§ 105-88. Loan agencies. - North Carolina Statutes

§105‑88.  Loan agencies.

(a)        Every person, firm,or corporation engaged in any of the following businesses must pay for theprivilege of engaging in that business an annual tax of two hundred fiftydollars ($250.00) for each location at which the business is conducted:

(1)        The business ofmaking loans or lending money, accepting liens on, or contracts of assignmentsof, salaries or wages, or any part thereof, or other security or evidence ofdebt for repayment of such loans in installment payment or otherwise.

(2)        The business ofcheck cashing regulated under Article 22 of Chapter 53 of the General Statutes.

(3)        The business ofpawnbroker regulated under Chapter 91A of the General Statutes.

(b)        This section doesnot apply to banks, industrial banks, trust companies, savings and loanassociations, cooperative credit unions, the business of negotiating loans onreal estate as described in G.S. 105‑41, or insurance premium financecompanies licensed under Article 35 of Chapter 58 of the General Statutes. Thissection applies to those persons or concerns operating what are commonly knownas loan companies or finance companies and whose business is as hereinbeforedescribed, and those persons, firms, or corporations pursuing the business oflending money and taking as security for the payment of the loan and interestan assignment of wages or an assignment of wages with power of attorney tocollect the amount due, or other order or chattel mortgage or bill of sale uponhousehold or kitchen furniture. No real estate mortgage broker is required toobtain a privilege license under this section merely because the brokeradvances the broker's own funds and takes a security interest in real estate tosecure the advances and when, at the time of the advance, the broker hasalready made arrangements with others for the sale or discount of theobligation at a later date and does so sell or discount the obligation withinthe period specified in the arrangement or extensions thereof; or when, at thetime of the advance the broker intends to sell the obligation to others at alater date and does, within 12 months from date of initial advance, makearrangements with others for the sale of the obligation and does sell theobligation within the period specified in the arrangement or extensionsthereof; or because the broker advances the broker's own funds in temporaryfinancing directly involved in the production of permanent‑type loans forsale to others; and no real estate mortgage broker whose mortgage lendingoperations are essentially as described above is required to obtain a privilegelicense under this section.

(c)        At the time ofmaking any such loan, the person, or officer of the firm or corporation makingthe loan, shall give to the borrower in writing in convenient form a statementshowing the amount received by the borrower, the amount to be paid back by theborrower, the time in which the amount is to be paid, and the rate of interestand discount agreed upon.

(d)        A loan made by aperson who does not comply with this section is not collectible at law underG.S. 105‑269.13.

(e)        Counties, cities,and towns may levy a license tax on the business taxed under this section.Except as provided in G.S. 160A‑211 and G.S. 153A‑152, the tax maynot exceed one hundred dollars ($100.00). (1939, c. 158, s. 152; 1967,c. 1080; c. 1232, s. 2; 1973, c. 476, s. 193; 1991, c. 45, s. 4; 1993, c. 539,s. 695; 1994, Ex. Sess., c. 24, s. 14(c); 1998‑98, s. 1(g); 1999‑438,s. 2; 2000‑120, s. 3; 2000‑173, s. 2.)