House Journal: Page 735: Thursday, March 18, 1999

17     b.  The parties to a home equity line of credit

18   which is not a consumer credit transaction, as defined
19   in section 537.1301, may contract for a delinquency
20   charge under terms no more favorable than those
21   permitted for open-end credit under section 537.2502.
22     Sec. 2. NEW SECTION.  535.14  PROMPT PAYMENT ON
23   LOANS SECURED BY RESIDENTIAL REAL PROPERTY.
24     A lender is subject to the requirements set forth
25   in section 537.3206, regarding the prompt crediting of
26   payments, with respect to a loan secured by a lien or
27   security interest on owner-occupied residential real
28   property.  For purposes of this section, "residential
29   real property" means residential real property as
30   defined in section 535B.1.
31     Sec. 3.  Section 537.2502, subsections 1, 2, and 3,
32   Code 1999, are amended to read as follows:
33     1.  With respect to a precomputed consumer credit
34   transaction not pursuant to an open-end credit
35   arrangement and other than a consumer lease or
36   consumer rental purchase agreement, the parties may
37   contract for a delinquency charge on any installment
38   not paid in full within ten days after its due date,
39   as originally scheduled or as deferred, in an amount
40   not exceeding the greater of either of the 
following
41   as follows:
42     a.  For a precomputed transaction, an amount not
43   exceeding the greater of either of the following:
44     a. (1)  Five percent of the unpaid amount of the
45   installment, or a maximum of twenty dollars.
46     b. (2)  The deferral charge that would be permitted
47   to defer the unpaid amount of the installment for the
48   period that it is delinquent.
49     b.  For an interest-bearing transaction, an amount
50   not exceeding five percent of the unpaid amount of the
Page 2  
 1   installment, or a maximum of fifteen dollars.
 2     2.  A delinquency charge under subsection 1,
 3   paragraph "a", may be collected only once on an
 4   installment however long it remains in default.  No
 5   delinquency charge may be collected with respect to a
 6   deferred installment unless the installment is not
 7   paid in full within ten days after its deferred due
 8   date.  A delinquency charge may be collected at the
 9   time it accrues or at any time afterward.
10     3. No A delinquency charge may shall not be
11   collected under subsection 1, paragraph "a", on an
12   installment which is paid in full within ten days
13   after its scheduled or deferred installment due date
14   even though an earlier maturing installment or a
15   delinquency or deferral charge on an earlier

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