50-1006.Disclosure document to be provided by loan broker; when;contents; amendment of document; estimated disclosure documents andadditional documents detailing specific loan information to be provided.(a) At least seven days before the time any person signs acontract for the services of a loan broker, or seven days before the loanbroker receives any consideration upon the contract, whichever occursfirst, the loan broker must provide to the contracting person a writtendisclosure document that meets the requirements set forth in subsection (b).
(b) A written disclosure document shall contain thefollowing information:
(1) A disclosure statement which shall be the cover sheet andshall be entitled in at least 10 point boldface capital letters"DISCLOSURES REQUIRED BY KANSAS LAW." Under this title shall appear thestatement in at least 10 point type that "The Kansas securitiescommissioner has not reviewed and does not approve, recommend, endorse orsponsor any loan brokerage contract. The information contained in thisdisclosure has not been verified by the commissioner. If you have anyquestions see an attorney before you sign a contract or agreement." Nothingexcept the title and the required statement shall appear on the cover sheet;
(2) the name and form of organization of the broker, the names underwhich the broker has done, is doing, or intends to do business, and thename of any parent organization or affiliate of the broker;
(3) the names, addresses and titles of the broker's officers, directors,trustees, general partners, general managers, principal executives and anyother person performing similar duties;
(4) the length of time the broker has conducted business as a loan broker;
(5) a full and detailed description of the actual services that the loanbroker undertakes to perform for the prospective borrower;
(6) the number of loan brokerage contracts the broker has entered intowithin the past 12 months;
(7) the number of loan brokerage contracts in which the broker hassuccessfully obtained a loan for the prospective borrower within the last12 months and the dollar amount of the loans;
(8) financial statementsfor the loan broker'slast fiscal year presented in accordance with generallyaccepted accounting principles, and reviewed by an independent accountant inaccordance with standards established by the American institute of certifiedpublic accountants, except that for initial applications for registration, thefinancial statements shall include a balance sheet dated within four months offiling for registration;
(9) a specific statement of the circumstances under which the brokerwill be entitled to obtain or retain consideration from the party with whomthe broker contracts; and
(10) any other information the commissioner may require.
(c) A loan broker shall amend the disclosure document required bysubsection (b) whenever necessary to prevent it from containing any falseor misleading statement of a material fact and shall deliver a copy of theamended disclosure document to the commissioner on or before the date of theamendment.
(d) A loan broker shall deliver to any person who proposes to becomeobligated for a loan an estimated disclosure document if the creditor wouldbe required to deliver to the person a disclosure document under theTruth-in-Lending Act (15 U.S.C. 1601-1667e) for the transaction. Theestimated disclosure document shall:
(1) Be delivered to the person before the person becomes contractuallyobligated on the loan; or
(2) be delivered or placed in the mail to the person not later than threebusiness days after the person enters into an agreement with the loan brokerwhichever occurs first. The estimated disclosure document must contain allof the information and be in the form required by the Truth-in-Lending Act(15 U.S.C. 1601-1667e) and regulations under the act. However, the annualpercentage rate, finance charge, total of payments and other mattersrequired under the Truth-in-Lending Act (15 U.S.C. 1601-1667e) shall beadjusted to reflect the amount of all fees and charges of the loan brokerthat the creditor could exclude from an estimated disclosure document. Theestimated disclosure document must state at the top in at least 10 pointtype: "The following is an estimated disclosure document showing your loantransaction as if the fees and charges you are scheduled to pay us werecharged to you directly by the creditor." After the estimated disclosuredocument is delivered to any person, the loan broker shall deliver to theperson an additional statement redisclosing all items if the actual annualpercentage rate will vary from the annual percentage rate contained in theoriginal estimated disclosure by more than 0.125%. Any required additionaldisclosure document shall be delivered or placed in the mail beforeconsummation of the loan or after three days from when the information thatrequires redisclosure becomes available, whichever occurs first.
History: L. 1988, ch. 328, § 6;L. 1992, ch. 226, § 9; July 1.
