(1) In the event that a borrower fails to reduce the principal and interest as required in 31-1-816, MCA, a licensee at its option may either:

(a) declare the full outstanding principal and interest due and payable; or

(b) reduce the amount of principal balance used to calculate interest by 10% every 30 days beginning 180 days from the beginning of the original title loan agreement. In such event, the licensee must comply with all the requirements of ARM 2.59.1409 for renewals.

(2) Under no circumstances may a licensee charge interest or fees beyond the fifteenth renewal.