§ 25A-8. "Finance charge" defined. - North Carolina Statutes

§25A‑8.  "Finance charge" defined.

(a)        "Financecharge" means the sum of all charges payable directly or indirectly by thebuyer and imposed by the seller as an incident to the extension of credit,including any of the following types of charges which are applicable:

(1)        Interest, time pricedifferential, service, carrying or other similar charge however denominated;

(2)        Premium or othercharges for any guarantee or insurance protecting the seller against thebuyer's default or other credit loss;

(3)        Loan fee, finder'sfee or similar charge; and

(4)        Fee for anappraisal, investigation or credit report.

(b)        Finance charge doesnot include transfer of equity fees, substitution of collateral fees, defaultor deferment charges, or additional charges for insurance as permitted by G.S.25A‑17 or charges for insurance excluded by Section 226.4(a) ofRegulation Z promulgated pursuant to section 105 of the Consumer CreditProtection Act.

(c)        With respect to atransaction in which the seller acquires a security interest in real property,finance charge does not include charges excluded by section 226.4(e) ofRegulation Z promulgated pursuant to section 105 of the Consumer CreditProtection Act. (1971, c. 796, s. 1.)