§ 6.2-1524. (Effective October 1, 2010) Required and prohibited activitiesand conduct.
A. Each licensee shall maintain at all times the minimum assets prescribed bythis chapter for each license, either (i) in liquid form available for theoperation of the business at the location specified in each license or (ii)actually used, whether pledged or not, in the conduct of the business at thelocation specified in each license.
B. A licensee or other person subject to this chapter shall not advertise,display, distribute or broadcast, or cause or permit to be advertised,displayed, distributed or broadcast, in any manner whatsoever, any false,misleading, or deceptive statement or representation with regard to therates, terms, or conditions for loans made under this chapter. The Commissionmay require that charges or rates of charge, if stated by a licensee, bestated fully and clearly in such manner as it deems necessary to preventmisunderstanding by prospective borrowers. The Commission may permit orrequire licensees to refer in their advertising to the fact that theirbusiness is under state supervision, subject to conditions imposed by it toprevent false, misleading, or deceptive impression as to the scope or degreeof protection provided by this chapter.
C. A licensee shall not take a lien upon real estate as security for any loanmade under the provisions of this chapter, except a lien arising uponrendition of a judgment. Any lien taken in violation of this subsection shallbe void.
D. A licensee shall, at the time any loan is made, deliver to the borrower,or if there are two or more borrowers to one of them, a statement disclosing(i) the names and addresses of the licensee and of the principal debtor onthe loan contract, and (ii) a statement in compliance with Federal ReserveBoard Regulation Z (12 C.F.R. Part 226).
E. A licensee shall give the borrower a receipt for all cash payments. TheCommission may specify the form and content of such receipts in keeping withthe intent and purpose of this chapter.
F. A licensee shall permit payment to be made in advance in whole, or in partequal to one or more full installments. The licensee may apply the paymentfirst to any amounts that are due and unpaid at the time of such payment.
G. A licensee shall, upon repayment of the loan in full, (i) mark plainlyevery obligation and security other than a security agreement executed by theborrower with the word "Paid" or "Canceled," (ii) mark satisfied anyjudgment, (iii) restore any pledge, (iv) cancel and return any note and anyassignment given by the borrower to the licensee, and (v) release anysecurity agreement or other form of security instrument that no longersecures an outstanding loan between the borrower and the licensee.
H. In the event of collection by foreclosure sale or otherwise, a licenseeshall pay and return to the borrower, or to another person entitled thereto,any surplus arising after the payment of the expenses of collection, sale orforeclosure and satisfaction of the debt.
I. A licensee shall not take any confession of judgment or any power ofattorney running to himself or to any third person to confess judgment or toappear for the borrower in a judicial proceeding. Any such confession ofjudgment or power of attorney to confess judgment shall be void.
J. A licensee shall not take any note, promise to pay, or instrument ofsecurity in which blanks are left to be filled in after execution, or thatdoes not give the amount of the loan, a clear description of the installmentpayments required, and the rate of interest charged. A licensee may alsoinclude the disclosures required by Federal Reserve Board Regulation Z (12C.F.R. Part 226) in the note, promise to pay, or instrument of security.
K. Every loan contract shall be in writing, be signed by the borrower, andprovide for repayment of the amount loaned in substantially equal monthlyinstallments of principal and interest. Nothing contained in this chaptershall prevent (i) a loan being considered a new loan because the proceeds ofthe loan are used to pay an existing loan contract or (ii) a licensee fromentering into a loan contract providing for an odd first payment period of upto 45 days and an odd first payment greater than other monthly paymentsbecause of such odd first payment period.
(Code 1950, §§ 6-309, 6-310, 6-311, 6-312, 6-313, 6-315; 1956, c. 71; 1966,c. 584, §§ 6.1-279, 6.1-280, 6.1-281, 6.1-282, 6.1-283, 6.1-284.1, 6.1-285;1968, c. 489; 1974, c. 371; 1983, c. 500; 1987, c. 683; 1995, c. 2; 1997, c.113; 2001, c. 308; 2010, c. 794.)
