Loan Finance Charge Defined

(1)Loan Finance Charge means the total of

(a)all charges however denominated, incurred for the privilege of obtaining the loan and paid or payable, directly or indirectly, by the debtor to or for the account of the lender or a person related to or designated by the lender, and

(b)charges incurred for investigating the collateral or credit-worthiness of the debtor or for commissions or brokerage for obtaining the credit, irrespective of the person to whom it is paid or payable, unless the lender had no notice of the charges. It does not include charges as a result of a default, additional charges (§ 3202), delinquency charges (§ 3203) and deferral charges (§ 3204).

(2)If a lender makes a loan to a debtor by purchasing or satisfying obligations of the debtor pursuant to a credit card or similar arrangement, and the purchase or satisfaction is made at less than the face amount of the obligation, the discount is not part of the loan finance charge. ---------ARTICLE 2 MAXIMUM CHARGES