Louisiana Revised Statutes 9:3505 – Items or charges not considered interest
Terms Used In Louisiana Revised Statutes 9:3505
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
Notwithstanding any other law to the contrary, particularly but not exclusively La. Rev. Stat. 9:3500, and in addition to those fees, charges, costs and expenses ordinarily not considered interest and not included in the calculation of interest, the following charges, fees, costs and expenses shall not be considered interest on any conventional obligation covered by La. Rev. Stat. 9:3502-9:3506:
(1) Charges for the pre-payment of the loan, or any installment or part thereof, prior to the time fixed for the payment of same;
(2) Charges assessed because of the nonpayment of the loan or any installment or part thereof after said loan or any installment of principal or interest thereof has become delinquent and is not timely paid, including cost of collecting and a reasonable attorney’s fee, provided that such charges or the methods of fixing same are provided in writing in either the note or the mortgage securing same;
(3) Brokerage fees, discount fees, service fees, origination fees, commitment fees, warehousing fees, lender’s fees, or other similar fees or charges paid by anyone on a loan secured directly or indirectly, in whole or in part, by a mortgage on immovable property;
(4) Fees or charges paid by the borrower to a mortgage broker or agent retained by the borrower to obtain a loan for the borrower from a lender, even though the loan may be closed in the name of such mortgage agent or broker;
(5) Fees, taxes, charges and other expenses incurred in making the loan which are collected from or paid by the borrower or on his behalf, if such fees, taxes, charges and other expenses are actually paid to or are payable to persons other than the lender or the person making the loan or any employee of such lender or person making the loan;
(6) Charges or premiums for credit life insurance actually written on the life of any borrower or endorser;
(7) The listing herein of certain fees and charges shall not be construed as exclusive, but shall be in addition to any fees, charges, costs and expenses not ordinarily considered interest.
Acts 1969, No. 28, §4; Acts 2004, No. 743, §3, eff. Jan. 1, 2005.