Special Charges.-Delinquency: 5% of amount due on any delinquent instalment or interest on the instalment at 6% per annum, whichever is greater. Collection: no provision. Insurance Premiums: may be charged unless borrower procures his own insurance. Investigation: credit abstract report costs. Other: filing, recording and acknowledging fees. (Sec. 6.04A04) Disclosure.-Borrower must receive a copy of all instruments evidencing the loan and a statement of all charges made by the lender on the loan. Upon payment in full, the lender must return every obligation and security signed by any obligator with the word "Paid" or "Cancelled" plainly marked thereon, and restore all security to the lender. (Sec. 6.04A06) Penalty For Excessive Interest.-If any amount in excess of the permitted charges is charged, contracted for or received, except as the result of an accidental and bona fide error of computation, the contract of loan is void and the owner of the note has no right to collect or receive any principal, interest or charges whatsoever; however, this does not apply to any retail instalment transaction under SDC 1960 Supp. 6.04C. (Sec. 6.04A07, as amended by Laws 1964, Ch. 14.) Miscellaneous Provisions.-Insurance: borrower may procure his own insurance. (Sec. 6.04A04) Acceleration: permitted immediately upon default if loan agreement so provides. (Sec. 6.04A05) Security: no provision. Other: The Instalment Loan Law does not apply to any loan of money, bearing not over 8% simple interest, repayable in instalments as which any charge for such loans or interest thereon is not included in the principal amount of the note or in instruments evidencing such loans. (Sec. 6.04A11) TENNESSEE NOTE: Separate instalment loan provisions exist for bank and trust company instalment loans and federal savings and loan association home improvement instalment loans. BANK AND TRUST COMPANY INSTALMENT LOANS, CHAPTER 411, enacted by Laws 1968, approved and effective March 6, 1968 [adding a new section to Ch. 4 of Title 45, Tennessee Code Annotated] Lenders.-Banks and trust companies. (Sec. 1(a)) Interest Charges.-6% per annum on principal amount for entire term; may be deducted in advance or added to principal. (Sec. 1(b)) Maximum Time.-No special provisions. Payments and Refunds.—Instalments: equal or substantially equal. (Sec. 1(a)) Prepayment: allowed with refund of unearned interest in an amount representing at least as great a proportion of the original charge as the sum of the periodical time balances after the date of prepayment bears to the sum of all the periodical time balances under the schedule of payments in the original instalment loan; no required refund resulting in less than the minimum charge of $10 per loan or $1 per monthly instalment, whichever is greater; no refund of less than $1 required. (Sec. 1(b), (c) (5)) Special Charges.-Delinquency: 5% of any one instalment more than 15 days in arrears. (Sec. 1(c) (1)) Collection: expenses incurred in closing, securing and collecting loan, including legal costs and reasonable attorney's fees; lender may make a minimum charge of $10 per loan or $1 per monthly instalment, whichever is greater. (Sec. 1(c) (5)) Insurance Premiums: on insurance required or obtained as security for loan (Sec. 1(c)(2)); lender may deduct and remit premium to insurer on loan over $300, and any gain therefrom may not be considered additional charge or interest; borrower may procure own insurance. (Sec. 2(a)–(c)) Investigation: expenses of investigating title to real property securing loan, including cost of title insurance. (Sec. 1 (c) (4)) Other: fees and taxes paid to public officials for filing, recording or releasing any instrument or lien. (Sec. 1(c) (3)) Disclosure. Within 30 days of loan, lender must furnish borrower with a written statement of the transaction or a copy of the note containing the following information: (a) original principal amount; (b) insurance premium for each type of coverage provided; (c) amount of fees and taxes to public officials; (d) total amount of interest and charges and the approximate rate expressed in dollars per one hundred dollars per year; (e) other charges; (f) unpaid balance; (g) number, amount and due dates of instalment payments schedules. (Sec. 3) Evidence of insurance must be delivered to the borrower within 30 days of the loan and must show coverages and costs (Sec. 2(d)) Penalty for Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: On loans over $300 property insurance on collateral can