                                 CODE OF VIRGINIA

DEFAULT CHARGE; BAD CHECK CHARGE (§ 38.2-4706)

A. If any installment under a premium finance agreement is not paid in full
within seven days after it is due, Sundays and holidays included, the insurance
premium finance company may charge and collect a default charge not to exceed
five percent of the installment. The default charge shall be collected only once
on any installment.

B. An insurance premium finance company may charge and collect a fee, not in
excess of twenty dollars, for each check returned to the insurance premium
finance company because the drawer had no account or insufficient funds in the
payor bank.

HISTORY: 1981, c. 107, § 38.1-740.2; 1986, c. 562; 1994, c. 123.