NORTH CAROLINA GENERAL ASSEMBLY

1981 SESSION

 

 

CHAPTER 446

SENATE BILL 213

 

 

AN ACT TO AMEND G.S. 25A-15 RELATING TO RATES FOR CONSUMER CREDIT.

 

The General Assembly of North Carolina enacts:

 

Section 1. G.S. 25A-15(b) is rewritten to read as follows:

"(b)      Except as hereinafter provided, the finance charge rate for a consumer credit installment sales contract may not exceed:

(1)        twenty-four percent (24%) per annum where the amount financed is less than one thousand five hundred dollars ($1,500);

(2)        twenty-two percent (22%) per annum where the amount financed is one thousand five hundred dollars ($1,500) or greater, but less than two thousand dollars ($2,000);

(3)        twenty percent (20%) where the amount financed is two thousand dollars ($2,000) or greater, but less than three thousand dollars ($3,000);

(4)        eighteen percent (18%) per annum where the amount financed is three thousand dollars ($3,000) or greater,

except that a minimum finance charge of five dollars ($5.00) may be imposed."

Sec. 2. G.S. 25A-15(d) is amended by deleting the words and figures "twelve percent (12%)" and inserting in lieu thereof the words and figures "sixteen percent (16%)".

Sec. 3. G.S. 25A-15(c) is rewritten to read:

"(c)       A finance charge rate not to exceed the higher of the rate established in subsection (b) or the rate set forth below may be imposed in a consumer credit installment sale contract repayable in not less than six installments for a self- propelled motor vehicle:

(1)        18% per annum for vehicles one and two model years old;

(2)        20% per annum for vehicles three model years old;

(3)        22% per annum for vehicles four model years old; and

(4)        29% per annum for vehicles five model years old and older.

A motor vehicle is one model year old on January 1 of the year following the designated year model of the vehicle."

Sec. 4. This act shall become effective 30 days after ratification.

In the General Assembly read three times and ratified, this the 25th day of May, 1981.