Section 0180-08-.04 - LOAN CHARGES(1) For all loans subject to these rules, a loan charge may be exacted at a rate not to exceed seven dollars and fifty cents ($7.50) on the first one hundred dollars ($100.00) of principal and one dollar and fifty cents ($1.50) per one hundred dollars ($100.00) of principal thereafter, up to a maximum of twenty dollars ($20.00) for any loan; provided, however, no such loan charge may be assessed upon the renewal of any such loan; provided, further, that a renewal of any such loan is hereby declared to mean a renewal of the loan with a principal amount that is the same, or less than, the original principal amount of the loan, or a new loan in which all, or substantially all, of the proceeds are applied to pay off the existing loan. In the event that the principal amount of the loan is not in an exact increment of one hundred dollars ($100.00), the permissible loan charge is pro-rated accordingly.(2) Loan charges include charges or premiums for credit life, accident, or health insurance written in connection with a loan subject to these rules unless:(a) the insurance coverage is not required by the lender as a condition for extending the credit and this fact is clearly and conspicuously disclosed in writing to the borrower; and(b) any borrower desiring such insurance coverage gives specifically dated and separately signed affirmative written indication of his intention to purchase such insurance after receiving written disclosure of its cost.Tenn. Comp. R. & Regs. 0180-08-.04
Original rule filed July 16, 1979; effective August 30, 1979.Authority: T.C.A. § 4-5-104 and Chapter 203 of the Public Acts of 1979.