6.2-320 - (Effective October 1, 2010) Loans by industrial loan associations. - Virginia Statutes

§ 6.2-320. (Effective October 1, 2010) Loans by industrial loan associations.

A. Notwithstanding any statutory or case law relating to interest or usury,loans made by an industrial loan association payable in weekly, monthly, orother periodic installments may be enforced as agreed in the contract ofindebtedness. In addition, such association may charge or collect in advancefrom the borrower on such loans a loan fee not exceeding two percent of theprincipal amount of the loan. An interest rate charged in advance upon theentire amount of the loan or pursuant to a written modification agreementshall be lawful.

B. An industrial loan association may charge interest at an annual rate notexceeding 18 percent on loans payable on demand or in a single payment. Inaddition, such association may charge or collect in advance from the borroweron such loans a loan fee not exceeding two percent of the principal amount ofthe loan.

(1987, c. 622, § 6.1-330.68; 2010, c. 794.)