Limitation on default charges.

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Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer credit transaction may not provide for charges as a result of default by the consumer other than those authorized by this code. A provision in violation of this section is unenforceable.

Source: L. 2000: Entire article R&RE, p. 1221, § 1, effective July 1.

Editor's note: This section is similar to former §§ 5-2-414 and 5-3-405, as they existed prior to 2000.


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