Title 14, Uniform Consumer Credit Code

This Chapter shall be known and may be cited as Uniform Consumer Credit Code-Loans.

This Chapter applies to consumer loans, including regulated loans; in addition Article 6 applies to loans other than consumer loans.

The following definitions apply to this Act and appear in this Chapter as follows: Business collateral § 3105 Consumer loan § 3104 Lender § 3107(1) COL120106 Loan § 3106 Loan finance charge § 3110 Precomputed loan § 3107(2) Premium finance loan § 3107(3) Principal § 3107(4) Regul…

(1) Except as provided in Subsection (2), consumer loan is a loan: (a) made by a person engaged in the business of making loans; (b) in which the debtor is a person other than an organization; and (c) in which the debt is incurred primarily for a personal, family, household or ag…

Business Collateral means real property used primarily for other than a personal, family, household or agricultural purpose, or accounts or COL120106 contract rights other than earnings, business equipment, chattel paper, documents of title, instruments, inventory, business gener…

Loan includes: (a) The creation of debt by the lender's payment of or agreement to pay money to the debtor or to a third party for the account of the debtor; (b) The creation of debt by the opening of an account with the lender entitling the debtor to draw immediately on the lend…

All Defined. (1) Lender means a person who makes a loan and any transferee of a lender's right to payment. (2) A loan, refinancing or consolidation is precomputed if the debt is expressed as a sum comprising the principal and the amount of the loan finance charge computed in adva…

Revolving Loan Account means an arrangement between a lender and a debtor pursuant to which (1) it is contemplated by the parties that the lender may make loans to the debtor from time to time, (2) the debts COL120106 arising from loans, loan finance charges and other charges wil…

If a sale of unpaid earnings is made in consideration of the payment of money to or for the account of the seller, the transaction is deemed to be a loan to the seller secured by an assignment of earnings. The principal of the loan is equal to the money paid to or for the account…

(1) Loan Finance Charge means the total of (a) all charges however denominated, incurred for the privilege of obtaining the loan and paid or payable, directly or indirectly, by the debtor to or for the account of the lender or a person related to or designated by the lender, and …

Regulated Loans and Revolving Loan Accounts. (1) With respect to a consumer loan other than a regulated loan or a loan pursuant to a revolving loan account, a lender may contract for and receive a loan finance charge, however calculated, not in excess of ten percent (10%) per yea…

(1) In addition to the loan finance charge permitted by this Article, the lender may contract for and receive the following additional charges in connection with a consumer loan: (a) official fees; (b) charges for insurance; (c) annual charges, payable in advance, for the privile…

(1) With respect to a precomputed consumer loan, the parties to a loan may contract for a delinquency charge on any instalment not paid in full within 10 days after its scheduled due date in an amount not to exceed the greater of: (a) Two Dollars ($2.00) or an amount, not exceedi…

(1) With respect to a precomputed consumer loan, the parties may before or after default agree in writing to a deferment of all or part of one or more unpaid installments, and the lender may make a charge not in excess of 18% per year of the amount deferred for the period of defe…

With respect to a precomputed consumer loan, the lender may by agreement with the debtor refinance the unpaid balance and may contract for and receive a loan finance charge based on the principal resulting from the refinancing at a rate not in excess of that permitted by the prov…

(1) If a lender makes a consumer loan, other than one pursuant to a revolving loan account, to a debtor who has an unpaid balance owing to the lender with respect to a previous consumer loan, the parties may agree to a consolidation resulting in a single schedule of payments. If …

This Article does not apply to loans with respect to which rates of loan finance charts, however denominated, are filed with and subject to approval or disapproval by a subdivision or agency of this Territory or of the United States.

(1) If the agreement with respect to a consumer loan contains covenants by the debtor to perform certain duties pertaining to insuring or preserving collateral and if the lender pursuant to the agreement pays for performance of the duties on behalf of the debtor he may add the am…

The debtor may prepay in full the unpaid balance of a consumer loan, other than a consumer loan secured primarily by real property, at any time without penalty.

(1) Upon prepayment in full of a precomputed consumer loan, the unearned portion of the loan finance charge shall be rebated to the debtor. If the obligation of the debtor pursuant to a consumer loan contains a portion of the loan finance charge by reason of discount or otherwise…

(1) This Article does not apply to loans in which the principal is Twenty-Five Thousand Dollars ($25,000.00), or more. (2) The amount of Twenty-Five Thousand Dollars ($25,000.00) in Subsection (1) is subject to change pursuant to the provisions on adjust- ment of dollar amounts (…

With respect to a consumer loan, other than one primarily for an agricultural purpose or pursuant to a revolving loan account, if any payment is more than twice as large as the average of the other payments, the debtor has the right to refinance the amount of that payment at the …

A lender may not take an assignment of earnings of the debtor as security for payment of a consumer loan. An assignment of earnings in violation of this Section is void.

