Section 6217.1 - Revolving loan accountsA. A licensee may in lieu of contracting for, collecting and receiving charges in the manner authorized by section 13, contract for, charge, collect and receive charges at a rate not in excess of two per cent (2%) per month on the unpaid principal balances from time to time outstanding; which charges shall not be paid, deducted or received in advance nor compounded but shall be computed and paid only as a percentage per month of the unpaid principal balance or portions thereof and be computed upon the basis of the number of days actually elapsed. For the purpose of computing charges under this section, whether at the maximum rate or less, a month shall be from one date in a month to the corresponding date in the following month but if there is no such corresponding date, then to the last day of such following month and a day shall be considered one thirtieth (1/30) of a month when computation is made for a fraction of a month. If part or all of the consideration for a loan contract made under this subsection is the unpaid principal balance of a prior loan, then the principal payable under such loan contract may include any unpaid charges on the prior loan which have accrued within sixty (60) days before the making of such new loan contract.B. Variable or fixed rate revolving loan accounts may be made under the provisions of this section. In lieu of the statement required by section 15 before making a loan pursuant to a revolving loan account, the licensee shall disclose to the borrower the maximum amount that may be borrowed, the method by which loans or advances are to be made, whether by check or draft drawn on the licensee or otherwise; a simple statement of the method by which the amount of the charges is to be calculated; a simple statement of the insurance coverages to be afforded the borrower, if obtained by or through the licensee, and if a charge for insurance is to be made a simple statement of the amount of such charge or the method by which it will be calculated. If, during a billing cycle, the licensee makes a loan or advance or the borrower makes a payment the licensee shall give to the borrower within a reasonable time after the end of the billing cycle a written statement of (i) the outstanding balance at the beginning of the billing cycle, (ii) the loans or advances made during the billing period excluding charges, (iii) the amount of charges accrued or debited during the period, (iv) payments made by the borrower, (v) the balance at the end of the billing cycle, and (vi) the amount which must be paid and the date by which it must be paid to avoid a default.C. A licensee may charge and collect a delinquency charge of twenty dollars ($20) or ten per cent (10%) of each payment, whichever is higher, for a payment which is in default for more than fifteen (15) days.D. A licensee may charge, contract for, receive or collect on any revolving loan account an annual fee not to exceed fifty dollars ($50) per year.1937, April 8, P.L. 262, § 17.1, added 1970, Dec. 30, P.L. 959, No. 301, § 6; 1994, Dec. 12, P.L. 1060, No. 144, § 5, imd. effective; 1996, July 2, P.L. 490, No. 80, § 5, imd. effective.