Title 6, Banks and Financial Institutions

A. A licensee shall maintain books, accounts and records that enable the deputy director to determine whether the licensee is in compliance with this chapter. B. A licensee shall preserve its books, accounts and records of consumer lender loans for at least two years after making…

A. On or before October 1 of each year, the licensee shall file a report under oath and in the form prescribed by the deputy director concerning the business and operations during the twelve-month period ending the preceding June 30. On good cause shown by a licensee, the deputy …

A. At the time of making its annual report to the deputy director, each licensee shall report the licensee's standard annual percentage rate or range of annual percentage rates in effect at that time on the following types of loans: 1. A $500 unsecured consumer loan, payable in t…

A. The revocation, suspension or surrender of a consumer lender license does not impair or affect: 1. The obligation of any preexisting consumer lender loan between the consumer lender and any consumer. 2. The ability or right of the consumer lender to service existing consumer l…

A licensee shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner, any false, misleading or deceptive statement or representation with regard to the rates, terms…

The deputy director may adopt rules that are necessary to regulate the proper conduct of a licensee.

A. Except as the result of an accidental or bona fide error, if the licensee charges, contracts for or receives any amount in excess of the finance charges and other fees permitted by this chapter the following restrictions apply: 1. If the original principal amount of a consumer…

Except as provided in section 6-613, a failure to comply with this chapter does not affect the validity or enforceability of any consumer lender loan or any security interest or lien on personal or real property.

If a consumer lender loan subject to this chapter is made at a location outside this state to a consumer who is a resident of this state at the time that the consumer lender loan is made and the annual percentage rate of finance charges and other fees charged, contracted for or r…

A. To the extent applicable, a licensee shall comply with the disclosure requirements of the truth in lending act. B. Each note or agreement evidencing a consumer lender loan shall contain the following disclosure statement in at least ten-point type that is in English and in Spa…

A. A licensee may contract for and receive finance charges on consumer loans that are not more than the following amounts: 1. On a consumer loan in an original principal amount of three thousand dollars or less, a consumer loan rate of thirty-six per cent. 2. On a consumer loan i…

A. A licensee shall compute and measure finance charges on consumer loans on unpaid balances outstanding from time to time. A licensee may also precompute finance charges on consumer loans on scheduled unpaid principal balances as provided in section 6-634. For the purposes of co…

A. A precomputed consumer loan shall require repayment in substantially equal consecutive monthly installments of principal and finance charges combined. The first installment of a precomputed consumer loan is due not less than fifteen days but not more than forty-five days after…

A. In addition to the finance charges authorized by section 6-632, a licensee may contract for and receive, and collect finance charges on, the following fees: 1. A delinquency charge in an amount equal to five percent of the amount of any installment not paid in full within seve…

A. The following types of insurance may be sold to the consumer in connection with a consumer lender loan and the consumer may contract for: 1. Property insurance covering any property securing a consumer lender loan. 2. Life insurance insuring the life of one or more consumers o…

A. The scheduled term of a consumer loan shall not be longer than the following: 1. Twenty-four months and fifteen days from the date of making a consumer loan of one thousand dollars or less. 2. Thirty-six months and fifteen days from the date of making a consumer loan of more t…

A. A licensee who is licensed to sell life insurance pursuant to title 20 may sell and include in the principal amount of a consumer lender loan the cost of the premium for life insurance that is not for credit if all of the following apply: 1. The insurance policy or certificate…

A licensee may not hold a person responsible for any loan amount that is incurred as a result of a violation of section 13-2008, 13-2009, 13-2010 or 13-2310. Within thirty days after a licensee is aware that a loan is a result of a violation of section 13-2008, 13-2009, 13-2010 o…

In this chapter, unless the context otherwise requires: 1. "Agency" means any business serving the public, which as part of its services accepts money for and on behalf of a licensee. 2. "Branch office" means any office operated solely for the purpose of accepting money and perfo…

The provisions of this chapter shall not be applicable to: 1. Attorneys at law, whose principal activities are other than debt management, when debt management is only incidental to their regular activities. 2. Banks, savings and loan associations or financing and lending institu…

No person shall engage in the business for compensation of receiving money as agent of a debtor for the purpose of distributing that money to the debtor's creditors in payment or partial payment of the debtor's obligations without first obtaining a license from the deputy directo…

A. An application for a license shall be in writing, under oath and in a form prescribed by the deputy director, and shall contain the name and address, both of the residence and place of business, of the applicant and if the applicant is an association or society, of every membe…

