Find Legal Information

155.210 Specified late charges for default of loan and litigation charges treated as liquidated damages.

Download pdf

155.210 Specified late charges for default of loan and litigation charges treated as liquidated damages. A business development corporation may require as a part of any loan made by it, that in <br>the event of a default by the borrower in the repayment or other terms of the loan <br>obligation, the borrower shall pay late charges of a specified amount of up to five percent <br>(5%) per month of the amount of the monthly installment in arrears. Moreover, a <br>business development corporation may require that in the event any litigation becomes <br>necessary as a consequence of the borrower's default, the borrower shall further be liable <br>for a specified amount of up to two percent (2%) of the unpaid principal balance owed on <br>such loan. Such provisions shall be treated as liquidated damages and shall be valid and <br>enforceable by the courts for all purposes. Effective: July 15, 1980 <br>History: Created 1980 Ky. Acts ch. 360, sec. 1, effective July 15, 1980.