§ 53-181. Statements and information to be furnished to borrowers; power of attorney or confession of judgment prohibited. - North Carolina Statutes

§ 53‑181.  Statementsand information to be furnished to borrowers; power of attorney or confessionof judgment prohibited.

(a)        Contents ofStatement Furnished to Borrower. – At the time a loan is made, the licenseeshall deliver to the borrower, or if there be two or more borrowers, to one ofthem a copy of the loan contract, or a written statement, showing in clear anddistinct terms:

(1)        The name and addressof the licensee and one of the primary obligors on the loan;

(2)        The date of the loancontract;

(3)        Schedule ofinstallments or descriptions thereof;

(4)        The cash advance;

(5)        The face amount ofthe note evidencing the loan;

(6)        The amount collectedor paid for insurance, if any;

(7)        The amount collectedor paid for filing or other fees allowed by this Article;

(8)        The collateral orsecurity for the loan;

(9)        If the loanrefinances a previous loan, the following relating to the refinanced loan: (i)the principal balance due; (ii) interest charged that is included in the newloan; and (iii) rebates on any credit insurance, listed separately.

(10)      In addition to anydisclosures otherwise provided by law, a licensee soliciting loans using afacsimile or negotiable check shall provide the disclosures required by G.S. 75‑20(a).

(b)        Schedule ofCharges, etc., to Be Made Available; Copy Filed with Commissioner. – Eachlicensee doing business in North Carolina shall make readily available to theborrower at each place of business such full and accurate schedule of chargesand insurance premiums, including refunds and rebates, on all classes of loanscurrently being made by such licensee, as the Commissioner shall prescribe, anda copy thereof shall be filed in the office of the Commissioner of Banks.

(c)        Power of Attorneyor Confession of Judgment Prohibited. – No licensee shall take any confessionof judgment or permit any borrower to execute a power of attorney in favor ofany licensee or in favor of any third person to confess judgment or to appearfor the borrower in any judicial proceeding and any such confession of judgmentor power of attorney to confess judgment shall be absolutely void. (1955, c. 1279; 1961, c.1053, s. 1; 1989, c. 17, s. 9; 2001‑519, s. 6.)