A. Notwithstanding any statutory or case law relating to interest or usury, loans made by an industrial loan association payable in weekly, monthly, or other periodic installments may be enforced as agreed in the contract of indebtedness. In addition, such association may charge or collect in advance from the borrower on such loans a loan fee not exceeding two percent of the principal amount of the loan. An interest rate charged in advance upon the entire amount of the loan or pursuant to a written modification agreement shall be lawful.
B. An industrial loan association may charge interest at an annual rate not exceeding 18 percent on loans payable on demand or in a single payment. In addition, such association may charge or collect in advance from the borrower on such loans a loan fee not exceeding two percent of the principal amount of the loan.
1987, c. 622, § 6.1-330.68; 2010, c. 794.
Structure Code of Virginia
Title 6.2 - Financial Institutions and Services
Chapter 3 - Interest and Usury
§ 6.2-301. Legal rate of interest; when legal rate implied
§ 6.2-302. Judgment rate of interest
§ 6.2-303. Contracts for more than legal rate of interest
§ 6.2-304. Plea of usury; judgment
§ 6.2-306. Waiver of rights violative of public policy
§ 6.2-307. Assertion of defenses or claims by borrowers; effect of assignment
§ 6.2-308. Entities not permitted to plead usury
§ 6.2-309. Charges by banks and savings institutions on installment loans
§ 6.2-310. Rate of interest chargeable by state banks and savings institutions
§ 6.2-311. Closed-end installment loans by sellers of goods or services
§ 6.2-312. Open-end credit plans
§ 6.2-313. Open-end credit extended by banks or savings institutions
§ 6.2-316. Loans of $5,000 or more made by certain financial institutions
§ 6.2-317. Loans of $5,000 or more for business or investment purposes
§ 6.2-318. Loans by credit unions
§ 6.2-319. Loans by pension plans to participants
§ 6.2-320. Loans by industrial loan associations
§ 6.2-321. Loans pursuant to stock option financing programs
§ 6.2-322. Extensions of credit on pledged securities
§ 6.2-323. Educational loans by banks or savings institutions
§ 6.2-324. Educational loans by private institution of higher education
§ 6.2-325. Certain loans secured by first deed of trust or mortgage
§ 6.2-326. Fees and charges in connection with loans by real estate lenders
§ 6.2-327. Certain loans secured by a subordinate deed of trust or mortgage
§ 6.2-328. Charges allowed on loan secured by subordinate mortgage
§ 6.2-329. Loans insured or guaranteed by certain governmental agencies