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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

073

:
LICENSED LENDERS











 

§

2231. Contracts to be repayable in monthly installments; maximum term;

additional charges prohibited; invalidity of loan

contract

(a) Except for

loans made pursuant to section 2216 of this title and in compliance with

applicable regulations of the commissioner, all loan contracts made under the

provisions of this chapter shall require repayment in substantially equal

consecutive monthly installments of principal and interest combined.

(b) In addition

to the interest and charges herein provided for no further or other charge or

amount for any examination, service, brokerage, commission, expense, fee,

bonus, or other thing or otherwise shall be directly or indirectly charged,

contracted for or received except filing, recording, releasing or termination

fees paid or to be paid to a public officer; the premium or identifiable charge

for credit life or disability insurance obtained, provided or sold by the

licensee subject to the provisions of sections 4101-4115 or sections 3805 and

3806 of this title and any gain or advantage to the licensee from such shall

not be deemed in violation of this chapter nor an additional charge in

violation of this section or section 2230 of this title. For loans subject to

this subsection, if any interest, consideration, or charges in excess of those

permitted by this subsection, except as the result of an accidental or bona

fide error are charged, contracted for or received, the contract of loan shall

be void and the licensee shall have no right to collect or receive any principal,

interest or charges whatsoever.

(c) This section

shall not apply to commercial loans.

(d) The

provisions of subsection (b) of this section shall not apply to mortgage loans.

(Amended 1969, No. 243 (Adj. Sess.), § 4; 1979, No. 173 (Adj. Sess.), § 7, eff.

April 30, 1980; 1981, No. 26, § 2; 1981, No. 89, § 6, eff. May 13, 1981; 1983,

No. 35, §§ 6, 9; 1995, No. 162 (Adj. Sess.), § 31, eff. Jan. 1, 1997; 1997, No.

98 (Adj. Sess.), §§ 4, 5, eff. April 16, 1998; 2009, No. 29, § 1.)