earned when paid and is nonrefundable,
unless the parties agree otherwise in writing.
(4) If the sale is precomputed:
(a) The finance charge may be calculated on the assumption that all scheduled
payments will be made when due, and the fact that payments are made either
before or after the due date does not affect the amount of finance charge which
the creditor may charge or receive; and
(b) the effect of prepayment is governed by subsection (5).
(5) Rebate upon prepayment:
(a) Except as provided for in this section, upon prepayment in full of a
precomputed consumer credit transaction, the creditor shall rebate to the
consumer an amount not less than the amount of rebate provided in subsection
(b), paragraph (1), or redetermine the earned finance charge as provided in
subsection (b), paragraph (2), and rebate any other unearned charges including
charges for insurance.
The rebate for charges for insurance shall be as prescribed by statute, rules
and regulations and administrative interpretations by the administrator.
If the rebate otherwise required is less than $1, no
rebate need be made.
(b) The amount of rebate and redetermined earned finance charge shall be as
follows:
(1) The amount of rebate shall be determined by applying, according to the
actuarial method, the rate of finance charge which was required to be disclosed
in the transaction:
(i) Where no deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as originally scheduled for the period
following prepayment; and
(ii) where deferral charges have been made in a transaction, to the unpaid
balances for the actual time remaining as extended by deferral for the period
following prepayment.
The time remaining for the period following prepayment shall be either the
full days following prepayment; or both the full days, counting the date of
prepayment, between the prepayment date and the end of the computational period
in which the prepayment occurs, and the full computational periods following
the date of prepayment to the scheduled due date of the final installment of
the transaction.
(2) The redetermined earned finance charge shall be determined by applying,
according to the actuarial method, the rate of finance charge which was
required to be disclosed in the transaction to the actual unpaid balances of
the amount financed for the actual time the unpaid balances were outstanding as
of the date of prepayment. Any delinquency or deferral charges collected
before the date of prepayment do not become a part of the total finance charge
for purposes of rebating unearned charges.
(c) Upon prepayment, but not otherwise, of a consumer credit transaction
whether or not precomputed, other than a consumer lease, a consumer rental
purchase agreement, or a transaction pursuant to open end credit:
(1) If the prepayment is in full, the creditor may collect or retain a
minimum charge not exceeding $5 in a transaction which had an amount
financed of $75 or less, or not exceeding $7.50 and
in a transaction which had an amount financed of more than
$75, if the finance charge earned at the time of prepayment is
less than the minimum allowed pursuant to this subsection.
(2) If the prepayment is in part, the creditor may not collect or retain a
minimum finance charge.
(d) For the purposes of this section, the following defined terms apply:
(1) "Computational period" means the interval between scheduled due dates of
installments under the transaction if the intervals are substantially equal or,
if the intervals are not substantially equal, one month if the smallest
interval between the scheduled due dates of installments under the transaction
is one month or more, and otherwise one week.
(2) The "interval" between specified dates means the interval between them
including one or the other but not both of them. If the interval between the
date of the transaction and the due date of the first scheduled installment
does not exceed one month by more than fifteen days when the computational
period is one month, or eleven days when the computational period is one week,
the interval may be considered by the creditor as one computational period.
(e) This section does not preclude the collection or retention by the
creditor of delinquency charges.
(f) If the maturity is accelerated by any reason and judgment is obtained,
the consumer is entitled to the same rebate as if payment had been made on the
date maturity is accelerated.
(g) Upon prepayment in full of a precomputed consumer credit transaction by
the proceeds of consumer credit insurance, the consumer or the consumer's
estate is
entitled to the same rebate as though the consumer had prepaid the agreement on
the date the proceeds of the insurance are paid to the creditor, but no later
than ten business days after satisfactory proof of loss is furnished to the
creditor.
(6) 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 on finance charges for a contract for deed to real estate where the
parties agree in writing to make the transaction subject to the uniform
consumer credit code.
History: L. 1973, ch. 85, § 16;
L. 1980, ch. 77, § 1; L. 1981,
ch. 94, § 1; L. 1982, ch. 93, § 1; L. 1983, ch. 79, § 1;
L. 1985, ch. 82, § 1;
L. 1988, ch. 85, § 3; L. 1988, ch. 86, § 1; L. 1988, ch. 87,
§ 1;
L. 1993, ch. 200, § 6;
L. 1995, ch. 54, § 1;
L. 1997, ch. 90, § 1;
L. 1998, ch. 107, § 1;
L. 1999, ch. 107, § 10;
L. 2000, ch. 28, § 1; July 1.