17:9A-59.7 - Late charges - New Jersey Statutes

17:9A-59.7.  Late charges    A.  If any payment on an advance loan remains unpaid for a period of more than 15 days after such payment falls due pursuant to a contract between the bank and the borrower governing such loan, the bank may make and collect a late  charge in such amount as may be provided for in such contract between the bank  and the borrower, but no such late charge shall exceed 5% of the amount of the  payment so in default, or $5.00, whichever is the lesser, and not more than one  late charge shall be made on any one payment in arrears.

    B.  Upon institution of proceedings for the collection of an advance loan in  default, a bank may charge a collection fee, in addition to court costs, according to the following schedule:

    (a) on the first $750.00 of indebtedness, 15%;

     (b) on the excess over $750.00, 10%, but in no case shall such collection fee exceed $500.00.

     C.  When there is in effect more than one advance loan contract between the  bank and a particular borrower, the provisions of this section shall apply to  each contract individually and not to all advance loan contracts collectively.

     L.1959, c. 91, p. 225, s. 7.  Amended by L.1968, c. 64, s. 7;  L.1981, c. 37,  s. 7, eff. Feb. 12, 1981.