Interest Charges.-6% per annum may be added to or deducted in advance from the entire principal amount on monthly instalment loans not exceeding $3,500. Parties may also agree on an interest rate as provided in Sec. 28-22-105. Charges on monthly instalment loans where the principal amount is in excess of $3,500 and on all loans of $3,500 or less repayable other than in monthly instalments may be discounted at a rate not to exceed the maximum simple interest provided in Sec. 28-22-105. (See "Interest-Usury" Chart at ¶ 31 for Sec. 28-22105.) (Sec. 28-22-109, as last amended by Laws 1967, Ch. 60, effective March 1, 1967.) Maximum Time.-No special provisions. Payments and Refunds.-Instalments: monthly instalment loans not exceeding $2,000 must be payable in two or more monthly instalments. Prepayment: no special provisions. (Sec. 28-22-109, as last amended by Laws 1967, Ch. 60.) Special Charges-Delinquency: 4% of monthly instalment 16 days in default; $4 maximum per instalment. (Sec. 28-22–110, as last amended by Laws 1967, Ch. 60.) No other provisions for special charges. Disclosure.-No special provisions. Penalty for Excessive Interest.-No special provisions. ILLINOIS References are to Act of May 24, 1879, as added by Laws 1959, p. 1973, as last amended by Laws 1967, S. B. No. 30, effective July 26, 1967; and Revised Statutes, 1967, Chapter 74, Sec. 4a as amended Lenders.-any lender. Maximum Loan.-$7,500 excluding interest; but, $15,000 if for education or home improvement. Interest Charges.-7% per year on principal amount for entire period; may be added to principal or received at any other time or times after the making of the loan. $15 minimum charge instead of interest may be collected on loans of $300 or more which are repayable in 6 months or more, but only once from the same person during one year. Interest charges greater than 7% per year on non-business instalment loans over $800 and not exceeding $5,000 may be made by licensees, according to scheduled provisions under the Consumer Instalment Loan Act. (See "Small Loan Acts" Chart at ¶ 41) Maximum Time.-61 months; if for education or home improvement, & months. Payments and Refunds.—Instalments: 2 or more substantially equal periodie payments. Prepayment: allowed at any time; refund credit computed in accordance with "rule of 78" based on the scheduled balances; minimum refund is $1. Special Charges.-Delinquency: 5% of each instalment in default 10 or more days, or $5, whichever is lesser; one charge only per instalment. Collection: reasonable costs of legal proceedings to collect loan or realize security after default; attorney fees are included. Insurance Premiums: credit life, accident and health, on one obligor only, if insurance complies with insurance code: property insurance on security other than household goods or personal effects may be required if reasonable in relation to loan. Investigation: no provision. Other: $5 service charge in addition to interest on loans of $800 or less, excluding interest, may be collected when loan is made, but only once from the same person during one year; filing and recording fees; attorney fees incurred by lender if loan agreement so provides. Disclosure. The borrower must receive a written statement disclosing in conspicuous type: total amount repayable; dollar amount of interest charged; dollar amount, stated separately, of each other charge made to the obligor; rate of interest in dollars per $100 per year computed on the original principal balance, excluding interest; principal amount of loan, excluding interest and other charges; payment schedule; any deductions from the loan; proceeds of loan after all deductions; the right of prepayment and refund credit; the number of months the loan will be outstanding; types of insurance procured if premiums are deducted; terms of future advances if any; and that the lender may not require insurance to be purchased from an agent, broker or insurer specified by the lender. The statement must be delivered within 15 days after the transaction or at the time thereof. If the statement is not delivered at the time of transaction. the borrower may rescind the contract within 10 days after receipt of the statement. Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: purchase from an agent, broker or insurer specified by the lender can not be a condition precedent to granting the loan; all insurance must comply with provisions of insurance code, (see "Credit Insurance" Chart at ¶51). Acceleration: no provision. Security: loans may be secured or unsecured. Other: these provisions do not apply to loans made for the purchase of real estate and secured by a lien on or retention of title to such real estate. INDIANA References, unless otherwise indicated, are to Acts 1951 Ch. 159; Burns Annotated Statutes, Title 19, Ch. 13, as amended Lenders.