§ 19-14.2-10 - Computation of interest. - Rhode Island Statutes

SECTION 19-14.2-10

   § 19-14.2-10  Computation of interest.– (a) Interest on loans made under this chapter shall not be paid, deducted, orreceived in advance, or compounded, and shall be computed and paid only onunpaid principal balances and on the basis of the number of days actuallyelapsed. For the purpose of these computations a month shall be any period ofthirty (30) consecutive days.

   (b) If part or all of the consideration for a contract of asmall loan is the unpaid balance of a prior loan with the same licensee, thenthe principal of the new contract of loan shall not include any unpaid intereston the prior loan, except interest which has accrued within sixty (60) daysbefore the making of the new contract of loan; provided, however, that unpaidinterest on a prior loan may not be so included in the principal of a new loanmore than once in any period of twelve (12) months.