GENERAL ASSEMBLY OF NORTH CAROLINA

1985 SESSION

 

 

CHAPTER 663

HOUSE BILL 1059

 

AN ACT TO PROVIDE THAT THE MAXIMUM RATE OF INTEREST MAY VARY DURING THE TERM OF VARIABLE RATE LOANS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 24-1.1(3) is amended by deleting the last sentence and adding the following language:  "The rate so announced shall be the maximum rate permitted for the term of loans made under this section during the following calendar month when the parties to such loans have agreed that the rate of interest to be charged by the lender and paid by the borrower shall not vary or be adjusted during the term of the loan.  The parties to a loan made under this section may agree to a rate of interest which shall vary or be adjusted during the term of the loan in which case the maximum rate of interest permitted on such loans during a month during the term of the loan shall be the rate announced by the Commissioner in the preceding calendar month."

Sec. 2.  G.S. 24-1.2(2a) is amended by deleting the last sentence and adding the following language:  "The rate so announced shall be the maximum rate permitted for the term of loans made under this section during the following calendar month when the parties to such loans have agreed that the rate of interest to be charged by the lender and paid by the borrower shall not vary or be adjusted during the term of the loan.  The parties to a loan made under this section may agree to a rate of interest which shall vary or be adjusted during the term of the loan in which case the maximum rate of interest permitted on such loans during a month the term of the loan shall be the rate announced by the Commissioner in the preceding calendar month."

Sec. 3.  This act is effective upon ratification and shall apply to loans made after that date.

In the General Assembly read three times and ratified, this the 9th day of July, 1985.