reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-11 - Books, Accounts and Records of Licensees; Annual Report.

Section 5-18-11
Books, accounts and records of licensees; annual report.
(a) Books and records. -Each licensee shall keep and use in his business such books, accounts and records as will enable the supervisor to determine whether such licensee is complying with the provisions of this chapter and with the orders and regulations lawfully made by the supervisor hereunder. Each licensee shall preserve such books, accounts and records for at least two years after making the final entry on any loan recorded therein.
(b) Annual report.
(1) Each licensee shall annually, on or before May 1, file a report with the supervisor as to each licensed place of business under this chapter, covering the preceding calendar year.
(2) Such report shall be made under oath and shall be in the form prescribed by the supervisor who shall make and publish annually an analysis and recapitulation of such reports.
(Acts 1959, No. 374, p. 966, §10; Acts 1984, No. 84-287, p. 498.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-12 - Promulgation of Rules, Regulations and Orders by Supervisor; Furnishing of Certified Copies of Licenses, Regulations or Orders.

Section 5-18-12
Promulgation of rules, regulations and orders by supervisor; furnishing of certified copies of licenses, regulations or orders.
(a) Rules, regulations, and orders. - The supervisor shall have authority to make reasonable rules, regulations, and orders for the administration and enforcement of this chapter, in addition hereto and not inconsistent herewith. The regulation or order shall be referenced to the section or sections of the chapter which set forth the legislative standard which it interprets or to which it applies. Every regulation shall be promulgated by an order, and any ruling, demand, requirement or similar administrative act may be promulgated by an order. Every order shall be in writing, shall state its effective date and the date of its promulgation and shall be entered in an indexed permanent book which shall be a public record. A copy of every order promulgating a regulation and of every other order containing a requirement of general application shall be mailed to each licensee at least 10 days before the effective date thereof. The failure of a licensee to receive a copy of the regulations shall not exempt him from the duty of compliance with the valid regulations lawfully issued.
(b) Certified copies of official documents. - On application of any person and payment of the costs thereof, the supervisor shall furnish, under his or her seal and signed by him or her or his or her deputy a certified copy of any license, regulation or order. In any court or proceeding, the copy shall be prima facie evidence of the fact of the issuance of the license, regulation or order.
(c) Standards for judicial review of rules and regulations. - As set forth in Section 5-19-21, the supervisor may promulgate reasonable rules and regulations, consistent with the laws of this state, as may be necessary to carry out the provisions of this chapter, and issue written interpretations of consumer finance laws and regulations. The courts of this state shall apply each regulation that becomes effective and each written interpretation that is issued under this subsection, unless the regulation or interpretation is found to be arbitrary and capricious, outside the supervisor's statutory authority, or violative of the Constitution of Alabama of 1901. Any licensee whose practices are consistent with any regulation or written interpretation shall not be liable for any violation of this chapter, even though the rule, or interpretation thereof, is ruled invalid for any reason by a court of competent jurisdiction.
(Acts 1959, No. 374, p. 966, §11; Acts 1996, No. 96-757, p. 1331, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-13 - Advertising; Schedule of Charges.

Section 5-18-13
Advertising; schedule of charges.
(a) Advertising, etc. No licensee or other person subject to this chapter shall advertise, display, distribute, or broadcast or cause to permit to be advertised, displayed, distributed, or broadcast in any manner whatsoever any false, misleading, or deceptive statement or representation with regard to the rates, terms, or conditions for loans in the amount or of the value of less than one thousand five hundred dollars ($1,500). The supervisor may require that charges or rates of charge, if stated by a licensee, be stated fully and clearly in such manner as he or she may deem necessary to prevent misunderstanding thereof by prospective borrowers. The supervisor may permit or require licensees to refer in their advertising to the fact that their business is under state supervision, subject to conditions imposed by him or her to prevent an erroneous impression as to the scope or degree of protections provided by this chapter.
(b) Schedule of charges. Each licensee shall conspicuously display in each licensed place of business a full and accurate schedule of the rates of charge upon all classes of loans currently to be made by him or her.
(Acts 1959, No. 374, p. 966, §12; Acts 1979, No. 79-327, p. 490, §1; Act 2002-305, p. 863, §1; Act 2004-290, p. 407, §1; Act 2017-373, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-14 - Conduct of Other Business in Office of Licensee; Loan Business Confined to Licensed Offices; Acceptance of Liens on Real Estate as Security for Loans.

