ARTICLE
9.  FINANCIAL SERVICES LOAN COMPANIES



 



PART I. 
GENERAL PROVISIONS



 



§412:9-100  Definitions.  In this
article:



"Consumer loan" means a loan made to
a 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 in
a principal amount not exceeding $25,000; or



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



"Depository financial services loan
company" means a financial services loan company that is authorized to
accept deposits by this chapter and whose deposits are insured by the Federal
Deposit Insurance Corporation.



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



"Nondepository financial services loan
company" means a financial services loan company that is not authorized to
accept deposits.



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



(1)  The financial services loan company reasonably
contemplates repeated transactions;



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



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



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



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