KRS 286.4-533: Authorized charges for extension of credit.

Notwithstanding the provisions of KRS 286.4 -530(10) or any other law, in any extension

of credit under this subtitle, a licensee may charge and collect the following charges:

(1) A fee, or premium for insurance, in lieu of perfecting a security interest, e xcept in

no event shall the fee or premium exceed the fee payable to public officials for

perfecting the security interest;

(2) A returned payment charge of twenty -five dollars ($25) or the amount passed on

from other financial institutions and payment pro cessors, whichever is greater, for

each check, draft, electronic fund transfer, negotiable order of withdrawal, or

electronic payment returned, unpaid, or otherwise dishonored for any reason, which

charge the licensee may charge and collect through regular billing procedures, or

otherwise, from the borrower;

(3) A reasonable attorney's fee, in connection with the collection of a loan, actually

incurred by the licensee and paid or payable to an attorney who is not an employee

of the licensee;

(4) (a) A loan processing fee of five percent (5%) of the original principal amount of

the loan, which charge shall be limited to a maximum of one hundred fifty

dollars ($150).

(b) Any loan processing fee collected up to, and including, seventy -five dollars

($75) shall be nonrefundable.

(c) In the event of prepayment, any portion of a loan processing fee above

seventy-five dollars ($75) shall be subject to refund in the same manner as

other charges pursuant to KRS 286.4-530(6).

(d) A loan processing fee may only be charge d once on a loan within any ninety

(90) day period;

(5) (a) An alternative to the default charge described in KRS 286.4 -530(4), not to

exceed five percent (5%) of each scheduled installment or fifteen dollars

($15), whichever is greater.

(b) Only one (1) charge may be collected for each scheduled installment;

(6) Costs or other expenses authorized for a secured party in accordance with KRS

355.9-207 and 355.9-607; and

(7) If the borrower requests loan funding in a manner other than by physical check, a

funding fee of three dollars ($3) per loan for distributing the loan proceeds in the

manner requested by the borrower.