Section 5-18-14
Conduct of other business in office of licensee; loan business confined to licensed offices; acceptance of liens on real estate as security for loans.
(a) Other business in same office. - No licensee shall conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in or in association or conjunction with any other business until three days' written notice of an intention so to do has been given the supervisor. Upon receipt of written notification, the supervisor may investigate the facts and, if he finds that the character of the licensee and the nature of the other business warrant belief that such conduct of business would conceal violation or evasion of this chapter or of regulations lawfully made hereunder, he shall enter an order directing the licensee to discontinue said other business. The order shall be entered in the manner specified in and subject to the provisions of subsection (c) of Section 5-18-6.
(b) Business confined to licensed office. - No licensee shall conduct the business of making loans provided for by this chapter under any name or at any place of business within this state other than that stated in the license. Nothing in this section shall prevent the making of loans by mail nor prohibit accommodations to individual borrowers when necessitated by sickness or other emergency situations.
(c) Liens on real estate. - No licensee shall take a lien upon real estate as security for any loan made under this chapter, except such lien as is created by law through the entry or recording of a judgment.
(Acts 1959, No. 374, p. 966, §13.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-15.1 - Additional Late Payment Charge.

Section 5-18-15.1
Additional late payment charge.
Notwithstanding the provisions of subsection (e) of Section 5-18-15, for contracts entered into after June 7, 2007, the additional late charge a licensee licensed under this chapter, the Alabama Small Loan Act, may charge when a scheduled payment is in default or delinquent for 10 or more days, is hereby increased from a charge not to exceed the greater of ten dollars ($10) or five percent of the scheduled payment in default to a charge not to exceed the greater of eighteen dollars ($18) or five percent of the scheduled payment in default.
(Act 2007-281, p. 383, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-16 - Duties of Licensees as to Making and Payment of Loans.

Section 5-18-16
Duties of licensees as to making and payment of loans.
(a) Copy of contract or statement; receipts; payment in advance; release of obligation and security. - Every licensee shall:
(1) At the time a loan is made deliver to the borrower or, if there are two or more borrowers, to one of them a copy of the loan contract, executed by the borrower, in the English language showing in clear and distinct terms:
a. The name and address of the lender and one of the primary obligors on the loan.
b. The date of the loan contract.
c. Schedule of installments or description thereof.
d. The cash advance.
e. The face amount of the note evidencing the loan.
f. The amount collected or paid for insurance, if any.
g. The amount collected or paid for filing or other fees allowed by this chapter.
h. The collateral or security for the loan.
(2) Give to the person making any cash payment on account of any loan a receipt at the time the payment is made which receipt need only show the total amount of the cash payment. No receipt shall be required in the case of payments made by the borrower's check or money order, and the use of a coupon book system shall be deemed in compliance with this section.
(3) Permit the payment to be made in advance in any amount on any contract of loan at any time during a licensee's regular business hours.
(4) Upon repayment of the loan in full, mark plainly every obligation and security signed by any obligor with the word "Paid" or "Cancelled," and release any mortgage, restore any pledge, and cancel and return any note and any assignment given to the licensee.
(b) Confessions of judgment; incomplete instruments. -No licensee shall:
(1) Take any confession of judgment or any power of attorney running to himself or herself or to any third person to confess judgment or to appear for the borrower in a judicial proceeding; nor
(2) Take any note or promise to pay that does not disclose the total amount to be repaid, a schedule of payments or a description thereof and the agreed rate or aggregate amount of charge, nor any instrument in which blanks are left to be filled in after execution.
(c) Installments. - Every loan contract shall provide for repayment of principal and charges at approximately equal periodic intervals of time, which shall be so arranged that no installment is substantially greater in amount than any preceding installment.
(d) Confidential relationship or fiduciary duty not created by loan transaction. - Absent other factors, a loan transaction does not create a confidential relationship between the borrower and the licensee nor does it give rise to or create a fiduciary duty on the part of the licensee.
(Acts 1959, No. 374, p. 966, §15; Acts 1996, No. 96-757, p. 1331, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-17 - Insurance in Connection With Credit Transaction.

Section 5-18-17
Insurance in connection with credit transaction.
(a) With respect to any insurance written in connection with any credit transaction under this chapter, the creditor shall be subject to the same restrictions, prohibitions, powers, and allowances as any creditor bank, retail establishment, sales finance company, licensee, or any other creditor under Section 5-19-20, and shall be subject to the same rates and regulations promulgated pursuant to that section.
(b) Insurance sold by a licensee or its agents shall be regulated by the Supervisor of the Bureau of Loans. All insurance shall be written by a company authorized to conduct business in the State of Alabama.
(Acts 1959, No. 374, p. 966, §16; Acts 1979, No. 79-327, p. 490, §2; Acts 1996, No. 96-757, p. 1331, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-18 - Charges, Rates, etc., as to Certain Loans.

