Title 17, Title 17: CORPORATIONS AND INSTITUTIONS FOR FINANCE AND INSURANCE

17:9A-55. Permissible provisions and actions A. A bank which makes an installment loan may (1) require one or more comakers or endorsers of the note evidencing the loan, or one or more guarantors of payment of the loan, and, prior to default, take as security for any such loan an…

17:9A-56. Rebates on prepayment A. When the unpaid balance owing upon a precomputed loan is repaid in full or the maturity of the unpaid balance of such loan is accelerated before the date scheduled for the payment of the final installment, the bank shall allow a credit on accoun…

17:9A-57. Statement on instrument Every note evidencing an installment loan shall contain a statement that such loan was made pursuant to this article. If this article or any section hereof shall be amended, no reference to such amendment need be made in such statement. L.1948, c…

17:9A-58. Exempt transactions Nothing in this article applies to (1) any loan or extension of credit which a bank may make pursuant to any other law of this State or any regulation promulgated pursuant to such law, nor does this article apply to any loan or other extension of cre…

17:9A-59. Penalty for violations If a bank knowingly violates any provision of this article in the making or collection of an installment loan, the bank shall forfeit the entire interest which the note or other evidence of debt carries with it, or which has been agreed to be paid…

17:9A-59.1. Advance loans A. Subject to the provisions of this act, a bank may lend money to a borrower by advancing funds to or for the account of the borrower pursuant to the borrower's written authorizations. Such authorizations may take the form of checks drawn on the bank by…

17:9A-59.10. Security A. A bank which makes an advance loan shall not, prior to default in such loan, take any kind of security therefor except an interest in tangible personal property. B. Nothing in this act shall be construed as prohibiting a bank from obtaining or providing c…

17:9A-59.11. Limitation upon liability to bank on advance loans No bank shall make any advance loan for the payment of which any person shall be liable in any capacity to the bank if the making of such loan would cause the liability in any capacity of such person to the bank on a…

17:9A-59.12. Violation of limitations upon liability; penalty For a violation of section 11 of this act, the bank shall forfeit all interest on so much of the aggregate of all advance loans made to any one person as exceeds the limitations imposed by the said sections. L.1959, c.…

17:9A-59.13. Collection of excess interest rates or unlawful taking of security; penalty If a bank knowingly collects interest on advance loans at a rate in excess of that authorized by section 6 of this act, or if a bank knowingly violates section 10 of this act, the bank shall …

17:9A-59.14. Bank defined As used in this act, "bank" includes banking institutions as defined in section 1 of P.L.1948, c. 67 (C. 17:9A-1). L.1959, c. 91, p. 226, s. 14. Amended by L.1981, c. 37, s. 12, eff. Feb. 12, 1981.

17:9A-59.15. Effective date This act shall take effect immediately, but shall not be operative for 60 days thereafter. L.1959, c. 91, p. 226, s. 15.

17:9A-59.16. Guarantee of payment A bank which enters into a contract with a borrower to make advance loans pursuant to the act of which this act is amendatory and supplementary may contract with merchants to guarantee to them the payment of checks which are drawn on it by advanc…

17:9A-59.17. Short title The act of which this act is amendatory and supplementary shall be known and may be cited as "The Advance Loan Law of 1968." L.1968, c. 64, s. 15.

17:9A-59.2. Written contract; necessity; effective date; contents A. No advance loan shall be made except pursuant to a written contract, referred to in this act as an "advance loan contract," between the bank and a borrower or borrowers. An advance loan contract shall become eff…

17:9A-59.25. Definitions As used in this act, unless the context requires otherwise, (a) "Concern" means any trade, business or professional entity conducted for profit, and includes, but is not limited to, individuals, partnerships, corporations, joint ventures, associations and…

17:9A-59.26. Authority to make small business loans; terms and conditions; reliance upon representations A bank may make small business loans upon the terms and conditions prescribed by this act. In making loans pursuant to this act, a bank may in good faith rely upon the written…

17:9A-59.27. Interest rate (a) Notwithstanding the provisions of R.S. 31:1-1 or any other law to the contrary, a bank may contract for and receive interest on a small business loan calculated according to the actuarial method, at a rate or rates agreed on by the bank and the borr…

17:9A-59.28. Note; amount; installment payments; repayment in advance; refund (a) Every small business loan shall be evidenced by a note which shall be dated the day of the making of such loan, and the face amount of which shall be in an amount determined pursuant to paragraph (h…

17:9A-59.29. Limitation on loans No bank shall make a small business loan in a sum in excess of $50,000.00, nor shall a bank make any such loan for the payment of which a small business concern will be liable to it in any capacity, if the amount of such loan, exclusive of the int…

17:9A-59.3. Authorization as evidence of loan Each authorization made by an advance loan borrower, evidenced in any manner provided in a contract between the bank and such borrower, and honored by the bank as provided in section 1 of this act shall be evidence of a loan made by t…

17:9A-59.30. Security for payment; costs and insurance A bank which makes a small business loan may (a) require one or more comakers or endorsers of the note evidencing the loan, or one or more guarantors of payment of the note; (b) take an interest in property, real or personal,…

17:9A-59.31. Collection fee schedule Upon institution of proceedings for the collection of a small business loan in default, a bank may charge a collection fee, in addition to court costs, according to the following schedule: (a) on the first $750 of indebtedness, 15%; (b) on the…

17:9A-59.32. Acceleration of maturity (a) The note evidencing a small business loan may provide that (1) Upon default in the payment of any installment on its due date, the entire unpaid balance owing thereon shall, at the election of the bank, become immediately due and payable;…

17:9A-59.33. Unauthorized charges prohibited A bank which makes a small business loan shall not make any further finance, interest or other charge in connection with such loan, other than those expressly authorized by this act. L.1964, c. 162, s. 9.

