Payments and Refunds.-Instalmnts: monthly. Prepayment: no special provisions. Special Charges.-Delinquency: no provision. Collection: no provision. Insurance Premiums: no provision. Investigation: $1 per $100 for credit investigation or security appraisal. Other: no other charges permitted. Disclosure.-No special provisions. Penalty For Excessive Interest.-No special provisions. MISSOURI There are no statutory provisions pertaining to instalment loans. ΜΟΝΤΑΝΑ There are no statutory provisions pertaining to instalment loans. NEBRASKA References are to Revised Statutes of Nebraska, 1943, and Cumulative Lenders.-Banks and trust companies organized under state law and national banks doing business in the state (Sec. 8-815), which have registered with the Department of Banking a statement of intention to engage in the business of making personal loans. Registration must be in a prescribed form and contain an agreement to comply with this act. (Sec. 8-816) Lenders must segregate all records pertaining to these loans and file an annual report on or before March 15. (Sec. 8-825) Maximum Loan.-No special provisions. Interest Charges.-18% simple interest per year on the first $1,000 and 12% simple interest per year on the balance over $1,000 (Sec. 8-820); computed only as a percentage per month of the unpaid principal balances for the number of days actually elapsed; charges can not be paid, deducted or received in advance; precomputation permitted. Additional interest may not be charged on payments made 7 days or less after maturity. (Sec. 8–822) Maximum Time.-85 months. (Sec. 8-823) Payments and Refunds.-Instalments: two or more approximately equal or declining payments of principal or of principal and charges combined; approximately equal intervals; one or more installments may be accelerated or aeferred when borrower's chief source of income makes such arrangement necessary, if the loan agreement so provides and approximately 2 of the entire amount be payable in the first half of the full period of the loan and approximately 1⁄2 in the last half of the full period. (Sec. 8–823) Prepayment: allowed in full or in part at any time (Sec. 8-823); refund credit of unearned charges shall be in such an amount that the amount of charges actually retained by the lender shall not exceed the equivalent of the monthly percentage agreed for due performance computed on the actual unpaid principal balances for the number of days actually elapsed; charges retained by lender may be increased by any delinquency charges on earned charges; payment 7 days or less prior to maturity is not prepayment; refund need not be made until final payment. (Sec. 8-822) Special Charges.-Delinquency: monthly percentage agreed for due performance for the number of days delinquent computed on full amount of delinquency including earned charges. (Sec. 8-822) Collection: taxable costs to which the lender is adjudged to be entitled in judicial proceedings. (Sec. 8-821) Insurance Premiums: customary and reasonable premiums not exceeding standard rates on policies covering tangible personal property securing the loan. (Sec. 8-821) Investigation: No provision. Other: filing, recording and releasing fees. No other charges may be made. (Sec. 8-821) Disclosure.-Borrower must receive a copy of the evidence of the loan stating the principal amount of the loan and the rate of charge plainly expressed as a percentage per month computed on unpaid principal balances. The lender maust give the borrower a receipt showing the date and amount of each payment made. (Sec. 8-823) Penalty For Excessive Interest.-No charges of any kind can be collected. If charges have been collected, the lender forfeits all interest collected and a sum equal thereto. Violation is a misdemeanor and a fine may be imposed. (Sec. 8-829) Loss of loan registration can result. (Sec. 8-827) Miscellaneous Provisions.-Insurance: if procured through the lender, the borrower must receive an executed copy of the policy or certificate of insurance within fifteen days. (Sec. 8–821) Acceleration: no provision. Security: lender can not take a real estate lien as security. (Sec. 8-823) Other: provisions of this act do not apply to loans on which the interest does not exceed 9% per annum (Sec. 8-815); no bank or trust company is eligible for a license or to make loans under the Instalment Loan Act (see "Small Loan Act" Chart at 141) (Sec. 8-817); lenders can not take any confession of judgment, power of attorney to confess judgment, power of attorney to appear for a borrower in a judicial proceeding. or agreement to pay the costs of collection or the attorney's fees. (Sec. 8-823) NEVADA References are to Revised Statutes, Title 55, Sec. 602.045, as added by Lacs 1965, Ch. 355, as amended Lenders.-Banking corporations organized under this Act. Interest Charges.-8% per annum on loans of $500 or less, and 7% per annum on the excess over $500 to $1,500 may be charged in advance. Maximum Time.-No special provisions. Payments and Refunds.-No special provisions. Disclosure. No special provisions. Miscellaneous Provisions.