Section 5-18-18
Charges, rates, etc., as to certain loans.
Licensees may charge to a borrower the rates permitted by this chapter only on principal loan balances less than one thousand dollars ($1,000). No licensee shall induce or permit any person, jointly or severally, to become obligated directly or contingently, or both, on more than one loan made pursuant to this chapter at the same time for the purpose of obtaining a higher finance charge than would otherwise be permitted by Section 5-18-15. If a licensee makes a loan of one thousand dollars ($1,000) or more, the charges authorized by this chapter shall not apply to any part of the loan. The rates on the entire amount of a loan of one thousand dollars ($1,000) or more shall be governed by the applicable provisions of Chapter 8 of Title 8 or Chapter 19 of this title. The supervisor may suspend or revoke the license of any licensee who violates this section in the manner prescribed by Section 5-18-9, and the penalties provided for in subsection (l) of Section 5-18-15 shall apply to any person, firm or corporation violating this section.
(Acts 1959, No. 374, p. 966, §16 1/2 ; Acts 1979, No. 79-327, p. 490, §1; Act 2002-305, p. 863, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-19 - Collection of Loans Made Outside State.

Section 5-18-19
Collection of loans made outside state.
Any loans made outside this state in accordance with the law applicable to such loan in the state in which the loan was made may be collected in this state.
(Acts 1959, No. 374, p. 966, §17.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-20 - Review of Orders, etc., of Supervisor.

Section 5-18-20
Review of orders, etc., of supervisor.
In addition to any other remedy he may have, any licensee and any person considering himself aggrieved by any act or order of the supervisor under this chapter may, within 30 days from the entry of the order complained of, or within 60 days of the act complained of if there is no order, petition the Circuit Court of Montgomery County for review of such act or order; provided, that such petition shall be docketed, heard and tried in the same manner as other extraordinary writs issued by the court and a copy of the petition and order setting the same for hearing shall be served on the supervisor, giving him such notice of the time and place of the hearing as may be directed by the court.
(Acts 1959, No. 374, p. 966, §18.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-21 - Enforceability of Provisions and Agreements Which Violate Chapter; Liability of Licensee for Actual Damage.

Section 5-18-21
Enforceability of provisions and agreements which violate chapter; liability of licensee for actual damage.
Except where other specific remedies are provided in this chapter for violations, in which event those remedies shall apply, any provision of a loan contract which violates this chapter shall be unenforceable by the licensee to the extent, but only to the extent, of the violation, and the other remaining provisions and agreements shall be enforceable and shall not be void and shall not be affected by the violation. Except as set forth in subsection (l) of Section 5-18-15, any licensee who fails to comply with any requirement imposed under this chapter with respect to any person is liable to the person for the actual damage sustained by the person as the result of the failure.
(Acts 1959, No. 374, p. 966, §19; Acts 1996, No. 96-757, p. 1331, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-22 - Modification, Amendment or Repeal of Chapter.

Section 5-18-22
Modification, amendment or repeal of chapter.
This chapter or any part thereof may be modified, amended or repealed so as to effect a cancellation or alteration of any license or right of a licensee hereunder; provided, that such cancellation or alteration shall not impair or affect the obligation of any preexisting lawful contract between any licensee and any borrower.
(Acts 1959, No. 374, p. 966, §20.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18 - Small Loans. › Section 5-18-23 - Maintenance of Listing of Licensees Doing Business in State; Public Access to Reports, Etc.

Section 5-18-23
Maintenance of listing of licensees doing business in state; public access to reports, etc.
(a) The supervisor shall cause to be kept on file in the Bureau of Loans, open to public inspection during business hours, an alphabetical listing of all licensees doing business in Alabama, and such list shall reveal the true ownership of the licensee companies. If the company is a corporation, the list shall indicate the name of the corporation, the address of the home office and the names and addresses of its officers and directors.
(b) Except as provided in subsection (a) of this section, all applications, reports and other papers and documents submitted by licensees to the supervisor or to the bureau shall be open to public inspection only upon approval of the supervisor, but the supervisor shall not deny any person access to such records when the disclosure thereof to such person is in the public interest.
(Acts 1959, No. 374, p. 966, §22.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-1 - Short Title; Purpose.

