§ 53-176. Optional rates, maturities and amounts. - North Carolina Statutes

§ 53‑176.  Optionalrates, maturities and amounts.

(a)        In lieu of makingloans in the amount and at the interest stated in G.S. 53‑173 and for theterms stated in G.S. 53‑180, a licensee may at any time elect to makeloans in installments not exceeding ten thousand dollars ($10,000) and whichshall not be repayable in less than six months or more than 84 months and whichshall not be secured by deeds of trust or mortgages on real estate and whichare repayable in substantially equal consecutive monthly payments and to chargeand collect interest in connection therewith which shall not exceed thefollowing actuarial rates:

(1)        With respect to aloan not exceeding seven thousand five hundred dollars ($7,500), thirty percent(30%) per annum on that part of the unpaid principal balance not exceeding onethousand dollars ($1,000) and eighteen percent (18%) per annum on the remainderof the unpaid principal balance. Interest shall be contracted for and collectedat the single simple interest rate applied to the outstanding balance thatwould earn the same amount of interest as the above rates for payment accordingto schedule.

(2)        With respect to aloan exceeding seven thousand five hundred dollars ($7,500), eighteen percent(18%) per annum on the outstanding principal balance.

(b)        In addition to theinterest permitted in this section, a licensee may assess at closing a fee forprocessing the loan as agreed upon by the parties, not to exceed twenty‑fivedollars ($25.00) for loans up to two thousand five hundred dollars ($2,500) andone percent (1%) of the cash advance for loans above two thousand five hundreddollars ($2,500), not to exceed a total fee of forty dollars ($40.00), providedthat such charges may not be assessed more than twice in any 12‑monthperiod.

(c)        The provisions ofG.S. 53‑173(b), (c) and (d) and G.S. 53‑180(b), (c), (d), (e), (f),(g), (h) and (i) shall apply to loans made pursuant to this section.

(d)        Any licensee underthis Article shall have the right to elect to make loans in accordance with thissection by the filing of a written statement to that effect with theCommissioner and no sooner than 30 days from the date of such notificationbegin making loans regulated by this section. After such election a licenseemay continue to make loans in accordance with this section unless the licenseenotifies the Commissioner in writing of its intention to terminate suchelection on a date not sooner than 30 days from the notification.

(e)        The due date of thefirst monthly payment shall not be more than 45 days following the disbursementof funds under any such installment loan. A borrower under this section mayprepay all or any part of a loan made under this section without penalty.Except as otherwise provided for pursuant to G.S. 75‑20(a), no more thantwice in a 12‑month period, a borrower may cancel a loan with the samelicensee within three business days after disbursement of the loan proceedswithout incurring or paying interest so long as the amount financed, minus anyfees or charges, is returned to and received by the licensee within that time.

(f)         No individual,partnership, or corporate licensee and no corporation which is the parent,subsidiary or affiliate of a corporate licensee that is making loans under thisArticle except as authorized in this section, shall be permitted to make loansunder the provisions of this section. Any corporate licensee or individual orpartnership licensee that elects to make loans in accordance with theprovisions of this section shall be bound by that election with respect to allof its offices and locations in this State and all offices and locations inthis State of its parent, subsidiary or affiliated corporate licensee, or withrespect to all of his or their offices and locations in this State. (1961, c. 1053, s. 1; 1969,c. 1303, s. 12.1; 1981, c. 561, s. 7; 1983, c. 68, s. 1; c. 126, ss. 14, 15;1989, c. 17, s. 6; 1995, c. 155, s. 1; 2001‑519, s. 4.)