Other LanguagesIn the absence of a statute, charter provision, ordinance or bond covenant to the contrary, interest earned on the investment of state or municipal bond proceeds is to be credited to the building or other project fund into which those bond proceeds themselves were placed and not to the bond redemption fund.
(1) In the light of 1981 legislation, the maximum rate of interest, or service charge, which may now lawfully be imposed in connection with designated types of transactions is as follows: (a) Contract sales of real property‑-the higher of twelve percent per annum or four percentage points over the equivalent coupon issue yield of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted during the preceding calendar month (e.g., for contracts entered into in June, 1981, 20.58 percent), except that this limitation is not applicable if the particular contract is not primarily entered into for personal, family or household purposes or if the transaction is for agricultural, commercial, investment or business purposes and the purchaser is not a natural person; (b) Retail installment sales transactions‑-1-1/2 percent per month (or $1 if greater) for retail charge agreement transactions (e.g., purchases pursuant to a retailer's credit card) and, in the case of purchases covered by a retail installment contract, six percentage points above the average of the equivalent coupon yields of the bill rates for twenty-six week treasury bills for the last market auction conducted during February, May, August and November of the year prior to the year in which the contract is executed (e.g., for retail installment contracts during calendar year 1981, 18.5 percent); (c) Bank credit card transactions‑-the higher of (i) 12 percent, (ii) the rate computed by application of the same formula as now applies to real estate contracts, above, or (iii) 1 percent above the Federal Reserve Bank's discount rate;(2) The foregoing interest rate limitations apply to (a) contracts for the sale of real property entered into on or after May 8, 1981, with the caveat that the general usury statute, chapter 19.52 RCW, should be deemed to have become applicable to such contracts as of February 11, 1981; (b) retail installment transactions likewise occurring on or after May 8, 1981 with, however, a limited exception involving certain existing agreements; and (c) bank credit card transactions entered into on or after May 8, 1981, the effective dates of chapters 77 and 78, Laws of 1981.[[Orig. Op. Page 2]]
Payments to a mortgage broker in connection with a mortgage or deed of trust denominated as “loan origination fees” or “points” are not deductible from the business and occupation tax as “interest” where the fees are provided in compensation for services performed. Availability of the deduction in particular instances depends upon the factual circumstances surrounding the transaction, including the services performed by the mortgage broker.
RCW 36.29.020 allows a county treasurer to allocate the interest and investment returns earned on the investment of a county’s own funds into the county current expense fund, except for county funds as to which the legislature has specifically provided that interest and investment returns are to be dedicated to a specific purpose, or be retained in their original fund.
(1) To the extent permitted by 12 U.S.C. § 85, where the holder of a bank credit card issued by a national bank uses that card to purchase goods or services from a participating vendor, the issuing bank may impose a monthly interest charge on any resulting unpaid balances due which is higher than the maximum service charge permitted by RCW 63.14.120 in connection with a retail charge agreement. (2) In addition to imposing such a monthly interest charge in connection with merchandise purchase transactions, a national bank may lawfully charge its credit card holders a periodic credit card membership fee unrelated to any particular transactions involving use of the card during the period covered; however, that membership fee may not exceed $1 per month or $12 per year.
(1) RCW 59.18.270 does not require a landlord to maintain separate account for each tenant's security deposit; accordingly, the landlord may maintain a single account for the security deposits of all his tenants. (2) If interest is earned through the investment of a tenant's security deposit, that interest belongs to the tenant. (3) Interest earned on a tenant's security deposit may be retained by the landlord as a part of his rental charges for the premises involved if express provision to that effect is included in the rental agreement.
So long as the maximum rate does not exceed that which is permitted by RCW 63.14.130(1) in those instances where that statute applies, the Washington Retail Installment Sales Act, as codified in chapter 63.14 RCW, does not prohibit a retail seller from imposing a variable rate of service charge in a retail installment contract for the purchase of a manufactured home.
Where a retail installment contract is entered into in the state of Washington between a seller having his principal place of business in this state and a buyer residing in the state of Idaho, with the merchandise being purchased to be delivered by the seller to the buyer in Idaho, the maximum service charge fixed by RCW 63.14.130 applies.
Owners of residential income properties may assign their entitlement (under RCW 59.18.270) to interest on a trust bank account containing damage or security deposits to the real estate broker managing the property who has been designated as the representative of the owner; however, in order to avoid a violation of RCW 18.85.310, the interest moneys must not be initially deposited into the trust account but must, instead, be immediately credited to the real estate broker's own separate account.
From and after the effective date of chapter 50, Laws of 1974, 1st Ex. Sess., the public deposit protection commission will no longer have any interest-fixing function to perform with respect to investment deposits made by the state treasurer of state funds in his custody.