Section 5-18A-1
Short title; purpose.
This chapter shall be known and may be cited as the "Deferred Presentment Services Act." The purpose of this chapter is to protect consumers who enter into short-term cash advances from abuses that occur in the marketplace. This chapter shall be liberally construed to effectuate its purpose as a consumer protection statute.
(Act 2003-359, p. 992, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-2 - Definitions.

Section 5-18A-2
Definitions.
As used in this chapter, the following terms shall have the following meanings:
(1) CHECK. A debit authorization or a check signed by the maker and made payable to a person licensed under this chapter.
(2) CONTINUOUS TRANSACTION. To extend a deferred presentment transaction with the same account without redemption in full with cash or guaranteed funds.
(3) DEFERRED PRESENTMENT SERVICES. A transaction pursuant to a written agreement involving the following combination of activities in exchange for a fee:
a. Accepting a check or authorization to debit a checking account and, in connection with that acceptance, advancing funds to the checking account holder.
b. Holding the check or authorization to debit checking account for a period of time prior to payment or deposit.
(4) DEPARTMENT. The State Banking Department.
(5) LICENSEE. A person licensed to provide deferred presentment services pursuant to this chapter.
(6) PERSON. An individual, group of individuals, partnership, association, corporation, or any other business unit or legal entity.
(7) ROLLOVER. Any deferred presentment transaction where the transaction is not paid in full and the licensee agrees to allow the customer to pay the fee only for a new deferred presentment transaction.
(8) SUPERVISOR. The Supervisor of the Bureau of Loans or his or her designee.
(Act 2003-359, p. 992, §2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-3 - License - Required; Applicability.

Section 5-18A-3
License - Required; applicability.
(a) On or after January 1, 2004, no person shall engage in the business of deferred presentment services without having first obtained a license from the supervisor. A separate license shall be required for each location from which the business is conducted.
(b) Trust companies, life insurance companies, and federally constituted agencies shall be exempt from licensing under this chapter. Notwithstanding anything to the contrary in this chapter, this chapter shall not apply to any of the following entities, and each of these entities shall be exempt from this chapter: Banks, credit unions, savings associations, savings banks, and thrift institutions organized pursuant to the laws of this state or any other state or the laws of the United States and any parent of any of the foregoing entities.
(c) This chapter shall have no application to persons who do not engage in deferred presentment services.
(Act 2003-359, p. 992, §3.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-4 - License - Qualifications.

Section 5-18A-4
License - Qualifications.
(a) Each applicant for a license shall satisfy all of the following requirements to qualify for a license:
(1) Have a financial statement showing that the applicant has at least twenty thousand dollars ($20,000) in unencumbered cash assets or its equivalent available for each location of the business prepared in accordance with standard accounting practices and procedures.
(2) Have no record on the part of the applicant, any director, officer, or shareholder owning more than 25 percent of the applicant, of any court findings of fraud or any official suspension or removal by any agency or department of the United States or any state from participation in the conduct of any lending, deferred presentment, or related business.
(3) Have no record of a conviction of a felony or an offense involving breach of trust, fraud, or dishonesty in any jurisdiction or a history of acting as a beneficial owner for an individual who has been convicted of a felony or an offense involving breach of trust, fraud, or dishonesty in any jurisdiction.
(b) The requirements set forth in this section shall be continuing in nature.
(Act 2003-359, p. 992, §4.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-5 - License - Application.

Section 5-18A-5
License - Application.
Each application for a license shall be in writing and under oath to the supervisor, in a form prescribed by the supervisor, and shall include the legal name, residence, business address, and telephone number of the applicant. If the applicant is a partnership, association, or corporation, the application shall include the name and address of every member, officer, and director.
(Act 2003-359, p. 992, §5.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-6 - License - Fees; Financial Statement.

Section 5-18A-6
License - Fees; financial statement.
Each application for a license shall be accompanied by all of the following:
(1) A nonrefundable license fee of five hundred dollars ($500) for each location, office, or branch at which the applicant conducts business. The license fees are subject to increase by the supervisor through regulation.
(2) A nonrefundable application investigation fee of one hundred dollars ($100).
(3) A financial statement meeting the requirements of subdivision (1) of subsection (a) of Section 5-18A-4.
(Act 2003-359, p. 992, §6.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-7 - License - Issuance; Display; Payment of Fees; Surrender.

