(a) Except as otherwiseprovided in this Chapter or other applicable law, the parties to a loan,purchase money loan, advance, commitment for a loan or forbearance other than acredit card, open‑end, or similar loan may contract in writing for thepayment of interest not in excess of:
(1) Where the principalamount is twenty‑five thousand dollars ($25,000) or less, the rate setunder subsection (c) of this section; or
(2) Any rate agreed uponby the parties where the principal amount is more than twenty‑fivethousand dollars ($25,000).
(b) As used in thissection, interest shall not be deemed in excess of the rates provided whereinterest is computed monthly on the outstanding principal balance and iscollected not more than 31 days in advance of its due date. Nothing in thissection shall be construed to authorize the charging of interest on committedfunds prior to the disbursement of said funds.
(c) On the fifteenthday of each month, the Commissioner of Banks shall announce and publish themaximum rate of interest permitted by subdivision (1) of subsection (a) of thissection on that date. Such rate shall be the latest published noncompetitiverate for U.S. Treasury bills with a six‑month maturity as of thefifteenth day of the month plus six percent (6%), rounded upward or downward,as the case may be, to the nearest one‑half of one percent (1/2 of 1%) orsixteen percent (16%), whichever is greater. If there is no nearest one‑halfof one percent (1/2 of 1%), the Commissioner shall round downward to the lowerone‑half of one percent (1/2 of 1%). The rate so announced shall be themaximum rate permitted for the term of loans made under this section during thefollowing calendar month when the parties to such loans have agreed that therate of interest to be charged by the lender and paid by the borrower shall notvary or be adjusted during the term of the loan. The parties to a loan madeunder this section may agree to a rate of interest which shall vary or beadjusted during the term of the loan in which case the maximum rate of interestpermitted on such loans during a month during the term of the loan shall be thegreater of the rate announced by the Commissioner in (i) the preceding calendarmonth or (ii) the calendar month preceding that in which the rate is varied oradjusted.
(d) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit governed by this section afee for the modification, renewal, extension, or amendment of any terms of theloan or extension of credit, such fee not to exceed the greater of one‑quarterof one percent (1/4 of 1%) of the balance outstanding at the time of themodification, renewal, extension, or amendment of terms, or fifty dollars($50.00).
(e) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit not secured by realproperty governed by this section an origination fee not to exceed the greaterof one‑quarter of one percent (1/4 of 1%) of the outstanding balance orfifty dollars ($50.00).
(f) This section shallnot be construed to limit fees on loans or extensions of credit in excess ofthree hundred thousand dollars ($300,000). (1969, c. 1303, s. 1; 1977,c. 778, ss. 1, 3; c. 779, s. 1; 1979, c. 138, s. 1; 1981, c. 465, s. 1; c. 934,s. 1; 1985, c. 663, s. 1; 1991, c. 506, s. 2; 1998‑119, s. 1; 1999‑75,s. 1.)
(a) Except as otherwiseprovided in this Chapter or other applicable law, the parties to a loan,purchase money loan, advance, commitment for a loan or forbearance other than acredit card, open‑end, or similar loan may contract in writing for thepayment of interest not in excess of:
(1) Where the principalamount is twenty‑five thousand dollars ($25,000) or less, the rate setunder subsection (c) of this section; or
(2) Any rate agreed uponby the parties where the principal amount is more than twenty‑fivethousand dollars ($25,000).
(b) As used in thissection, interest shall not be deemed in excess of the rates provided whereinterest is computed monthly on the outstanding principal balance and iscollected not more than 31 days in advance of its due date. Nothing in thissection shall be construed to authorize the charging of interest on committedfunds prior to the disbursement of said funds.
(c) On the fifteenthday of each month, the Commissioner of Banks shall announce and publish themaximum rate of interest permitted by subdivision (1) of subsection (a) of thissection on that date. Such rate shall be the latest published noncompetitiverate for U.S. Treasury bills with a six‑month maturity as of thefifteenth day of the month plus six percent (6%), rounded upward or downward,as the case may be, to the nearest one‑half of one percent (1/2 of 1%) orsixteen percent (16%), whichever is greater. If there is no nearest one‑halfof one percent (1/2 of 1%), the Commissioner shall round downward to the lowerone‑half of one percent (1/2 of 1%). The rate so announced shall be themaximum rate permitted for the term of loans made under this section during thefollowing calendar month when the parties to such loans have agreed that therate of interest to be charged by the lender and paid by the borrower shall notvary or be adjusted during the term of the loan. The parties to a loan madeunder this section may agree to a rate of interest which shall vary or beadjusted during the term of the loan in which case the maximum rate of interestpermitted on such loans during a month during the term of the loan shall be thegreater of the rate announced by the Commissioner in (i) the preceding calendarmonth or (ii) the calendar month preceding that in which the rate is varied oradjusted.
