Powers of loan and investment companies relative to charges on loans.
368.040. In addition to the general powers conferred uponcorporations by chapter 351, RSMo, every loan and investmentcompany organized under the provisions of this chapter shall havethe following powers:
(1) To lend money to any person, firm or corporation,secured by the obligation of the person, firm or corporation, orotherwise;
(2) To sell or offer for sale its secured or unsecuredevidences or certificates of indebtedness or of investment and toreceive from investors therein or purchasers thereof paymentstherefor in installments or otherwise with or without allowanceof interest on the installments, whether the evidences orcertificates of indebtedness or of investment be hypothecated fora loan or not, and to enter into contracts in the nature of asecurity agreement or otherwise with the investors or purchaserswith regard to the evidences or certificates of indebtedness orof investment securing any loan, and no such transaction shall inany way be construed to affect the rate of interest on the loan,nor to constitute a violation of any other law, conditioned thatthere be compliance with the limitations thereon in this sectioncontained. No evidences or certificates of indebtedness or ofinvestment, payable in installments, shall be sold wherein theaggregate amount of the installment payments agreed to be paidtherefor shall be in excess of the face amount thereof.Evidences or certificates of indebtedness or of investmentpayable in installments and hypothecated for a loan with the loanand investment company shall not be for an amount in excess ofthe actual amount of the proceeds of the loan, plus any interestwhich may be taken in advance, or discount at a rate not toexceed the lawful rate of interest, together with chargespermitted by this chapter. With the exception of the lastpayment, no payment in excess of equal weekly, semimonthly, ormonthly payments, extending over the entire period for which theloan is made shall be required by the terms of the evidences orcertificates of indebtedness or investment payable ininstallments which have been so hypothecated. At the maturity ofany note or loan at any time payment or settlement is made ordemanded thereon, any evidence or certificate of indebtedness orof investment issued in connection with or used as security forthe note or loan shall have a cash surrender value of an amountnot less than the sum of all payments made upon it whether theevidence or certificate shall have matured or not;
(3) To charge for a loan made pursuant to this section twopercent of the amount loaned for any examination or investigationof the character and circumstances of the borrower, comaker orsurety and the drawing and taking acknowledgment of necessarypapers in making the loan. No charge shall be collected unless aloan was made as the result of an examination or investigationand this charge shall not be collected from the same borrowermore than once during any six-month period;
(4) When a loan is made which is evidenced by anondeficiency note secured in whole or in part by a securityagreement or other lien upon a motor vehicle and when it isprovided in the note that the motor vehicle may be returned tothe company voluntarily or otherwise, regardless of condition, infull satisfaction of the unpaid balance due thereon, aftercrediting any amounts paid on any certificate of indebtedness orof investment, if any, and a statement of such right is printedon the face of the note, and a simple and concise printedstatement of such right is delivered to the borrower at the timethe loan is made, to charge in addition to the interest and othercharges permitted by this chapter, an additional five percent ofthe face amount of the note. On a note in excess of four hundreddollars, this charge may be computed only on the first fourhundred dollars of the note; and on a note under one hundreddollars, the charge may be computed as on a note of one hundreddollars. Whenever a loan or note is renewed, extended orrefinanced, or a new or additional loan secured in whole or inpart by a lien against the same motor vehicle, the renewal orextension or refinance, new or additional loan, shall not besubject to the charges provided in this subsection when any suchtransactions exceed the number of one within any six-monthperiod.
(RSMo 1939 § 5421, A.L. 1943 p. 502, A.L. 1965 p. 114)
Powers of loan and investment companies relative to charges on loans.
368.040. In addition to the general powers conferred uponcorporations by chapter 351, RSMo, every loan and investmentcompany organized under the provisions of this chapter shall havethe following powers:
(1) To lend money to any person, firm or corporation,secured by the obligation of the person, firm or corporation, orotherwise;
(2) To sell or offer for sale its secured or unsecuredevidences or certificates of indebtedness or of investment and toreceive from investors therein or purchasers thereof paymentstherefor in installments or otherwise with or without allowanceof interest on the installments, whether the evidences orcertificates of indebtedness or of investment be hypothecated fora loan or not, and to enter into contracts in the nature of asecurity agreement or otherwise with the investors or purchaserswith regard to the evidences or certificates of indebtedness orof investment securing any loan, and no such transaction shall inany way be construed to affect the rate of interest on the loan,nor to constitute a violation of any other law, conditioned thatthere be compliance with the limitations thereon in this sectioncontained. No evidences or certificates of indebtedness or ofinvestment, payable in installments, shall be sold wherein theaggregate amount of the installment payments agreed to be paidtherefor shall be in excess of the face amount thereof.Evidences or certificates of indebtedness or of investmentpayable in installments and hypothecated for a loan with the loanand investment company shall not be for an amount in excess ofthe actual amount of the proceeds of the loan, plus any interestwhich may be taken in advance, or discount at a rate not toexceed the lawful rate of interest, together with chargespermitted by this chapter. With the exception of the lastpayment, no payment in excess of equal weekly, semimonthly, ormonthly payments, extending over the entire period for which theloan is made shall be required by the terms of the evidences orcertificates of indebtedness or investment payable ininstallments which have been so hypothecated. At the maturity ofany note or loan at any time payment or settlement is made ordemanded thereon, any evidence or certificate of indebtedness orof investment issued in connection with or used as security forthe note or loan shall have a cash surrender value of an amountnot less than the sum of all payments made upon it whether theevidence or certificate shall have matured or not;
