Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-04-09

An Act to license and regulate the bus
mess of making loans In sums OF
three hundred dollars or less. at o
greater rate OF interest than twelve
per centum Per annum, and Lesulstins
given as security therefor.
Section !. No person, copartnershtp
or corporation shall engage In the bust
ness of making any loan OF money, cred
1t, goods or chooses in action In the
amount or to the value of three hundred
dollars. or less. whether secured or UNI
secured, and charge, contract Tor or re-
ceive a greater rate OF interest than
twelve per centum per annum therefor
without first obtaining license from
the State bank commissioner Apptt-
cation for such license shall be in writ
ing and shall contain the full name ana
address both of the residence and place
of business, of the applicant. and II the
applicant is copartnershlp OF ever!
member thereof. or if corporation. OF
every officer thereof; also the county
and municipality. with street and NUM-
her, if any, where the business is to be
conducted. Every such applicant. at
the time of making such Application,
shall pay to tile bank commissioner the
sum of fifty dollars as an annual license
fec and in fun payment of all expenses
of examinations under ana administra.
ton of this act. The applicant shall
also, at the same time, file with the
bank commissioner a bond in which the
applicant shall be the obligor, IN the
sum Of one thousand dollars with one
or more sureties to be approved by
said bank commissioner: which bona
shall run to the bank commissioner OF
the state of Maine for the use or the
State and of any person or persons
who may have cause of action against
the oblgor of said bond under the pro-
visions of this act and shall be con-
ditioned that said obligor Will conform
to and abide by each and every provis-
ion Of this act and Will pay to the state
and such person persons, any
and all moneys that may become due Oh
owing to the State and to such person
or persons from said obligor. under ana
by virtue of the provisions or TINS ACT
If in the opinion of the bank commits
stoner the bond shall at any time APP
pear to be insecure or exhausted, or
otherwise doubtful an additional ponn
in the sum of not more than one thou-
sand dollars satisfactory to the bank
commissioner shall be filed. and upon
failure of the obgor to file such ad-
ditional bond. the license shall be re-
voked by the bank commissioner
Section >. Upon the films, or such
bond and the payment of said lee. the
bank commissioner shall issue a license
to the applicant to make loans in &C
cordance with the provisions of this
act for period which shall expire the
first day of January next Following the
date of its issuance; provided, that II
the license is issued for a period of
less than six months the license fee
shall be twenty-five dollars. Such
license shall not be assignabie. ana
shall be kept ConSpicuously posted IN
the place of business of the licensee.
Section 3. The bank commissioner
may, in his discretion, upon notice TO
the licensee and opportunity 10 DC
heard. revoke such license If satisfied
that the liccnsee has violated any pro-
vision of this act or any existing stat
ute The issuance of another license
after a revocation shall be at the dis
of ha m GS1oner.
case the liCenSee shall be convicted
second time of a violation of sections
eight and nine of this act or any EXIST
ing statute the bank commissioner shau
revoke such license: provided, that the
second offensc shall have occurred AFTER
a prior conviction.
Section A. No person, copartnership
or corporation so licensed shall make
any loan or transact any business pro
Vded 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 office or place or business
shall be maintained under the same
license, but the bank commissioner may
issue more than one license to the same
person upon the payment or an aodi-
tional license fee and the filing OF an
additional bond for each license. IN
case of the removal of llcensee' ne
Shall at once give written notice thereol
to the bank commissioner. who shall a,
tach to the license his consent in writ
ing to the removal.
Section ). The bank commissioner
for the purpose Of discovering violations
of this act may either personally. or by
any person designated by him. at any
time and as often as he may desire, IN
yeStigate the loans and business OF
every lcensee and Of every person, CO.
partnership and corporation by Whom
or which any such loan shall be MADE.
whether such person, copartnershlp or
corporation shall act. or claim to act,
as principal. agent or broker. or under,
30 rT,ysttN nj
and for that purpose he shall have free
access to the books. papers. records anq
vaults Of all such persons, copartner-
ships and corporations: he snail alsp
have authority to examine. under oath3
all persons whomsoever whose testl>
mony he may require. relative to SUCH
loans or business
Section G. The licensee shall keep
such books and records as in the opinion
of the bank commissioner Will enable the
commissioner to determine whether the
provisions Of this act are being OBJ.
served Every such Iicensee shall pre-
serve the records of final entry used i'm
such business, including cards used IN
the card system, If any, for period OF
at least two years after the making OF
any loan recorded therein.
Section T. No licensee or other per-
son or corporation shall print, publish or
distribute or cause to he printed. pub
lished or distributed in any manner
whatsoever, any written or printed
terms or conditions for the lending OF
money. credit goods or chooses in action.
in amounts of three hundred dollars or
less. which is false or calculated to de-
CeiVe.
Section s. Every person. copartner-
ship and corporation licensed hereunder
may loan any sum of money. goods or
chooses in action not exceeding in amount
or value the sum of three hundred dol
lars, and may charge. contract FOR and
receive thereon interest at rate not
to exceed three and one-half per centum
per month No person shall owe any
licensee at any time more than three
hundred dollars for principal.
Section 8. Interest shall not be pay
able in advance or compounded, and
shall be computed on unpaid balances.
In addition to the interest herein pro-
vided for no further or other charge
or amount whatsoever for any examin-
alton, service, brokerage. commission or
other thing, or otherwise, shall be d.
rectly or. indirectly charged contract ted
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.
IF interest or charges in excess Of those
permitted by this act shall be charged.
contracted for. or received. the contract
Of loan shall be void. and the licensee
any principal, interest or charges what