New Jersey § 17:9a-59

§ 17:9a-59.

(a) The note evidencing a small business loan may provide that (1) Upon default in the payment of any installment on its due date, the entire unpaid

balance owing thereon shall, at the election of the bank, become immediately due and

payable; (2) When the maturity of the unpaid balance owing on a note is accelerated as provided

by this section, the bank may charge interest at the legal rate, as defined in section

1 of this act 1 from the date such acceleration takes place upon the unpaid principal balance thereof; (3) On any installment of a precomputed loan in arrears for more than 10 days, the

bank may make a late charge which shall not exceed 5% of such installment, or $5,

whichever is the lesser; provided, (A) (deleted by amendment) (B) that only one such

late charge shall be made on any one installment; and (C) that no such late charge

shall be made upon any installment scheduled, by the terms of such note, to fall due

upon a date subsequent to the date upon which the maturity of the unpaid balance of

the loan is accelerated as provided by this section; (4) No party to such note shall be released or discharged from liability to the bank

by reason of the bank's extending the time for the payment of an installment or installments

owing or due upon such note, or by reason of the bank's waiver of any term or condition

of such note, or of the instrument intended to secure payment thereof; (5) All parties to such note shall waive presentation for payment, demand for payment,

protest and notice of protest, nonpayment, dishonor, and the bank's election to accelerate

the maturity of the unpaid balance owing thereon. (b) (Deleted by amendment.) (c) In addition to the provisions expressly authorized by subsection (a) of this section,

the note evidencing a small business loan, or the agreement pursuant to which such

loan is made, may contain such provisions, not contrary to law or inconsistent with

the provisions of this act, as the bank and the small business concern may agree upon,

but no such note or agreement shall provide that payment of the note shall be accelerated

because the bank, or other holder of the note, deems itself insecure. No bank shall take any power of attorney to confess judgment on any note evidencing

a small business loan. 1

N.J.S.A. § 17:9A-59.25.