SB 128 - The act revises the provisions of law relating to small loans. Set interest rates are removed in favor of a provision which allows the parties to set those rates. In addition, the fee charged for payments that are more than 30 days overdue is increased from two to five percent, not to exceed $50. Financial institutions may charge an annual $50 fee on open ended credit contracts. The act also repeals the 22% maximum limit on certain open-ended and close-ended credit contracts.

The parties would be permited to set the rate on second mortgage loans and the permissible origination fee is raised from two to five percent. The act also permits an annual fee of $50 for revolving loans.

DAVID VALENTINE