Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-401.Finance charge for consumer loan;
loan secured by mortgage or interest in manufactured home; prepaid finance
charges.
(1) For any consumer loan incurred pursuant to open end credit,
including, without limitation, a loan pursuant to a lender credit card, a
lender
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
(6). This subsection does not apply to a consumer loan secured by a first
mortgage or a second mortgage.
(2) For any consumer loan incurred pursuant to closed end credit, a lender
may charge a periodic finance charge, calculated accordingly to the actuarial
method, not to exceed: (a) 36% per annum on
the portion of the unpaid balance which is $860
or less, and (b) 21% per annum on the
portion of the unpaid balance which exceeds
$860,
subject, however to the limitations on
prepaid finance charges set forth in subsection (6). This subsection does not
apply to a consumer loan secured by a first mortgage or a second mortgage.
(3) For any consumer loan secured by a second mortgage or a consumer loan
secured by an interest in a manufactured home as defined by 42 U.S.C.
5402(6), a lender may charge a
periodic finance charge, calculated according to the actuarial method, not to
exceed 18% per annum, subject, however to the limitations on prepaid finance
charges set forth in subsection (6). This subsection does not apply if the
lender and the consumer agree in writing that the finance charge for the loan
is
governed by K.S.A. 16-207(b), and amendments thereto.
(4) If the parties to a consumer loan secured by a first mortgage or a
consumer loan secured by an interest in a manufactured home as defined by 42
U.S.C. 5402(6) agree in
writing to make the transaction subject to the uniform consumer credit code,
then the periodic finance charge for the loan, calculated according to the
actuarial method, may not exceed 18% per annum, subject, however to the
limitations on prepaid finance charges set forth in subsection (6).
(5) This section does not limit or restrict the manner of calculating the
finance charge, whether by way of add-on, discount or otherwise, so long as the
rate and the amount of the finance charge does not exceed that permitted by
this section.
(6) Prepaid finance charges on consumer loans are limited as follows:
(a) For a consumer loan secured by a first mortgage or a second mortgage,
or a consumer loan secured by an interest in a manufactured home as defined
by 42 U.S.C. 5402(6), prepaid finance charges in an amount not to exceed 8%
of the amount financed
may be charged, provided that the aggregate amount of prepaid finance charges
payable to the lender or any person related to the lender do not exceed 5% of
the amount financed; and
(b) for any other consumer loan, prepaid finance charges in an amount not to
exceed the lesser of 2% of the amount financed or $100 may be charged.
Prepaid finance charges permitted under this subsection are in addition to
finance charges permitted under subsection (1), (2), (3) and (4), as
applicable. Prepaid finance charges permitted under this subsection are fully
earned when paid and are non-refundable, unless the parties agree otherwise in
writing.
(7) The finance charge limitations in subsections (3) and (4) do not
apply to a consumer loan the finance charge for which is governed by subsection
(h) of K.S.A.
16-207, and amendments thereto.
(8) If a loan secured by a first mortgage constitutes a "consumer loan" under
subsection (17) of K.S.A. 16a-1-301, and amendments thereto, by virtue of the
loan-to-value ratio exceeding 100% at the time the loan is made, then the
periodic finance charge for the loan shall not exceed that authorized by
subsection (b) of K.S.A. 16-207, and amendments thereto, but the loan is
subject to
the limitations
on prepaid finance charges set forth in paragraph (a) of subsection (6), which
prepaid finance charges may be charged in addition to the finance charges
permitted under subsection (b) of K.S.A. 16-207, and amendments thereto.
(9) If, within 12 months after the date of the original loan, a lender or a
person related to the lender refinances a loan with respect to which a prepaid
finance charge was payable to the same lender pursuant to subsection (6), then
the following apply:
(a) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (a) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed 5% of the
additional amount financed.
(b) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (b) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed the lesser of
2% of the additional amount financed or $100.
(c) For purposes of this subsection, "additional amount financed" means the
difference between: (i) The amount financed for the new loan, less the amount
of all closing costs incurred in connection with the new loan which are not
included in the prepaid finance charges for the new loan; and (ii) the unpaid
principal balance of the original loan.
