(1) Any bank shall have the power, in addition to such other powers as it may have, to make loans or other extensions of credit, the principal amount of which does not exceed $50,000, and charge interest calculated by any method on the principal amount at a rate not exceeding the equivalent of 18 percent per annum simple interest determined and computed as provided in s. 687.03(3), except that, notwithstanding the foregoing and the laws of this state governing interest and usury, the following additional charges may be made:
(a) A minimum interest or discount charge in any amount not exceeding $10 on any single payment loan or $15 on any installment loan; and
(b) An amount not to exceed the lesser of $50 or 2 percent of the principal amount of the loan, to reimburse the bank for its costs, other than costs actually paid to third parties, for investigating the character and credit of the person applying for the loan, the security submitted, and the costs of booking the transaction.
(2) The privileges conferred by paragraphs (1)(a) and (b) shall not extend to any bank which charges a penalty or delinquency charge in excess of 5 percent of the amount of any payment or payments in default or which refuses to rebate unearned interest or discount when the borrower repays the loan in full before the due date of the final installment. On any loan in which the interest is precomputed, the amount of such rebate shall be determined by the sum-of-the-digits method or the actuarial method.
(3) Any charges in excess of the combined total of all charges authorized and permitted by subsection (1) shall constitute a violation of chapter 687 governing interest and usury, and the penalties of chapter 687 shall apply.
(4) As amended by chapter 79-592, Laws of Florida, chapter 79-274, Laws of Florida, which amended this section:
(a) Shall apply only to loans, advances of credit, or lines of credit made on or subsequent to July 1, 1979, and to loans, advances of credit, or lines of credit made prior to that date if the lender has the legal right to require full payment or to adjust or modify the interest rate, by renewal, assumption, reaffirmation, contract, or otherwise; and
(b) Shall not be construed as diminishing the force and effect of any laws applying to loans, advances of credit, or lines of credit, other than to those mentioned in paragraph (a), completed prior to July 1, 1979.
History.—s. 2, ch. 28016, 1953; s. 1, ch. 57-132; ss. 12, 35, ch. 69-106; s. 1, ch. 76-125; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 9, 15, ch. 79-274; s. 1, ch. 79-592; ss. 39, 151, 152, ch. 80-260; ss. 2, 3, ch. 81-318; s. 1, ch. 91-307; s. 1, ch. 92-303.