(1) Each person engaged in the business of financing loans on personal property sold by dealers to purchasers on credit shall pay interest at the rate of two and one-half percent (2.5%) per annum on holdbacks, reserves or other money withheld from the dealer under any contract for financing such a purchase on credit. Interest on such money withheld shall be paid to each dealer on January 1 and July 1 of each year.
(2) Any amount withheld by a person engaged in making such loans shall be due immediately upon the close of the loan account.

Terms Used In Kentucky Statutes 360.060

  • Contract: A legal written agreement that becomes binding when signed.
  • Personal property: All property that is not real property.
  • Year: means calendar year. See Kentucky Statutes 446.010

(3) Each person engaged in making such loans shall furnish each dealer as of January 1 and July 1 of each year, a report showing the status of the dealer’s reserve or holdback account, if any.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. secs. 2223-3, 2223-4, 2223-5.