Model Policy

{Title, enacting clause, etc.}

Section 1. This Act may be cited as the Free Contract in Financing Act.

Section 2. {Contracting for extension of credit.} Not withstanding any contrary provision of the law, the parties to any transaction involving the extension of credit may contract for any interest, finance charge or other consideration for such extension of credit, as agreed upon by the parties in writing.

Section 3. {Contracting for additional charges.} In addition to the interest, finance charge or consideration permitted under this Act, the parties to any such transaction may contract for such additional charges as may be agreed upon by the parties in writing.

Section 4. {Severability clause.}

Section 5. {Repealer clause.}

Section 6. {Effective date.}

Approved by ALEC Board of Directors on January 1995.

Reapproved by ALEC Board of Directors on January 28, 2013.

Reapproved by ALEC Board of Directors on November 16, 2017.