KRS 155.210: Specified late charges for default of loan and litigation charges treated as

liquidated damages.

A business development corporation may require as a part of any loan made by it, that in

the event of a default by the borrower in the repayment or other terms of the loan

obligation, the borrower shall pay late charges of a specified amount of up to five percent

(5%) per month of the amount of the monthly installment in arrears. Moreover, a

business development corporation may require that in the event an y litigation becomes

necessary as a consequence of the borrower's default, the borrower shall further be liable

for a specified amount of up to two percent (2%) of the unpaid principal balance owed on

such loan. Such provisions shall be treated as liquida ted damages and shall be valid and

enforceable by the courts for all purposes.