(1) Upon the request of a service member with a qualifying business loan, the financial institution must restructure the interest rate of the loan to the equivalent provisions in the federal servicemembers civil relief act (50 U.S.C. App. 501 et seq.). The service member must notify the institution at least five days prior to the beginning of military service and submit official documentation that substantiates their eligibility for the protections of this chapter.
Terms Used In Washington Code 38.42.110
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- member: refers to a soldier or airman of the organized militia. See Washington Code 38.04.010
- military: refers to any or all of the armed forces. See Washington Code 38.04.010
(2) This section applies only to loans with an outstanding balance of less than one hundred thousand dollars at the time the service member is called to military service.
(3) This section applies only to business loans executed on or after January 1, 2007.