(10) For any period in which a finance charge is due on a consumer loan
pursuant to open end credit, the parties may agree on a minimum amount.
(11) If the parties to a contract for deed to real estate agree in writing to
make the transaction subject to the uniform consumer credit code, then the
transaction is subject to the same limitations as set forth in subsections (4)
and (6) for a consumer loan secured by a first mortgage.
(12) This section does not apply to a payday loan governed by K.S.A.
16a-2-404, and amendments thereto.
History: L. 1973, ch. 85, § 27;
L. 1974, ch. 91, § 1;
L. 1975, ch. 126, § 1;
L. 1980, ch. 76, § 9;
L. 1980, ch. 77, § 3;
L. 1981, ch. 94, § 3;
L. 1982, ch. 94, § 1;
L. 1983, ch. 79, § 3;
L. 1985, ch. 82, § 3;
L. 1986, ch. 90, § 1;
L. 1988, ch. 85, § 6;
L. 1988, ch. 86, § 3;
L. 1988, ch. 87, § 2;
L. 1993, ch. 200, § 7;
L. 1995, ch. 54, § 2;
L. 1999, ch. 107, § 15;
L. 2000, ch. 27, § 3;
L. 2000, ch. 159, § 1; July 1.
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-401.Finance charge for consumer loan;
loan secured by mortgage or interest in manufactured home; prepaid finance
charges.
(1) For any consumer loan incurred pursuant to open end credit,
including, without limitation, a loan pursuant to a lender credit card, a
lender
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
(6). This subsection does not apply to a consumer loan secured by a first
mortgage or a second mortgage.
(2) For any consumer loan incurred pursuant to closed end credit, a lender
may charge a periodic finance charge, calculated accordingly to the actuarial
method, not to exceed: (a) 36% per annum on
the portion of the unpaid balance which is $860
or less, and (b) 21% per annum on the
portion of the unpaid balance which exceeds
$860,
subject, however to the limitations on
prepaid finance charges set forth in subsection (6). This subsection does not
apply to a consumer loan secured by a first mortgage or a second mortgage.
(3) For any consumer loan secured by a second mortgage or a consumer loan
secured by an interest in a manufactured home as defined by 42 U.S.C.
5402(6), a lender may charge a
periodic finance charge, calculated according to the actuarial method, not to
exceed 18% per annum, subject, however to the limitations on prepaid finance
charges set forth in subsection (6). This subsection does not apply if the
lender and the consumer agree in writing that the finance charge for the loan
is
governed by K.S.A. 16-207(b), and amendments thereto.
(4) If the parties to a consumer loan secured by a first mortgage or a
consumer loan secured by an interest in a manufactured home as defined by 42
U.S.C. 5402(6) agree in
writing to make the transaction subject to the uniform consumer credit code,
then the periodic finance charge for the loan, calculated according to the
actuarial method, may not exceed 18% per annum, subject, however to the
limitations on prepaid finance charges set forth in subsection (6).
(5) This section does not limit or restrict the manner of calculating the
finance charge, whether by way of add-on, discount or otherwise, so long as the
rate and the amount of the finance charge does not exceed that permitted by
this section.
(6) Prepaid finance charges on consumer loans are limited as follows:
(a) For a consumer loan secured by a first mortgage or a second mortgage,
or a consumer loan secured by an interest in a manufactured home as defined
by 42 U.S.C. 5402(6), prepaid finance charges in an amount not to exceed 8%
of the amount financed
may be charged, provided that the aggregate amount of prepaid finance charges
payable to the lender or any person related to the lender do not exceed 5% of
the amount financed; and
(b) for any other consumer loan, prepaid finance charges in an amount not to
exceed the lesser of 2% of the amount financed or $100 may be charged.
Prepaid finance charges permitted under this subsection are in addition to
finance charges permitted under subsection (1), (2), (3) and (4), as
applicable. Prepaid finance charges permitted under this subsection are fully
earned when paid and are non-refundable, unless the parties agree otherwise in
writing.
