§2233. Charges; loan solicitation; specialized financing

Link to law: http://legislature.vermont.gov/statutes/section/08/073/02233
Published: 2015

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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.)
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