6-601

6-601. Definitions

In this chapter, unless the context otherwise requires:

1. "Actuarial method" means the method of allocating each payment between finance
charges and principal pursuant to which the payment is applied first to finance charges
computed on the unpaid balance of principal for the time the balance is outstanding, and
the remainder of the payment is subtracted from the unpaid principal amount.

2. "Amount financed" means the amount of credit extended to a consumer on a
consumer loan determined in accordance with the truth in lending act.

3. "Annual percentage rate" means the measure of the cost of credit, expressed as a
yearly rate, that relates the amount and timing of value received by the consumer to the
amount and timing of payments made, determined in accordance with the truth in lending
act.

4. "Consumer" means an individual who obtains a consumer lender loan for personal,
family or household purposes.

5. "Consumer lender" means a person that advertises to make or procure, solicits or
holds itself out to make or procure, or makes or procures consumer lender loans to
consumers in this state.

6. "Consumer lender loans" means consumer loans, consumer revolving loans and home
equity revolving loans.

7. "Consumer loan" means the direct closed end loan of money in an amount of ten
thousand dollars or less that is subject to a finance charge. For the purpose of
determining whether a consumer loan is ten thousand dollars or less only the principal
amount of the loan shall be considered and not any finance charges or other fees allowed
pursuant to section 6-635.

8. "Consumer loan rate" means the periodic rate of finance charges that applies to
the outstanding principal balance of a consumer loan and that remains unpaid. Consumer
loan rate does not include any prepaid finance charges pursuant to section 6-632,
subsection E or any fees pursuant to section 6-635.

9. "Consumer revolving loan" means an open end revolving loan that is established
pursuant to an agreement with an agreed on credit limit that does not exceed ten thousand
dollars, that the consumer may pay in full at any time but has the privilege of paying in
installments and that contemplates or provides that advances may be obtained from time to
time by the consumer, through checks, drafts, items, credit access devices, orders for
the payment of money, evidences of debt or similar means, whether or not negotiable.

10. "Educational loan" means any loan or other aid or assistance for the purpose of
furthering the education of a consumer or a relative of a consumer at an accredited or
approved university, college, community college, junior college, technical, vocational or
professional school, or similar institution.

11. "Finance charge" means the amount payable by a consumer incident to or as a
condition of the extension of a consumer lender loan but does not include other fees
allowed pursuant to section 6-635.

12. "Home equity revolving loan" means an open end revolving loan that is made
pursuant to an agreement with an agreed on credit limit that is not more than ten
thousand dollars, that is secured by the consumer's principal residence and that provides
that advances may be obtained from time to time by the consumer through checks, drafts,
items, credit access devices, orders for the payment of money, evidences of debt or
similar means, whether or not negotiable.

13. "License" means a license issued under the authority of this chapter to make
consumer lender loans in accordance with this chapter.

14. "Licensee" means a person licensed pursuant to this chapter.

15. "Precomputed consumer loan" means a consumer loan that is payable in
substantially equal, consecutive monthly installments that are applied to the unpaid
balance of the principal and precomputed finance charges combined, subject to provisions
for refund or credit in the event of prepayment and for deferral or default charges in
the event of deferral or default.

16. "Regularly engaged in the business" means either:

(a) Advertising to or any other solicitation of a resident of this state that offers
a consumer loan and that occurs within this state.

(b) Making three or more consumer loans within a calendar year to residents of this
state.

17. "Truth in lending act" means title I of the consumer credit protection act (15
United States Code sections 1601 through 1666j), as amended, and the regulations
promulgated under that act (12 Code of Federal Regulations part 226), as amended.