§ 25A-15. Finance charge rates for consumer credit installment sale contracts.
§25A‑15. Finance charge rates for consumer credit installment salecontracts.
(a) With respect to aconsumer credit installment sale contract, a seller may contract for andreceive a finance charge not exceeding that permitted by this section. For thepurposes of this section, the finance charge rates are the rates that arerequired to be disclosed by the Consumer Credit Protection Act.
(b) Except ashereinafter provided, the finance charge rate for a consumer credit installmentsales contract may not exceed:
(1) Twenty‑fourpercent (24%) per annum where the amount financed is less than one thousandfive hundred dollars ($1,500);
(2) Twenty‑twopercent (22%) per annum where the amount financed is one thousand five hundreddollars ($1,500) or greater, but less than two thousand dollars ($2,000);
(3) Twenty percent (20%)where the amount financed is two thousand ($2,000) or greater, but less thanthree thousand dollars ($3,000);
(4) Eighteen percent(18%) per annum where the amount financed is three thousand dollars ($3,000) orgreater,
except that a minimum financecharge of five dollars ($5.00) may be imposed.
(c) A finance chargerate not to exceed the higher of the rate established in subsection (b) or therate set forth below may be imposed in a consumer credit installment salecontract repayable in not less than six installments for a self‑propelledmotor vehicle:
(1) Eighteen percent(18%) per annum for vehicles one and two model years old;
(2) Twenty percent (20%)per annum for vehicles three model years old;
(3) Twenty‑twopercent (22%) per annum for vehicles four model years old; and
(4) Twenty‑ninepercent (29%) per annum for vehicles five model years old and older.
A motor vehicle is one model yearold on January 1 of the year following the designated year model of thevehicle.
(d) Notwithstanding theprovisions of subsections (b) and (c), above, in the event that the amountfinanced in a consumer credit sale contract is secured in whole or in part by asecurity interest in real property, the finance charge rate may not exceedsixteen percent (16%) per annum.
(e) A seller may notdivide a single credit sale transaction into two or more sales to avoid thelimitations as to maximum finance charges imposed by this section.
(f) Notwithstandingthe provisions of subsections (b) or (d), the parties to a consumer creditinstallment sale contract for the sale of a residential manufactured home whichis secured by a first lien on that home or on the land on which such home islocated may contract in writing for the payment of a finance charge as agreedupon by the parties. Provided, this subsection shall only apply if the partieswould have been entitled to so contract by the provisions of section 501 ofUnited States Public Law 96‑221, and have complied with the regulationspromulgated thereto.
For the purposes of thissubsection (f), a "residential manufactured home" means a mobile homeas defined in G.S. 143‑145(7) which is used as a dwelling. (1971,c. 796, s. 1; 1979, 2nd Sess., c. 1330, ss. 1, 2; 1981, c. 446, ss. 1‑3;1983, c. 126, s. 2.)