Senate Bill No. 275

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act changing the delinquency fee in the Montana Retail Installment Sales Act; and amending section

31-1-235, MCA."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 31-1-235, MCA, is amended to read:

"31-1-235.   Delinquency fee. The holder of a retail installment contract or a retail charge account agreement may collect a delinquency charge on each installment in default for a period not less than 10 days in an amount not in excess of 5% of each installment or to exceed $15, whichever is less, or, in lieu of the charge, interest after maturity on each installment not exceeding the highest lawful contract rate. In addition to a delinquency charge, the contract may provide for the payment of attorneys' attorney fees not exceeding 15% of the amount due and payable under the contract when the contract is referred for collection to an attorney not a salaried employee of the holder of the contract and for court costs and actual and reasonable out-of-pocket expenses incurred in connection with the delinquency."