Definitions

Definitions. Unless otherwise defined in the MCAA, the following terms shall be defined as follows: AMOUNT FINANCED. The amount of money disbursed to the account holder excluding any fees or charges. Pursuant to Regulation Z (12 C.F.R. § 1026.18(b)), this may be described to the account holder as “the amount of credit provided to you or on your behalf.” NOTE: Under the MCAA, the “Amount Financed” is referred to as the “Principal” and is specifically defined below. BUSINESS DAY. Any day of the week between and including Monday through Friday, and excluding Saturdays, Sundays and all official national holidays recognized by the United States federal government. FINANCE CHARGE. For Truth and Lending Act (TILA) purposes, a finance charge under the MCAA includes the Handling Fee and Origination Fee, if any, charged by the Licensee. This may be described to the account holder as “the dollar amount the credit will cost you.” HANDLING FEE. A fee paid monthly by the account holder “for services, expenses, and costs” of the Licensee. Said amount may not exceed “twenty-five percent (25%) of the outstanding principal balance of any credit availability account per month, or portion thereof….” The Handling Fee shall not be deemed interest for any purpose of law. MONTH. (a) One of the months as named in the calendar or (b) The period from a day of one month to the corresponding day of the next month if such exists, or, if such does not exist, to the last day of the next month (i.e., use of either 360-day or 365-day year is permitted). For the purposes of earning the “monthly Handling Fee” allowed by statute, one (1) calendar day in a calendar month equals one (1) full month of Handling Fees earned unless otherwise prohibited by law (e.g., one-business day statutory right of rescission by account holder at Miss. Code Ann. §75-67-621(2)). ORIGINATION FEE. A fee, in addition to the Handling Fee, that may be charged by a Licensee to cover “costs associated with providing a credit availability transaction.” Miss. Code Ann. Section 75-67-619(c). This fee may not exceed “one percent (1%) of the amount disbursed to the account holder or five dollars ($5.00), whichever is greater.” The Origination Fee shall not be deemed interest for any purpose of law. OUTSTANDING PRINCIPAL BALANCE. The lesser of (a) the amount of money initially borrowed at the consummation of the transaction (i.e., the Principal/Amount Financed) or (b) the actual amount outstanding Principal/Amount Financed (not including any late fees) on the date the monthly payment is due and owing. PAST DUE AMOUNT. For purposes of calculating late fees, the past due amount is the amount of a single payment that is more than 10 business days in arrears during a Calendar Month. PRINCIPAL. The amount of money initially borrowed by the consumer at the consummation of the transaction. Also referred to as the “Amount Financed.” This amount does not include any Handling Fee, Origination Fee or late fees. REFUND. The amount due and owing to the account holder for overpayments or credits of any nature.