17:9A-59.34. Use of proceeds for repayment of other loan Nothing in this act shall prevent a bank from making a small business loan, the proceeds of which will be applied in whole or in part to the repayment at or before final maturity of a loan theretofore made under the provisi…

17:9A-59.35. Credit on precomputed interest charges; prepayment or acceleration; formula; prepayment on non-precomputed small business loan without penalty (a) When the unpaid balance owing on a precomputed small business loan is repaid in full, or when the maturity of the unpaid…

17:9A-59.36. Statement that loan was made pursuant to small business loan act required Every note evidencing a small business loan shall contain a statement that such loan was made pursuant to this act. If this act or any section hereof shall be amended, no reference to such amen…

17:9A-59.37. Violation; penalty; civil action If a bank knowingly violates any provision of this act in the making or collection of a small business loan, the bank shall forfeit the entire finance charge made on such loan, and the borrower, or his legal representatives, successor…

17:9A-59.38. Application of act Nothing in this act applies to any loan or extension of credit which a bank may make pursuant to any other law of this State or any regulation promulgated pursuant to such law, nor does this act apply to any loan or extension of credit otherwise au…

17:9A-59.39. Short title This act shall be known and may be cited as the "Small Business Loan Act." L.1964, c. 162, s. 15.

17:9A-59.4. Statement to borrower; contents A. For each billing cycle at the end of which there is an outstanding balance on any advance loan made pursuant to a particular advance loan contract, the bank shall render a statement to the borrower which shall show, with respect to a…

17:9A-59.40. Loan to depositor in amount of and guaranteed by deposit Notwithstanding any other provision of law, a banking institution may contract with a depositor for the loan of money in an amount not to exceed such depositor's deposit and secured by a pledge of such deposit,…

17:9A-59.5. Periodic payments; amount; application A. The amount of the payment required to be made on advance loans made to a particular borrower in reduction thereof shall at least equal 1/72 nd of the aggregate amount owing at the end of a billing cycle by such borrower on eac…

17:9A-59.6. Interest rate; insurance premiums; credit cards; annual fee A. Notwithstanding the provisions of R.S. 31:1-1 or any other law to the contrary, the rate or rates on advance loans shall be as agreed to by the bank and the borrower. Interest may be reckoned according to …

17:9A-59.7. Late charges A. If any payment on an advance loan remains unpaid for a period of more than 15 days after such payment falls due pursuant to a contract between the bank and the borrower governing such loan, the bank may make and collect a late charge in such amount as …

17:9A-59.8. Service charges In addition to the other charges which are authorized to be made by this act, a bank may collect a service charge from each advance loan borrower for each billing cycle in which any part of an advance loan remains unpaid. Such service charge shall not …

17:9A-6. Capital stock; par value and classes A. Except as otherwise provided in this section the par value of the shares of the capital stock issued by any bank shall be not less than $2.00 per share. B. A bank may create and issue common stock and preferred stock. C. The minimu…

17:9A-6.1. Authorized but unissued stock provided for A bank may, in its original or amended certificate of incorporation make provision for authorized but unissued stock. Such stock may, with the approval of the Commissioner of Banking as hereinafter provided, be issued for such…

17:9A-6.2. Certificate of amendment, procedure, filing 2. Prior to the time when authorized or unissued shares are issued by a bank, a certificate of amendment made by two officers of the bank, one of whom shall be the president or a vice-president, shall be filed in the Departme…

17:9A-6.3. Consideration for issue; preemptive rights Authorized but unissued stock may be issued pursuant to this act for cash or for consideration other than cash, and may be issued without first being offered to existing stockholders. L.1970, c. 294, s. 3, eff. Dec. 14, 1970.

17:9A-60. Definitions 60. Definitions. For the purposes of this article, (1) "Person" means an individual, partnership, corporation, association or body politic, or any similar entity or organization; (2) "Investment securities" means those marketable corporate obligations in the…

17:9A-61. Unlimited liability This article shall not apply to: (1) loans to or investments in obligations of the United States, this State or any county of this State, or investments in obligations unconditionally guaranteed both as to principal and interest by the United States …

17:9A-62. Limitations on liability 62. Limitations on Liability. A. The total loans and extensions of credit by a bank or savings bank outstanding to one borrower at one time and not fully secured by collateral having a market value at least equal to the amount of the loans and e…

17:9A-63. Exempt transactions 63. Exempt transactions. A. A bank or savings bank shall not be in violation of this article if the loans and extensions of credit to a person incurred under any prior law repealed or superseded by this act exceed the limitations imposed by this arti…

17:9A-63.1. Excess charge Notwithstanding any other law of this State, a banking institution which makes a charge or imposes a fee in excess of that permitted by P.L. 1948, c. 67 (C. 17:9A-1 et seq.), R.S. 31:1-1 et seq. or any other applicable law, shall have no liability for th…