-No special provisions. NEW HAMPSHIRE References are to Revised Statutes Annotated, Sec. 393:15-a, as last amended by Laws 1967, Ch. 205, approved June 19, 1967, effective August 18, 1967 Lenders.-Loan associations and cooperative banks. Maximum Loan.-$3,000 (secured or unsecured); $5,000 on mobile home loans; $5,000 on improved realty loans; aggregate loans can not exceed 5% of bank's assets, 10% if improved realty loan. Interest Charges.-No special provisions. Maximum Time.-3 years; 7 years on mobile home loans; 7 years on improved realty loans. Payments and Refunds.-Instalments: regular monthly payments. Prepayment: no special provisions. Special Charges.-No special provisions. Disclosure.-No special provisions. Miscellaneous Provisions.-Security: mobile home financing loans must be secured by the mobile home; bank must hold first mortgage on improved realty loans and loan must be evidenced by negotiable notes. NEW JERSEY References are to Revised Statutes, 1937, and Cumulative Supplements, as amended NOTE: Separate instalment loan provisions exist for bank instalment loans. bank small business loans, and sales finance company loans on motor vehicles These provisions are individually charted below.-CCH. BANK INSTALMENT LOANS, CHAPTER 9A; SECS. 53–55, as last amended by Laws 1965, Ch. 171, and SEC. 56, as last amended by Larcs 1952, Ch. 24s Lenders.-Banks organized under state law and natonal banks. (Sec. 17:9A-53) Maximum Loan.-$5,500 aggregate to one borrower. (See 17:9A-54) Interest Charges.-Interest on "Class I" loans, meaning loans which are not property improvement loans, and on "Class II" loans, meaning loans which are property improvement loans, is to be taken in advance for the full amount of the loan based upon the following formulas: (a) where the loan is payable within 3 years and 1 month-formula 1 below; (b) where the loan is payable within 3 years and 1 month and the net proceeds equal a pretedermined sumformula 2 below; (c) where the loan is over 3 years and 1 month-formula 3 below; (d) where the loan is over 3 years and 1 month and the net proceeds equal a predetermined sum-formula 4 below. The formulas represent: "I" is the maximum initerest taken in advance; "A" is the full amount of the loan or the full amount of the predetermined net proceeds; "P" is the number of payment-periods from the date of the making to the date of the maturity; and "N" is the number of payment-periods in the calendar year (to the nearest whole number). The formulas are: Schedules based upon the formulas may be obtained from the Banking Commissioner. (Sec. 17:19A-53) Maximum Time.-"Class I" loans-3 years and 1 month; "Class II" loans-5 years and 1 month. (Sec. 17:9A-54) Payments and Refunds.-Instalments: equal duration measured in terms of weeks or months with intervals generally not shorter than 1 week or longer than 1 month, except that the initial payment period may be longer but not exceeding 60 days; equal amounts, except that the final instalment may be not more than $1 more or less than the others; one instalment per payment period, except that the last 2 instalments may be payable in the same payment period; omission of instalments may be provided for during any period not exceeding 93 days in any one 12 month period, and if omission occurs during the initial payment period, then that payment period can not exceed 93 days. (Sec. 17:9A-54) Prepayment: allowed and a refund credit on the interest taken in advance can not be less than an amount determined by the following formula: C = AN ÷ D in which "C" is the credit given; "A" is the amount of interest taken in advance; and "D" is the total of all the cardinal numbers ascribed to each remaining payment-period included in the loan (the cardinal number is descriptive of the number of payment-periods scheduled); and "N" is the difference between "D" and the total of all the cardinal numbers ascribed to the payment-periods which have elapsed. Minimum refund is $1. The commissioner may prepare and distribute a schedule based on the formula. (Sec. 17:9A-56) Special Charges.-Delinquency: charge may be made at the legal rate of interest upon each instalment in arrears, for the period from the date of default to date when the instalment is paid, or to the date of acceleration, if such occurs; however, in lieu of interest, the note may provide for payment of a late charge on any instalment in arrears more than 15 days, of 5% of such instalment or $5, whichever is less; but, total late charges can not exceed $15 in any one 12 month period, only one such late charge can be made on any one instalment, and no late charge can be made upon any instalment scheduled to fall due upon a date subsequent to the date upon which the maturity of the unpaid balance of the loan is accelerated, if such occurs. Collection: fee in addition to court costs, equal to $7.50 when unpaid balance is $50 or less, $10 when unpaid balance is over $50 and under $100, $12.50 when unpaid balance is over $100 but not over $500, and $25 when unpaid balance is over $500. Insurance Premiums: on property insurance covering security. Investigation: no provision. Other: acceleration fee upon default of any instalment at the legal rate of interest from the date of acceleration upon the difference between the unpaid principal balance and the amount of refund credit pursuant to the prepaymet schedule; filing and recording fees. (Sec. 17:9A-55) No other charges may be made. (Sec. 17:9A-54) Disclosure.