-Banks and trust companies organized under state law, national banking associations and individuals loaning money (Sec. 1; Burns 19-13-101); except individual licensees under state lending laws. (Sec. 5; Burns 19-13-105) Maximum Loan.-No special provisions. Interest Charges.-$8 per $100 per year on the total amount computed from date of making to maturity of last instalment; may be charged in advance; total amount may include interest and all expenses permitted by the law. (Sec. 1; Burns 19-13-101) A minimum charge of $3 is permitted for a loan on which the final instalment is due more than 60 days from the date the loan is disbursed. (Department of Financial Institutions, General Regulation No. 2, Part 1, effective August 30, 1951) Maximum Time.-A loan with a duration of more than 60 days from the date of actual disbursement is subject to a provision authorizing a minimum loan charge of $3. (Department of Financial Institutions, General Regulation No. 2, Part I, effective August 30, 1951) Payments and Refunds.-Instalments: payments comprising principal, interest and expenses totaled into a single amount may be made in substantially equal monthly, quarterly or other instalments, as the parties may agree. (Sec. 1; Burns 19-13-101) Prepayment: allowed at any time before maturity. (Sec. 2; Burns 19-13-102) Refunds must be computed on the basis of the nearest monthly anniversary date of the loan, on the nearest even dollar of the gross discount, interest paid in advance or loan charge by the Rule of 78th. The refund in connection with loans having maturities of over 60 days from the date of disbursement must not exceed the total amount of the original discount, interest paid or loan charge, less $3. (Department of Financial Institutions, General Regulation No. 2, Part II, effective August 30, 1951) Special Charges.-Delinquency: If provided for in the loan instrument, a charge of 5¢ per $1 of each installment is permitted for each delinquency over 15 days without giving effect to acceleration of payments otherwise not due, but not over $5 for each delinquent installment. (Department of Financial Institutions, General Regulation No. 2, Part III, effective August 30, 1951) Collection: reasonable attorney fees and costs expended in enforcement of the contract. Insurance Premiums: credit life, accident and health. Investigation: no provision. Other: filing, recording, releasing and acknowledging fees; charges authorized by department of financial institutions; no other charges may be made. (Sec. 3; Burns 19-13-103) Disclosure.-Evidence of debt must bear legend: "This loan has been made pursuant to the Instalment Loan Act." (Sec. 6; Burns 19-13-106) Penalty For Excessive Interest.-Excessive charges, when knowingly made, result in forfeiture of the entire loan charge, and if already paid, the borrower may recover twice the amount of the charges within two years. (Sec. 4; Burns 19-13-104) Miscellaneous Provisions.-Insurance: insurance on security may be required. (Sec. 1; Burns 19-13-101) Acceleration: no provision. Security: loan may be secured. (Sec. 1; Burns 19-13-101) Other: department of financial institutions may order any lender violating this act or the department's regulations to desist. (Sec. 3; Burns 19-13-103) No individual holding a license from the department of financial institutions under state laws relating to lending of money may engage in business as authorized by this act, nor may he do so in the same quarters used or occupied by a holder of such a license, nor in direct or indirect affiliation with the holder of such a license. (Sec. 5; Burns 19-13-105) IOWA References are to Code of 1966, as amended Lenders. All banks operating under this title and national banks. (Sec. 529.2) Maximum Loan.-$10,000 exclusive of charges, but no bank can have aggregate outstanding instalment loans in excess of 25% of its total resources. (Sec. 529.3, as amended by Laws 1967, S. B. No. 184, approved July 3, 1967, effective August 15, 1967) Interest Charges. A maximum charge on any instalment loan, excluding charges, is determined by either of the following options: Option A-$6 per annum upon each $100 actually loaned; may be added to and included in the face amount of the note; total charge shall include and be in lieu of any interest or charge for credit investigation, drawing papers, or any other incidental service charges. Option B-1% per month computed on unpaid principal balances may be the total charge; may be received by crediting each received payment first as to the monthly charge and the remainder to principal until the loan is fully paid; or, the total charge may be precomputed in accordance with this method and included in the face of the note. (Sec. 529.6) $.07 per $100 per year is the maximum interest on first real estate mortgages. (Sec. 529.10) Maximum Time.