be required up to the value of the property or the approximate amount of the loan, whichever is lesser. (Sec. 2(a)) On such loans, lender may request credit life insurance on the life of the borrower, or one of them; the initial amount of such insurance may not exceed the total amount repayable under the total amount of the indebtedness; not more than one policy per loan may be written unless requested by the borrower, co-maker or endorser. (Sec. 2(b)) Acceleration: no provision. Security: loan may be secured. (Sec. 1(a)) Other: none. FEDERAL SAVINGS AND LOAN ASSOCIATION HOME IMPROVEMENT INSTALMENT LOANS, CHAPTER 590, enacted by Laws 1968, approved and effective April 4, 1968. Lenders.-Federal Savings and Loan Associations. (Sec. 1) Interest Charges.-6% per annum on principal amount for entire term; may be deducted in advance or added to principal. (Sec. 1(a)) Maximum Time.-No special provisions. Payments and Refunds.-Instalments: equal or substantially equal. (Sec. 1) Prepayment: allowed with refund of unearned interest in an amount representing at least as great a proportion of the original charge as the sum of the periodical time balances after the date of prepayment bears to the sum of all the periodical time balances under the schedule of payments in the original instalment loan; no required refund resulting in less than the minimum charge of $10 per loan or $1 per monthly instalment, whichever is greater; no refund of less than $1 required. (Sec. 1(a), (c) [b](5)) Special Charges.-Delinquency: 5% of any one instalment more than 15 days in arrears. (Sec. 1(b) (1)) Collection: up to 4% of gross amount of loan plus legal costs and reasonable attorneys' fees; lender may make a minimum charge of $10 per loan or $1 per monthly instalment, whichever is greater. (Sec. 1(b) (5)) Insurance Premiums: on insurance required or obtained as security for loan (Sec. 1(b) (2)); lender may deduct and remit premium to insurer on loan over $300, and any gain therefrom may not be considered additional charge or interest: borrower may procure own insurance. (Sec. 2(a)−(c))Investigation; expenses of investigating title to real property securing loan, including cost of title insurance and costs of closing loan. (Sec. 1(b) (4)) Other: fees and taxes paid to public officials for filing, recording or releasing any instrument or lien (Sec. 1(b) (3)) Disclosure. At time of closing loan, lender must furnish borrower with a written statement of the transaction or a copy of the note containing the following information: (a) original principal amount; (b) insurance premium for each type of coverage provided; (c) amount of fees and taxes to public officials; (d) total amount of interest and charges and the approximate rate expressed in dollars per one hundred dollars per year; (e) other charges; (f) unpaid balance; (g) number, amount and due dates of instalment payments scheduled. (Sec. 3) Evidence of insurance must be delivered to the borrower within 30 days of the loan and must show coverages and costs. (Sec. 2(d)) Penalty for Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: On loans over $300 property insurance on collateral can be required up to the value of the property or the approximate amount of the loan, whichever is lesser. (Sec. 2(a)) On such loans, lender may request credit insurance on the life of the borrower, or one of them; the initial amount of such insurance may not exceed the total amount repayable under the total amount of the indebtedness; not more than one policy per loan may be written unless requested by the borrower, comaker or endorser. (Sec. 2(b)) Acceleration: no provisions. Security: loan may be secured. (Sec. 1(b) (2). 1(b) (4), 2(a)-(c)) Other: none. TEXAS References are to Revised Civil Statutes of 1925; Vernon's Annotated INSTALMENT LOANS, ART. 4.01-4.03, as added by Laws 1967, H. B. No. 452, approved May 23, 1967, effective "at midnight on September 30, 1967" Lenders. Any bank, savings and loan association or credit union doing business under the laws of Texas or of the United States and any person licensed under the Regulated Loans (small loans) chapter. (Art. 4.01 (1),) Maximum Loan.-No special provision. Interest Charges.-Add-on interest of $8 per $100 per annum for the full term of the loan contract. (Art. 4.01 (1)) Maximum Time.-No special provisions. Payments and Refunds.