§ 53-172. Conduct of other business in same office.
§ 53‑172. Conduct ofother business in same office.
(a) No licensee shallconduct the business of making loans under this Article within any office,suite, room, or place of business in which any other business is solicited ortransacted.
Installment paper dealers asdefined in G.S. 105‑83, and the collection by a licensee of loans legallymade in North Carolina, or another state by another government regulated lenderor lending agency, shall not be considered as being any other business withinthe meaning of this section.
(b) Notwithstandingsubsection (a) of this section, the Commissioner may authorize in writing thesolicitation and transaction of other business in any office, suite, room, orplace of business in which a licensee is conducting the business of makingloans if the Commissioner determines that the other business would not becontrary to the best interests of the borrowing public.
(c) The Commissionermay require, consistent with the provisions of 12 C.F.R. Part 226 (RegulationZ) of the federal Truth‑In‑Lending Act, the other businessauthorized under subsection (b) of this section to:
(1) Disclose the cost ofconsumer credit of goods and services sold; and
(2) Provide thepurchaser with a reasonable cancellation period for goods and servicespurchased.
(d) No licensee shall:
(1) Make the purchase ofgoods and services sold under the authorization of subsection (b) of thissection a condition of making a loan; or
(2) Consider theborrower's decision to purchase, or not purchase, goods and services sold underthe authorization of subsection (b) of this section a factor in its approval ordenial of credit, or in its determination of the amount of or terms of creditfor the borrower.
(e) The licensee shallnotify the borrower in writing that the purchase of the goods and servicesoffered under the authorization under subsection (b) of this section isvoluntary and that the borrower's decision whether or not to purchase the goodsand services will not affect the licensee's decision to grant credit or theamount of or terms of the credit granted.
(f) If, at any time,the Commissioner has reason to believe that the conduct of any other businessauthorized under this section is contrary to the best interests of theborrowing public, the Commissioner shall hold a hearing pursuant to Chapter150B of the General Statutes to determine whether or not to revoke theauthority to conduct that business. The Commissioner shall revoke the authorityto conduct any other business if he or she finds that the conduct of any otherbusiness authorized under this section is contrary to the best interests of theborrowing public.
(g) This section shallnot be construed as authorizing the collection of any loans or charges inviolation of the prohibitions contained in G.S. 53‑190.
(h) The books, records,and accounts relating to loans shall be kept in such manner as the Commissionerof Banks prescribes as to delineate clearly the loan business from any otherbusiness authorized by the Commissioner. (1961, c. 1053, s. 1; 1967,c. 769, s. 1; 1971, c. 1212; 1981, c. 464, s. 2; 1985, c. 154, ss. 7, 9; 1987,c. 444, s. 2; 1989, c. 17, s. 2; 1991 (Reg. Sess., 1992), c. 765, s. 1.)