Print
The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
073
:
LICENSED LENDERS
§
2233. Charges; loan solicitation; specialized financing
(a) Other than a
mortgage broker fee pursuant to section 2219 of this title, no person who is
required to be licensed under this chapter, shall directly or indirectly
charge, contract for, or receive any interest, discount, consideration or
charge greater than is authorized by section 41a or 46 of Title 9. No such loan
for which a greater rate of interest, finance charge, consideration or charges
than is authorized by section 41a or 46 of Title 9 has been charged, contracted
for, or received shall be enforced in this state, and every person in any way
participating therein in this state shall be subject to the provisions of this
chapter. However, any loan legally made in any state which then had in effect a
regulatory loan law similar in principle to this chapter may be enforced in
this state only to the extent of collecting the principal amount owed and
interest thereon at a rate not greater than that authorized by section 41a or
46 of Title 9.
(b) A loan
solicited or made by mail, telephone, or electronic means to a Vermont resident
shall be subject to the provisions of this chapter notwithstanding where the
loan was legally made. No person shall engage in the business of soliciting or
making loans by mail, telephone, or electronic means to residents of this state
unless duly licensed. Such licensee shall be subject to the applicable
provisions of this title and chapters 4, 59, and 61 of Title 9, but shall not
be required to have or maintain a place of business in the state.
(c) No person
other than a depository institution, pawnbroker, insurance company, or seller
of merchandise or services shall engage in specialized financing, including
tuition plans or other such financing, but not including insurance premium
financing, for residents of this state unless duly licensed. Such licensee
shall be subject to the applicable provisions of this title and chapters 4, 59,
and 61 of Title 9, but shall not be required to maintain a place of business in
this state. Such financing may include more than one loan per borrower. A
license granted to such lenders shall be explicit in its authority with respect
to the types of business permitted. (Amended 1969, No. 243 (Adj. Sess.), § 7;
1975, No. 76; 1979, No. 173 (Adj. Sess.), § 10, eff. April 30, 1980; 1983, No.
77, § 2; 1995, No. 162 (Adj. Sess.), § 33, eff. Jan. 1, 1997; 2009, No. 29, §
1.)