§ 6.2-1524. (Effective October 1, 2010) Required and prohibited activitiesand conduct.
A. Each licensee shall maintain at all times the minimum assets prescribed bythis chapter for each license, either (i) in liquid form available for theoperation of the business at the location specified in each license or (ii)actually used, whether pledged or not, in the conduct of the business at thelocation specified in each license.
B. A licensee or other person subject to this chapter shall not advertise,display, distribute or broadcast, or cause or permit to be advertised,displayed, distributed or broadcast, in any manner whatsoever, any false,misleading, or deceptive statement or representation with regard to therates, terms, or conditions for loans made under this chapter. The Commissionmay require that charges or rates of charge, if stated by a licensee, bestated fully and clearly in such manner as it deems necessary to preventmisunderstanding by prospective borrowers. The Commission may permit orrequire licensees to refer in their advertising to the fact that theirbusiness is under state supervision, subject to conditions imposed by it toprevent false, misleading, or deceptive impression as to the scope or degreeof protection provided by this chapter.
C. A licensee shall not take a lien upon real estate as security for any loanmade under the provisions of this chapter, except a lien arising uponrendition of a judgment. Any lien taken in violation of this subsection shallbe void.
D. A licensee shall, at the time any loan is made, deliver to the borrower,or if there are two or more borrowers to one of them, a statement disclosing(i) the names and addresses of the licensee and of the principal debtor onthe loan contract, and (ii) a statement in compliance with Federal ReserveBoard Regulation Z (12 C.F.R. Part 226).
E. A licensee shall give the borrower a receipt for all cash payments. TheCommission may specify the form and content of such receipts in keeping withthe intent and purpose of this chapter.
F. A licensee shall permit payment to be made in advance in whole, or in partequal to one or more full installments. The licensee may apply the paymentfirst to any amounts that are due and unpaid at the time of such payment.
G. A licensee shall, upon repayment of the loan in full, (i) mark plainlyevery obligation and security other than a security agreement executed by theborrower with the word "Paid" or "Canceled," (ii) mark satisfied anyjudgment, (iii) restore any pledge, (iv) cancel and return any note and anyassignment given by the borrower to the licensee, and (v) release anysecurity agreement or other form of security instrument that no longersecures an outstanding loan between the borrower and the licensee.
H. In the event of collection by foreclosure sale or otherwise, a licenseeshall pay and return to the borrower, or to another person entitled thereto,any surplus arising after the payment of the expenses of collection, sale orforeclosure and satisfaction of the debt.
I. A licensee shall not take any confession of judgment or any power ofattorney running to himself or to any third person to confess judgment or toappear for the borrower in a judicial proceeding. Any such confession ofjudgment or power of attorney to confess judgment shall be void.
J. A licensee shall not take any note, promise to pay, or instrument ofsecurity in which blanks are left to be filled in after execution, or thatdoes not give the amount of the loan, a clear description of the installmentpayments required, and the rate of interest charged. A licensee may alsoinclude the disclosures required by Federal Reserve Board Regulation Z (12C.F.R. Part 226) in the note, promise to pay, or instrument of security.
K. Every loan contract shall be in writing, be signed by the borrower, andprovide for repayment of the amount loaned in substantially equal monthlyinstallments of principal and interest. Nothing contained in this chaptershall prevent (i) a loan being considered a new loan because the proceeds ofthe loan are used to pay an existing loan contract or (ii) a licensee fromentering into a loan contract providing for an odd first payment period of upto 45 days and an odd first payment greater than other monthly paymentsbecause of such odd first payment period.
(Code 1950, §§ 6-309, 6-310, 6-311, 6-312, 6-313, 6-315; 1956, c. 71; 1966,c. 584, §§ 6.1-279, 6.1-280, 6.1-281, 6.1-282, 6.1-283, 6.1-284.1, 6.1-285;1968, c. 489; 1974, c. 371; 1983, c. 500; 1987, c. 683; 1995, c. 2; 1997, c.113; 2001, c. 308; 2010, c. 794.)
