Definition: "Revolving loan account".

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"Revolving loan account" means an open-end credit plan between a lender and a debtor under

(1) which the lender reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and pursuant to which the lender will permit the debtor to obtain loans from time to time; and

(2) which provides for a loan finance charge which is not precomputed but is computed on the outstanding unpaid balances of the debtor's account from time to time.

Added by Laws 1969, c. 352, § 3-108, eff. July 1, 1969. Amended by Laws 1982, c. 335, § 34, operative June 1, 1982.


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