PART II. POWERS OF FINANCIAL SERVICES LOAN COMPANIES

 

§412:9-200  General powers.  Except asexpressly prohibited or limited by this chapter, a financial services loancompany shall have the power to make loans where the interest charged,contracted for, or received is in excess of rates permitted by law, other thanthis article, and to engage in other activities that are usual or incidental tothe business for which it is licensed, and shall have all rights, powers, andprivileges of a corporation organized under the laws of this State, includingbut 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 ordescription;

(2)  Borrow money from any source within or withoutthis 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, includingbut not limited to notes, credit sales contracts, mortgage loans, or otherinstruments;

(5)  Become the legal or beneficial owner of tangiblepersonal property and fixtures and such other real property interests as shallbe incidental thereto, to lease such property, to obtain an assignment of alessor's interest in a lease of the property, and to incur obligationsincidental to the financial services loan company's position as the legal orbeneficial 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, butnot limited to, credit life insurance, credit disability insurance, accidentand health or sickness insurance, involuntary unemployment insurance, personalproperty insurance, and mortgage protection insurance;

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

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

(A)  The fee shall not exceed $20;

(B)  The fee shall be imposed under a separatebilling, and shall not be added to a borrower's outstanding loan balance nordeducted from a loan payment; and

(C)  A failure to pay the fee shall notconstitute a default under any outstanding loan agreement between the borrowerand the financial services loan company. [L 1993, c 350, pt of §1; am L 1995, c26, §1; am L 2005, c 38, §1]