NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 1157

HOUSE BILL 861

 

 

AN ACT TO INCREASE THE LEGAL RATE OF INTEREST FROM SIX PERCENT (6%) PER ANNUM TO EIGHT PERCENT (8%) PER ANNUM AND TO AMEND ARTICLE 2 OF CHAPTER 24 OF THE GENERAL STATUTES RELATING TO LOANS SECURED BY SECONDARY OR JUNIOR MORTGAGES.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 24-1 is amended by deleting the word "six" and substituting in lieu thereof the word "eight".

Sec. 2.  G.S. 24-12(2) is amended by deleting the phrase "seven thousand five hundred dollars ($7,500)" and substituting in lieu thereof the phrase "twenty-five thousand dollars ($25,000)".

Sec. 3.  G.S. 24-12(3) is rewritten to read:

"(3)      The loan is repayable in no less than six nor more than 181 successive monthly payments, which payments shall be substantially equal in amount."

Sec. 4.  G.S. 24-13 is amended by deleting the phrase "hereinafter stated rate of charge" and substituting in lieu thereof the phrase "charges allowed by G.S. 24-14(b) and (c)".

Sec. 5.  G.S. 24-14(a) is amended by deleting subdivisions (1) and (2) and substituting in lieu thereof the following phrase:

"simple interest in excess of 1 1/3% per month or an annual rate equivalent to the Federal Discount Rate plus 5%, whichever is the greater, computed on the actual or average daily unpaid balance of the principal amount of the loan for the time actually outstanding. However, interest may not be compounded."

Sec. 6.  G.S. 24-14(b) is rewritten to read:

"(b)      In addition to the interest permitted in subsection (a), the lender may include in the loan his actual expenses which are paid to third parties in connection with the loan. Such expenses shall be limited to those for: title examination, title insurance, appraisals, surveys, and recording fees or releasing fees to trustees or public officials, and only such insurance charges as permitted in subsection (c)."

Sec. 7.  G.S. 24-15 is repealed.

Sec. 8.  This act shall not apply to judgments entered prior to July 1, 1980.

Sec. 9.  This act shall become effective on July 1, 1980.

In the General Assembly read three times and ratified, this the 23rd day of June, 1980.