PART II. 
POWERS OF FINANCIAL SERVICES LOAN COMPANIES



 



§412:9-200  General powers.  Except as
expressly prohibited or limited by this chapter, a financial services loan
company shall have the power to make loans where the interest charged,
contracted for, or received is in excess of rates permitted by law, other than
this article, and to engage in other activities that are usual or incidental to
the business for which it is licensed, and shall have all rights, powers, and
privileges of a corporation organized under the laws of this State, including
but not limited to, the power to:



(1)  Make loans and extensions of credit of any kind,
whether unsecured or secured by real or personal property of any kind or
description;



(2)  Borrow money from any source within or without
this State;



(3)  Charge or retain a fee for the originating,
selling, brokering, or servicing of loans and extensions of credit;



(4)  Discount, purchase, or acquire loans, including
but not limited to notes, credit sales contracts, mortgage loans, or other
instruments;



(5)  Become the legal or beneficial owner of tangible
personal property and fixtures and such other real property interests as shall
be incidental thereto, to lease such property, to obtain an assignment of a
lessor's interest in a lease of the property, and to incur obligations
incidental to the financial services loan company's position as the legal or
beneficial owner and the lessor of the property;



(6)  Sell or refer credit related insurance products,
and collect premiums or fees for the sale or referral thereof, including, but
not limited to, credit life insurance, credit disability insurance, accident
and health or sickness insurance, involuntary unemployment insurance, personal
property insurance, and mortgage protection insurance;



(7)  Make investments as permitted under this article;
and



(8)  Charge to a borrower a returned check fee if a
check that has been tendered by the borrower in payment on account of a loan is
returned unpaid; provided that:



(A)  The fee shall not exceed $20;



(B)  The fee shall be imposed under a separate
billing, and shall not be added to a borrower's outstanding loan balance nor
deducted from a loan payment; and



(C)  A failure to pay the fee shall not
constitute a default under any outstanding loan agreement between the borrower
and the financial services loan company. [L 1993, c 350, pt of §1; am L 1995, c
26, §1; am L 2005, c 38, §1]