Title 9 — Banking
20 chapters · 569 sections in this title.
9 V.I.C. § 764 Short title
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This chapter is known and may be cited as “The Virgin Islands Finance Lenders Law”.
9 V.I.C. § 765 Definitions
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(a) As used in this chapter, the terms have the meaning set forth in this section, unless the context requires otherwise.(a) The terms “accounts,” “chattel paper,” “documents,” “general intangibles,” “goods,” “instruments,” and “security interest,” are as defined in the Virgin Is…
9 V.I.C. § 766 Purpose and scope
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(a) This chapter must be liberally construed and applied to promote its underlying purposes and policies, which are:(1) To ensure an adequate supply of credit to borrowers in this territory.(2) To simplify, clarify, and modernize the law governing loans made by finance lenders.(3…
9 V.I.C. § 767 General exemptions
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(a) This chapter does not apply to any person doing business under any law of any state or territory or of the United States relating to banks, trust companies, savings and loan associations, insurance premium finance agencies, federal credit unions, small loans and pawnbrokers, …
9 V.I.C. § 768 Nonprofit cooperative association exemption
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(1) This chapter does not apply to the following:(1) Any nonprofit cooperative association that loans or advances money in connection with any activity mentioned in paragraph (2).(2) Any corporation, association, syndicate, joint stock company, or partnership engaged exclusively …
9 V.I.C. § 769 Loan of credit exemption
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(1) This chapter does not apply to any loan of credit made by a person not licensed under this chapter pursuant to a plan having all of the following characteristics:(1) Credit cards issued pursuant to a written application and to the plan whereby the organization issuing the car…
9 V.I.C. § 770 Premium financing exemption
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This chapter does not apply to insurance premium financing companies as defined in 22 V.I.C. § 1621(a).
9 V.I.C. § 771 Limitation on broker’s license exemption
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A license to act as a broker under this chapter does not authorize the licensee to negotiate or perform any act as a broker in connection with loans made or to be made by a lender not licensed as a finance lender under this chapter.
9 V.I.C. § 772 Residential mortgage lender or broker exemption
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This chapter does not apply to a loan made or arranged by a licensed residential mortgage lender or broker when acting under the authority of that license.
9 V.I.C. § 773 Nonprofit church extension fund exemption
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(a) This chapter does not apply to any nonprofit church extension fund. (b) For purposes of this section:(1) “Nonprofit church extension fund” means a nonprofit organization affiliated with a church, that is formed for the purpose of making loans to that church’s congregational o…
9 V.I.C. § 774 Venture capital exemption
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(a) This chapter does not apply to either of the following:(1) A commercial bridge loan made by a venture capital company to an operating company.(2) A venture capital investment made by a venture capital company in an equity security issued by an operating company. (1) A commerc…
9 V.I.C. § 775 Franchise loan exemption
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(a) This chapter does not apply to a franchise loan made by a franchisor to a franchisee or a sub-franchisor or by a sub-franchisor to a franchisee. (b) For purposes of this section:(1) “Franchised business” means a business operated pursuant to a franchise or area franchise by a…
9 V.I.C. § 776 Investment related program exemption
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(a) This chapter does not apply to the following:(1) A program-related investment defined in subsection (c) of Section 4944 of the Internal Revenue Code and United States Treasury Regulations, Section 53.4944-3 that is made by a private foundation, tax-exempt organization within …
9 V.I.C. § 777 Burden of proof
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In any proceeding under this chapter the burden of proving an exemption is on the person claiming it.
9 V.I.C. § 778 License required
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(a) It is unlawful for any person to engage in the business of a finance lender or broker without obtaining a license from the Board. (b) A finance lender or broker may not make or broker a residential mortgage loan unless that loan is offered by, negotiated by, or applied for th…
9 V.I.C. § 779 Contents of license
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(a) The finance lender or broker license must state the name of the licensee, and if the licensee is a partnership, the names of its general partners, and if a corporation or an association, the date and place of its incorporation or organization, and the address of the licensee’…
9 V.I.C. § 780 Separate licenses and fees required
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Each finance lender and broker and mortgage lender and broker is required to hold a separate license and pay the respective fees for each license, if applicable.
