Okay two questions here, I've searched this out but still not quite comfortable giving opinion. New to compliance and want to be sure. I've also posted this in the Lending Compliance folder.
1st - Post-Maturity Rate. We previously had always put "Note Rate". Looking at changing this and want to know what to know is there a maximum interest rate. Missouri statutes seem to indicate no rate limit in the usury rates, but that is on the loan itself, I can't find anything that discusses a limit on Post-Maturity.
2nd - Offset Loan Payments - Borrower is late on loan payment, sent Right to Cure notification. If no response and the borrower has sufficient funds in an account with the bank; Is is legal to take payments from the account and are we reqired to notify the borrower prior to doing so? From what I have been able to find out is seems that offset is fine to satisfy the entire loan, but that is not what we want to do right off the bat.
Advance thanks to anyone who can help.