Section 16-205. DUTIES OF LICENSEES TO BORROWERS

 

205.1In addition to the duties imposed upon Class A licensees by the 1913 Act, Class A and Class B licensees shall deliver the following to each borrower at the time the loan of money is made:

 

(a)A statement in writing showing in clear and distinct terms the following:

 

(1)The actual amount of the loan;

 

(2)The date on which the loan is made;

 

(3)The terms of repayment of the loan, including the total number of installments and the amount of each installment, and listing as separate items principal, interest, insurance premiums, and each other charge included in the actual amount of the loan; and

 

(b)A copy of each writing relating to the loan and to the security for the loan which expresses any part of the obligations of the borrower to the lender or licensee or to any other person with respect to the loan and of the obligations of the lender or licensee or of any other person to the borrower with respect to the loan. If any of the original writing bears the signature of the borrower, the copy must be in the precise form as was the original at the time it was signed by the borrower.

 

205.2A licensee shall deliver to each borrower a complete and legible receipt for each payment made on account of a loan of money at the time the payment is made.

 

205.3Each receipt delivered pursuant to § 205.2 shall show the following:

 

(a)The date and total amount of the payment; and

 

(b)The actual amount of the loan after receipt of the payment.

 

205.4Upon payment in full of the actual amount of the loan and of all lawful charges on the loan, a licensee shall give the borrower a receipt showing payment in full of the loan.

 

205.5Within ten (10) days of the payment in full, a licensee shall endorse, over the signature of the licensee (or of the member or officer of the licensee) the words "PAID IN FULL" upon the original note, and deliver to the borrower every original note and a release of the instrument of security.