9 V.I.C. § 781 Investigation, application and licensure fees
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(a) At the time of filing the application for a finance lender, the applicant shall pay to the Board the sum of $200 as a fee for investigating the application, plus the cost of fingerprint processing and the criminal history record check under section 784 and $300 as an applicat…
9 V.I.C. § 782 Application for a License
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(a) An application for a license as a finance lender under this chapter must be in the form and contain the information that the Board may by regulations require and must be filed with the payment of the fees specified in section 781. (b) An applicant who does not hold a license …
9 V.I.C. § 783 Background investigation of applicants, general partners and principal officers
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(a) Upon the filing of an application pursuant to section 782 and the payment of the fees, the Board shall investigate the applicant and its general partners and persons owning or controlling, directly or indirectly, 10 percent or more of the outstanding interests or any person r…
9 V.I.C. § 784 Criminal history check
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(a) The Division of Banking, Insurance and Financial Regulation, as designee of the Board shall submit images of fingerprints and related information of any person responsible for the lending activity, as defined by subsection (a) of section 782, for purposes of obtaining informa…
9 V.I.C. § 785 Net worth required
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The applicant shall file with the application for a finance lender or broker license audited financial statements prepared in accordance with generally accepted accounting principles and acceptable to the Board which indicate a minimum net worth of at least $100,000 for finance l…
9 V.I.C. § 786 Required surety bond
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(a) A licensee shall maintain a surety bond in accordance with this subsection in a minimum amount of $25,000. The bond must be payable to the Government of the Virgin Islands and issued by an insurer authorized to do business in the Virgin Islands. An original surety bond, inclu…
9 V.I.C. § 787 Application for a branch office
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(a) A finance lender or broker licensee seeking to engage in business at a new location other than the licensee principal place of business shall submit an application for a branch office license to the Board at least 60 days before seeking to engage in business at a new location…
9 V.I.C. § 788 Changes in information in any application
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(a) The Board may require licensees to file, at the times that the Banking Board may specify, information as to changes in the information provided in any application filed with the Boards pursuant to this chapter. (b) The Board may by regulation require a licensee to file inform…
9 V.I.C. § 789 Denial of application for a finance lender or broker
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(1) Upon reasonable notice and opportunity to be heard, the Board may deny the application for a finance lender or broker license for any of the following reasons:(1) A false statement of a material fact has been made in the application.(2) The applicant or an officer, director, …
9 V.I.C. § 790 Rejection of license application
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(a) (1) If an applicant does not meet the requirements of licensure under this chapter, the Board shall:(A) notify the applicant in writing of this fact as provided in subsection (b);(B) return the bond filed; and(C) refund the license fee.(2) The Board shall retain the applicati…
9 V.I.C. § 791 Posting and transferring of license
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(a) The licensee shall post the finance lender license in a conspicuous place at the business authorized. (b) A license is not transferable or assignable. A license issued to a partnership or a limited partnership is not transferred or assigned within the meaning of this section …
9 V.I.C. § 792 Place of business under license
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A finance lender or broker licensee shall maintain only one place of business under a duplicate or original license issued pursuant to section 782 or 787. The Board may issue more than one license to the same licensee upon compliance with all the provisions of this chapter govern…
9 V.I.C. § 793 Change of street address of place of business
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(a) If a finance lender or broker licensee seeks to change its place of business to a street address other than that designated in its license, the licensee shall provide notice to the Board at least 60 days prior to the change. The Board shall notify the licensee not later than …
9 V.I.C. § 794 Intermingling of offices and products
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(a) It is unlawful for a licensee to conduct the business of making loans under this chapter within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as is authorized in writing by the…
9 V.I.C. § 795 Name on license
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(a) Except as provided in subsection (b), it is unlawful for any finance lender or broker licensee to transact the business licensed or make any loan provided for by this chapter under any other name or at any other place of business than that named in the license. (b) A licensee…
9 V.I.C. § 796 Retention of records
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Finance lenders or broker licensees shall keep and use in their business, books, accounts, and records that will enable the Board to determine if the licensee is complying with this chapter and with the Board’s regulations.