-5 years. (Sec. 529.4) Payments and Refunds.-Instalments: regular intervals and may be deferred or omitted on a seasonal basis, (Sec. 529.1); if instalments are monthly, a first interval of not less than 15 days nor more than 45 days may be treated as a monthly interval if the total charge is included in the face of the note pursuant to either Option A or B. (Sec. 529.6) Prepayment: allowed at any time; refund credit, in accordance with a schedule prescribed and approved by the superintendent of banking, is to be so calculated that the borrower will not have paid a charge at a greater rate when computed on actual unpaid principal balances than he would have paid had the loan run to maturity, and in no event shall the borrower be required to pay in excess of 1% per month on the actual unpaid principal balances. (Sec. 529.8) The Rule of 78th is used to compute the refund amount. (State of Iowa, Department of Banking) Special Charges.-Delinquency: 1% per month interest on instalments in default from date of delinquency. (Sec. 529.7) Collection: no provision. Insurance Premiums: reasonable, customarily required insurance. (Sec. 529.6) Investigation: no provision. Other: lawful fees paid to public officers; adjudged and statutory taxable costs; no other charges permitted. (Sec. 529.6) Disclosure. No special provisions. Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.—Insurance: the borrower can provide his own insurance. (Sec. 529.6) Acceleration: no provisions. Security: no provision. Other: "G. I." loans are not prevented or restricted. (Sec. 529.9). This act does not prohibit any person, firm or corporation from making instalment loans. (Sec. 529.11) KANSAS Instalment loans in Kansas are regulated by Sec. 16-202(b), reported in full text at ¶ 31 (Footnote 17). KENTUCKY References are to Kentucky Revised Statutes, Chapter 287, Sec. 215, Lenders.-Banks and trust companies. Maximum Loan.-No special provisions. Interest Charges.-$6 per $100 per annum on first $2,000, and $5 per $100 per annum on excess; computed on principal amount for the entire period; may be collected in advance. Maximum Time.-5 years and 32 days. Payments and Refunds.-Instalments: substantially equal; no loan can be split or divided to obtain a greater charge. Prepayment: allowed with refund credit at a rate not less than 6% per annum of the amount paid in advance of the due date, if the maximum financing charge permitted has been taken; and, if a lesser charge has been taken, the refund must be at least a proportional rate: lender may retain a minimum charge of $10 to cover acquisition costs; minimum refund is $1. Special Charges.-Delinquency: $.05 for each $1 of each instalment over 10 days in default; $5 maximum charge; one charge per instalment. Collection: court costs and attorney fees of 15% of the unpaid balance provided that collection is referred to an attorney. Insurance Premiums: no provision. Investigation: $1 for each $50 upon the first $800 of the principal amount of the loan. Other: filing, recording and releasing fees. No other charges may be made. Disclosure.-Borrower must receive a statement disclosing: original principal amount excluding charges; total charge, amount and date of each instalment; final maturity date; right to prepay and receive a refund. Penalty For Excessive Interest.-Willful violation results in loss of all interest and charges. Miscellaneous Provisions.-Insurance: no provision. Acceleration: no provision. Security: loans may be secured or unsecured, but security can not be an assignment of wages or a first real estate mortgage. Other: no special provisions. LOUISIANA There are no statutory provisions pertaining to instalment loans. MAINE References are to Revised Statutes Annotated, Title 9, Ch. 49, Sec. 553, Lenders. Any savings institution holding a certificate of incorporation from the state bank commissioner. Maximum Loan.-$3,500 on unsecured loans to individuals, but the aggregate outstanding loans can not exceed 7% of the bank's deposits. Interest Charges.-No special provisions. (See "Interest-Usury" Chart at ¶ 31). Maximum Time.-5 years. Payments and Refunds.-Instalments: monthly or quarterly. Prepayment: no special provisions. Special Charges.-No special provisions. Disclosure.-No special provisions. Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.-No special provisions. MARYLAND References are to Annotated Code, 1957, Article 49, Sec. 5, as added by Laws 1968, Ch. 453, approved May 7, 1968, effective July 1, 1968 Lenders.