Nebraska § 45-365 - Installment sales contract; time-price differential; rate; maximum; origination fee.

§ 45-365. Installment sales contract; time-price differential; rate; maximum; origination fee.

(1)(a) Notwithstanding the provisions of any other law, the time-price differential for any goods or services sold under an installment sales contract shall be stated as a fixed or variable annual percentage rate and shall be at a rate agreed to in writing, not to exceed eighteen percent per annum, except that a minimum time-price differential of ten dollars may be charged on any installment sales contract.

(b) Origination fees may be required to be made by the buyer, subject to the following requirements:

(i) A buyer may be required, upon the execution of the installment sales contract, to pay an origination fee in an amount not to exceed ten dollars, except that if the installment sales contract is for an installment sale of agricultural machinery or equipment for use in commercial agriculture or if the installment sales contract is for an installment sale of industrial machinery or equipment, the buyer may be required to pay (A) an origination fee of not to exceed one hundred dollars if the cash sale price is less than twenty-five thousand dollars or (B) an origination fee of not to exceed two hundred fifty dollars if the cash sale price is twenty-five thousand dollars or more; and

(ii) The origination fee shall be refundable if the installment sales contract is canceled during the first thirty days. The origination fee may be collected from the buyer or included in the principal balance of the installment sales contract at the time the contract is made and shall not be considered interest or a time-price differential.

(c) Nothing in the Nebraska Installment Loan and Sales Act prohibits a seller or holder of an installment sales contract from contracting for, computing, and charging a time-price differential based upon the application of the rate charged to the unpaid principal balance for the number of days actually elapsed. The charges so computed shall be used for the purpose of calculating the time-price differential, the time-price balance, the amount of each installment, and the time-sale price.

(d) When the installment sales contract is payable in substantially equal and consecutive monthly installments, the time-price differential shall be computed on the basic time price of each contract, as determined under section 45-364, from the date of the contract until the due date of the final installment, notwithstanding that the time-price balance is required to be paid in installments.

(2) When an installment sales contract provides for payment other than in substantially equal and consecutive monthly installments, the time-price differential may be at a rate which will provide the same return as is permitted on substantially equal monthly payment contracts under subdivision (1)(d) of this section, having due regard for the schedule of payments.

(3) Every contract payable in two or more installments shall provide for payment of such installments by stating the date and amount of each installment or the method by which any variable rate or installment shall be determined.