A business development corporation may require as a part of any loan made by it, that in the event of a default by the borrower in the repayment or other terms of the loan obligation, the borrower shall pay late charges of a specified amount of up to five percent (5%) per month of the amount of the monthly installment in arrears. Moreover, a business development corporation may require that in the event any litigation becomes necessary as a consequence of the borrower’s default, the borrower shall further be liable for a specified amount of up to two percent (2%) of the unpaid principal balance owed on such loan. Such provisions shall be treated as liquidated damages and shall be valid and enforceable by the courts for all purposes.
Effective: July 15, 1980
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Terms Used In Kentucky Statutes 155.210

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Month: means calendar month. See Kentucky Statutes 446.010
  • 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.

History: Created 1980 Ky. Acts ch. 360, sec. 1, effective July 15, 1980.

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