-Instalments: May be substantially equal regular instalments of month to month or irregular or unequal instalments. (Art. 4.01 (1) (3)) Prepayment: allowed in full at any time, but if before the first instalment due date, the lender may retain for each elapsed day from making of loan, 13 of portion of interest which could be retained if first instalment due date was one month and prepayment in full had occurred thereon; refund credit amount must equal as great a proportion of the total interest as the sum of the periodic balances scheduled to follow the instalment date after prepayment in full bears to the sum of all periodic time balances; no refund for partial prepayments and no refund of less than $1. (Art. 4.01(6)) If prepayment is less than in full, must be in an amount equal to one or more full instalments. (Art. 4.03 (3)) Special Charges.-Delinquency: if contracted for, not over 5¢ for each $1 unpaid for 10 days or more following date payment is due, including Sundays and holidays, only one charge per instalment. (Art. 4.01 (5) ) Collection: collection charges are considered to be included in the authorized charges. (Art. 4.01(7)) Insurance Premiums: credit life, and health and accident may be required on any loan, and on loans of $300 or more additional property insurance may be required on property offered as security for the loan. (Art. 4.02 (1) (2) Investigation: investigating fees considered part of authorized charges. (Art. 4.01 (7) ) Other: the prohibition against any fees other than authorized interest does not apply to amounts paid as court costs, attorney fees assessed by a court, filing fees and costs for repossessing, storing, preparing for sale or selling any security, and fees for noting a lien on a certificate of title, or insurance premiums. (Art. 4.01 (7)) Disclosure.-Loan made under the law requires that the lender deliver to the borrower a copy of the note and all other documents signed by the borrower and a statement in writing in English showing: names and addresses of parties; date and amount of advance, maturity date and schedule of payments; nature of security, if any; filing fees; charges for default and deferment; types of insurance, if any; premiums; amount in dollars and cents of interest charges or the percentage the interest charges bears to the total amount of the loan expressed as the nominal rate on the average outstanding unpaid balance of the principal amount of the loan; total of all charges included in the loan, in dollars and cents. (Art. 4.03 (1)) When insurance is required with the loan, the lender must furnish a statement which clearly and conspicuously states that insurance is required and that the borrower has the option of furnishing it. (Art. 4.02(3)) Special provisions govern disclosure in a check loan type of transaction, see summaries at ¶ 73. Penalty for Excessive Interest.-Forfeit to obligor twice the amount of interest and default and deferment charges contracted for and reasonable attorneys' fees fixed by the court. (Art. 8.01). Charge of double the authorized interest rate is subject to forfeiture of all principal as well as all interest and is also a misdemeanor. (Art. 8.02) Miscellaneous Provisions.-Insurance: purchase from an agent or broker designated by the lender is prohibited and a lender must not at any time decline existing coverages providing substantially equal benefits that comply with the law. (Art. 4.02 (8)) If insurance is procured by the lender, he must within 30 days after execution of the loan contract deliver or mail the insurance policy or con tract to the borrower. (Art. 4.02(5)) Premiums must be refunded upon cancellation or termination of insurance unless used for similar insurance. (Art. 4.02 (6)) Acceleration: No provision. Security: loans may be secured. (Art. 4.02 (2)) Other: lenders are prohibited from taking a wage assignment as security for any loan; a lien upon real estate as security for any loan, except such lien created by law upon the recording of an abstract of judgment; confession of judgment; a promise to pay that does not disclose the amount of the cash advance, time it is made, payment schedule, maturity date, authorized charges, types of insurance, and premiums; an instrument with blanks; or a waiver. (Art. 4.04) BANKING CODE OF 1943 Lenders.-State banks. (Art. 342-506) Maximum Loan.-Aggregate liability of any borrower cannot exceed 25% of bank's capital and surplus; limitation does not apply to specified classes of liability. (Sec. 342-507, as amended by Laws 1959, Ch. 412) Interest Charges.-A rate not exceeding that perfited by law; may be collected in advance, (see "Interest-Usury" Chart at ¶31). (Art. 342–506) Maximum Time.