Section 110.80  Simple Interest Loans

a)         No payment shall be accepted on the principal balance unless interest is paid to date or is agreed to by the licensee, except a payment may be credited to principal if the amount of the payment is not sufficient to pay the interest due for one day.

b)         A calendar month is the period from a given date in one month to the same numbered date in the following month, and if there is no same numbered date in the following month, to the last day of the following month.

c)         Interest shall be computed on the basis of one month's interest for each calendar month and 1/30 of a month's interest for each day in a fraction of a month or, alternatively, 1/365 of the agreed annual rate for each day actually elapsed.

d)         When a simple interest loan contract is renewed or refinanced, accrued but uncollected interest may be included in the principal amount of the new loan contract.

e)         A non-standard payment schedule with irregular times or amounts and varying interest rates is permissible, in accordance with Section 15(e)(3) of the Act, providing there is proper disclosure of an independently verifiable index beyond the control of the licensee.

(Source:  Amended at 30 Ill. Reg. 12558, effective July 7, 2006)