Chapter 368 Loan and Investment Companies
368.080 - Corporations not to engage in banking.
Nothing in this chapter and none of the powers conferred upon corporations organized hereunder shall be construed as authorizing such corporations to receive money on deposit or engage in banking within the meaning of section 362.420.
368.060 - Refund of interest on loans upon which interest has been paid in advance.
Whenever a loan upon which interest has been collected in advance, shall be paid in full before maturity thereof, the licensee shall allow or refund to the maker or makers a sum equivalent to interest, at the same rate as charged on the loan, calculated on the total amount of the unpaid installments or any evidence or certificate of indebtedness or investment hypothecated on such loan, anticipated for the period from the date of such payment to the maturity of the last installment so anticipated.
368.070 - Limitation of powers.
No loan and investment company shall:
(1)Hold the obligation of any person, firm or corporation for money borrowed, for an amount exceeding ten percent of the paid-in capital stock of such loan and investment company, and its surplus and undivided profit combined.The provisions of this section shall not apply to loans secured by collateral so long as the market value of such collateral shall exceed by twenty percent the total liabilities secured in each case by such collateral, but no loan on collateral shall at any time exceed twenty percent of the paid-in capital stock of such loan and investment company and its surplus and undivided profits combined.
(2)Make any loan under the provisions of this chapter for a longer period than eighteen months from the date thereof.
(3)Deposit any of its funds in any banking corporation, unless such corporation has been designated as such depositary by a vote of a majority of the directors or of the executive committee, exclusive of any director who is an officer, director or trustee of the depositary so designated, present at any meeting duly called at which a quorum is in attendance.
368.050 - Violators of section 368.040 shall be guilty of misdemeanor.
Any corporation organized under the provisions of this chapter, or any officer or employee thereof, who shall violate any of the provisions of section 368.040 shall be deemed guilty of a misdemeanor.
368.040 - Powers of loan and investment companies relative to charges on loans.
In addition to the general powers conferred upon corporations by chapter 351, every loan and investment company organized under the provisions of this chapter shall have the following powers:
(1)To lend money to any person, firm or corporation, secured by the obligation of the person, firm or corporation, or otherwise;
(2)To sell or offer for sale its secured or unsecured evidences or certificates of indebtedness or of investment and to receive from investors therein or purchasers thereof payments therefor in installments or otherwise with or without allowance of interest on the installments, whether the evidences or certificates of indebtedness or of investment be hypothecated for a loan or not, and to enter into contracts in the nature of a security agreement or otherwise with the investors or purchasers with regard to the evidences or certificates of indebtedness or of investment securing any loan, and no such transaction shall in any way be construed to affect the rate of interest on the loan, nor to constitute a violation of any other law, conditioned that there be compliance with the limitations thereon in this section contained.No evidences or certificates of indebtedness or of investment, payable in installments, shall be sold wherein the aggregate amount of the installment payments agreed to be paid therefor shall be in excess of the face amount thereof.Evidences or certificates of indebtedness or of investment payable in installments and hypothecated for a loan with the loan and investment company shall not be for an amount in excess of the actual amount of the proceeds of the loan, plus any interest which may be taken in advance, or discount at a rate not to exceed the lawful rate of interest, together with charges permitted by this chapter.With the exception of the last payment, no payment in excess of equal weekly, semimonthly, or monthly payments, extending over the entire period for which the loan is made shall be required by the terms of the evidences or certificates of indebtedness or investment payable in installments which have been so hypothecated.At the maturity of any note or loan at any time payment or settlement is made or demanded thereon, any evidence or certificate of indebtedness or of investment issued in connection with or used as security for the note or loan shall have a cash surrender value of an amount not less than the sum of all payments made upon it whether the evidence or certificate shall have matured or not;
(3)To charge for a loan made pursuant to this section two percent of the amount loaned for any examination or investigation of the character and circumstances of the borrower, comaker or surety and the drawing and taking acknowledgment of necessary papers in making the loan.No charge shall be collected unless a loan was made as the result of an examination or investigation and this charge shall not be collected from the same borrower more than once during any six-month period;
(4)When a loan is made which is evidenced by a nondeficiency note secured in whole or in part by a security agreement or other lien upon a motor vehicle and when it is provided in the note that the motor vehicle may be returned to the company voluntarily or otherwise, regardless of condition, in full satisfaction of the unpaid balance due thereon, after crediting any amounts paid on any certificate of indebtedness or of investment, if any, and a statement of such right is printed on the face of the note, and a simple and concise printed statement of such right is delivered to the borrower at the time the loan is made, to charge in addition to the interest and other charges permitted by this chapter, an additional five percent of the face amount of the note.On a note in excess of four hundred dollars, this charge may be computed only on the first four hundred dollars of the note; and on a note under one hundred dollars, the charge may be computed as on a note of one hundred dollars.Whenever a loan or note is renewed, extended or refinanced, or a new or additional loan secured in whole or in part by a lien against the same motor vehicle, the renewal or extension or refinance, new or additional loan, shall not be subject to the charges provided in this subsection when any such transactions exceed the number of one within any six-month period.
368.010 - Definition.
The term "loan and investment company" as used in this chapter means any corporation formed under the provisions of this chapter.
368.020 - Corporations, how organized.
Corporations may be organized in the same manner as general and business corporations, under chapter 351, except as otherwise herein provided.
368.030 - Capital stock.
The aggregate amount of the capital stock of any loan and investment company organized under this chapter shall not be more nor less than is provided for in the case of general and business corporations.