Section 5-18A-7
License - Issuance; display; payment of fees; surrender.
(a) Upon the filing of an application in the form prescribed by the supervisor, accompanied by the fee and documents required pursuant to Section 5-18A-6, the supervisor shall investigate to ascertain whether the qualifications prescribed by Section 5-18A-4 have been satisfied. If the supervisor finds that the qualifications have been satisfied, and approves the documents, the supervisor shall issue to the applicant a license to engage in deferred presentment services business in Alabama. A request shall be either granted or denied within 90 days of receipt. If permission is denied, the applicant for licensure shall have the right to an administrative hearing within 60 days of the denial, if requested, and the right to appeal pursuant to rules promulgated by the supervisor.
(b) The license shall be kept conspicuously posted in the place of business of the licensee and shall not be assignable or transferable or removed to another location without permission of the supervisor.
(c) The annual license fee required in subdivision (1) of Section 5-18A-6 for each office, branch, or place of business of the licensee shall be due on January 1 of each year and shall be valid for a one-year period ending the following December 31. License fees shall be delinquent on February 1 of each year and there shall be a penalty of 10 percent for each month or portion thereof that the licensee is delinquent in the payment of a license fee. All license fees and investigation fees collected pursuant to this chapter shall be paid into the special fund created pursuant to Section 5-2A-20, and shall be used in the supervision and examination of licensees.
(d) A licensee may voluntarily surrender its license to the supervisor; however, the licensee shall not be entitled to receive a refund of any license fees previously paid. Upon surrender of a license, the licensee shall immediately make available to the supervisor all books, records, and papers required to be created and maintained pursuant to this chapter or rule or regulation promulgated hereunder.
(Act 2003-359, p. 992, §7.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-8 - License - Change of Control.

Section 5-18A-8
License - Change of control.
The prior written approval of the supervisor shall be required for the continued operation of a deferred presentment services business whenever a change in control of a license is proposed. Control in the case of a corporation shall mean direct or indirect ownership, or the right to control 25 percent or more of the voting shares of the corporation, or the ability of a person to elect a majority of the directors or otherwise effect a change in policy. Control in the case of any other entity shall mean the ability to change the principals of the organization, whether active or passive. The supervisor may require any information deemed necessary to determine whether a new application is required.
(Act 2003-359, p. 992, §8.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-9 - Circumstances Requiring Written Report.

Section 5-18A-9
Circumstances requiring written report.
Within 15 days of the occurrence of any one of the following events, a licensee shall file a written report with the supervisor describing the event and its expected impact on the activities of the licensee in this state:
(1) The filing for bankruptcy or reorganization by the licensee.
(2) The institution of revocation or suspension proceedings against the licensee by any state or governmental authority and subsequently the outcome of such proceeding.
(3) The denial of a license to engage in the deferred presentment services business by any state or governmental authority.
(4) Any felony indictment of the licensee or any of its directors, officers, or principals.
(5) Any felony conviction of the licensee or any of its directors, officers, or principals.
(6) All other events as the supervisor may determine and identify by regulation.
(Act 2003-359, p. 992, §9.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-11 - Maintenance of Business Records; Notice of Intent to Conduct Business in Conjunction With Other Business; Examination of Place of Business.

Section 5-18A-11
Maintenance of business records; notice of intent to conduct business in conjunction with other business; examination of place of business.
(a) Each licensee shall keep and use in its business any books, accounts, and records that the supervisor may require to carry into effect this chapter and the administrative regulations issued hereunder. If a licensee operates any other business licensed by the department, a deferred presentment services business shall be accounted for separately from any other business licensed by the department. Each licensed business shall maintain separate business records.
(b) No licensee shall conduct the business of making deferred presentment transactions under this chapter within any office, suite, room, or place of business in which any other business except check cashing or a business conducted pursuant to Chapter 19A is solicited or engaged in or in association or conjunction with any other business until 15 days' written notice of an intention to do so has been given the supervisor. Upon receipt of written notification, the supervisor may investigate the facts and, if he or she finds that the character of the licensee and the nature of the other business warrant belief that such conduct of business would conceal violation or evasion of this chapter or of regulations lawfully made hereunder, he or she shall enter an order directing the licensee to discontinue the other business. The order shall be entered in the manner specified in and subject to the provisions of Section 5-18A-7.
(c) For the purpose of determining compliance with this chapter, the supervisor may, at any reasonable time, cause an examination to be made at the licensee's place of business of the records and transactions of such licensee. As cost of examination, the licensee shall pay to the supervisor an examination fee as provided in Section 5-2A-24, which fee shall be collected and paid into the special fund as provided by Section 5-2A-20, and shall be used in the supervision and examination of licensees. Each licensee shall preserve all relevant records for a period of two years after making the last entry on any transaction, and the supervisor shall have free access thereto at the licensee's place of business at all reasonable times. If the supervisor has probable cause to believe that a licensee has engaged in an activity which violates the provisions of this chapter, the supervisor may compel the production of such books and records of the person as he or she has probable cause to believe are relevant to the alleged violation. Any action arising out of any investigation or examination shall be in the Circuit Court of Montgomery County or in the county of the principal place of business of the licensee.
(Act 2003-359, p. 992, §11.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-12 - Transaction Fees; Renewal or Extension; Repayment; Bad Check Charge.