§ 6.2-1524. (Effective October 1, 2010) Required and prohibited activitiesand conduct.
A. Each licensee shall maintain at all times the minimum assets prescribed bythis chapter for each license, either (i) in liquid form available for theoperation of the business at the location specified in each license or (ii)actually used, whether pledged or not, in the conduct of the business at thelocation specified in each license.
B. A licensee or other person subject to this chapter shall not advertise,display, distribute or broadcast, or cause or permit to be advertised,displayed, distributed or broadcast, in any manner whatsoever, any false,misleading, or deceptive statement or representation with regard to therates, terms, or conditions for loans made under this chapter. The Commissionmay require that charges or rates of charge, if stated by a licensee, bestated fully and clearly in such manner as it deems necessary to preventmisunderstanding by prospective borrowers. The Commission may permit orrequire licensees to refer in their advertising to the fact that theirbusiness is under state supervision, subject to conditions imposed by it toprevent false, misleading, or deceptive impression as to the scope or degreeof protection provided by this chapter.
C. A licensee shall not take a lien upon real estate as security for any loanmade under the provisions of this chapter, except a lien arising uponrendition of a judgment. Any lien taken in violation of this subsection shallbe void.
D. A licensee shall, at the time any loan is made, deliver to the borrower,or if there are two or more borrowers to one of them, a statement disclosing(i) the names and addresses of the licensee and of the principal debtor onthe loan contract, and (ii) a statement in compliance with Federal ReserveBoard Regulation Z (12 C.F.R. Part 226).
E. A licensee shall give the borrower a receipt for all cash payments. TheCommission may specify the form and content of such receipts in keeping withthe intent and purpose of this chapter.
F. A licensee shall permit payment to be made in advance in whole, or in partequal to one or more full installments. The licensee may apply the paymentfirst to any amounts that are due and unpaid at the time of such payment.
G. A licensee shall, upon repayment of the loan in full, (i) mark plainlyevery obligation and security other than a security agreement executed by theborrower with the word "Paid" or "Canceled," (ii) mark satisfied anyjudgment, (iii) restore any pledge, (iv) cancel and return any note and anyassignment given by the borrower to the licensee, and (v) release anysecurity agreement or other form of security instrument that no longersecures an outstanding loan between the borrower and the licensee.
H. In the event of collection by foreclosure sale or otherwise, a licenseeshall pay and return to the borrower, or to another person entitled thereto,any surplus arising after the payment of the expenses of collection, sale orforeclosure and satisfaction of the debt.
I. A licensee shall not take any confession of judgment or any power ofattorney running to himself or to any third person to confess judgment or toappear for the borrower in a judicial proceeding. Any such confession ofjudgment or power of attorney to confess judgment shall be void.
J. A licensee shall not take any note, promise to pay, or instrument ofsecurity in which blanks are left to be filled in after execution, or thatdoes not give the amount of the loan, a clear description of the installmentpayments required, and the rate of interest charged. A licensee may alsoinclude the disclosures required by Federal Reserve Board Regulation Z (12C.F.R. Part 226) in the note, promise to pay, or instrument of security.
K. Every loan contract shall be in writing, be signed by the borrower, andprovide for repayment of the amount loaned in substantially equal monthlyinstallments of principal and interest. Nothing contained in this chaptershall prevent (i) a loan being considered a new loan because the proceeds ofthe loan are used to pay an existing loan contract or (ii) a licensee fromentering into a loan contract providing for an odd first payment period of upto 45 days and an odd first payment greater than other monthly paymentsbecause of such odd first payment period.
(Code 1950, §§ 6-309, 6-310, 6-311, 6-312, 6-313, 6-315; 1956, c. 71; 1966,c. 584, §§ 6.1-279, 6.1-280, 6.1-281, 6.1-282, 6.1-283, 6.1-284.1, 6.1-285;1968, c. 489; 1974, c. 371; 1983, c. 500; 1987, c. 683; 1995, c. 2; 1997, c.113; 2001, c. 308; 2010, c. 794.)
