HARRY HUGHES, Governor

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(3) THE INTEREST RATE MAY NOT EXCEED 1 PERCENT
PER MONTH OR 12 PERCENT PER ANNUM.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.

Approved June 1, 1982.

CHAPTER 753

(House Bill 1853)

AN ACT concerning

Credit Transactions - Maximum Rates

FOR the purpose of establishing maximum rates of interest or
finance charge on certain loans, forebearances of
money, retail credit accounts, retail installment sales
transactions, and other credit and loan transactions
for which maximum rates are permitted and regulated by
State law; authorizing the imposition and collection of

membership fees in connection with retail credit

accounts and certain credit card plans; providing for
limitations on the imposition of such fees; providing
for certain limitations on imposition of the rates on
existing transaction; providing that these rates and
fees are without effect after a certain date; providing
that certain lenders are required to be licensed to
utilize these rates; and generally relating to interest
rates and finance charges authorizing prohibiting the
imposition and collection of membership fees in
connection with certain open-end accounts, including
credit card plans; providing that a seller or financial
institution may assess either a certain finance charge
or a late payment charge; providing that certain
lenders making loans under written agreements must be
licensed by the Commissioner of Consumer Credit;
providing the conditions under which certain credit
transactions may be renewed or refinanced; specifying
the conditions under which interest rates or finance
charges may vary or be adjusted; setting forth
procedures for the repossession and redemption of
property subject to a security interest; providing for
defenses which may be raised against holders of
consumer credit contracts; prohibiting balloon payments
under certain circumstances; restricting the charging
of interest or finance charges on finance charges under
certain circumstances; and generally relating to
interest rates, finance charges, the extending of
credit, and the licensing of lenders.