-No special provisions. Penalty for Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: Either or both credit life insurance and credit accident and health insurance can be provided at the borrower's request pursuant to credit insurance provisions (see "Credit Insurance" Chart at ¶ 51), and, if borrower consents in writing, lender may deduct and retain from the loan proceeds the isurer's premium charge, and such charge is not deemed a further interest or other charge. (Sec. 17:9A-70.2, as added by Laws 1963, Ch. 103; amended by Laws 1968, Ch. 204, approved and effective July 19, 1968.) Acceleration: permitted at lender's option. (Sec. 17:9A-55) Security: lender can not, prior to default, take any security for any loan other than an interest in tangible personal property; except that in the case of a "Class II" loan, a mortgage upon the real property improved may be taken. (Sec. 17:9A-54) Other: no special provisions. BANK SMALL BUSINESS LOANS, CHAPTER 9A; SECS. 59.25-59.39, as added by Laws 1964, Ch. 162 Lenders. Banks, except savings banks, organized under state law and national banks. (Sec. 17:9A-59.25) Maximum Loans.-$25,000 to small business concerns. (Sec. 17:9A-59.29, as amended by Laws 1968, Ch. 36, approved and effective May 9, 1968.) A small business concern is one whose latest fiscal year gross income is not more than $1,000,000. (Sec. 17:9A-59.25) Interest Charges.-A finance charge, computed on the sum borrowed for the full term of the loan is to be added to the amount of the sum borrowed according to the following schedule: $6 per $100 per year on loans not over $5,500; $5.50 per $100 per year on the excess over $5,500 to $7,500; and $5.00 per $100 per year on the excess over $7,500 to $25,000. (Sec. 17:9A-59-27, as amended by Laws 1968. Ch. 36, approved and effective May 9, 1968.) Outstanding balances must be added to new loans for the purpose of computing finance charges. (Sec. 17:9A-59.29, as amended by Law 1968, Ch. 36, approved and effective May 9, 1968.) Maximum Time.-5 years and 1 month. (Sec. 17:9A-59.28) Payments and Refunds.-Instalments: equal duration measured in terms of months with intervals not shorter than 1 month or longer than 3 months; equal amounts, except that the last instalment may not be more than $1 more or less than the others; omissions of instalments, including the first instalment, may be provided for during any period not exceeding 93 days in any one 12 month period. Prepayment: allowed on the unpaid balance and a refund credit on the finance charge can not be less than an amount determined by the following formula: C = AN ÷ D in which "C" represents the amount of the credit given; “A” represents the amount of the finance charge; "D" is determined by ascribing to each month included in the period for which the finance charge was computed, reckoning from the day upon which the loan was made, the cardinal number descriptive of the number of months scheduled, by the terms of the loan, to elapse from the beginning of each such month to the date to which the finance charge was computed, and the total of all the cardinal numbers so ascribed constitutes the quantity "D"; and "N" represents the difference between quantity "D" and the total of all the cardinal numbers ascribed to the months which have elapsed. in whole or in part, from the making of the loan, to the day upon which such repayment is made, or to the day upon which the maturity of the unpaid balance of such loan is accelerated, as the case may be. Minimum credit is $5. (Sec. 17:9A-59.35) Special Charges.—Delinquency: charge may be made of interest at the legal rate upon each instalment in arrears, for the period from the date of default to date when the instalment is paid, or to the date of acceleration, if such occurs: however, in lieu of interest, the note may provide for payment of a late charge on any instalment in arrears more than 10 days of 5% of such instalment or $5, whichever is less; but, total late charges can not exceed $25 in any one 12 month period, only one such late charge can be made on any one instalment, and no late charge can be made upon any instalment scheduled to fall due upon a date subsequent to the date upon which the maturity of the unpaid balance of the loan is accelerated, if such occurs. Collection: fee in addition to court costs, as follows: 15% on the first $750, 10% on the excess over $750; maximum fee is $500. (Sec. 17:9A-59.31) Insurance Premiums: on credit life and property insurance of security. (Sec. 17:9A-59.33) Investigation: no provision. Other: acceleration fee upon default of any instalment at the legal rate of interest from the date of acceleration upon the difference between the unpaid principal balance and the amount of refund credit pursuant to the prepayment schedule; (Sec. 17:9A-59.32) filing and recording fees and a fee for security appraisal of the actual cost incurred or 1% of the loan, whichever is less. (Sec. 17:9A-59.30) No other charges may be made. (Sec. 17:9A-59.33) Disclosure.