An Act to amend and reenact § 46.1-299, as amended, of the Code of Virginia, relating to devices signalling intention to turn or stop and rules therefor.
Volume 1968 Law 99
Volume | 1922 |
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Law Number | 300 |
Subjects |
Law Body
Chap. 300.—An ACT to amend and re-enact an act entitled an act to regulate
the business of making small loans, by requiring persons charging directly
or indirectly a greater rate of compensation than the conventional legal
interest rate per annum on loans not exceeding three hundred dollars
($300.00) to any person, to obtain a license; by prescribing the maximum
amount of compensation which licensees may charge; by regulating assign-
ments to licensees of salaries or wages earned, or to be earned; by prohibit-
ing false or deceptive advertising concerning such loans; by fixing penalties
for violation of certain provisions of this act; by prescribing certain duties
of the chief examiner of the banking division of the State corporation com-
mission in respect to licenses; repealing section 81 of the revenue act and
‘all other acts, or parts of acts, inconsistent with the provisions of this act,
approved March 23, 1918, sections 14, 16, 17 and 18 of which said act were
amended and re-enacted by an act approved March 9, 1920. [H B 192]
Approved March 20, 1922.
Whereas, there is and has long been conducted in this State an
extensive business in the making of small loans of not exceeding
three hundred dollars ($300.00) to persons in need of funds to meet
immediate necessities; and
Whereas, the conduct of such business has long been the cause
of general complaint and of much hardship and injustice to the bor-
rowers, and there is no regulation or provision of law which has
proved effective for the protection of such borrowers and for the
punishment of usurious money lenders; and
Whereas, it is recognized that the business of lending small sums
of money upon security that 1s not acceptable to banks and financial
institutions does and will exist and there is a real need for the enact-
ment of a law that will enable its continuance under proper super-
wision and restrictions ; and
Whereas, it is desired to suppress the “loan shark” evil in this
State by establishing and regulating the small loan business upon
fair and lawful terms by providing for a bond, State license, official
supervision and examination of the small loan business, thereby en-
abling reputable lenders to engage in the business; therefore this
remedial act authorizing a maximum charge by licensees under this
act. It is not intended to provide additional interest compensation
for loans or money, or necessarily an interest rate higher than the
conventional rate in this State, but to recognize that as the conduct
of such loan business requires the special employment of persons to
assist and investigate each application for a loan and to collect them
when made; also to provide indemnity to licensees for the losses upon
such loans to those who do not fully repay, to be contributed by
those who do pay in full, thereby distributing the losses so that
all borrowers who receive such loan accommodation shall bear the
losses of their class, arising from inadequate security taken; therefore,
1. Be it enacted by the general assembly of Virginia, That an
act entitled an act to regulate the business of making small loans, by
requiring persons charging directly or indirectly a greater rate of
compensation than the conventional legal rate per annum on loans
not exceeding three hundred dollars ($300.00), to any person, to
obtain a license; by prescribing the maximum amount of compensa-
tion which licensees may charge; by regulating assignments to
licensees of salaries or wages earned, or to earned; by prohibiting
false or deceptive advertising concerning such loans; by fixing penal-
ties for violation of certain provisions of this act; by prescribing
certain duties of the chief examiner of the banking division of the
State corporation commission in respect to licenses ; repealing section
eighty-one of the revenue act and all other acts and parts of acts
inconsistent with the provisions of this act, approved March twenty-
third, nineteen hundred and eighteen, sections fourteen, sixteen, seven-
teen and eighteen of which said act were amended and re-enacted by
an act approved March nineteenth, nineteen hundred and twenty, be
amended and re-enacted so as to read as follows:
Section 1. What loan business shall be regulated ; license required
to engage in.—No person, co-partnership or corporation shall engage
in the business of making loans of money, credit, goods, or things
in action in the amount or to the value of three hundred dollars
($300.00) or less, and charge, contract for, or receive a greater rate
of interest than six per centum per annum therefor, except as author-
ized by this act, and without first obtaining a license from the chief
examiner of the banking division of the State corporation commis-
sion, hereinafter called the chief examiner.