Except as provided by the limitations on attorneys' fees in certain regulated loans (§ 3512), with respect to a consumer loan the agreement may provide for the recovery from the debtor of reasonable attorneys' fees not excess of fifteen percent (15%) of the unpaid debt at the tim…

Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a consumer loan may not provide for charges as a result of default by the debtor other than those authorized by this Act. An agreement in violation of this Section is void.

The debtor is authorized to pay the original lender until he receives notification of transfer of rights to payment pursuant to a consumer loan and that payment is to be made to the transferee of the rights. A notification which does not reasonably identify the rights transferred…

A debtor may not give a power of attorney to any person to confess judgment on a claim arising out of a consumer loan. A power of attorney given in violation of this Section is void. ---------- COL120106 ARTICLE 5 REGULATED LOANS

(1) Regulated loan means a consumer loan made pursuant to a revolving loan account; or (2) Any other consumer loan in which the rate of the loan finance charge is in excess of that provided by the provisions on loan finance charge for consumer loans (§ 3201).

No person shall engage in the business of making regulated loans or taking assignments of rights to payment arising out of regulated loans unless the person is a supervised financial organization or has first obtained a license from the Administrator authorizing him to make regu-…

(1) The Administrator shall receive and act on all applications for licenses to make regulated loans under this Act. Applications shall be filed in the manner prescribed by the Administrator and shall contain COL120106 such information as the Administrator may require to make an …

(1) The Administrator may issue to a person licensed to make regulated loans an order to show cause why his license should not be re- voked or suspended for a period not in excess of six (6) months. The order shall state the place for a hearing and set a time for the hearing that…

Every licensee shall maintain such books and records in accordance with sound and accepted accounting principles and practices as will enable the Administrator to determine whether the licensee is complying with the provisions of this Act. The record keeping system of a licensee …

For the purpose of discovering violations of this Act or securing information lawfully required by him hereunder, the Administrator may at any time investigate the loans and business and examine the books, accounts, records and files used therein, of every licensee. For such COL1…

Except as otherwise provided in this Article, administrative action taken by the Administrator pursuant to this Article is governed by the Administrative Adjudication Act.

Revolving Loan Accounts. (1) With respect to a regulated loan, other than a loan pursuant to revolving loan account, an authorized lender may contract for and receive a loan finance charge not in excess of that permitted by this Section. With respect to a precomputed loan, the lo…

(1) With respect to a consumer loan made pursuant to a revolving loan account, an authorized lender may contract for and receive a loan finance charge not in excess of that permitted in this Section. (2) A charge may be made in each billing cycle which is a percentage of an amoun…

With respect to a regulated loan, no lender may permit any person, or husband and wife, to become obligated in any way under more than one (1) loan agreement with the lender or with a person related to the lender, with the intent of obtaining a higher rate of loan finance charge …

(1) With respect to a regulated loan in which the principal is Five Hundred Dollars ($500.00), or less, a lender may not contract for a security interest in real property. A security interest taken in violation of this Section is void. (2) The amount of Five Hundred Dollars ($500…

(1) With respect to a regulated loan in which the principal is Five Hundred Dollars ($500.00), or less, the agreement may not provide for the recovery from the debtor of attorneys' fees. An agreement in violation of this Section is void. (2) The amount of Five Hundred Dollars ($5…

(1) Regulated loans payable in installments in which the principal is COL120106 One Thousand Five Hundred Dollars ($1,500.00), or less, shall be repayable in substantially equal installments which shall be payable at equal periodic intervals, except as may be requested by the deb…

A licensee may carry on another business at the location where he makes regulated loans unless he carries on the business for the purpose of evasion or violation of this Act.

Except as otherwise provided, all provisions of this Act applying to consumer loans apply to regulated loans. ---------- ARTICLE 6 LOANS OTHER THAN CONSUMER LOANS

The parties to a loan other than a consumer loan may agree in a writing signed by the parties that the loan is subject to the provisions of this Act applying to consumer loans. If the parties so agree, the loan is a consumer loan for the purposes of this Act.

(1) With respect to a loan other than a consumer loan, the parties COL120106 may contract for the payment by the debtor of a loan finance charge not in excess of that permitted by this Section if: (a) the principal is Twenty-Five Thousand Dollars ($25,000.00), or less; and (b) th…

Except for the rate of the loan finance charge, the provisions of Article 2 of this Chapter apply to a loan for which loan finance charge ceilings are set by § 3602 (certain loans to individuals).

The agreement with respect to a loan for which loan finance charge ceilings are set by § 3602 (certain loans to individuals) may not provide for any charges as a result of default by the debtor except for reasonable attorneys' fees and reasonable expenses incurred in realizing on…

With respect to a loan other than a consumer loan or a loan for which loan finance charge ceilings are set by § 3602 (certain loans to COL120106 individuals), the parties may contract for the payment by the debtor of any loan finance charge agreed in writing. ---------- COL120106…