(3) To charge for a loan made pursuant to this section twopercent of the amount loaned for any examination or investigationof the character and circumstances of the borrower, comaker orsurety and the drawing and taking acknowledgment of necessarypapers in making the loan. No charge shall be collected unless aloan was made as the result of an examination or investigationand this charge shall not be collected from the same borrowermore than once during any six-month period;
(4) When a loan is made which is evidenced by anondeficiency note secured in whole or in part by a securityagreement or other lien upon a motor vehicle and when it isprovided in the note that the motor vehicle may be returned tothe company voluntarily or otherwise, regardless of condition, infull satisfaction of the unpaid balance due thereon, aftercrediting any amounts paid on any certificate of indebtedness orof investment, if any, and a statement of such right is printedon the face of the note, and a simple and concise printedstatement of such right is delivered to the borrower at the timethe loan is made, to charge in addition to the interest and othercharges permitted by this chapter, an additional five percent ofthe face amount of the note. On a note in excess of four hundreddollars, this charge may be computed only on the first fourhundred dollars of the note; and on a note under one hundreddollars, the charge may be computed as on a note of one hundreddollars. Whenever a loan or note is renewed, extended orrefinanced, or a new or additional loan secured in whole or inpart by a lien against the same motor vehicle, the renewal orextension or refinance, new or additional loan, shall not besubject to the charges provided in this subsection when any suchtransactions exceed the number of one within any six-monthperiod.
(RSMo 1939 § 5421, A.L. 1943 p. 502, A.L. 1965 p. 114)
Powers of loan and investment companies relative to charges on loans.
368.040. In addition to the general powers conferred uponcorporations by chapter 351, RSMo, every loan and investmentcompany organized under the provisions of this chapter shall havethe following powers:
(1) To lend money to any person, firm or corporation,secured by the obligation of the person, firm or corporation, orotherwise;
(2) To sell or offer for sale its secured or unsecuredevidences or certificates of indebtedness or of investment and toreceive from investors therein or purchasers thereof paymentstherefor in installments or otherwise with or without allowanceof interest on the installments, whether the evidences orcertificates of indebtedness or of investment be hypothecated fora loan or not, and to enter into contracts in the nature of asecurity agreement or otherwise with the investors or purchaserswith regard to the evidences or certificates of indebtedness orof investment securing any loan, and no such transaction shall inany way be construed to affect the rate of interest on the loan,nor to constitute a violation of any other law, conditioned thatthere be compliance with the limitations thereon in this sectioncontained. No evidences or certificates of indebtedness or ofinvestment, payable in installments, shall be sold wherein theaggregate amount of the installment payments agreed to be paidtherefor shall be in excess of the face amount thereof.Evidences or certificates of indebtedness or of investmentpayable in installments and hypothecated for a loan with the loanand investment company shall not be for an amount in excess ofthe actual amount of the proceeds of the loan, plus any interestwhich may be taken in advance, or discount at a rate not toexceed the lawful rate of interest, together with chargespermitted by this chapter. With the exception of the lastpayment, no payment in excess of equal weekly, semimonthly, ormonthly payments, extending over the entire period for which theloan is made shall be required by the terms of the evidences orcertificates of indebtedness or investment payable ininstallments which have been so hypothecated. At the maturity ofany note or loan at any time payment or settlement is made ordemanded thereon, any evidence or certificate of indebtedness orof investment issued in connection with or used as security forthe note or loan shall have a cash surrender value of an amountnot less than the sum of all payments made upon it whether theevidence or certificate shall have matured or not;
(3) To charge for a loan made pursuant to this section twopercent of the amount loaned for any examination or investigationof the character and circumstances of the borrower, comaker orsurety and the drawing and taking acknowledgment of necessarypapers in making the loan. No charge shall be collected unless aloan was made as the result of an examination or investigationand this charge shall not be collected from the same borrowermore than once during any six-month period;
(4) When a loan is made which is evidenced by anondeficiency note secured in whole or in part by a securityagreement or other lien upon a motor vehicle and when it isprovided in the note that the motor vehicle may be returned tothe company voluntarily or otherwise, regardless of condition, infull satisfaction of the unpaid balance due thereon, aftercrediting any amounts paid on any certificate of indebtedness orof investment, if any, and a statement of such right is printedon the face of the note, and a simple and concise printedstatement of such right is delivered to the borrower at the timethe loan is made, to charge in addition to the interest and othercharges permitted by this chapter, an additional five percent ofthe face amount of the note. On a note in excess of four hundreddollars, this charge may be computed only on the first fourhundred dollars of the note; and on a note under one hundreddollars, the charge may be computed as on a note of one hundreddollars. Whenever a loan or note is renewed, extended orrefinanced, or a new or additional loan secured in whole or inpart by a lien against the same motor vehicle, the renewal orextension or refinance, new or additional loan, shall not besubject to the charges provided in this subsection when any suchtransactions exceed the number of one within any six-monthperiod.
(RSMo 1939 § 5421, A.L. 1943 p. 502, A.L. 1965 p. 114)