(d) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit governed by this section afee for the modification, renewal, extension, or amendment of any terms of theloan or extension of credit, such fee not to exceed the greater of one‑quarterof one percent (1/4 of 1%) of the balance outstanding at the time of themodification, renewal, extension, or amendment of terms, or fifty dollars($50.00).
(e) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit not secured by realproperty governed by this section an origination fee not to exceed the greaterof one‑quarter of one percent (1/4 of 1%) of the outstanding balance orfifty dollars ($50.00).
(f) This section shallnot be construed to limit fees on loans or extensions of credit in excess ofthree hundred thousand dollars ($300,000). (1969, c. 1303, s. 1; 1977,c. 778, ss. 1, 3; c. 779, s. 1; 1979, c. 138, s. 1; 1981, c. 465, s. 1; c. 934,s. 1; 1985, c. 663, s. 1; 1991, c. 506, s. 2; 1998‑119, s. 1; 1999‑75,s. 1.)
(a) Except as otherwiseprovided in this Chapter or other applicable law, the parties to a loan,purchase money loan, advance, commitment for a loan or forbearance other than acredit card, open‑end, or similar loan may contract in writing for thepayment of interest not in excess of:
(1) Where the principalamount is twenty‑five thousand dollars ($25,000) or less, the rate setunder subsection (c) of this section; or
(2) Any rate agreed uponby the parties where the principal amount is more than twenty‑fivethousand dollars ($25,000).
(b) As used in thissection, interest shall not be deemed in excess of the rates provided whereinterest is computed monthly on the outstanding principal balance and iscollected not more than 31 days in advance of its due date. Nothing in thissection shall be construed to authorize the charging of interest on committedfunds prior to the disbursement of said funds.
(c) On the fifteenthday of each month, the Commissioner of Banks shall announce and publish themaximum rate of interest permitted by subdivision (1) of subsection (a) of thissection on that date. Such rate shall be the latest published noncompetitiverate for U.S. Treasury bills with a six‑month maturity as of thefifteenth day of the month plus six percent (6%), rounded upward or downward,as the case may be, to the nearest one‑half of one percent (1/2 of 1%) orsixteen percent (16%), whichever is greater. If there is no nearest one‑halfof one percent (1/2 of 1%), the Commissioner shall round downward to the lowerone‑half of one percent (1/2 of 1%). The rate so announced shall be themaximum rate permitted for the term of loans made under this section during thefollowing calendar month when the parties to such loans have agreed that therate of interest to be charged by the lender and paid by the borrower shall notvary or be adjusted during the term of the loan. The parties to a loan madeunder this section may agree to a rate of interest which shall vary or beadjusted during the term of the loan in which case the maximum rate of interestpermitted on such loans during a month during the term of the loan shall be thegreater of the rate announced by the Commissioner in (i) the preceding calendarmonth or (ii) the calendar month preceding that in which the rate is varied oradjusted.
(d) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit governed by this section afee for the modification, renewal, extension, or amendment of any terms of theloan or extension of credit, such fee not to exceed the greater of one‑quarterof one percent (1/4 of 1%) of the balance outstanding at the time of themodification, renewal, extension, or amendment of terms, or fifty dollars($50.00).
(e) Any bank or savingsinstitution organized under the law of North Carolina or of the United Statesmay charge a party to a loan or extension of credit not secured by realproperty governed by this section an origination fee not to exceed the greaterof one‑quarter of one percent (1/4 of 1%) of the outstanding balance orfifty dollars ($50.00).
(f) This section shallnot be construed to limit fees on loans or extensions of credit in excess ofthree hundred thousand dollars ($300,000). (1969, c. 1303, s. 1; 1977,c. 778, ss. 1, 3; c. 779, s. 1; 1979, c. 138, s. 1; 1981, c. 465, s. 1; c. 934,s. 1; 1985, c. 663, s. 1; 1991, c. 506, s. 2; 1998‑119, s. 1; 1999‑75,s. 1.)