9 V.I.C. § 797 Maintenance of card system
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Finance lenders and brokers shall preserve their books, accounts, and records, including cards used in the card system, if any, for at least five years after making the final entry on any loan recorded therein.
9 V.I.C. § 798 Maintenance or preservation of original records
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Nothing contained in sections 796 and 797 requires the maintenance or preservation of original records, but any information requested by the Board must be furnished within 48 hours, excluding Saturdays, Sundays, and holidays.
9 V.I.C. § 799 Annual report
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(a) Finance lenders and broker licensees shall file an audited annual report with the Board, on or before the March 31, giving the relevant information that the Board reasonably requires concerning the business and operations conducted by the licensee within the Territory during …
9 V.I.C. § 800 Prohibited practices
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(1) It is unlawful for any person subject to this chapter to do any of the following:(1) Make a materially false or misleading statement or representation to a borrower about the terms or conditions of that borrower’s loan, when making or brokering the loan.(2) Advertise, print, …
9 V.I.C. § 801 Advertisement
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It is unlawful for any licensee to place an advertisement disseminated primarily in this Territory for a loan unless the licensee discloses in the printed text of the advertisement, or in the oral text in the case of a radio or television advertisement, the license under which th…
9 V.I.C. § 802 Rate disclosure
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The Board shall require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the Board considers necessary to prevent misunderstanding by prospective borrowers.
9 V.I.C. § 803 Advertising of rates, charges or costs
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If any person engaged in the business regulated by this chapter refers in any advertising to rates of interest, charges, or cost of loans, the Board shall require that the rates, charges, or costs are stated fully and clearly in the manner that gives adequate information to prosp…
9 V.I.C. § 804 Advertisement disapproved
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(a) The Board may by order direct any licensee to submit advertising copy to the Board for review prior to use. (b) It is unlawful for any licensee to use an advertising copy after the Board has disapproved its use and notified the licensee in writing of the disapproval.
9 V.I.C. § 805 Advertising file
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The Banking Board shall require licensees to maintain a file of all advertising copy for a period of three years from the date of its use. The file must be available to the Board upon request.
9 V.I.C. § 806 Place of Business
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A licensed finance lender may act as a broker as defined in section 765 at its licensed place of business without obtaining an additional license as a broker under this chapter if the licensee has notified the Board of the action in writing.
9 V.I.C. § 807 Hearing
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(a) The Board may, after appropriate notice and opportunity for hearing, suspend for a period not to exceed 12 months or bar a person from any position of employment with a licensee if the Board finds that the person has willfully used or claimed without authority a designation o…
9 V.I.C. § 808 Notice and opportunity for hearing
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(a) The Board may, after appropriate notice and opportunity for hearing, by order, censure or suspend for a period not exceeding 12 months, or bar from any position of employment, management, or control, any finance lender or broker, or any other person, if the Board finds either…
9 V.I.C. § 809 False record or untrue statement
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(a) It is unlawful for any person to knowingly alter, destroy, mutilate, conceal, cover up, falsify, or make a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the administration or enforcement of any provision of this chap…
9 V.I.C. § 810 Adoption of policies and procedures for finance brokers and lenders
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A finance lender or broker licensee shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in the documents described in this section.
9 V.I.C. § 811 Denial, suspension, revocation, condition or decline to renew or fines
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(a) The Board may do one or more of the following:(1) Deny, suspend, revoke, condition, or decline to renew a finance lender or broker license for a violation of this chapter, or any regulations adopted thereunder.(2) Order restitution against any finance lender or broker license…
9 V.I.C. § 812 Revocation and suspension of license
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Finance lender and broker licenses issued under this chapter remain in effect until they are surrendered, revoked, or suspended.
9 V.I.C. § 813 Investigation and examination of records
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For the purpose of discovering violations of this chapter or securing information required by the Board in the administration and enforcement of this chapter, the Board may at any time investigate the loans and business, and examine the books, accounts, records, and files used in…