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190.110 Finance charges -- Rates -- Computation.

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190.110 Finance charges -- Rates -- Computation. (1) The finance charge in a retail installment sale shall not exceed the following rates: Class 1. Any new or used motor vehicle designated by the manufacturer by a year model not earlier than the year in which the <br>sale is made -- eleven dollars (&#36;11) per one hundred dollars (&#36;100). Class 2. Any new motor vehicle not in class 1 and any used motor vehicle designated by the manufacturer by a year model of one (1) <br>or two (2) years prior to the year in which the sale is made -- <br>thirteen dollars (&#36;13) per one hundred dollars (&#36;100). Class 3. All other motor vehicles not in class 1 or 2 -- fifteen dollars (&#36;15) per one hundred dollars (&#36;100). (2) Such finance charge shall be computed on the principal balance as determined under KRS 190.100 (2) on contracts payable in successive monthly payments <br>substantially equal in amount extending for a period of one (1) year. On contracts <br>providing for installment payments extending for a period less than or greater than <br>one (1) year, the finance charge shall be computed proportionately. (3) When a retail installment contract provides for unequal or irregular installment payments, the finance charge shall be at the effective rate provided in subsection (1) <br>of this section, having due regard for the schedule of payment. (4) The finance charge allowed by this section may be precomputed by using an add-on method. Alternatively, the seller may, at his option, compute the finance charge on a <br>simple interest basis, at a fixed or variable rate, but in such case the amount of <br>finance charge that the seller may collect shall not exceed the amount that could be <br>collected if the finance charge were precomputed. Effective: July 13, 1984 <br>History: Amended 1984 Ky. Acts ch. 391, sec. 3, effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 321, sec. 2, effective July 15, 1980. -- Created 1956 Ky. Acts <br>ch. 105, sec. 3, effective July 1, 1956.