Section 2. Application for license; particulars; what fee for year
or less.—Applications for such license shall be in writing and shall
contain the full name and address, both of the residence and place
of business of the applicant, and if the applicant is a co-partnership,
of every member thereof, or a corporation, of each officer thereof ;
also the county or municipality, with street and number thereof, 1f
any, where the business is to be conducted. Every such applicant,
at the time of making such application, shall pay to the chief ex-
aminer the sum of one hundred dollars ($100.00) as an-annual license
fee and in full payment of all expenses of examination under the
administration of this act; provided that if the license is issued for
a period of less than twelve months, the license fee shall be prorated
according to the number of the months the said license shall run.
Section 3. Bond to State and surety required; one thousand dol-
lars ($1,000.00) penalty ; conditions ; official approval—The applicant
shall also, at the same time, file with the chief examiner a bond in
which the applicant shall be obligor in the sum of one thousand dol-
lars ($1,000.00) with some surety company authorized to do business
in Virginia as surety to be approved by the said chief examiner,
which bond shall run to the State of Virginia for the use of the
State, and of any person or persons who may have a cause of action
against the obligor of said bond, under the provisions of this act,
such bonds shall be conditioned, that said obligor will conform to
and abide by each and every provision of this act, and the prompt
payment of any judgment recovered against or for which said obligor
may be liable under the provision of this act.
Section 4. When license shall issue; official by whom issued;
when expires; not assignable——Upon the filing of such application
and the approval of said bond, and the payment of said license fee,
the chief examiner shall issue a license to the applicant to make loans
in accordance with the provisions of this act for a period which
shall expire the first day of May, next following the date of said
issuance. Such license shall not be assignable.
Section 5. When additional bond may be required of licensee ;
failure to furnish.—If in the opinion of the chief examiner the. bond
of any licensee shall at any time appear to be insecure or exhausted
or otherwise doubtful, an additional bond in the sum of not more
than one thousand dollars ($1,000.00), satisfactory to the chief ex-
aminer, shall be filed within ten days after notice to the licensee, and
upon failure of the obligor to file such additional bond, the license
shall be revoked by the chief examiner.
Section 6. License may be revoked for violation of act; hearing of
complaint.—The chief examiner may, in his discretion, upon notice to
the licensee giving particulars of any alleged violation or violations of
this act and reasonable opportunity to be heard, revoke such license if
the licensee has violated any provision of this act; provided that at
least five days before such hearing, the licensee shall be notified of the
nature of the evidence and the names of the witnesses on whose com-
plaint the charge is being considered; the licensee may also submit
a list of witnesses desired to appear in his defense, and they shall be
officially notified to be present, such hearings may be adjourned,
from time to time, for good cause, by the chief examiner, and at any
such hearing he shall administer the usual oath or affirmation to
each witness and examine him in respect to his knowledge of any
alleged violation of this act. If the licensee is found to have violated
any of the provisions of this act, the chief examiner may revoke such
license, and no such license shall be issued after a second revocation.
(a) Appeal from finding of the chief examiner to court of equity.
—An appeal from such finding, or revocation of license, may be
taken and the records and transcript of evidence be filed with a court
having equity jurisdiction where such business is conducted, which
court shall review the evidence and enter a decree according to the
merits of the matter involved.
(b) Revocation of license after second conviction.—In case the
licensee shall be convicted by a court a second time of a violation
of any of the provisions of this act, the chief examiner shall revoke
said license, provided that the second offense shall have occurred
after the prior conviction, in which case another license shall not be
issued to such licensee nor to the husband or wife of the licensee,
nor to any co-partnership or corporation of which he is a member
or officer.
