Limitation on default charges in consumer related loans

Sec. 43. (a) The agreement with respect to a consumer related loan may provide for only the following charges as a result of the debtor's default: (1) reasonable attorney's fees and reasonable expenses incurred in realizing on a security interest; (2) deferral charges not in excess of twenty-five percent (25%) per year of the amount deferred for the period of deferral; and (3) other charges that could have been made had the loan been a consumer loan. (b) A provision in violation of this section is unenforceable. [Pre-2026 Revision Citation: 24-4.5-3-604.] As added by P.L.115-2026, SEC.97.