Delinquency Charges

(1)With respect to a consumer credit sale other than a sale pursuant to a revolving charge account, the parties to a sale or refinancing agreement may contract for a delinquency charge on any installment not COL120106 CH. 2 CREDIT SALES paid in full within 10 days after its scheduled due date in an amount not to exceed the greater of:

(a)Two Dollars ($2.00) or an amount, not exceeding Five Dollars $5.00, which is five percent 5% of the unpaid amount of the installment; or

(b)the deferral charge that would be permitted by Subsection

(1)of § 2204 to defer the unpaid amount of the installment for the period that it is delinquent.

(2)A delinquency charge under paragraph

(a)of subsection

(1)may be collected only once on an installment however long it remains in default. No delinquency charge maybe collected if the installment has been deferred and a deferral charge has been paid in accordance with § 2204. A delinquency charge may be collected at the time is assessed or at any time thereafter.

(3)No delinquency charge may be collected on an installment which is paid in full within 10 days after a scheduled installment due date even though an earlier maturing installment or a delinquency charge on it may not have been paid in full.

(4)The amounts of Two Dollars ($2.00) and Five Dollars ($5.00) in subsection

(1)are subject to change pursuant to provisions on adjustment of dollar amounts (§ 1106).