Section 7. Restrictions of trade name; one place of business under
each license.—No person, co-partnership or corporation so licensed
shall make any loan or transact any business provided for by this
act under any other name or at any other place of business than
that named in the license. Not more than one place of business shall
be maintained under same license, but the chief examiner shall issue
more than one license to the same licensee upon the filing of an addi-
tional bond and the payment of an additional license fee. Nor shall
any person, co-partnership or corporation be licensed under the pro-
visions of this act whose firm or corporate name shall contain any
of the following words, “savings,” “trust,” “bank,” “banker,” “bank-
ing,” “investment,” or “building and loan.” Every licensee licensed
under the provisions of this act shall have as a part of his, her or
its trade, firm or corporate name the words “small loan,” which
shall not be used disjunctively ; provided, however, that this and the
preceding sentence shall not apply to any person, co-partnership: or
corporation which was on the thirtieth day of April, nineteen hundred
and twenty-two, licensed and doing business in Virginia under the
provisions of the uniform small loan law.
Section 8. License to be posted; how and where.—The license
shall be kept conspicuously posted in the place of business of the
licensee, together with a copy of section fourteen of this act, or such
part thereof as may be furnished to the licensee by the chief examiner.
Section 9. Changing place of business; official endorsement on
license.—Whenever the licensee shall change his place of business,
he shall at once give written notice thereof to the chief examiner,
who shall attach to the license his appruval in writing of the change.
Section 10. Official investigation of loans and business; right to
enter offices and examine books, et cetera; may administer oaths.—
The chief examiner for the purpose of discovering violations of this
act or for the purpose of supervising the methods employed by the
licensee, or for any other purpose deemed pertinent by the said chief
examiner, may either personally or by any person designated by him,
at any time and as often as he may desire, investigate the loans and
business of every licensee and of every person, co-partnership and
corporation by whom or from which any such loan shall be made,
whether such person, co-partnership or corporation shall act or claim
to act, as principal, agent, or broker, or under or without the authority
of this act, and for that purpose he shall have free access to the
office or place of business, books, papers, records, safes and vaults, of
all such persons, co-partnerships or corporations. He shall also have
the authority to administer oaths or affirmations to and to examine
every person whose testimony he may require relative to such loans
or the conduct of such business.
Section 11. Books and records; how to be kept; how long to be
preserved.—The licensee shall keep such books and records in his
licensed place of business as in the opinion of the chief examiner,
will enable the chief examiner to know whether the provisions of
this act are being observed, and the licensee shall install and use
such methods and systems of bookkeeping and accounting in the
conduct of his business us the chief examiner shall prescribe, which
methods and systems the chief examiner may, from time to time,
modify or change in his discretion. Further, it shall be the duty of
the licensee to furnish promptly, by mail or otherwise, such facts
and statements in connection with his business transacted in Virginia
as the chief examiner may deem proper to require of him at any
time. Every such licensee shall preserve the records of final entry
used in such business, including cards used in the card system, if
any, for a period of at Jeast two years after the making of any loan
recorded therein.
Section 12. License fees appropriated ; how disbursed ; official re-
port to treasury.—All license fees herein provided for shall be col-
lected by the chief examiner and shall be turned into State treasury.
The State corporation commission shall have full power to employ
such examiners or clerks to assist the chief examiner as it may, from
time to time, deem necessary and fix their compensation, and all
salaries and expenses necessarily incurred in the administration of
this act shall be paid out of license fees collected and turned into
the State treasury under the provisions of this act, upon the presenta-
tion of itemized vouchers, duly verified, and having the approval of
said commission. The auditor shall issue his warrant on the State
treasurer for such salaries and expenses, and the State treasurer shall
pay the same out of said fees, and for that purpose the said fees are
hereby appropriated for use during each fiscal year.
Section 13. False or deceptive advertisements prohibited—No
licensee or other person, co-partnership or corporation shall print,
publish or distribute, or cause to be printed, published or distributed
in any manner whatsover, any written or printed statement with re-
gard to the rates, terms or conditions for the lending of money, credit,
goods, or things in action in amounts of three hundred dollars
($300.00) or less, which is false or calculated to deceive.
