NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 769

SENATE BILL 211

 

 

AN ACT TO AMEND ARTICLE 15 OF CHAPTER 53 OF THE GENERAL STATUTES RELATING TO THE COLLECTION OF CERTAIN LOANS BY LICENSEES UNDER THE NORTH CAROLINA CONSUMER FINANCE ACT.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 53-172 is hereby amended by rewriting said Section in its entirety to read as follows:

"Sec. 53-172.  Conduct of Other Business in the Same Office. No licensee subject to the provisions of this Article shall conduct its business as a licensee in an office, or annex to an office, of any other business, but shall maintain an office in which only its business as a licensee shall be conducted. Installment paper dealers as defined in G.S. 105-83, and the collection by a licensee of loans legally made in North Carolina, or another state by another government regulated lender or lending agency, shall not be considered as being any other business within the meaning of this Section. This Section shall not be construed as authorizing the collection of any loans or charges in violation of the prohibitions contained in G.S. 53-190. The books, records, and accounts relating to loans shall be kept in such manner as the Commissioner of Banks prescribes as to delineate clearly the loan business from any installment dealer paper transactions."

Sec. 2.  G.S. 53-190 of the General Statutes is hereby amended by rewriting said Section in its entirety to read as follows:

"Sec. 53-190.  Loans Made Elsewhere. No loan contract made outside this State in the amount or of the value of six hundred dollars ($600.00) or less for which a greater consideration or charges than are authorized by Section 53-173 of this Article have been charged, contracted for, or received shall be enforced in this State and every person in anywise participating therein in this State shall be subject to the provisions of this Article; provided, that the foregoing shall not apply to loans legally made in another state. No lender licensed to do business under this Article may collect, or cause to be collected, any loan made by a lender in another state to a borrower who was a legal resident of North Carolina at the time the loan was made. The purchase of a loan account shall not alter this prohibition."

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 14th day of June, 1967.