Section 5-18A-12
Transaction fees; renewal or extension; repayment; bad check charge.
(a) Subject to the following subsections, every licensee under this chapter may charge and collect a maximum fee on any deferred presentment transaction not to exceed 17.5 percent of the amount advanced. The maximum amount that may be advanced in any deferred presentment transaction is five hundred dollars ($500).
(b) Each licensee may renew or extend a deferred presentment transaction with the same customer no more than one additional time at this fee for a maximum of two continuous transactions. After two continuous transactions with the customer, the licensee shall not enter into a new deferred presentment transaction with that same customer until the next business day after the transaction amount is repaid in full. After the customer has redeemed the check in full with cash or guaranteed funds, the licensee has the same authority as any other licensee to enter into another agreement for deferred presentment services with the customer on another check.
(c) After the initial loan period and one rollover with the same customer, the full outstanding amount of the loan, including, but not limited to, held check or debt authorization, shall become due. If the customer is unable to repay the outstanding balance in full, the licensee may offer the customer an extended repayment option of four equal monthly installments of the remaining balance. The licensee shall not commence any civil action to collect on a transaction in default until written notice has been sent notifying the customer of his or her rights. If the customer fails to exercise his or her rights within 15 days of the notice, the licensee may commence action to collect on a transaction in default.
(d) If there are insufficient funds to pay a check on the date of presentment, the licensee may charge a fee authorized in Section 8-8-15; however, only one such fee may be collected with respect to any particular transaction. No other fees or charges of any kind may be charged or collected from customers except those authorized herein. No person shall use any device, subterfuge, or pretense whatsoever, including, but not limited to, catalog sales, discount vouchers, Internet instant-rebate programs, phone card clubs, or any agreement, including agreements with affiliated persons, with the intent to obtain greater charges than would otherwise be authorized by this chapter.
(Act 2003-359, p. 992, §12.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-14 - Denial of Application; Hearing.

Section 5-18A-14
Denial of application; hearing.
(a) If the supervisor determines that an applicant is not qualified to receive a license, the supervisor shall notify the applicant in writing that the application has been denied, stating the basis for denial.
(b) If the supervisor denies an application or if the supervisor fails to act on an application within 90 days after the filing of a properly completed application, the applicant may make a written demand to the supervisor for a hearing as provided in subsection (a) of Section 5-18A-7 before the supervisor on the question of whether the license should be granted.
(c) At the hearing, the burden of proving that the applicant is entitled to a license shall be on the applicant. A decision of the supervisor following any hearing on the denial of a license may be subject to review by the circuit court pursuant to Title 6.
(Act 2003-359, p. 992, §14.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-15 - Suspension or Revocation of License; Hearing.

Section 5-18A-15
Suspension or revocation of license; hearing.
(a) The supervisor may, after notice and hearing, suspend or revoke any license if the supervisor finds that the licensee has knowingly or through lack of due care committed any of the following actions:
(1) Failed to pay the annual license fee imposed by this chapter or an examination fee imposed by the supervisor under the authority of this chapter.
(2) Committed fraud, engaged in a dishonest activity, or made misrepresentations.
(3) Violated a provision of this chapter, an administrative regulation issued pursuant to this chapter, or has violated any other law in the course of its or his or her dealings as a licensee.
(4) Made a false statement in the application for the license or failed to give a true reply to a question in the application.
(5) Demonstrated incompetence or untrustworthiness to act as a licensee.
(6) Entered or caused to be entered or allowed to be entered any false information on any business record of the licensed activity, including, but not limited to, any information in customer agreements and on deferred presentment checks or debit authorizations.
(b) If the reason for revocation or suspension of a license of the licensee at any one location is of general application to all locations operated by a licensee, the supervisor may revoke or suspend all licenses issued to a licensee.
(c) A hearing shall be held on written notice given at least 20 days prior to the date of the hearings.
(Act 2003-359, p. 992, §15.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-16 - Violations of Chapter.

