J. MILLARD TAWES, Governor                        377

from the inception date of the insurance contract, or from the due
date of such premium, disregarding any period of grace or credit
allowed for payment thereof, to and including the date when the final
installment of the premium finance agreement is payable, at not
exceeding eight dollars ($8.00) per one hundred ($100.00) per
annum; or if the service charge so computed is less than ten dollars
($10.00) a minimum service charge of ten dollars ($10.00), pro-
vided that when the balance is not in excess of LESS THAN one
hundred twenty-five dollars ($125.00) and is:

(1)   to be repaid in five (5) monthly installments or less and the
loan is less than seventy-five dollars ($75.00), the maximum service
charge shall be six dollars ($6.00); the loan more than IS seventy-five
dollars ($75.00) OR MORE but less than one hundred dollars
($100.00), the maximum service charge shall be seven dollars ($7.00);
the loan more than IS one hundred dollars ($100.00) OR MORE but
less than one hundred twenty-five dollars ($125.00), the maximum
service charge shall be eight dollars ($8.00).

(2)   to be repaid in six (6) or more monthly installments and the
loan is less than seventy-five dollars ($75.00), the maximum service
charge shall be seven dollars ($7.00); the loan more than IS seventy-
five dollars ($75.00) OR MORE but less than one hundred dollars
($100.00), the maximum service charge shall be eight dollars ($8.00);
the loan more than IS one hundred dollars ($100.00) OR MORE but
less than one hundred twenty-five dollars ($125.00) the maximum
service charge shall be nine dollars ($9.00).

(b)   Except for the maximum and minimum service charges as
provided in subsection (a), such service charge shall be computed on
the balance payable in successive monthly installments substantially
equal in amount for a period of one (1) year. On a premium finance
agreement providing for installments extending for a period less
than or greater than one (1) year, the service charge shall be com-
puted proportionately.

(c)   When a premium finance agreement provides for unequal or
irregular installments, the service charge shall be computed at the
effective rate provided for in subsection (a), having due regard for
the schedule of installments.

(d)   No premium finance company shall induce an insured to be-
come obligated under more than one (1) premium finance agreement
for the purpose of obtaining more than one (1) minimum service
charge.

486E.

A premium finance agreement may provide for the payment by the
insured of a delinquency and collection charge on each installment in
default for a period of not less than five (5) days in an amount of one
dollar ($1.00) to a maximum not to exceed five per cent (5%) of
such installment or five dollars ($5.00), whichever is less, provided
that only one such delinquency and collection charge may be collected
on any such installment regardless of the period during which it
remains in default; and if the default results in the cancellation of
any insurance contract listed in the agreement, the agreement may
provide for the payment by the insured of a cancellation charge equal
to the difference between any delinquency and collection charge im-
posed in respect to the installment in default and five dollars ($5.00).