50-1006.Disclosure document to be provided by loan broker; when;contents; amendment of document; estimated disclosure documents andadditional documents detailing specific loan information to be provided.(a) At least seven days before the time any person signs acontract for the services of a loan broker, or seven days before the loanbroker receives any consideration upon the contract, whichever occursfirst, the loan broker must provide to the contracting person a writtendisclosure document that meets the requirements set forth in subsection (b).
(b) A written disclosure document shall contain thefollowing information:
(1) A disclosure statement which shall be the cover sheet andshall be entitled in at least 10 point boldface capital letters"DISCLOSURES REQUIRED BY KANSAS LAW." Under this title shall appear thestatement in at least 10 point type that "The Kansas securitiescommissioner has not reviewed and does not approve, recommend, endorse orsponsor any loan brokerage contract. The information contained in thisdisclosure has not been verified by the commissioner. If you have anyquestions see an attorney before you sign a contract or agreement." Nothingexcept the title and the required statement shall appear on the cover sheet;
(2) the name and form of organization of the broker, the names underwhich the broker has done, is doing, or intends to do business, and thename of any parent organization or affiliate of the broker;
(3) the names, addresses and titles of the broker's officers, directors,trustees, general partners, general managers, principal executives and anyother person performing similar duties;
(4) the length of time the broker has conducted business as a loan broker;
(5) a full and detailed description of the actual services that the loanbroker undertakes to perform for the prospective borrower;
(6) the number of loan brokerage contracts the broker has entered intowithin the past 12 months;
(7) the number of loan brokerage contracts in which the broker hassuccessfully obtained a loan for the prospective borrower within the last12 months and the dollar amount of the loans;
(8) financial statementsfor the loan broker'slast fiscal year presented in accordance with generallyaccepted accounting principles, and reviewed by an independent accountant inaccordance with standards established by the American institute of certifiedpublic accountants, except that for initial applications for registration, thefinancial statements shall include a balance sheet dated within four months offiling for registration;
(9) a specific statement of the circumstances under which the brokerwill be entitled to obtain or retain consideration from the party with whomthe broker contracts; and
(10) any other information the commissioner may require.
(c) A loan broker shall amend the disclosure document required bysubsection (b) whenever necessary to prevent it from containing any falseor misleading statement of a material fact and shall deliver a copy of theamended disclosure document to the commissioner on or before the date of theamendment.
(d) A loan broker shall deliver to any person who proposes to becomeobligated for a loan an estimated disclosure document if the creditor wouldbe required to deliver to the person a disclosure document under theTruth-in-Lending Act (15 U.S.C. 1601-1667e) for the transaction. Theestimated disclosure document shall:
(1) Be delivered to the person before the person becomes contractuallyobligated on the loan; or
(2) be delivered or placed in the mail to the person not later than threebusiness days after the person enters into an agreement with the loan brokerwhichever occurs first. The estimated disclosure document must contain allof the information and be in the form required by the Truth-in-Lending Act(15 U.S.C. 1601-1667e) and regulations under the act. However, the annualpercentage rate, finance charge, total of payments and other mattersrequired under the Truth-in-Lending Act (15 U.S.C. 1601-1667e) shall beadjusted to reflect the amount of all fees and charges of the loan brokerthat the creditor could exclude from an estimated disclosure document. Theestimated disclosure document must state at the top in at least 10 pointtype: "The following is an estimated disclosure document showing your loantransaction as if the fees and charges you are scheduled to pay us werecharged to you directly by the creditor." After the estimated disclosuredocument is delivered to any person, the loan broker shall deliver to theperson an additional statement redisclosing all items if the actual annualpercentage rate will vary from the annual percentage rate contained in theoriginal estimated disclosure by more than 0.125%. Any required additionaldisclosure document shall be delivered or placed in the mail beforeconsummation of the loan or after three days from when the information thatrequires redisclosure becomes available, whichever occurs first.
History: L. 1988, ch. 328, § 6;L. 1992, ch. 226, § 9; July 1.
