Question:  We are making a very large commercial loan and were reviewing our note provision regarding late charges.  Right now, we have them capped at $250.  That seems too low for this transaction.  What are our legal parameters?

Answer:  5% after 10 days.  HB 955 deleted the word "reasonable" and left a simple permissible late charge of 5% after 10 days.  You had capped your late charge to assure that the borrower couldn't complain about the "reasonableness" of the late charge.