Terms Used In 14 Guam Code Ann. § 3206

  • Contract: A legal written agreement that becomes binding when signed.
  • Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
) If a lender makes a consumer loan, other than one pursuant to a revolving loan account, to a debtor who has an unpaid balance owing to the lender with respect to a previous consumer loan, the parties may agree to a consolidation resulting in a single schedule of payments. If the previous consumer loan is not a precomputed loan, the parties may agree to add the unpaid amount of principal at the date of consolidation to the principal with respect to the subsequent loan. If the previous consumer loan is a precomputed loan, the parties may agree to refinance the unpaid balance pursuant to the provisions on refinancing (§ 3205) and to consolidate the principal resulting from the refinancing by adding it to the principal with respect to the subsequent loan. In either case the lender may contract for and receive a loan finance charge based on the aggregate principal resulting from the consolidation at a rate not in excess of that permitted by the provisions on loan finance charge for consumer loans (§ 3201) or the provisions on loan finance charge for regulated loans (§ 3508), whichever is appropriate.
(2) The parties may agree to consolidate the unpaid balance of a consumer loan, other than one pursuant to a revolving loan account, with the unpaid balance of a consumer credit sale, other than one pursuant to a revolving charge account. The parties may agree to refinance the previous unpaid balance pursuant to the provisions on refinancing sales (§ 2205) or the provisions on refinancing loans (§ 2305), whichever is appropriate, and to consolidate the amount financed resulting from the refinancing or the principal resulting from the refinancing by adding it to the amount financed or principal with respect to the subsequent sale or loan. The aggregate amount resulting from the consolidation shall be deemed principal, and the creditor may contract for and receive a loan

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14 Guam Code Ann. UNIFORM CONSUMER CREDIT CODE
CH. 3 LOANS

finance charge based on the principal at a rate not in excess of that permitted by the provisions on loan finance charge for consumer loans (§ 3201) or the provisions on loan finance charge for regulated loans (§ 3508), whichever is appropriate.