New Jersey Administrative Code
Title 3 - BANKING
Chapter 1 - GENERAL PROVISIONS
Subchapter 14 - REVOLVING CREDIT EQUITY LOANS
Section 3:1-14.5 - Interest
No interest shall be paid, deducted or received in advance, except that a bank, savings bank or savings and loan association may charge at closing up to three discount points computed as a percentage of the credit extended. Interest shall not be compounded and shall be computed only on unpaid principal balances, except that interest due but unpaid may be considered part of the unpaid principal balance. For purposes of computing interest all installment payments shall be applied no later than the next business day after the date of receipt at the designated office or offices of the bank, savings bank or savings and loan association as set forth in the agreement, and interest shall be charged for the actual number of days elapsed at a daily rate of 1/365th of the yearly rate.