-Notes evidencing a small business loan must contain a statement that the loan was made pursuant to this act. (Sec. 17:9A-59.36) Penalty For Excessive Interest.-Forfeiture of entire finance charge: borrower may recover back twice the amount of the finance charge made within 2 years from the date of violation. (Sec. 17:9A-59.37) Miscellaneous Provisions.-Insurance: property insurance can be required en collateral; credit life can be provided at the borrower's request pursuant to credit insurance provisions [see "Credit Insurance Chart" at ¶ 51]. (Sec. 17:9A-59.301 Acceleration: permitted at lender's option. (Sec. 17:9A-59.32) Security: loan may be secured by an interest in real or personal property or both. (Sec. 17:9A59.32) Other: each loan must be evidenced by a note equal to the sum borrowed plus the amount of finance charge; (Sec. 17:9A-59.28) but, the note must not provide power of attorney to confess judgment or for acceleration because the holder deems itself insecure. (Sec. 17:9A-59.37) SALES FINANCE COMPANY LOANS, CHAPTER 16 C; SEC. 40.1, as added by laws 1961, Ch. 95 Lenders.-Sales finance companies licensed under the Retail Instalment Sales Act (see "New Jersey" Division ¶ 531, Volume 2 of the GUIDE). Maximum Loan.-$4,000 secured by a purchase money chattel mortgage. Interest Charges.-5% per annum upon the full amount of the loan for the entire period; may be charged in advance. Maximum Time.-36 months. Payments and Refunds.-Instalments: substantially equal and monthly. Prepayment: no special provisions. Special Charges.-No special provisions. Penalty For Excessive Interest.—No special provisions. Miscellaneous Provisions.-The loan must be used by a retail buyer to finance the purchase of a passenger motor vehicle not intended to be used for the transportation of passengers for hire or upon a contract basis. NEW MEXICO References are to Statutes Annotated 1953, Chapter 48, Art. 21, Secs. 1-10, as added by Laws 1959, Ch. 327; as amended Lenders.-State banks and national banks located in and authorized to do business in the state, any licensee as defined in the New Mexico Small Loan Act of 1955 or any sales finance company as defined in the Motor Vehicle Sales Finance Act. (Sec. 48-21-2, as amended by Laws 1967, Ch. 106, approved March 16, 1967, effective June 16, 1967.) Maximum Loan.-No special provisions. Interest Charges.-$7 per $100 a year upon original amount of loan for entire period of loan; may be added to principal. Minimum charge of $10, or $2 a month for period of loan, whichever is greater. (Sec. 48-21-4, as amended by Laws 1967, Ch. 41, approved March 4, 1967, effective June 16, 1967.) Maximum Time.-No special provisions. Payments and Refunds.-Installments: substantially equal. (Sec. 48-21-3, as amended by Laws 1961, Ch. 215) Prepayment: allowed at any time; refund credit computed in accordance with "rule of 78"; minimum refund is $1. (Sec. 48-21-5) Special Charges.-Delinquency: $.05 for each $1 of each instalment over 15 days in default; may be added to balance due; total such charge is $5; only one charge per instalment. Collection: actual costs may be added to balance due, including reasonable attorneys' fees paid to an attorney who is not an employee of the holder of the loan contract. Insurance Premiums: actual cost of insurance, provided that the borrower may procure his own insurance. Investigation: no provision. Other: if collateral on a secured loan subsequently becomes subject to a lien superior to the lender's lien, the lender may pay the levy and add such costs to the balance due; filing, recording and releasing fees. No other charges permitted. (Sec 48-21-6) Disclosure. No special provisions. Penalty For Excessive Interest.-Knowingly charging excessive interest results in a forfeiture of all interest charges, and if the charges have been paid, the borrower can recover twice the amount of the rate of charge within 2 years from the time of the transaction. Willful violation is a misdemeanor punishable by fine and/or imprisonment. (Sec. 48-21-9) Miscellaneous Provisions.-Insurance: can not be required to be procured through a particular broker, agent or insurer as a condition precedent to making the loan; borrower may procure his own insurance. (Sec. 48-21-6) Acceleration: no provision. Security: no provision. Other: lender cannot make a loan under this act to a borrower who is also indebted to him under the small loan law unless the loan made under the small loan law is paid and released at the time the loan is made (Sec. 48-21-8, as last amended by Laws 1967, Ch. 106, approved March 16, 1967, effective June 16, 1967.) |