50-1006.Disclosure document to be provided by loan broker; when;contents; amendment of document; estimated disclosure documents andadditional documents detailing specific loan information to be provided.(a) At least seven days before the time any person signs acontract for the services of a loan broker, or seven days before the loanbroker receives any consideration upon the contract, whichever occursfirst, the loan broker must provide to the contracting person a writtendisclosure document that meets the requirements set forth in subsection (b).
(b) A written disclosure document shall contain thefollowing information:
(1) A disclosure statement which shall be the cover sheet andshall be entitled in at least 10 point boldface capital letters"DISCLOSURES REQUIRED BY KANSAS LAW." Under this title shall appear thestatement in at least 10 point type that "The Kansas securitiescommissioner has not reviewed and does not approve, recommend, endorse orsponsor any loan brokerage contract. The information contained in thisdisclosure has not been verified by the commissioner. If you have anyquestions see an attorney before you sign a contract or agreement." Nothingexcept the title and the required statement shall appear on the cover sheet;
(2) the name and form of organization of the broker, the names underwhich the broker has done, is doing, or intends to do business, and thename of any parent organization or affiliate of the broker;
(3) the names, addresses and titles of the broker's officers, directors,trustees, general partners, general managers, principal executives and anyother person performing similar duties;
(4) the length of time the broker has conducted business as a loan broker;
(5) a full and detailed description of the actual services that the loanbroker undertakes to perform for the prospective borrower;
(6) the number of loan brokerage contracts the broker has entered intowithin the past 12 months;
(7) the number of loan brokerage contracts in which the broker hassuccessfully obtained a loan for the prospective borrower within the last12 months and the dollar amount of the loans;
(8) financial statementsfor the loan broker'slast fiscal year presented in accordance with generallyaccepted accounting principles, and reviewed by an independent accountant inaccordance with standards established by the American institute of certifiedpublic accountants, except that for initial applications for registration, thefinancial statements shall include a balance sheet dated within four months offiling for registration;
(9) a specific statement of the circumstances under which the brokerwill be entitled to obtain or retain consideration from the party with whomthe broker contracts; and
(10) any other information the commissioner may require.
(c) A loan broker shall amend the disclosure document required bysubsection (b) whenever necessary to prevent it from containing any falseor misleading statement of a material fact and shall deliver a copy of theamended disclosure document to the commissioner on or before the date of theamendment.
(d) A loan broker shall deliver to any person who proposes to becomeobligated for a loan an estimated disclosure document if the creditor wouldbe required to deliver to the person a disclosure document under theTruth-in-Lending Act (15 U.S.C. 1601-1667e) for the transaction. Theestimated disclosure document shall:
(1) Be delivered to the person before the person becomes contractuallyobligated on the loan; or
(2) be delivered or placed in the mail to the person not later than threebusiness days after the person enters into an agreement with the loan brokerwhichever occurs first. The estimated disclosure document must contain allof the information and be in the form required by the Truth-in-Lending Act(15 U.S.C. 1601-1667e) and regulations under the act. However, the annualpercentage rate, finance charge, total of payments and other mattersrequired under the Truth-in-Lending Act (15 U.S.C. 1601-1667e) shall beadjusted to reflect the amount of all fees and charges of the loan brokerthat the creditor could exclude from an estimated disclosure document. Theestimated disclosure document must state at the top in at least 10 pointtype: "The following is an estimated disclosure document showing your loantransaction as if the fees and charges you are scheduled to pay us werecharged to you directly by the creditor." After the estimated disclosuredocument is delivered to any person, the loan broker shall deliver to theperson an additional statement redisclosing all items if the actual annualpercentage rate will vary from the annual percentage rate contained in theoriginal estimated disclosure by more than 0.125%. Any required additionaldisclosure document shall be delivered or placed in the mail beforeconsummation of the loan or after three days from when the information thatrequires redisclosure becomes available, whichever occurs first.
History: L. 1988, ch. 328, § 6;L. 1992, ch. 226, § 9; July 1.
