54-4-71 Term of title loan--Renewal--Payment amounts--Deferred principal amount.
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Term of title loan--Renewal--Payment amounts--Deferred principal amount.
title loan shall be for an initial term of no more than one month but may be renewed for additional
one-month periods. No title loan may be renewed more than four times except as provided in this
section. Upon the fifth renewal of a title loan, and through the eighth renewal, the debtor shall make
payment of at least ten percent of the original principal amount of the title loan, in addition to any
finance charges that are due. If at any renewal requiring a principal reduction, the debtor has not
made previous principal reductions adequate to satisfy the current required principal reduction, and
the debtor does not pay at least ten percent of the original loan amount, the title lender may either
declare the debtor in default or renew the title loan and defer the required principal payment for an
additional period. However, no further finance charges may accrue or be earned against the principal
amount so deferred. For purposes of this section, a renewal is any extension or continuation of a title
loan for an additional period without any change to the title loan or its terms other than a reduction
in principal. After the eighth renewal the title loan is due in full and no further finance charges or
fees may accrue or be earned.
Source: SL 2006, ch 245, § 13.
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