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2016 SESSION
16104729DBe 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 greater 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.