A licensee may establish branch offices or agencies only if it expressly assumes responsibility for the acts of any person accepting money in its name or on its behalf at such places of business. An application for a branch office or agency license shall be in writing, under oath…

A. An applicant, at the time of filing an application for a license under the terms of this article, shall pay to the deputy director the fee prescribed in section 6-126. The fee for an agency license is the same as the fee prescribed for a branch. B. On or before June 30 of each…

A. On the filing of the application and the payment of the fees and the approval of the bond, or bonds, the deputy director shall investigate the facts, and if the deputy director finds that the financial responsibility and experience of the applicant are such as to command the c…

A. If the deputy director finds that the applicant fails to meet any of the conditions set forth in this article, the deputy director shall deny the application for a license. If an application is denied or withdrawn, the deputy director shall retain the investigation fee to cove…

A. A licensee at all times shall maintain minimum liquid assets of at least $2,500 in excess of the licensee's business liabilities and of the licensee's liabilities on account of monies received in the business of a debt management company. The deputy director may determine by g…

It is unlawful for a licensee to: 1. Accept an account unless it appears on the basis of a reasonable budget analysis, reduced to writing, that the debtor can reasonably meet the payments agreed on by the licensee and the debtor and that the agreed on payment is sufficient to pay…

The rules and regulations of the deputy director shall include standards and criteria for proper advertising and may include specific prohibitions as to improper advertising by a licensee. A debt management company's advertising, communication and sales materials shall contain th…

No person may engage in the business of a debt management company without the license required by this article.

All fees collected under the provisions of this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

In this chapter, unless the context otherwise requires: 1. "Account servicing" means the holding of documents or written instruments and the receipt and disbursement of payments according to the instructions of the parties to the documents or written instruments. 2. "Affiliate" m…

A. The deputy director shall examine or cause to be examined each escrow agent as prescribed by section 6-122. The deputy director shall forward a report of the examination to the board of directors of the escrow agent within thirty days after the report is completed. Within thir…

A. The provisions of this chapter do not apply to and the term "escrow agent" does not include: 1. Any person who is licensed to practice law in this state and who is not actively engaged in conducting an escrow business. 2. Any person doing any of the acts specified in section 6…

No foreign corporation without a valid grant of authority to do business under title 10, chapter 15, article 1 shall transact any escrow business in this state.

A. A person, except those exempt under section 6-811, shall not engage in or carry on, or hold himself out as engaging in or carrying on, the escrow business or act in the capacity of an escrow agent in this state without first obtaining a license. B. An escrow agent's license is…

A. Every escrow agent before engaging in the escrow business shall file with the deputy director an application for a license, in writing, verified by oath and in the form prescribed by the deputy director. It shall state the location of the principal office and all branch office…

A licensee shall make application for renewal as prescribed by the deputy director and pay the renewal fee prescribed in section 6-126 not later than December 31 of each year. For each day after December 31 that the renewal application is not received by the deputy director the a…

A. Each application for a new license or a renewal license shall be accompanied by the fee prescribed in section 6-126. B. For each day a report required by section 6-832 is not received by the department, a licensee shall pay a fee of $25. The deputy director may excuse the fee …

A. The deputy director on investigation may refuse to license any applicant or may suspend or revoke any license pursuant to title 41, chapter 6, article 10 by entering an order to that effect, together with findings in respect to the order and by notifying the applicant or escro…

All escrow agents shall keep and maintain at all times in their principal places of business complete and suitable records of all escrow transactions made by them, together with books, papers and data clearly reflecting the financial condition of the business of such agents.

A. The records of each escrow agent shall be audited at least once each fiscal year by a certified public accountant. The audit shall include an audit of the escrow, account servicing and subdivision trust activities of the escrow agent and shall follow generally accepted account…

A. When the deputy director ascertains by examination or otherwise that the assets or capital of any agent are impaired, or that the agent's affairs are in an unsafe condition, the deputy director may immediately take possession of all the property, business and assets of the age…

A. In a receivership proceeding filed against an escrow agent, the priority of distribution of claims from the general assets of the escrow agent shall be as provided by this section. Every claim in each class shall be paid in full or adequate monies shall be reserved for the pay…

A. Unless all of the parties to the escrow otherwise instruct the escrow agent in writing, the escrow agent shall deposit and maintain all monies deposited in escrow to be delivered on the close of the escrow or on any other contingency in a bank, savings bank or savings and loan…

An escrow agent may use monies in an escrow account only to make a onetime payment or multiple payments pursuant to the loan agreement unless one of the following applies: 1. The loan agreement specifically states that the monies may be used for another purpose and that purpose i…