(a) A premium finance agreement may provide for the payment by the borrower of a delinquency charge for any payment that is in default for a period of 10 days or more. The charge may be made for each month or fraction of a month that the payment is in default. The amount of the charge may be a minimum of $1 and as a maximum shall be subject to the following limits:
(1) for delinquent payments of less than $250, five percent of the payment or $5, whichever is less; or
(2) for delinquent payments of $250 or more, two percent of the payment.
(b) A borrower has the option to separate the financing of the premiums for one insurance policy from a premium finance agreement by requesting in writing that the premium finance company provide that service and by paying a $10 separate charge.
Section: Previous 06.40.090 06.40.100 06.40.110 06.40.120 06.40.130 06.40.140 06.40.150 NextLast modified: November 15, 2016