(7) The finance charge limitations in subsections (3) and (4) do not
apply to a consumer loan the finance charge for which is governed by subsection
(h) of K.S.A.
16-207, and amendments thereto.
(8) If a loan secured by a first mortgage constitutes a "consumer loan" under
subsection (17) of K.S.A. 16a-1-301, and amendments thereto, by virtue of the
loan-to-value ratio exceeding 100% at the time the loan is made, then the
periodic finance charge for the loan shall not exceed that authorized by
subsection (b) of K.S.A. 16-207, and amendments thereto, but the loan is
subject to
the limitations
on prepaid finance charges set forth in paragraph (a) of subsection (6), which
prepaid finance charges may be charged in addition to the finance charges
permitted under subsection (b) of K.S.A. 16-207, and amendments thereto.
(9) If, within 12 months after the date of the original loan, a lender or a
person related to the lender refinances a loan with respect to which a prepaid
finance charge was payable to the same lender pursuant to subsection (6), then
the following apply:
(a) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (a) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed 5% of the
additional amount financed.
(b) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (b) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed the lesser of
2% of the additional amount financed or $100.
(c) For purposes of this subsection, "additional amount financed" means the
difference between: (i) The amount financed for the new loan, less the amount
of all closing costs incurred in connection with the new loan which are not
included in the prepaid finance charges for the new loan; and (ii) the unpaid
principal balance of the original loan.
(10) For any period in which a finance charge is due on a consumer loan
pursuant to open end credit, the parties may agree on a minimum amount.
(11) If the parties to a contract for deed to real estate agree in writing to
make the transaction subject to the uniform consumer credit code, then the
transaction is subject to the same limitations as set forth in subsections (4)
and (6) for a consumer loan secured by a first mortgage.
(12) This section does not apply to a payday loan governed by K.S.A.
16a-2-404, and amendments thereto.
History: L. 1973, ch. 85, § 27;
L. 1974, ch. 91, § 1;
L. 1975, ch. 126, § 1;
L. 1980, ch. 76, § 9;
L. 1980, ch. 77, § 3;
L. 1981, ch. 94, § 3;
L. 1982, ch. 94, § 1;
L. 1983, ch. 79, § 3;
L. 1985, ch. 82, § 3;
L. 1986, ch. 90, § 1;
L. 1988, ch. 85, § 6;
L. 1988, ch. 86, § 3;
L. 1988, ch. 87, § 2;
L. 1993, ch. 200, § 7;
L. 1995, ch. 54, § 2;
L. 1999, ch. 107, § 15;
L. 2000, ch. 27, § 3;
L. 2000, ch. 159, § 1; July 1.
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS
16a-2-401.Finance charge for consumer loan;
loan secured by mortgage or interest in manufactured home; prepaid finance
charges.
(1) For any consumer loan incurred pursuant to open end credit,
including, without limitation, a loan pursuant to a lender credit card, a
lender
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
(6). This subsection does not apply to a consumer loan secured by a first
mortgage or a second mortgage.
(2) For any consumer loan incurred pursuant to closed end credit, a lender
may charge a periodic finance charge, calculated accordingly to the actuarial
method, not to exceed: (a) 36% per annum on
the portion of the unpaid balance which is $860
or less, and (b) 21% per annum on the
portion of the unpaid balance which exceeds
$860,
subject, however to the limitations on
prepaid finance charges set forth in subsection (6). This subsection does not
apply to a consumer loan secured by a first mortgage or a second mortgage.
(3) For any consumer loan secured by a second mortgage or a consumer loan
secured by an interest in a manufactured home as defined by 42 U.S.C.
5402(6), a lender may charge a
periodic finance charge, calculated according to the actuarial method, not to
exceed 18% per annum, subject, however to the limitations on prepaid finance
charges set forth in subsection (6). This subsection does not apply if the
lender and the consumer agree in writing that the finance charge for the loan
is
governed by K.S.A. 16-207(b), and amendments thereto.
