§ 24-8. Loans not in excess of $300,000; what interest, fees and charges permitted.
§ 24‑8. Loans not inexcess of $300,000; what interest, fees and charges permitted.
(a) If the principalamount of a loan is less than three hundred thousand dollars ($300,000), nolender shall charge or receive from any borrower or require in connection withany loan any borrower, directly or indirectly, to pay, deliver, transfer, orconvey or otherwise confer upon or for the benefit of the lender or any otherperson, firm, or corporation any sum of money, thing of value, or otherconsideration other than that which is pledged as security or collateral tosecure the repayment of the full principal of the loan, together with fees andinterest provided for in this Chapter or Chapter 53 of the General Statutes.
(b) Repealed by SessionLaws 2003‑401, s. 2, effective October 1, 2003, and applicable tocontracts entered into or renewed on or after that date.
(c) The provisions ofthis section shall not prevent a borrower from selling, transferring, orconveying property other than security or collateral to any person, firm, orcorporation for a fair consideration so long as such transaction is not made acondition or requirement for any loan.
(d) Notwithstanding anycontrary provision of State law, any lender may collect money from the borrowerfor the payment of (i) bona fide loan‑related goods, products, andservices provided or to be provided by third parties, (ii) taxes, filing fees,recording fees, and other charges and fees paid or to be paid to publicofficials, and (iii) fees payable to the federal government, any state or localgovernment or any federal, state, or local governmental agency in connectionwith a loan made pursuant to a loan program sponsored by or offered through thefederal government, any state or local government or any federal, state or localgovernment agency, including loan guarantee and tax credit programs. No thirdparty shall charge or receive (i) any unreasonable compensation for loan‑relatedgoods, products, and services, or (ii) any compensation for which no loan‑relatedgoods and products are provided or for which no or only nominal loan‑relatedservices are performed. Loan‑related goods, products, and servicesinclude fees for tax payment services, fees for flood certification, fees forpest‑infestation determinations, mortgage brokers' fees, appraisal fees,inspection fees, environmental assessment fees, fees for credit reportservices, assessments, costs of upkeep, surveys, attorneys' fees, notary fees,escrow charges, and insurance premiums (including, for example, fire, title, life,accident and health, disability, unemployment, flood, and mortgage insurance).
(e) Notwithstanding anycontrary provision of State law, any lender may receive the proceeds from anyinsurance policies where loss occurs under the terms of such policies.
(f) This section shallnot be applicable to any corporation licensed as a "Small BusinessInvestment Company" under the provisions of the United States CodeAnnotated, Title 15, section 66, et seq., nor shall it be applicable to thesale or purchase of convertible debentures, nor to the sale or purchase of anydebt security with accompanying warrants, nor to the sale or purchase of othersecurities through an organized securities exchange. (1961, c. 1142; 1969, c. 127;c. 1303, s. 5; 1993, c. 226, s. 12; 1999‑332, s. 4; 2000‑140, s.40(c); 2003‑401, s. 2.)