§ 66-107. Required disclosure statement. - North Carolina Statutes

§66‑107.  Required disclosure statement.

At least seven days prior tothe time any person signs a contract for the services of a loan broker, or thetime of the receipt of any consideration by the loan broker, whichever occursfirst, the broker must provide to the party with whom he contracts a writtendocument, the cover sheet of which is entitled in at least 10‑point boldface capital letters "DISCLOSURES REQUIRED BY NORTH CAROLINA LAW."Under this title shall appear the statement in at least 10‑point typethat "The State of North Carolina has not reviewed and does not approve,recommend, endorse or sponsor any loan brokerage contract. The informationcontained in this disclosure has not been verified by the State. If you haveany questions see an attorney before you sign a contract or agreement."Nothing except the title and required statement shall appear on the coversheet. The disclosure document shall contain the following information:

(1)        The name of thebroker; whether the broker is doing business as an individual, partnership, orcorporation; the names under which the broker has done, is doing or intends todo business; and the name of any parent or affiliated companies;

(2)        The names, addressesand titles of the broker's officers, directors, trustees, general partners,general managers, principal executives, and any other persons charged withresponsibility for the broker's business activities; and all  the broker'semployees located in North Carolina;

(3)        The length of timethe broker has conducted business as a loan broker;

(4)        The total number ofloan brokerage contracts the broker has entered within the past 12 months;

(5)        The number of loanbrokerage contracts in which the broker has successfully obtained a loan forthe prospective borrower within the past 12 months;

(6)        A copy of a current(not older than 13 months) financial statement of the broker, updated toreflect any material changes in the broker's financial condition;

(7)        A full and detaileddescription of the actual services that the broker undertakes to perform forthe prospective borrower;

(8)        A specific statementof the circumstances in which the broker will be entitled to obtain or retainconsideration from the party with whom he contracts;

(9)        One of the followingstatements, whichever is appropriate:

a.____ "As required byNorth Carolina law, this loan broker has secured a bond by           

(nameand address of surety company)

asurety authorized to do business in this State. Before signing a contract withthis loan broker, you should check with the surety company to determine thebond's current status," or

b.____ "As required byNorth Carolina law, this loan broker has established a trust account           

(numberof account)

with _____________________________________________________

(name/addressof bank or savings institution).

Beforesigning a contract with this loan broker you should check with the bank orsavings institution to determine the current status of the trust account."(1979, c. 705, s. 1.)