Chap. 156.—An ACT to regulate the business of lending money on household
and kitchen furniture, household goods, wearing apparel, sewing machines,
musical instruments, or wages and salaries, on conditional sales of the
same, and the buying of salaries and wages.

Approved March 12, 1906.

1. Be it enacted by the general assembly of Virginia, That no person,
firm or corporation shall engage generally, regularly or collaterally to
any other business in the business of making of loans on household or
kitchen furniture, or household goods, or wearing apparel, or sewing
machines, or musical instruments, or wages, or salaries, vr on conditional
sales of the same, without first obtaining a license therefor, which shall
he in addition to the license required by law for any other business the
person, .firm, or corporation may engage in. The applicant for such
license shall, before the same is issued, file with the officer authorized to
issue it, a statement on oath giving the location where such business is to
he conducted, the name and business address of the applicant, if the
licensee is an individual, the name and business addresses of each of the
partners, if the business is a firm, and the name and business addresses
of each of its officers, if the licensee is a corporation, and, in case of a
corporation, the State under the laws of which it is organized. Said
license, when issued, shall not be transferable. Should the licensee chanye
the location of his business said license shall immediately become void,
unless said licensee shall, at least ten days before changing the location,
file with the officer authorized to issue said license a notice of the pro-
posed change of location, and such officer shall endorse on said license the
fact of said change. In default of compliance with these provisions, said
license shall be null and void. The license shall at all times be kept
publicly exposed by the licensee on his business premises. Any person,
firm or corporation violating the provisions of this section shall pay a
fine of not less than fifty dollars and not more than five hundred dollars
for each offense.

2. No license shall be issued to any person, firm or corporation to carry
on the business as specified in section one of this act, until the applicant
shall have filed with the clerk of the circuit court of the county, or of the
corporation court of the corporation, wherein said business is to be con-
ducted, a bond, with security to be approved by the said courts or judges
thereof in vacation, in the penalty of one thousand dollars, payable to the
Commonwealth of Virginia, and conditioned for the faithful performance
lw the licensee of the duties and obligations pertaining to the business so
licensed, and the prompt payment of any judgment which may be re-
covered against said licensee on account of damages or other claims
arising directly or collaterally from any loan of money or sale of wages
or salary.

3. Should any surety on such bond become insolvent, the said judge
shall immediately require the licensee to file an additional bond with good
security, and on failure to file such additional bond within ten days after
being so required to file the same, said license shall stand ipso facto re-
voked.

4. If it be agreed in writing by the borrower and the lender at the time
the loan is made, the lender may charge for investigating the security or
title and closing the loan, a fee of not more than fifty cents where the
amount borrowed is five dollars or less; not more than seventy-five cents
where the amount is more than five dollars and not more than ten dol-
lars: and not more than one dollar where the amount borrowed is more
than ten dollars and not more than twenty dollars; and not more than
one dollar and a half where the amount borrowed is more than twenty
dollars and not more than thirty-five dollars, and not more than two
dollars where the amount borrowed is more than thirty-five dollars, which
said fee may be charged, if so agreed, upon each original loan, or any
renewal thereof: provided, however, that no fee whatever shall be allowed
on any renewal or extension, which occurs within sixty days from the time
of making the loan or from the time of the last renewal: and provided,
further, that the fee provided for in this section shall not be charged on
any renewal made after the expiration of four months from the date of
the original loan, but that all renewals made after said four months shall
he at fees not greater than one-half of the amounts herein provided: and
provided, further, that any loan which shall be made between said par-
ties within ten days after the payment of a pre-existing loan of approxi-
mately the same amount, shall in all cases be construed prima facie to be
a renewal of said pre-existing loan. No original loan shall be split up
into smaller Joans in order to increase the fees alldwed; but if two or
nore loans be made at or about the same time between the same parties
they shall be construed to be but one original loan, unless the contrary
plainly and unequivocally appears.

5. Any interest charged by the lender to the borrower in excess of the
present legal rate of interest, or any fee, fine or charge whatsoever
charged by the lender against the borrower, whether for negotiating a
loan or for commissions, examinations, attorney’s fee, or anv other bonus,
or additional charge whatsoever, to those allowed in section four of this
act, shall be considered as a payment on the principal of said loan, and
the same shall be credited with the amount of said additional charge or
excess, and the license of the person, firm or corporation making “such
additional or excessive charge may, in the discretion of the circuit court
of the county or corporation court of the corporation wherein such busi-
ness was licensed, be revoked.

6. It shall be unlawful for any licensee under this act to charge any
sum of money for fire insurance on any article of personal property
pledged as security for any loan or any fee for recording any papers con-
nected with any loan or sale, under the terms of this act except such as
are actually paid by such licensee.

%. If any person, firm or corporation shall engage generally, regularly.
or collaterally to some other business, in the business of making loans or
purchasing wages or salaries, as prescribed in section one of this act.
without first obtaining a license for carrying on such business in the
city, town or. county, in which said business is transacted, or shall con-
tinue to conduct said business after the forfeiture or cancellation of the
license under which the same is conducted, then no suit or action shall
be maintained for the enforcement of any such loan, or of any security
given for such loan, or any assignment of wages or salary.

8. Every individual, firm or corporation desiring the privilege of con-
ducting business under the provisions of this act shall pay therefor a
license tax of one hundred dollars.

9. This act shall not apply to any loan in excess of one hundred and
fifty dollars actually and bona fide made at one time, and shall not pre-
vent any merchant or other person who sells provisions, wearing apparel.
household goods or furniture to wage-earners from taking as security
therefor an order for or assignment of wages: provided, however, that no
interest, bonus or rebate is charged or taken, directly or indirectly, upon
the sale or amount of debt contracted or from the amount of wages, and
that the property is sold at no higher price than like property is sold on
eredit to other persons than such wage-earners.

10. All acts and parts of acts in conflict with any of the provisions of
this act are hereby repealed.