Section 5-18A-16
Violations of chapter.
If, after a hearing, the supervisor finds that a person has violated this chapter or any administrative regulation issued pursuant to this chapter, the supervisor may take any one or more of the following enforcement actions:
(1) Order the person to cease and desist violating the chapter or any administrative rules issued pursuant thereto.
(2) Require the refund of any fees collected by such person in violation of this chapter.
(3) Order the person to pay to the supervisor a civil penalty of not more than one thousand dollars ($1,000) for each transaction in violation of this chapter.
(Act 2003-359, p. 992, §16.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-17 - Consent Orders; Civil or Criminal Penalties; Extraordinary Circumstances.

Section 5-18A-17
Consent orders; civil or criminal penalties; extraordinary circumstances.
(a) The supervisor may enter into consent orders at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained therein. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule, regulation, or order promulgated or issued pursuant to this chapter has been violated, nor need it constitute a finding by the supervisor that such person has violated any provision of this chapter or any rule, regulation, or order promulgated or issued hereunder.
(b) Notwithstanding the issuance of a consent order, the supervisor may seek civil or criminal penalties or compromise civil penalties concerning matters encompassed by the consent order.
(c) In cases involving extraordinary circumstances requiring immediate action, the supervisor may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing.
(Act 2003-359, p. 992, §17.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-18 - Written Complaint; Investigation; Compliance With Subpoena.

Section 5-18A-18
Written complaint; investigation; compliance with subpoena.
(a) Any person aggrieved by the conduct of a licensee under this chapter in connection with the regulated activities of the licensee may file a written complaint with the supervisor who may investigate the complaint.
(b) In the course of the investigation of the complaint, the supervisor may do the following:
(1) Subpoena witnesses.
(2) Administer oaths.
(3) Examine any individual under oath.
(4) Compel the production of records, books, papers, contracts, or other documents relevant to the investigation.
(c) If a person fails to comply with a subpoena of the supervisor under this chapter or to testify concerning any matter about which the person may be interrogated under this chapter, the supervisor may petition any court of competent jurisdiction for enforcement.
(d) The license of any licensee under this chapter who fails to comply with a subpoena of the supervisor may be suspended pending compliance with the subpoena.
(Act 2003-359, p. 992, §18.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-19 - Public Notice of Provisions.

Section 5-18A-19
Public notice of provisions.
Every licensee shall conspicuously post a sign, as designed by the department, notifying the public of the pertinent provisions of this chapter and any consequences related to entering into a deferred presentment transaction pursuant to this chapter.
(Act 2003-359, p. 992, §19.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-20 - Excessive Charges.

Section 5-18A-20
Excessive charges.
Any person who willfully makes charges in excess of those permitted by Section 5-18A-12 or any person who willfully engages in the business of cashing deferred presentment checks in violation of Section 5-18A-3, or both, is guilty of a Class B misdemeanor for the first offense and a Class B felony for the second or subsequent offense.
(Act 2003-359, p. 992, §20.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-21 - Disposition of Funds.

Section 5-18A-21
Disposition of funds.
All license fees and administrative penalties collected under this chapter shall be paid into the special fund provided by Section 5-2A-20, and used in the supervision and examination of applicants and licensees.
(Act 2003-359, p. 992, §21.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 18A - Deferred Presentment Services Act. › Section 5-18A-22 - Claims Preceding Effective Date of Chapter.

Section 5-18A-22
Claims preceding effective date of chapter.
The provisions of this chapter shall not be construed to take away or negatively impact the customers' claims in pending lawsuits against persons operating deferred presentment services on or before June 20, 2003.
(Act 2003-359, p. 992, §22.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 19 - Consumer Finance. › Section 5-19-1.1 - Legislative Findings.

Section 5-19-1.1
Legislative findings.
The Legislature finds as fact and determines that:
(1) The Alabama Consumer Credit Act, Title 5, Chapter 19, (commonly referred to as the "Mini-Code"), was enacted by the Legislature by Acts 1971, No. 2052, page 3290. All, or a portion, of the provisions of the Mini-Code apply to substantially all consumer credit transactions in Alabama involving billions of dollars annually.
(2) The availability of consumer credit and certainty of consumer credit transactions is essential to Alabama citizens and the economy of Alabama. Disputes have arisen involving the Mini-Code resulting in significant litigation.
(Acts 1996, No. 96-576, p. 887, §1.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 19 - Consumer Finance. › Section 5-19-5 - Acceptance of Negotiable Instruments as Evidence of Consumer Debt.