(4) If the parties to a consumer loan secured by a first mortgage or a
consumer loan secured by an interest in a manufactured home as defined by 42
U.S.C. 5402(6) agree in
writing to make the transaction subject to the uniform consumer credit code,
then the periodic finance charge for the loan, calculated according to the
actuarial method, may not exceed 18% per annum, subject, however to the
limitations on prepaid finance charges set forth in subsection (6).
(5) This section does not limit or restrict the manner of calculating the
finance charge, whether by way of add-on, discount or otherwise, so long as the
rate and the amount of the finance charge does not exceed that permitted by
this section.
(6) Prepaid finance charges on consumer loans are limited as follows:
(a) For a consumer loan secured by a first mortgage or a second mortgage,
or a consumer loan secured by an interest in a manufactured home as defined
by 42 U.S.C. 5402(6), prepaid finance charges in an amount not to exceed 8%
of the amount financed
may be charged, provided that the aggregate amount of prepaid finance charges
payable to the lender or any person related to the lender do not exceed 5% of
the amount financed; and
(b) for any other consumer loan, prepaid finance charges in an amount not to
exceed the lesser of 2% of the amount financed or $100 may be charged.
Prepaid finance charges permitted under this subsection are in addition to
finance charges permitted under subsection (1), (2), (3) and (4), as
applicable. Prepaid finance charges permitted under this subsection are fully
earned when paid and are non-refundable, unless the parties agree otherwise in
writing.
(7) The finance charge limitations in subsections (3) and (4) do not
apply to a consumer loan the finance charge for which is governed by subsection
(h) of K.S.A.
16-207, and amendments thereto.
(8) If a loan secured by a first mortgage constitutes a "consumer loan" under
subsection (17) of K.S.A. 16a-1-301, and amendments thereto, by virtue of the
loan-to-value ratio exceeding 100% at the time the loan is made, then the
periodic finance charge for the loan shall not exceed that authorized by
subsection (b) of K.S.A. 16-207, and amendments thereto, but the loan is
subject to
the limitations
on prepaid finance charges set forth in paragraph (a) of subsection (6), which
prepaid finance charges may be charged in addition to the finance charges
permitted under subsection (b) of K.S.A. 16-207, and amendments thereto.
(9) If, within 12 months after the date of the original loan, a lender or a
person related to the lender refinances a loan with respect to which a prepaid
finance charge was payable to the same lender pursuant to subsection (6), then
the following apply:
(a) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (a) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed 5% of the
additional amount financed.
(b) If a prepaid finance charge with respect to the original loan was payable
to the lender pursuant to paragraph (b) of subsection (6), then the
aggregate amount of prepaid finance charges payable to the lender or any person
related to the lender with respect to the new loan may not exceed the lesser of
2% of the additional amount financed or $100.
(c) For purposes of this subsection, "additional amount financed" means the
difference between: (i) The amount financed for the new loan, less the amount
of all closing costs incurred in connection with the new loan which are not
included in the prepaid finance charges for the new loan; and (ii) the unpaid
principal balance of the original loan.
(10) For any period in which a finance charge is due on a consumer loan
pursuant to open end credit, the parties may agree on a minimum amount.
(11) If the parties to a contract for deed to real estate agree in writing to
make the transaction subject to the uniform consumer credit code, then the
transaction is subject to the same limitations as set forth in subsections (4)
and (6) for a consumer loan secured by a first mortgage.
(12) This section does not apply to a payday loan governed by K.S.A.
16a-2-404, and amendments thereto.
History: L. 1973, ch. 85, § 27;
L. 1974, ch. 91, § 1;
L. 1975, ch. 126, § 1;
L. 1980, ch. 76, § 9;
L. 1980, ch. 77, § 3;
L. 1981, ch. 94, § 3;
L. 1982, ch. 94, § 1;
L. 1983, ch. 79, § 3;
L. 1985, ch. 82, § 3;
L. 1986, ch. 90, § 1;
L. 1988, ch. 85, § 6;
L. 1988, ch. 86, § 3;
L. 1988, ch. 87, § 2;
L. 1993, ch. 200, § 7;
L. 1995, ch. 54, § 2;
L. 1999, ch. 107, § 15;
L. 2000, ch. 27, § 3;
L. 2000, ch. 159, § 1; July 1.