Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-630 - Regulation of check cashers and sellers and small loans (payday lenders) › Section 208-630-110 - What definitions are required to understand these rules?

Current through Register Vol. 24-14, July 15, 2024
The definitions in
						RCW
						   31.45.010 and this section apply throughout
						this chapter unless the context clearly requires otherwise.
"ACH" means automated clearing house, an electronic network for
						financial transactions that processes credit and debit transactions.
"Act" means chapter 31.45 RCW.
"Advertise, advertising, and advertising material" means any
						form of sales or promotional materials used in connection with the business.
						Advertising material includes, but is not limited to, newspapers, magazines,
						leaflets, flyers, direct mail, indoor or outdoor signs or displays,
						point-of-sale literature or educational materials, other printed materials;
						radio, television, public address system, or other audio broadcasts; internet
						pages, social media, instant messages, or electronic bulletin boards.
"Affiliate" means any person who directly or indirectly through
						one or more intermediaries, controls, or is controlled by, or is in common
						control with another person.
"Agent" for purposes of
						RCW
						   31.45.079 means a person who engages in the
						business of making small loans by performing small loan agent services.
"Annual percentage rate" or "APR" means the cost of credit
						expressed as a yearly rate, determined in accordance with the federal Truth in
						Lending Act (15 U.S.C. Sec. 1601  et seq.), and Regulation Z (12 C.F.R. Part
						1026 et seq.), as amended.
The Office of the Comptroller of the Currency (OCC) has
						developed an APR calculator (APRWIN) that licensees may download and use
						without charge. APRWIN is available on the OCC's web site at
http://www.occ.treas.gov/aprwin.htm
.
"Board director" means a director of a corporation or a person
						occupying a similar status and performing a similar function with respect to an
						organization, whether incorporated or unincorporated.
"Check" means the same as defined in
						RCW
						   62A.3-104(f) and, for
						purposes of conducting the business of making small loans, includes other
						electronic forms of payment, including stored value cards, internet transfers,
						and automated clearing house transactions.
"Check casher" means an individual, partnership, unincorporated
						association, or corporation that, for compensation, engages, in whole or in
						part, in the business of cashing checks, drafts, money orders, or other
						commercial paper serving the same purpose.
"Check seller" means an individual, partnership, unincorporated
						association, or corporation that, for compensation, engages, in whole or in
						part, in the business of selling checks, drafts, money orders, or other
						commercial paper serving the same purpose.
"Close of business" for the purposes of RCW 31.45.86 and these
						regulations means the actual time a licensee closes for business at the
						location from which a small loan was originated or 11:59 p.m. Pacific Time,
						whichever is earlier.
"Default" means:
(a) The borrower's failure to repay a small loan in compliance
						with the terms contained in the small loan agreement or note; or
(b) Failure to pay any installment plan payment within ten days
						after the date upon which the installment was scheduled to be paid. See WAC
						208-630-556(12)(b).
"Department" means the department of financial
						institutions.
"Exempt entity" means a person described in
						RCW
						   31.45.020 that is engaged in the business of
						making small loans.
"Gross monthly income" means an individual's total personal
						income earned during a month prior to any taxes or deductions.
"Installment plan" is a contract between a licensee and
						borrower that provides that the loaned amount will be repaid in substantially
						equal installments scheduled on or after a borrower's pay dates and no less
						than fourteen days apart.
"Investigation" means an examination undertaken for the purpose
						of detecting violations of chapter 31.45 RCW or these rules or obtaining
						information lawfully required under chapter 31.45 RCW or these rules.
"License" means a license issued by the director to engage in
						the business of check cashing or check selling under the provision of chapter
						31.45 RCW.
"Loaned amount" means the outstanding principal balance and any
						fees authorized under
						RCW
						   31.45.073 that have not been paid by the
						borrower.
"Monetary instrument" means a check, draft, money order or
						other commercial paper serving the same purpose.
"Paid" means that moment in time when the licensee deposits the
						borrower's check, accepts cash, or initiates an ACH withdrawal from the
						borrower's account for the full amount owed on a valid small loan. If the
						borrower's check is dishonored and returned unpaid by the borrower's bank, the
						loan is not paid. If an ACH authorization is denied, the loan is not
						paid.
"Payday advance lender" or "payday lender" means a licensee
						under this chapter who has obtained a small loan endorsement under
						RCW
						   31.45.073.
"Payday advance loan," "payday loan" or "deferred deposit loan"
						means the same as a small loan.
"Postdated check" means a check delivered prior to its date,
						generally payable at sight or on presentation on or after the day of its date.
						"Postdated check" does not include any promise or order made or submitted
						electronically by a borrower to a licensee.
"RCW" means the
Revised Code of
						Washington
.
"Small loan" or "loan" means a loan of up to the maximum amount
						and for a period of time up to the maximum term specified in
						RCW
						   31.45.073.
"Small loan agent services" include, but are not limited
						to:
(a) Marketing and advertising small loans;
(b) Collecting nonpublic personal information from consumers in
						anticipation of selling the information to potential licensed lenders or other
						entities providing small loan agent services;
(c) Assisting consumers in completing small loan
						documentation;
(d) Providing required applicable state and federal disclosures
						in connection with small loans; and
(e) Collecting on small loans.
Small loan agent services do not include (a) services performed
						by any person holding a small loan endorsement or (b) collection of small loans
						by a person licensed under chapter 19.16 RCW or exempt from that chapter or
						otherwise authorized under Washington law to act as a collection agent.
"State" means the state of Washington.
"Unsafe or unsound financial practice" means any action, or
						lack of action, the likely consequences of which, if continued, would
						materially impair the net worth of a licensee or create an abnormal risk of
						loss to its customers.
Statutory Authority: Chapter 43.320 RCW and
							RCW
							   31.45.200. 13-05-005, §
										208-630-110, filed 2/6/13,
							effective 3/9/13. Statutory Authority:
							RCW
							   43.320.040,
							31.45.200, and
							2009 c
							510. 09-24-089, §
										208-630-110, filed 12/1/09,
							effective 1/1/10. Statutory Authority:
							RCW
							   43.320.040. 07-23-094, §
										208-630-110, filed 11/20/07,
							effective 12/21/07. Statutory Authority:
							RCW
							   31.04.165,
							43.320.040,
							31.45.030,
							31.45.050,
							31.45.200. 05-22-009, §
										208-630-110, filed 10/21/05,
							effective 11/21/05.