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2016 SESSION
16100726DBe it enacted by the General Assembly of Virginia:
1. That § 6.2-1520 of the Code of Virginia is amended and reenacted as follows:
§ 6.2-1520. Rate of interest; late charges; processing fees.
A. A licensee may charge and receive interest on loans of:
1. Not more than $2,500,
at a single annual rate not to exceed 36 percent; and
2. More than $2,500, at such
single annual rate as shall be stated in the loan contract. The annual rate of interest shall be charged only upon
principal balances outstanding from time to time. Interest shall not be charged
on an add-on basis and shall not be compounded or paid, deducted or received in
advance. For the purpose of calculating interest under this section, a year may
be any period of time consisting of 360 or 365 days.
B. A licensee may impose a late charge for failure to make
timely payment of any installment due on a debt, which late charge shall not
exceed the lesser of $20 or five
percent of the amount of such installment payment. The late charge shall be
specified in the loan contract between the lender and the borrower. For
purposes of this section, "timely payment" means a payment made by
the date fixed for payment or within a period of seven 10 calendar days after such
fixed date.
C. A licensee may charge and receive a processing fee, charged
on the principal amount of the loan, for processing the loan contract. The
processing fee shall be stated in the loan contract. Such processing fee shall
be deemed to constitute interest charged on the principal amount of the loan
for purposes of determining whether the interest charged on a loan of not more than $2,500
exceeds the 36 percent annual interest
rate limitation imposed by subdivision subsection A 1.