CHAPTER 54-4
MONEY LENDING
LICENSES/Payday Lender
Regulations
54-1-1.
Definition of
terms--Debtor--Creditor.
Terms used in this chapter and
chapter 54-8 are defined as follows,
unless the context otherwise plainly
requires:
(1)
"Creditor," is one in whose favor an
obligation exists by reason of which
he is, or may become, entitled to
the payment of money;
(2)
"Debtor," one who, by reason of an
existing obligation is, or may
become liable to pay money to
another, whether such liability is
certain or contingent.
54-1-2.
Loan of money defined.
A loan of money is a contract by which
one delivers a sum of money to another,
and the latter agrees to return at a
future time a sum equivalent to that
which he borrowed.
54-1-3.
Debtor's contract valid in the absence
of fraud.
In the absence of fraud every contract
of a debtor is valid against all his
creditors, existing or subsequent, who
have not acquired a lien on the property
affected by such contract.
54-2-1.
Payment defined.
Performance of an obligation for the
delivery of money only, is called
payment.
54-2-2.
Repayment of loan in current funds.
A borrower of money must pay the amount
due in such money as is current at the
time when the loan becomes due, whether
such money is worth more or less than
the actual money lent.
54-3-1.
Interest defined.
Interest is the compensation allowed by
law for the use, or forbearance, or
detention of money or its equivalent,
including without limitation, points,
loan origination fees, credit service or
carrying charges, charges for
unanticipated late payments, and any
other charges, direct or indirect, as an
incident to or as a condition of the
extension of credit. These charges do
not include charges made by a third
party.
54-3-1.1.
Rate of interest set by written
agreement--No maximum or usury
restriction.
Unless a maximum interest rate or charge
is specifically established elsewhere in
the code, there is no maximum interest
rate or charge, or usury rate
restriction between or among persons,
corporations, limited liability
companies, estates, fiduciaries,
associations, or any other entities if
they establish the interest rate or
charge by written agreement. A written
agreement includes the contract created
by § 54-11-9.
54-3-2.
Loan of money--Presumption as to
interest.
Whenever a loan of money is made it is
presumed to be made upon interest,
unless it is otherwise expressly
stipulated at the time in writing.
54-3-3.
Annual rate of interest where not
specified.
When a rate of interest
is prescribed by a law or contract,
without specifying the period of time by
which such rate is to be calculated, it
is to be deemed an annual rate.
54-3-4.
Maximum rate of interest where no rate
specified--Commencement where date not
specified.
Under an obligation to pay interest, no
rate being specified, interest is
payable from date of incurrence of debt,
unless the parties have otherwise
agreed, at a maximum rate of the
Category C rate of interest as
established in § 54-3-16, and in the
like proportion for a longer or shorter
term. In the computation of interest for
less than a year, three hundred sixty
days are deemed to constitute a year.
54-4-36.
Definition of terms.
Terms used in §§ 54-4-36 to 54-4-63,
inclusive, and §§ 54-4-65 and 54-4-66
mean:
"Finance charge," the amount, however
denominated, which is paid or payable
for the privilege of paying for goods or
services in one or more installments at
the beginning of the transaction;
"Payday loan," any small, short-maturity
loan on the security of a check, any
assignment of an interest in the account
of a person at a depository institution,
any authorization to debit the person's
deposit account, or any assignment of
salary or wages payable to a person. A
short-maturity loan made in anticipation
of an income tax refund is not a payday
loan for purposes of this chapter.
54-4-58.
Information required in contract.
The licensee shall disclose in any
loan contract the following:
(1)
The amount and date of the loan;
(2)
The amount of the down payment, if
any;
(3)
The dates any payments are due and
the amount of payments;
(4)
A list of any property used to
secure the loan;
(5)
Any liens or title filings required;
(6)
The method used to compute the
charges;
(7)
An explanation of the charges;
(8)
Any charge that may be applied for
delinquency;
(9)
The conditions for an extension of
payment or maturity of the loan; and
(10)
Refinancing requirements.
A violation of this section is a
Class 2 misdemeanor.
54-4-61.
Copy provided to debtor.
The debtor may request
a copy of any transaction pertaining to
the debtor's installment loan contract.
The licensee shall provide such copies
upon request.
54-4-65.
Limitation on renewal of deferred
presentment service transaction.
No licensee may renew, rollover, or flip
a payday loan more than four times. No
renewal, rollover, or flip is valid
unless the debtor pays the outstanding
fee at the time of the renewal.
54-4-66.
Limitation on disbursements under
deferred presentment service
transaction.
No payday loan disbursed by a licensee
may exceed five hundred dollars. A
violation of this section is a Class 1
misdemeanor.
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