N.D. Cent. Code § 13-01-14.1

Current through 2023 Legislative Sessions

Section 13-01-14.1 - Late payment charge on accounts receivable for medical services - Limitations on extensions of credit by medical providers

1. This section applies to a creditor that is a medical services provider for debts incurred in providing medical services.

2. A creditor that is a medical services provider may not charge, receive, or collect a late payment charge on money due on an account receivable for medical services except as provided under this section. For purposes of late charges on accounts receivable under this section:

a. An account for medical services, except an account for medical services of a licensed nursing facility or basic care facility, does not become delinquent until ninety days have passed following receipt of the billed medical services; and

b. An account for medical services of a licensed nursing facility or basic care facility does not become delinquent until forty-five days have passed following billing of the medical services.

3. The account receivable late payment charge allowed under this section may not be charged unless, when the obligation was incurred, the creditor did not intend to extend any credit and late payment of the obligation was unanticipated.

4. A creditor that is not a hospital may charge, receive, and collect an account receivable late payment charge under this section at a rate that does not exceed one percent per month. A creditor that is a hospital may charge, receive, and collect an account receivable late payment charge under this section at a rate that does not exceed one percent per month, not to exceed twenty-five dollars per month.

5. Notwithstanding a higher rate or amount that may be allowed under any other law or agreed to in any written or verbal agreement, the finance charge, credit service charge, or rate of interest for an extension of credit for medical services which is charged by:

a. A medical services provider that is not a hospital may not exceed one percent per month.

b. A hospital may not exceed one percent per month, not to exceed twenty-five dollars per month.

N.D.C.C. § 13-01-14.1