408.233. Additional charges authorized.
Additional charges authorized.
408.233. 1. No charge other than that permitted by section 408.232shall be directly or indirectly charged, contracted for or received inconnection with any second mortgage loan, except as provided in thissection:
(1) Fees and charges prescribed by law actually and necessarily paidto public officials for perfecting, releasing, or satisfying a securityinterest related to the second mortgage loan;
(2) Taxes;
(3) Bona fide closing costs paid to third parties, which shallinclude:
(a) Fees or premiums for title examination, title insurance, orsimilar purposes including survey;
(b) Fees for preparation of a deed, settlement statement, or otherdocuments;
(c) Fees for notarizing deeds and other documents;
(d) Appraisal fees; and
(e) Fees for credit reports;
(4) Charges for insurance as described in subsection 2 of thissection;
(5) A nonrefundable origination fee not to exceed five percent of theprincipal which may be used by the lender to reduce the rate on a secondmortgage loan;
(6) Any amounts paid to the lender by any person, corporation orentity, other than the borrower, to reduce the rate on a second mortgageloan or to assist the borrower in qualifying for the loan;
(7) For revolving loans, an annual fee not to exceed fifty dollarsmay be assessed.
2. An additional charge may be made for insurance written inconnection with the loan, including insurance protecting the lender againstthe borrower's default or other credit loss, and:
(1) For insurance against loss of or damage to property where no suchcoverage already exists; and
(2) For insurance providing life, accident, health or involuntaryunemployment coverage.
3. The cost of any insurance shall not exceed the rates filed withthe department of insurance, financial institutions and professionalregistration, and the insurance shall be obtained from an insurance companyduly authorized to conduct business in this state. Any person or entitymaking second mortgage loans, or any of its employees, may be licensed tosell insurance permitted in this section.
4. On any second mortgage loan, a default charge may be contractedfor and received for any installment or minimum payment not paid in fullwithin fifteen days of its scheduled due date equal to five percent of theamount or fifteen dollars, whichever is greater, not to exceed fiftydollars. A default charge may be collected only once on an installment ora payment due however long it remains in default. A default charge may becollected at the time it accrues or at any time thereafter and for purposesof subsection 3 of section 408.234 a default charge shall be treated as apayment. No default charge may be collected on an installment or a paymentdue which is paid in full within fifteen days of its scheduled due dateeven though an earlier installment or payment or a default charge onearlier installment or payments may not have been paid in full.
5. The lender shall, in addition to the charge authorized bysubsection 4 of this section, be allowed to assess the borrower or othermaker of refused instrument the actual charge made by any institution forprocessing the negotiable instrument, plus a handling fee of not more thantwenty-five dollars; and, if the contract or promissory note, signed by theborrower, provides for attorney fees, and if it is necessary to bring suit,such attorney fees may not exceed fifteen percent of the amount due andpayable under such contract or promissory note, together with any courtcosts assessed. The attorney fees shall only be applicable where thecontract or promissory note is referred for collection to an attorney, andare not handled by a salaried employee of the holder of the contract ornote.
(L. 1979 S.B. 305, A.L. 1982 H.B. 1341, et al., A.L. 1983 S.B. 70 § 408.233 merged with § 5, A.L. 1985 H.B. 826, A.L. 1986 S.B. 667 merged with H.B. 1207, A.L. 1989 S.B. 192, A.L. 1998 S.B. 792, A.L. 2003 S.B. 346, A.L. 2008 S.B. 788)