Section 399-A:12 Provisions Applicable to Loans.
I. For any closed-end loan of $10,000 or less, excluding charges, a lender may lend in money, goods, or things of value upon such security not forbidden by RSA 399-A:11, VIII as may be agreed upon and may charge, contract, for, and receive charges on the entire principal of the loan, at rates agreed to in writing by the borrower and lender.
II. For any open-end loan with a line of credit of $10,000 or less, excluding charges, a lender may charge, contract for, and receive charges on the unpaid balances of the account at rates agreed to in writing by the borrower and the lender.
III. No small loan lender shall permit any person to be obligated to him or her on one or more contracts of loan the total principal balance of which is more than $10,000.
IV. For the purpose of applying paragraphs II and III of this section only, small loan lender shall mean any single small loan lender, except that in the event any person or affiliated group of persons holds more than one small loan lender license, such person or affiliated group of persons shall be considered a single small loan lender.
V. No small loan lender shall induce any potential borrower who is not a loan customer of the lender to enter into a closed-end loan agreement, by delivering in the first instance a negotiable check for such loan to such potential borrower, without including the following information clearly printed on the endorsement side of the check:
(a) A statement which reads, ""By endorsing this check, you become legally liable for repaying all moneys, including interest, as specified in the following loan agreement/disclosure statement'';
(b) The amount financed;
(c) The annual percentage rate;
(d) The number of installments; and
(e) The amount of each installment payment.
VI. Every small loan lender shall:
(a) Mail or deliver to the borrower, or if more than one, to one of them, at the time of making a loan under this chapter, a payment book in which space shall be provided for the record of all payments showing principal, interest, and balance and which shall contain statements showing the date of such loan; the amount of the principal of such loan; the total interest charged for the period of such loan; the nature of the security, if any, for such loan; the name and address of the borrower and of the lender; and the description of schedule of payments on such loans. The payment book shall also have printed therein an interest calculation such as the following:
""Interpretation of Interest Charges in the Event Payments are Made when Due.
2% per month = 24% per year or $13.47 per year on $100
1 1/2% per month = 18% per year or $10.01 per year on $100''
Provided, however, a lender may provide a borrower with a monthly billing statement in lieu of a payment book and the information required above.
(b) Give to the person making any cash payment on account of any closed-end loan a receipt at the time such payment is made.
(c) Permit payment in advance in an amount equal to one or more full installments at any time during the regular business hours of the lender.
(d) Upon repayment of a closed-end loan in full, mark plainly every note or other evidence of the indebtedness or assignment signed by an obligor or a copy of any of the foregoing documents with the words ""PAID IN FULL'' or ""CANCELLED'' and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the lender. If the original is retained by the lender, the original shall be returned within a reasonable period of time upon the written request of the borrower.
(e) Upon repayment of an open-end loan in full, written notice from the borrower to the lender of termination of such loan, and surrender to the lender of any checks or other device used to obtain credit: mark plainly every note, agreement, or assignment signed by an obligor, with the words ""PAID IN FULL'' or ""CANCELLED'' and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the lender.
VII. No lender shall conduct the business of making loans under this chapter at any office, suite, room, or place of business where liquor or lottery tickets are sold.
Source. 2003, 308:1, eff. July 21, 2003.