6.2-400 - (Effective October 1, 2010) Amount of late charge; when charge can be made. - Virginia Statutes

§ 6.2-400. (Effective October 1, 2010) Amount of late charge; when charge canbe made.

A. As used in this section:

"Late charges" does not include charges imposed upon acceleration of theentire debt or costs of collection and attorney fees as otherwise permittedby law by reason of a default by the debtor.

"Timely payment" means a payment made by the date fixed for payment orwithin a period of seven calendar days after such due date.

B. Any lender or seller may impose a late charge for failure to make timelypayment of any installment due on a debt, whether installment or singlematurity, provided that such late charge does not exceed five percent of theamount of such installment payment and that the charge is specified in thecontract between the lender or seller and the debtor.

C. If any federal governmental agency or organization shall adopt any rulesor regulations dealing with the application of late penalties as to loansinsured or guaranteed by such federal agency or organization, then such rulesand regulations shall control as to such loans insured or guaranteed by them.

D. Any provision for late charges in excess of the amount permitted by thissection shall be void as to such excess but shall not otherwise affect thevalidity of the obligation.

(1987, c. 622, § 6.1-330.80; 2010, c. 794.)