§ 24-1.2A. Equity lines of credit. - North Carolina Statutes

§24‑1.2A.  Equity lines of credit.

(a)        Notwithstanding anyother provision of this Chapter, the parties to an equity line of credit, asdefined in G.S. 45‑81, may contract in writing for interest at rateswhich shall not exceed the maximum rates permitted under G.S. 24‑1.1(c);provided, however, that the parties may contract for interest rates which shallbe adjustable or variable, so long as for adjustable or variable rate contractsthe rate in effect for a given period does not exceed the maximum rate permittedunder G.S. 24‑1.1(c) for the same period.

(b)        Fees may be chargedon equity lines of credit which in the aggregate, over the life of the contractbased on the maximum limit of the line of credit, do not exceed those permittedunder G.S. 24‑10. Any lender may charge a party to a loan or extension ofcredit governed by this section a fee for the modification, renewal, extension,or amendment of any terms of the loan or extension of credit, such fee not toexceed the greater of one‑quarter of one percent (1/4 of 1%) of thebalance outstanding at the time of the modification, renewal, extension, oramendment of terms, or fifty dollars ($50.00). (1985, c. 207, s. 1; 1991, c.506, s. 4; 1998‑119, s. 2.1.)