Loan Finance Charge for Certain Loans to Individuals

(1)With respect to a loan other than a consumer loan, the parties COL120106 CH. 3 LOANS may contract for the payment by the debtor of a loan finance charge not in excess of that permitted by this Section if:

(a)the principal ($25,000.00), or less; and is Twenty-Five Thousand Dollars

(b)the debtor is either

(i)a person other than an organization or

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

(1)or two

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

(2)With respect to a loan other than one pursuant to a revolving loan account the parties may contract for the payment by the debtor of a loan finance charge not in excess of twenty-four percent (24%) per year calculated on the unpaid balances of the principal according to the United States rule.

(3)With respect to a loan pursuant to a revolving loan account, the parties may contract for the payment by the debtor of a loan finance charge not in excess of that permitted by the provisions on loan finance charge for revolving loan accounts (§ 3509).

(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).