The Vermont Statutes Online
Banking and Insurance
2231. Contracts to be repayable in monthly installments; maximum term;
additional charges prohibited; invalidity of loan
(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.
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.)