20 HќќѠіђџȱ юћјђџ Ѣћђȱ2014 COMPLIANCE CONNECTION Question: We are contemplat- ȱěȱȱȱȱ ability to defer a loan payment twice annually. Are we able to charge a fee for this “skip-a-payment” service? Answer: Yes, subject to the conditions described below, you may charge a fee for a skip-a-payment service. Indiana Code § 24-4.5-3-202 sets forth a list of charges which a lender may contract for and receive in connection with a consumer loan. These charges are in addition to the permis- ȱȱȱęȱǯ1 In 2006 the Indiana Department of Financial Institutions (DFI) approved an additional charge for a skip-apayment service pursuant to Ind. Code §§ 24-4.5-3-202(1)(e) and 24-4.53-202(1)(c). The additional charge, however, is subject to the limitations described below: The loan must have an annual percentage rate of 18 percent or less; The term of the loan, if closed-end, must be 84 months or less; ABOUT COMPLIANCE CONNECTION In order to address compliance inquiries from members, IBA provides Compliance Connection, an assistance ȱěȱȱȱ Ȭęȱȱ ǯȱ ȱȱĴȱȱȱǰȱ ȱ Compliance Connection will refer the bank to a law ęǯȱ ȱȱȱȱȱ ȱȱ¢ȱLarry C. Tomlin, partner with Krieg DeVault LLP, Indianapolis, and IBA compliance consultant. Submit Compliance Connection questions to IBA’s Amber R. Van Til at avantil@indianabankers.org. This information is provided for general education purposes and is not intended to be legal advice. ȱȱȱȱȱęȱȱȱ to how this information applies to your institution’s circumstances or situation. See ,QG &RGH WKURXJK 2 See ,QG 5HJ /6$ 'RF 1R 6HSW VHH ZZZ LQ JRY OHJLVODWLYH LDF ,5 21$ [PO SGI The maximum skip-a-payment fee per occurrence is $25; The skip-a-payment fee may not be assessed more than twice in a 12-month period; The skip-a-payment fee may only be assessed on simple interest loans; No delinquency charge can be assessed on any payment where a skip-a-payment fee has been assessed; The lender must comply with all applicable disclosures and provide ȱȱęȱȱ the time of the occurrence; The borrower must sign an agreement indicating the amount of the skip-a-payment fee at the time of the occurrence.2 In addition, the lender’s processes must provide an audit trail so that Ȃȱ¡ȱ¢ȱęȱ- ance with the conditions described above. 5 2HY^PJR 9VHK 4PJOPNHU *P[` ^^^ OHYIV\Y[Y\Z[ JVT >OL[OLY `V\»]L Q\Z[ Z[HY[LK [OPURPUN HIV\[ H ¸ULZ[ LNN ¹ HYL Z[YH[LNPaPUN [V TLL[ JVSSLNL JVZ[Z SVVRPUN HOLHK [V `V\Y YL[PYLTLU[ VY JVUJLYULK HIV\[ `V\Y ÄUHUJPHS SLNHJ` /HYIV\Y ;Y\Z[ 0U]LZ[TLU[ 4HUHNLTLU[ *VTWHU` PZ OLYL MVY `V\ >OH[L]LY `V\Y SPML Z[HNL SL[ V\Y [Y\Z[LK HUK WYV]LU L_WLYPLUJL OLSW LUZ\YL [OL ZLJ\YL M\[\YL `V\ KLZLY]L Trust us to help you create a plan. ;Y\Z[ (KTPUPZ[YH[PVU 0U]LZ[TLU[ 4HUHNLTLU[ 0UKP]PK\HS 9L[PYLTLU[ (JJV\U[Z 09(Z Call a member of our experienced team to assist with any of your financial and investment needs. make the most Trust us to help of your financial future Managing Your Wealth, Securing Your Future John R. Hillis, chairman of the board of directors of Security Federal Savings Bank, Logansport, is retiring from his bank responsibili- ǰȱěȱ ȱŗŞǯȱ ȱȱȱ board in 1989 and was named chairman in 2003. He is a veteran of the ǯ ǯȱ ¢ǰȱȱȱȱȱ ȱ University in Ohio and of the Indiana University School of Law. TAKING IT EASY
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