-Licensed lenders making more than five loans and banking institutions, national banking associations, building and loan associations, credit unions or licensees under any Maryland lending law. Licensed lenders making more than five loans are licensed by the Banking Commissioner to do lending business. The licenses must be applied for and are issued in accordance with provisions of the Industrial Finance Companies law (Article 11), see ¶ 41. Maximum Loan.-No provision. Interest Charges.-12% per annum simple interest on the unpaid balance. Payments and Refunds.-Instalments: monthly or other periodic instalment. Prepayment: excess over agreed upon precomputed rate must be refunded or credited on any balance owing. Special Charges.-No provisions. Disclosure. If the interest is precomputed, the required written statement between lender and borrower must state the agreed upon and equivalent per cent per annum simple interest rate not over a .2% variance from the actual interest rate which the precomputed charges cannot exceed. For additional disclosure requirements, see Art. 49, Sec. 10, at ¶ 31 (Footnote 31). Penalty for Excessive Interest.-Failure to comply with the law is a misdemeanor and subject to fine of not over $1,000 or imprisonment, or both. Miscellaneous Provisions.-The licensing requirement does not apply with respect to loans made between relatives, an employer and his employee, or a landlord and his tenant. Loans are not secured by a mortgage or deed of trust on real property or by negotiable stocks, bonds or bank deposits. MASSACHUSETTS References are to General Laws, 1932, Ch. 168, Sec. 37, as last amended by Laws 1965, Ch. 810 Lenders.-Savings banks. Maximum Loan.-$3,500, exclusive of interest, on secured or unsecured personal loans; but the aggregate outstanding balance by one bank can not exceed 10% of its deposits not in excess of $50,000,000 plus 5% of its deposits in excess of $50,000,000. Interest Charges.-Regulations of board of investment determine interest charges. The provisions of Ch. 140, Sec. 114A relating to small loan interest charges are applicable to savings bank loans (See "Interest-Usury" Chart at ¶ 31 and "Small Loan Acts" Chart at ¶ 41). Maximum Time.-36 months. Payments and Refunds.-Instalments: can not exceed one month intervals except that one instalment may have a three month interval. Prepayment: no special provisions. Special Charges.-Regulations of board of investment determines charges. Penalty For Excessive Interest.-No special provisions. MICHIGAN There are no statutory provisions pertaining to instalment loans. MINNESOTA References are to Statutes 1965, Chapter 48, as amended Lenders. Any bank organized under state law and national banks. (Sec. 48.153) Maximum Loan.-$5,000. (Sec. 48.153) Interest Charges.-6% per annum on total amount from the date of making to date of maturity; may be taken in advance or added to principal; $5 minimum charge permitted. (Sec. 48.153) Maximum Time.-5 years and 32 days. (Sec. 48.153) Payments and Refunds.-Instalments: payments must be in instalments. Prepayment: allowed at any time; refund credit computed at the same rate as the original loan charge, from the date of prepayment to the maturity date; minimum refund is $5. (Sec. 48.154) Special Charges.—Delinquency: 5% of the delinquent instalment with a maximum charge of $.50 on any one instalment, or interest on the delinquent instalment at 6% per annum, whichever is greater. Collection: no provision. Insurance Premiums: premiums on security insurance may be included as part of the loan as long as the maximum loan limit is not exceeded. Investigation: no provision. Other: filing, recording, acknowledging and abstract fees. No other charges may be made. (Sec. 48.155) Disclosure. The borrower must receive a statement of all loan charges made and a copy of his note. (Sec. 48.157) Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: borrower may procure his own insurance. (Sec. 48.155) Acceleration: permitted if the loan agreement so provides. (Sec. 48.156) Security: loan may be secured by mortgage, pledge, other collateral or by a deposit account. (Sec. 48.153) Other: no special provisions. MISSISSIPPI References are to Code of 1942, Sec. 5212, as amended by Laws 1958, Ch. 167 Lenders.-Banks and trust companies organized under state law and national banks. Maximum Loan.-$1,000. Interest Charges.-Maximum contract rate per annum; may be added to principal, (see "Interest-Usury" Chart at ¶ 31); $.75 per month, in lieu of interest, may be charged on loans not exceding $100; minimum charge is $5. Maximum Time.-no speical provisions. |