New Hampshire Revised Statutes 399-A:16 – Small Loans Other Than Payday Loans or Title Loans
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The following provisions are applicable only to small loans other than payday loans or title loans:
I. The annual percentage rate for small loans shall not exceed 36 percent. Notwithstanding the federal definition of annual percentage rate, for purposes of calculating annual percentage rate, the finance charge shall exclude one application fee not to exceed $100 per borrower per year and one participation or membership fee not to exceed $100 per borrower per year.
II. A lender may lend in money, goods, or things of value upon such security not prohibited by N.H. Rev. Stat. § 399-A:15, IX as may be agreed upon, and in connection with any such loan, may contract for, exact, or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense, or otherwise, on the entire principal of the loan.
III. No small loan lender shall permit any person to be obligated to him or her on multiple small loans the total principal balance of which is more than $10,000.
IV. For the purpose of applying paragraphs II and III of this section only,small loan lendershall mean any single small loan lender, except that in the event any person or affiliated group of persons holds more than one small loan lender license, such person or affiliated group of persons shall be considered a single small loan lender.
V. No small loan lender shall induce any potential borrower who is not a loan customer of the lender to enter into a closed-end loan agreement, by delivering in the first instance a negotiable check for such loan to such potential borrower, without including the following information clearly printed on the endorsement side of the check:
(a) A statement which reads, “By endorsing this check, you become legally liable for repaying all moneys, including interest, as specified in the following loan agreement/disclosure statement”;
(b) The amount financed;
(c) The annual percentage rate;
(d) The number of installments; and
(e) The amount of each installment payment.
VI. If a borrower desires to renew an existing small loan for obtaining additional cash a new contract shall be drawn up in its entirety and such prior loan shall be paid in full from such proceeds of the new loan. All legal papers in connection with such prior loan shall be stamped “PAID IN FULL” and returned to such borrower.
VII. Notwithstanding N.H. Rev. Stat. § 399-A:1, XXI(b) or any other provision of law, a loan with a contractual term of 6 months or longer with an annual percentage rate not exceeding 36 percent, as calculated under N.H. Rev. Stat. § 399-A:16, I, shall not be a title loan or a payday loan.
I. The annual percentage rate for small loans shall not exceed 36 percent. Notwithstanding the federal definition of annual percentage rate, for purposes of calculating annual percentage rate, the finance charge shall exclude one application fee not to exceed $100 per borrower per year and one participation or membership fee not to exceed $100 per borrower per year.
Terms Used In New Hampshire Revised Statutes 399-A:16
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- person: may extend and be applied to bodies corporate and politic as well as to individuals. See New Hampshire Revised Statutes 21:9
II. A lender may lend in money, goods, or things of value upon such security not prohibited by N.H. Rev. Stat. § 399-A:15, IX as may be agreed upon, and in connection with any such loan, may contract for, exact, or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense, or otherwise, on the entire principal of the loan.
III. No small loan lender shall permit any person to be obligated to him or her on multiple small loans the total principal balance of which is more than $10,000.
IV. For the purpose of applying paragraphs II and III of this section only,small loan lendershall mean any single small loan lender, except that in the event any person or affiliated group of persons holds more than one small loan lender license, such person or affiliated group of persons shall be considered a single small loan lender.
V. No small loan lender shall induce any potential borrower who is not a loan customer of the lender to enter into a closed-end loan agreement, by delivering in the first instance a negotiable check for such loan to such potential borrower, without including the following information clearly printed on the endorsement side of the check:
(a) A statement which reads, “By endorsing this check, you become legally liable for repaying all moneys, including interest, as specified in the following loan agreement/disclosure statement”;
(b) The amount financed;
(c) The annual percentage rate;
(d) The number of installments; and
(e) The amount of each installment payment.
VI. If a borrower desires to renew an existing small loan for obtaining additional cash a new contract shall be drawn up in its entirety and such prior loan shall be paid in full from such proceeds of the new loan. All legal papers in connection with such prior loan shall be stamped “PAID IN FULL” and returned to such borrower.
VII. Notwithstanding N.H. Rev. Stat. § 399-A:1, XXI(b) or any other provision of law, a loan with a contractual term of 6 months or longer with an annual percentage rate not exceeding 36 percent, as calculated under N.H. Rev. Stat. § 399-A:16, I, shall not be a title loan or a payday loan.