# Title 51 — Sales and Exchanges

## Chapter 51-14 — Revolving Charge Accounts

### § 51-14-01. Definitions.

In this chapter, unless the context otherwise requires:
1. "Credit service charge" means the amount, however expressed, which the retail buyer
contracts to pay or pays the retail seller in excess of the amount of credit extended,
representing the total charges by the retail seller incident to investigating and
extending credit under a revolving charge agreement and for extending to the retail
buyer the privilege of paying over a period of time therefor.
2. "Retail buyer" or "buyer" means a person who buys personal property from a retail
seller, or to whom a retail seller otherwise extends credit, pursuant to a revolving
charge agreement.
3. "Retail seller" or "seller" means:
a. A person that pursuant to a revolving charge agreement, agrees to sell or sells
goods or services, other than medical services. The term does not include a
medical services provider.
b. A state-chartered or national bank that extends credit by the advancement of
moneys or the payment for goods or services under a revolving charge
agreement.
4. "Revolving charge agreement" means a written instrument, defining the terms of credit
extended from time to time under the terms of the agreement. Under the agreement,
the buyer's total unpaid balance, whenever incurred, is payable over a period of time
and under the terms of which a credit service charge, other than the portion thereof
consisting of late payment or other charges, is to be computed in relation to the
buyer's unpaid balance from time to time.
### § 51-14-02. Contents of revolving charge agreements - Requirements for delivery of

monthly statements - Exception.
Every revolving charge agreement must be in writing and must be accepted by the retail
buyer. As used in this section, "accepted" means the buyer has signed the revolving charge
agreement, the buyer has used the account issued under a revolving charge agreement, or
within thirty days from the date of issuance the buyer has not canceled by written notice a credit
card or other access device issued under a revolving charge agreement. A copy of the revolving
charge agreement must be delivered or mailed to the retail buyer by the retail seller before the
date on which the first payment is due under the agreement. A revolving charge agreement
must state the amount and rate of the credit service charge to be charged and paid under the
agreement. The credit service charge, exclusive of late payment or other fees included therein,
must be set forth in the revolving charge agreement in terms of a monthly or annual percentage
rate to be applied to the balance outstanding from time to time under the agreement, as of the
beginning or end of each billing period or on a daily basis. Upon written notice, a seller may
change the terms of any revolving charge agreement, including the credit service charge, if this
right of amendment has been reserved. A change under this authority is effective as to existing
balances, if within twenty-five days of the effective date of the change, the buyer does not
furnish written notice to the seller that the buyer does not agree to abide by the changes. Upon
receipt of this written notice by the seller, the buyer has the remainder of the time under the
existing terms in which to pay all sums owed to the seller. Any request for additional credit under
a revolving charge agreement, including use of a credit card issued under the agreement, after
the effective date of the change of terms, including a change in the credit service charge, is
deemed to be an acceptance of the new terms, even though the twenty-five days has not
expired. The retail seller under a revolving charge agreement shall promptly supply the retail
buyer under the agreement with a statement as of the end of each monthly period or other
regular period agreed upon by the retail seller and the retail buyer, in which there is any unpaid
balance thereunder. Such statement must recite the following:
1. The unpaid balance under the revolving charge agreement at the beginning or end of
the period.

2. An identification of the goods or services purchased, the cash purchase price and the
date of each purchase, unless otherwise furnished by the retail seller to the retail
buyer by sales slip, memorandum, or otherwise.
3. The payments made by the retail buyer to the retail seller and any other credits to the
retail buyer during the period.
4. The amount of the credit service charge, if any, and also the percentage annual simple
interest equivalent of this amount.
5. A legend to the effect that the retail buyer may at any time pay the total indebtedness.
The items need not be stated in the sequence or order set forth in this section. Additional items
may be included to explain the computations made in determining the amount to be paid by the
retail buyer. If a revolving charge or credit account is also subject to the Truth in Lending Act [15
U.S.C. 1601-1667e], the seller may, instead of complying with this section, comply with all
requirements of the Truth in Lending Act.
### § 51-14-03. Limitation of credit service charge.

In a revolving charge agreement, a seller may contract for and, if so contracted for, the
seller or holder of the agreement may charge, receive, and collect the service charge authorized
by this section. The service charge may not exceed the amount agreed to by the parties. In the
event any payment by a buyer is insufficient to pay both the credit service charge and that
portion of the outstanding indebtedness then due, the payments must first be applied to the
credit service charge then due.
### § 51-14-03.1. Additional charges on revolving charge accounts.

The seller or holder of a revolving charge account may collect a late payment or other
charge not to exceed the amount agreed to by the parties in the revolving charge account
agreement.
### § 51-14-03.2. Application of other provisions.

Credit extended by a seller or holder of a revolving charge agreement to a buyer is not
subject to chapter 13-04.1 or 47-14.
### § 51-14-04. Scope of chapter - Effective date.

The service charge allowed in section 51-14-03 shall be allowed to a seller or holder only:
1. If the seller enters into an agreement subject to the provisions of this chapter with any
buyer on or after July 1, 1959; or
2. In the case of any buyer who had entered into an agreement with a seller prior to July
1, 1959, if the seller or holder delivers or mails to the buyer a copy of a retail
installment credit agreement in conformity with this chapter duly executed on behalf of
the seller and the seller or holder thereafter complies with all the other provisions of
this chapter.
Nothing in this section contained may be construed to affect the validity or invalidity of any
agreement or alleged agreement made prior to July 1, 1959.
### § 51-14-05. Penalty.

Any person who violates any provision of this chapter is guilty of a class A misdemeanor.
Any revolving charge account or any act in the making or collection of any revolving charge
account which violates the provisions of this chapter shall result in the forfeiture of all credit
service charges that have been paid or that may become due or payable thereunder, and in the
event that such violation is willful, the retail seller shall have no right to collect, receive, or retain
any principal, credit service charge, interest, or other charge whatsoever.
