North Carolina Senate Bill 162 is an act to modernize the loan origination fee for North Carolina banks and to adjust the late payment charge for certain loans.
§ 24-1.1. Contract rates and fees
- (a) Technical changes
- (b) Technical changes
- (c) Technical changes
- (d) Technical changes
- (e) Amended to add: "(1) For a loan or extension of credit with a principal amount of one hundred thousand dollars ($100,000) or greater, the maximum origination fee is one quarter of one percent (1/4 of 1%) of the principal amount.
- (e) Amended to add: (2) For a loan or extension of credit with a principal amount less than one hundred thousand dollars ($100,000), the origination fee shall not exceed the amounts in the following table:
| Principal Amount | Maximum Origination Fee |
| $0 to $1,499.99 | $100.00 |
| $1,500 to $19,999.99 | $150.00 |
| $20,000 to $29,999.99 | $175.00 |
| $30,000 to $49,999.99 | $200.00 |
| $50,000 to $99,999.99 | $250.00 |
- (e) Amended to add: (3) If (i) the loan or extension of credit has a principal amount less than five thousand dollars ($5,000), (ii) the borrower is a natural person, and (iii) the debt is incurred primarily for personal, family, or household purposes, the loan or extension of credit shall not have an annual percentage rate that exceeds thirty-six percent (36%), inclusive of the origination fees permitted by this subsection and the interest permitted by subsection (c) of this section. For purposes of this subsection, "annual percentage rate" shall be calculated in accordance with the federal Consumer Credit Protection Act, Chapter 41 of Title 15 of the United States Code, (Truth in Lending Act) and the regulations adopted under it.
- (f) Technical changes
§ 24-10.1. Late fees
- (a) Technical changes
- (b) Amended to add:
- (1) A late payment charge shall not exceed any of the following:
- a. The amount disclosed with particularity to the borrower pursuant to the federal Consumer Credit Protection Act, Chapter 41 of Title 15 of the United States Code, (Truth in Lending Act) and the regulations adopted under it, if that act applies to the transaction.
- b. For a loan or extension of credit that meets all of the following
conditions, the greater of thirty-five dollars ($35.00) or four percent
(4%) of the amount of the payment past due:
- 1. The loan or extension of credit is made by a bank or savings institution organized under the law of North Carolina or of the United States.
- 2. The loan or extension of credit is not secured by real property.
- 3. The loan or extension of credit is governed by G.S. 24-1.1.
- 4. The loan or extension of credit has an original principal balance greater than or equal to one thousand five hundred dollars ($1,500).
- For any other type of loan or extension of credit governed by G.S. 24-1.1 or G.S. 24-1.1A, four percent (4%) of the amount of the payment past due
- (2) Deleted
- (3) Amended to add: A late payment charge shall not be charged unless one of the following is true: a. The payment is 30 days past due or more for a loan on which interest on each installment is paid in advance. b. The payment is 15 days past due or more for any other loan
- (4) Technical changes
- (5) Technical changes
- (6) Technical changes
- (1) A late payment charge shall not exceed any of the following:
- (c) Technical changes
This act is effective when it becomes law (September 10, 2019) and applies to contracts entered into, renewed, or modified on or after that date.