6.2-312 - (Effective October 1, 2010) Open-end credit plans. - Virginia Statutes

§ 6.2-312. (Effective October 1, 2010) Open-end credit plans.

A. Notwithstanding any provision of this chapter other than §6.2-327, and except as provided in subsection C, a seller or lender engaged inextending credit under an open-end credit plan may impose, on credit extendedunder the plan, finance charges and other charges and fees at such rates and insuch amounts and manner as may be agreed upon by the creditor and the obligor,if under the plan a finance charge is imposed upon the obligor if payment infull of the unpaid balance is not received at the place designated by thecreditor prior to the next billing date, which shall be at least 25 days laterthan the prior billing date.

B. Notwithstanding the provisions of § 6.2-327 and subject tothe provisions of § 8.9A-204.1, any loan made under this section may be securedin whole or in part by a subordinate mortgage or deed of trust on residentialreal estate improved by the construction thereon of housing consisting of one-to four-family dwelling units.

C. (i) A licensee, as defined in § 6.2-1800, shall not engagein the extension of credit under an open-end credit plan described in thissection and, (ii) a third party shall not engage in the extension of creditunder an open-end credit plan described in this section at any office, suite,room, or place of business where a licensee conducts the business of makingpayday loans. In addition to any other remedies or penalties provided for aviolation of this section, any such extension of credit made by a licensee orthird party in violation of this subsection shall be unenforceable against theborrower.

D. No person shall make a loan or otherwise extend creditunder an open-end credit plan or any other lending arrangement that is securedby a non-purchase money security interest in a motor vehicle, as such term isdefined in § 6.2-2200, unless such loan or extension of credit is made inaccordance with, or is exempt from, the provisions of Chapter 22 (§ 6.2-2200 etseq.).

E. If a licensee, as defined in § 6.2-1800, surrenders itslicense under Chapter 18 (§ 6.2-1800 et seq.) or has its license revoked, andif following such surrender or revocation of its license the former licenseeengages in the extension of credit under an open-end credit plan as describedin this section, then the Commission shall not issue to such former licensee,or to any affiliate of the former licensee, a license under Chapter 18 (§6.2-1800 et seq.) for a period of 10 years from the date such license issurrendered or revoked. As used in this subsection, "affiliate of theformer licensee" means a business entity that owns or controls, is ownedor controlled by, or is under common ownership or control with, the formerlicensee.

(1987, cc. 622, 639, 714, § 6.1-330.78; 1992, Sp. Sess., c. 4;1997, c. 112; 2009, cc. 784, 860; 2010, cc. 477, 794.)