Section 14. Maximum interest charge; collection of interest regu-
lated, and what charges prohibited ; what may be reimbursed.—Every
person, co-partnership or corporation licensed hereunder may lend
any sum of money not exceeding in amount the sum of three hundred
dollars ($300.00) and may charge, contract for, and receive thereon
interest at a rate not to exceed three and one-half per centum per
month. Interest shall not be payable in advance or compounded, and
shall be computed on unpaid daily balances. In addition to the in-
terest herein provided for, no further or other charge or amount
whatsoever for any examination service, brokerage, commission, fine,
notarial fee or other things or otherwise shall be directly, indirectly,
charged, contracted for, or received, except the lawful fees, if any,
actually and necessarily paid out by ‘the licensee to any public officer
for filing or recording in any public office any instrument securing
the loan, which fees may be collected when the loan is made or at
any time thereafter, provided, however, that all notarial fees, includ-
ing those for acknowledgments to deeds and other papers for record-
ation shall be at the expense of the lender, and under no circum-
stances shall the borrower be required to pay any notarial fee what-
soever.
(a) Loan void for excess charges.—If interest or charges in ex-
cess of those permitted by this act shall be charged, contracted fof
or received, the contract of loan shall be void, and the licensee shall
have no right to collect or receive, any principal, interest or charges
whatsoever.
(b) Debt limited to three hundred dollars principal—No person
as principal shall owe any licensee at any time more than three hun-
dred dollars ($300.00) exclusive of interest.
Section 15. Every licensee shall: (a) Each obligation to state
amount and terms of loan.—State in every note, mortgage, assign-
ment of wages, or other evidence of indebtedness the date of its exe-
cution, the amount of money actually lent, the compensation to be
paid for interest, and the dates and amounts of repayment agreed
upon and the place where payable.
(b) Statement of loan to be delivered borrower; what particulars
to contain.—Deliver to the borrower, at the time a loan is made, a
pass book, or card stating in the English language in clear and dis-
tinct terms the date, amount and compensation for interest, and dates
and amounts of repayments agreed upon, the nature of the security
given, if any; also the names and addresses of both borrower and
licensee. On the back of such pass book, or card, there shall be
printed in English a copy of section fourteen (14) of this act, in
type not smaller than eight point.
(c) Receipts for payments as made.—Enter in such pass book,
or card, or give to the borrower a plain and complete receipt for all
payments made on account of any such loan, at the time such pay-
ments are made, and show the amount of balance due.
(d) Upon repayment, obligations to be cancelled and surrendered
with security pledged ; mortgages to be satisfied; payment of surplus
on foreclosure——Upon repayment of the loan in full, mark indelibly
every obligation signed by the borrower with the word “paid” or
“cancelled” and release any mortgage, cancel and return any note
and any assignment given as security, and surrender any personal
property, if pledged by the borrower. In the event of collection
by foreclosure sale or otherwise, any surplus arising after the pay-
ment of the expenses of collection, sale or foreclosure and satisfac-
tion of the debt, shall be paid and returned to the borrower or whom-
soever is entitled to the same.
Section 16. Restrictions of obligations to be taken; what obli-
gations or securities shall state; no instrument to contain unfilled
blanks.—No licensee shall take any confession of judgment or any
power of attorney; nor shall any licensee take any note, promise to
pay, or security which does not state the actual amount of the loan,
the time for which it is made, and the rate of interest charged; nor
shall any licensee take any instrument in which the blanks are left
to be filled in after execution.
Section 17. Restrictions of assignments of salary or wages;
power of attorney forbidden; when written assent of wife required.—
No assignment of or order for the payment of any salary, wages,
commissions or other compensation for services earned or to be
earned, given to the licensee to secure a loan shall be valid unless
such loan is contracted simultaneously with its execution, nor shall
any such assignment or order or any chattel mortgage, or other lien
on household furniture then in the possession and use of the bor-
rower be valid unless in writing signed in person by the borrower
and not by an attorney, nor if the borrower is married, unless signed
in person and not by attorney by both husband and wife, provided
that written assent of a spouse shall not be required where the hus-
band and wife have been living separate and apart for a period of
at least five months prior to such assignment, order, mortgage, or lien.