-Loans shall mature when the withdrawal value of the investment certificates securing the same equals the face amounts of the notes evidencing the loans. (Art. 342–506) Payments and Refunds.—Instalments: weekly, semimonthly, monthly or other regular periodic payments to be paid upon the investment certificates. (Art. 342506) Prepayment: no special provisions. Special Charges.-Delinquency: no provision. Collection: no provision. Insurance Premiums: if necessary for protection of borrower. Investigation: appraisal fees; loan granting fees are prohibited. Other: fee for service actually incurred in making the loan, not to exceed $1 for each $50 loaned; filing and recording fees: expenses necessary for protection of the borrower. (Art. 342-508) Disclosure. No special provisions. Penalty For Excessive Interest.-No special provisions. UTAH Miscellaneous Provisions.-Insurance: no provision. Acceleration: permitted for specified causes. (Art. 342-506) Security: lender must take as collateral its investment certificates, issued simultaneously with the granting of the loan (Art. 342-506) Other: no special provisions. Instalment loans in Utah are regulated by Sec. 15-1-2(g), reported in full text at ¶ 31 (Footnote 46). VERMONT Instalment loans in Vermont are regulated by Title 9, Sec. 41(c) reported in full text at ¶ 31 (Footnote 47). Disclosure is required by Title 9, Sec. 31(f), also reported in full text at ¶ 31 (Footnote 47). VIRGINIA References are to Code 1950, Title 6.1, Secs. 320, 321, as added by Laws 1966, Ch. 584, approved April 5, 1966, effective July 1, 1966 Lenders.-Banks. Maximum Loan.-No special provisions. Interest Charges.-Legal rate of interest on entire amount; may be charged in advance (see "Interest-Usury" Chart at ¶ 31). Maximum Time.-No special provisions. Payments and Refunds.-Instalments: weekly, monthly or other periodic intervals. Prepayment: no special provisions Special Charges.-Delinquency: no provision. Collection: no provision. Insurance Premiums: no provision. Investigation: 2% on loans not exceeding $1.000; $1 minimum charge permitted. Other: no special provisions. Disclosure. No special provisions. Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: no provisions. Acceleration: permitted upon default of any instalment, Security: no provision. Other: no special provision. WASHINGTON There are no statutory provisions pertaining to instalment loans. WEST VIRGINIA References are to Code of West Virginia 1931, Sec. 31-4-20, as amended; West Virginia Code Lenders.-Banking institutions. Maximum Loan.-No special provisions for secured or unsecured loans. Interest Charges.-6% per annum on the face amount for the entire period of the loan; may be deducted in advance; $1 minimum charge allowed. Maximum Time.-No special provisions. Payments and Refunds.-Instalments: payments must be in instalments. Prepayment: allowed in full on the unpaid balance outstanding on any instalment date prior to maturity; refund credit computed on the aggregate instalments not due, at the original contract rate of charge, prorated to the period of the loan covered by such unmatured instalments. Special Charges.—Delinquency: no provision. Collection: no provision. Insurance Premiums: no provision. Investigation: reasonable expenses incurred in procuring reports and information regarding the loan and related security. Other: no special provisions. Disclosure. No special provisions. Penalty For Excessive Interest.-No special provisions. Miscellaneous Provisions.-Insurance: no provision. Acceleration: permitted at lender's option upon default of any instalment if loan agreement so provides. Security: loans may be secured or unsecured. Other: no special provisions. WISCONSIN Instalment loans in Wisconsin are regulated by Sec. 138.05, reported in full text at 31 (Footnote 51). WYOMING References are to Statutes 1957, Secs. 13-486-13-488, as amended. Lenders. Banks, trust companies, finance companies, national banks and individuals. Maximum Loan.-$1,000. Interest Charges.-8% per annum on total amount, from date of making to maturity of final instalment; may be added to principal or taken in advance. A service charge of $.50 per instalment may be charged by a bank or trust company in lieu of interest where the interest charge is under $3. Maximum Time.-No special provisions. Payments and Refunds.-No special provisions. Disclosure. No special provisions. Penalty For Excessive Interest.-Misdemeanor. Miscellaneous Provisions.-No special provisions. |