A premium finance agreement or agreement to extend credit may require the borrower to pay a late charge for any payment that is not made within 10 days after it is due. A late charge may be imposed for each month or fraction of a month that the payment is late. The charge allowed is a minimum of $1 and a maximum of,

1. (1) for a delinquent payment of less than $250, five percent of the payment or $5, whichever is less; or
2. (2) for a delinquent payment of $250 or more, two percent of the payment.

(Eff. 4/22/79, Register 70; am 3/11/98, Register 145)

Authority: AS 21.06.090, AS 21.36.490