6.2-1501 - (Effective October 1, 2010) Compliance with chapter; license required; attempts to evade application of chapter. - Virginia Statutes

§ 6.2-1501. (Effective October 1, 2010) Compliance with chapter; licenserequired; attempts to evade application of chapter.

A. No person shall engage in the business of making loans to individuals forpersonal, family, household, or other nonbusiness purposes, and charge,contract for, or receive, directly or indirectly, on or in connection withany loan interest, charges, compensation, consideration, or expense that inthe aggregate is greater than the interest permitted by § 6.2-303, except asprovided in and authorized by this chapter or Chapter 22 (§ 6.2-2200 et seq.)and without first having obtained a license from the Commission.

B. Subject to subdivision C 3 and subsection C of § 6.2-1524, the prohibitionin subsection A shall not be construed to prevent any person, other than alicensee, from:

1. Making a loan in accordance with Chapter 18 (§ 6.2-1800 et seq.);

2. Making a mortgage loan pursuant to §§ 6.2-325 and 6.2-326 or §§ 6.2-327and 6.2-328 in any principal amount; or

3. Extending credit as described in § 6.2-312 in any amount.

C. The provisions of subsection A shall apply to any person who seeks toevade its application by any device, subterfuge, or pretense whatsoever,including:

1. The loan, forbearance, use, or sale of (i) credit, as guarantor, surety,endorser, comaker, or otherwise; (ii) money; (iii) goods; or (iv) things inaction;

2. The use of collateral or related sales or purchases of goods or services,or agreements to sell or purchase, whether real or pretended; receiving orcharging compensation for goods or services, whether or not sold, delivered,or provided; and

3. The real or pretended negotiation, arrangement, or procurement of a loanthrough any use or activity of a third person, whether real or fictitious.

(Code 1950, §§ 6-279, 6-281; 1956, c. 71; 1966, c. 584, §§ 6.1-249, 6.1-251;1968, c. 489; 1974, c. 371; 1986, c. 502; 1995, c. 2; 1998, c. 9; 2001, c.308; 2002, c. 897; 2010, cc. 477, 794.)