Service Charge for Certain Sales to Individuals

(1)With respect to a sale other than a consumer credit sale, the parties may contract for the payment by the buyer of a credit service charge not in excess of that permitted by this Section if:

(a)the credit is granted by a seller who regularly engages in credit transactions as a seller;

(b)the amount financed is Twenty-Five Thousand Dollars ($25,000.00), or less; and

(c)the buyer is either

(i)a person other than an organization or

(ii)an organization if the debt is secured primarily by a security interest in a one

(1)or two

(2)family dwelling occupied by a person related to the organization.

(2)With respect to a sale other than one pursuant to a revolving charge account, the parties may contract for the payment by the buyer of an amount comprising the amount financed and a credit service charge not in excess of twenty-four percent (24%) per year calculated on the unpaid balances of the amount financed according to the United States rule.

(3)With respect to a sale pursuant to a revolving charge account the parties may contract for the payment of a credit service charge not in COL120106 CH. 2 CREDIT SALES excess of that permitted by § 2207.

(4)The amount of Twenty-Five Thousand Dollars ($25,000.00) in Subsection

(1)is subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106). [Subsection

(2)amended by P.L. 1632.]