(a) Collection of salary or wages under assignment restricted
to ten per centum installments; regulations; notice to employer.—
When collections under assignment of salary or wages, as herein pro-
vided for, is enforced by judgment or otherwise made or enforced,
said collection shall be in installments from said salary or wages at
such times as the same shall become due and payable by the employer,
and no installment so collected shall exceed ten per centum of the
amount of such salary or wages due the assignor at the time collec-
tion is made; nor shall any such assignment be valid as against the
employer except, and from the time a copy thereof, verified by the
oath of the licensee or his agent together with a statement of the
amount unpaid upon such loan, is served upon the employer.
Section 18. Penalties for violation of this act—Any person, co-
partnership or corporation and the several officers and employees
thereof who shall violate any of the provisions of this act shall be
guilty of a misdemeanor and upon conviction thereof, shall be punish-
able by a fine of not more than five hundred dollars ($500.00) or by
imprisonment of not more than six months, or by both such five and
imprisonment, in the discretion of the court.
(a) Rate of interest—No loan for which a greater rate of in-
terest, or charge than is allowed by this act, has been contracted for
or received, wherever made, shall be enforced in this State and any
person in any wise participating therein in this State shall be subject
to the provisions of sections one, fourteen (a) and eighteen of this act.
Section 19. License not required by banks, trust companies and
building and loan associations.—No license shall be required under
this act for loan transactions of any person, co-partnership, corpo-
ration, bank, or association doing business under any law relating
to banks, trust companies, building and loan associations and licensed
pawnbrokers of this State, or of the United States, as they are already
regulated by appropriate laws. Nor shall a license be required of loan
transactions of any corporations which make loans at a rate not ex-
ceeding the conventional interest rate per annum, and which require
the borrower to purchase certificate of investment equal in amount
to the sum borrowed, and to pay therefor in uniform weekly install-
ments of not less than fifty weeks; nor shall this act apply to loans
for which real estate security is given, if said security is evidenced
by mortgage or deed of trust.
(a) No person, co-partnership, or corporation, except as author-
ized by this act shall, directly or indirectly, charge, contract for, or
receive any interest, or consideration greater than the legal contract
rate per centum per annum upon the loan, use, or forbearance of
money, goods, or things in action or upon the loan, use, or sale of
credit, of the amount, or value of three hundred dollars ($300.00) or
less. The foregoing prohibition shall apply to any person who, as
security for any such loan, use or forbearance of money, goods or
things in action or for any such loan, use or sale of credit, make a
pretended purchase of property, salary or wages from any person
and permits the owner or pledgor to retain possession thereof or who
by any device or pretense of charging for his services or otherwise,
seeks to obtain a greater compensation than is authorized by this act.
Section 20. Citation of the act, or short title—This act may be
cited as the uniform small loan law.
(a) How act is to be interpreted; uniformly with other States. —
This act shall be so interpreted and construed so as to effectuate its
general remedial purposes and to make uniform the laws of those
States which enact it.
Section 21. What acts repealed; what act shall not apply to
licensee.—That section eighty-one (81) of an act entitled an act to
raise revenue for the support of the government and public free
schools, and to pay the interest on the public debt, and to provide
a special tax for pensions, as authorized by section one hundred and
eighty-nine (189) of the Constitution, approved April sixteenth, nine-
teen hundred and three, as heretofore amended, is hereby repealed,
and all acts and parts of acts in conflict with the provisions of this
act are hereby repealed.
Section 22. By reason of the fact that the license year under this
act begins before this act could regularly become effective, an emer
gency exists, and this act shall be in force from its passage.