ARTICLE9.  FINANCIAL SERVICES LOAN COMPANIES

 

PART I. GENERAL PROVISIONS

 

§412:9-100  Definitions.  In thisarticle:

"Consumer loan" means a loan made toa natural person primarily for personal, family, or household purposes:

(1)  In which the principal amount does not exceed$25,000 or in which there is an express written commitment to extend credit ina principal amount not exceeding $25,000; or

(2)  Which is secured by real property, or by personalproperty used or expected to be used as the borrower's principal dwelling.

"Depository financial services loancompany" means a financial services loan company that is authorized toaccept deposits by this chapter and whose deposits are insured by the FederalDeposit Insurance Corporation.

"Financial services loan company"means a corporation which is engaged in making loans where the interestcharged, contracted for or received is in excess of rates permitted by lawother than this article.  No person may use the term financial services loancompany or hold itself out as engaging in the business of a financial servicesloan company unless licensed or authorized in accordance with this chapter. Financial services loan companies were previously known as "industrialloan companies".

"Nondepository financial services loancompany" means a financial services loan company that is not authorized toaccept deposits.

"Open-end credit" means a loan by afinancial services loan company under a plan which:

(1)  The financial services loan company reasonablycontemplates repeated transactions;

(2)  The financial services loan company may impose afinance charge from time to time on an outstanding unpaid balance; and

(3)  The amount of credit that may be extended to theborrower during the term of the plan (up to any limit set by the financialservices loan company) is generally made available to the extent that anyoutstanding balance is repaid.

"Principal" or "principalamount" means the face amount of the note or other form of contract.

"Service corporation" means acorporation whose stock is owned entirely by one or more depository financialservices loan companies. [L 1993, c 350, pt of §1]