{"data":{"id":"us-ky/krs-286.4-533","jurisdiction":"us-ky","citation":"KRS 286.4-533","heading":"Authorized charges for extension of credit.","body":"Notwithstanding the provisions of KRS 286.4 -530(10) or any other law, in any extension\nof credit under this subtitle, a licensee may charge and collect the following charges:\n(1) A fee, or premium for insurance, in lieu of perfecting a security interest, e xcept in\nno event shall the fee or premium exceed the fee payable to public officials for\nperfecting the security interest;\n(2) A returned payment charge of twenty -five dollars ($25) or the amount passed on\nfrom other financial institutions and payment pro cessors, whichever is greater, for\neach check, draft, electronic fund transfer, negotiable order of withdrawal, or\nelectronic payment returned, unpaid, or otherwise dishonored for any reason, which\ncharge the licensee may charge and collect through regular  billing procedures, or\notherwise, from the borrower;\n(3) A reasonable attorney's fee, in connection with the collection of a loan, actually\nincurred by the licensee and paid or payable to an attorney who is not an employee\nof the licensee;\n(4) (a) A loan processing fee of five percent (5%) of the original principal amount of\nthe loan, which charge shall be limited to a maximum of one hundred fifty\ndollars ($150).\n(b) Any loan processing fee collected up to, and including, seventy -five dollars\n($75) shall be nonrefundable.\n(c) In the event of prepayment, any portion of a loan processing fee above\nseventy-five dollars ($75) shall be subject to refund in the same manner as\nother charges pursuant to KRS 286.4-530(6).\n(d) A loan processing fee may only be charge d once on a loan within any ninety\n(90) day period;\n(5) (a) An alternative to the default charge described in KRS 286.4 -530(4), not to\nexceed five percent (5%) of each scheduled installment or fifteen dollars\n($15), whichever is greater.\n(b) Only one (1) charge may be collected for each scheduled installment;\n(6) Costs or other expenses authorized for a secured party in accordance with KRS\n355.9-207 and 355.9-607; and\n(7) If the borrower requests loan funding in a manner other than by physical check, a\nfunding fee of three dollars ($3) per loan for distributing the loan proceeds in the\nmanner requested by the borrower.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53998","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:11Z","sha256":"cbcf91a8be76c97183abd7b9333e6fe03a1a62d6e84edac700863a50891b3bf4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.4-530","next":"us-ky/krs-286.4-535"},"notice":"GroundRules: Original legal text. Not legal advice."}