Section 5-19-5
Acceptance of negotiable instruments as evidence of consumer debt.
In a consumer credit sale, the seller may not take as evidence of the obligation of the buyer, a negotiable instrument other than (1) a check; or (2) a promise or order containing a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee. A holder is not a holder in due course if the holder takes a negotiable instrument with notice that it is issued in violation of this section. A holder in due course is not subject to the liabilities prescribed in this chapter.
(Acts 1971, No. 2052, p. 3290, §4; Acts 1995, No. 95-668, p. 1381, §4; Acts 1996, No. 96-576, p. 887, §2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 19 - Consumer Finance. › Section 5-19-6 - Copies of Instruments Signed by Debtors to Be Furnished to Debtors; Required Statement in Contracts, etc.; Limitation on Disclosure Requirements; Intent, Applicability of Limitation.

Section 5-19-6
Copies of instruments signed by debtors to be furnished to debtors; required statement in contracts, etc.; limitation on disclosure requirements; intent, applicability of limitation.
(a) Any creditor, when extending credit with respect to a consumer credit transaction, other than under an open-end credit plan, shall at that time furnish to the debtor a copy of each instrument executed by the debtor in connection with the consumer credit transaction. The consumer credit transaction contract or note shall contain the following statement in eight point or larger type immediately above the space for the borrower's signature.
"CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT."
(b) No disclosures are required by this chapter to be made by a creditor with respect to any transaction other than disclosures required by regulations made by the administrator pursuant to Section 5-19-21 and disclosures required by subsection (a) above and by Sections 5-19-12(a) and 5-19-20(e).
(c) Without limiting the generality of subsection (b), there is no obligation or duty under this chapter to disclose to a debtor any agreement to assign or otherwise transfer a consumer credit transaction contract at a discount or that the assignee of, or person who funded, the consumer credit transaction agreed or may agree to pay the creditor or other person who originated the consumer credit transaction all or a portion of the prepaid finance charges and other fees and/or a portion of the finance charge to be paid by the debtor over the term of the transaction and/or other compensation irrespective of how the compensation is determined or described.
(d) Except as modified hereby, the provisions of subsections (b) and (c) confirm, clarify and are declaratory of existing law. Except as modified hereby, the provisions of Alabama Act No. 94-115 remain applicable to consumer credit transactions entered into on, before, and after February 24, 1994.
(Acts 1971, No. 2052, p. 3290, §4; Acts 1994, No. 94-115, p. 124, §2; Acts 1996, No. 96-576, p. 887, §2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 19 - Consumer Finance. › Section 5-19-7 - Right to Refinance Amount of Certain Scheduled Payments.

Section 5-19-7
Right to refinance amount of certain scheduled payments.
With respect to a consumer credit transaction, if any scheduled payment is more than one and one-half times as large as the average of earlier scheduled payments, the debtor has the right to refinance the amount of that payment at the time it is due without penalty. The terms of the refinancing shall be no less favorable than the terms of the original transaction. The provisions of this section do not apply if the debtor's payment schedule has been adjusted to conform with the seasonal or irregular income of the debtor, or if a consumer credit transaction is repayable in a single principal payment irrespective of the scheduled interest payments.
(Acts 1971, No. 2052, p. 3290, §4; Acts 1989, No. 89-879, p. 1771, §1; Acts 1996, No. 96-576, p. 887, §2.)
2023 Code of Alabama › Title 5 - Banks and Financial Institutions. › Chapter 19 - Consumer Finance. › Section 5-19-8 - Assignee of Seller Subject to Claims and Defenses of Buyer.

Section 5-19-8
Assignee of seller subject to claims and defenses of buyer.
With respect to a consumer credit sale, an assignee of the rights of the seller is subject to all claims and defenses of the buyer against the seller arising out of the sale, notwithstanding an agreement to the contrary, but the assignee's liability under this section may not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Rights of the buyer under this section can only be asserted as a matter of defense to or setoff against a claim by the assignee.
(Acts 1971, No. 2052, p. 3290, §5; Acts 1996, No. 96-576, p. 887, §2.)