I hope I can explain this correctly and someone will know what I am talking about. Our simple interest note agreement (Bankers Systems) has a box to mark near the top of the form for "Additional Finance Charge". It states "I also agree to pay a nonrefundable fee of $______ and it will be ___paid in cash or ____ paid pro rata over the loan of term or ____ withheld from proceeds. (If this fee is withheld from proceeds, the amount is included in the principal sum).

The bank's practice to just include the $125 admin fee as the nonrefundable fee. That is the only fee they disclose there. The question has to do with the flood life of loan fee ($3)which is also a prepaid finance charge. Should the bank be disclosing $128 instead of $125? The $125 is withheld from the proceeds in most instances. One of the bank's affiliates state that they have always entered all nonrefundable fees in that box.

Do you use ARTA or Rembrandt? We use Rembrandt and I did not see this box. Can you be a little more specific as to where this box is located? Also, if you'd like to email me more specifics, I'll see if I can help. My email address is on my profile.

The bank's platform is Sales Partner but they use Bankers Systems forms. I was doing a little more reading and in the Commentary section under defintions 226.2(a)(23)(2)Prepaid Finance Charge describes that in order for the charges to be prepaid they must be "either paid separately in cash or check or withheld from the proceeds. Prepaid finance charges include any portion of the finance charge paid prior to or at closing or settlement." If I am reading this correctly, since the LOL fee is a prepaid and the $125 admin fee is a prepaid, then would I be correct in answering my own question by saying yes the bank should disclose $128 in that box? The bank does do a separate itemization for these fees by the way. Thanks!

I think I tried to read more into your question than what was there. Yes your total PPC would be $128.