§ 45-12-101. Short Title
This chapter shall be known and may be cited as the “Flexible Credit Act.”
§ 45-12-102. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Commissioner” means the commissioner of financial institutions or the commissioner’s designee; “Control” means possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting securities by contract or otherwise; provided, […]
§ 45-12-103. License Required to Engage in Business of Making Flex Loans — Designation of Agent for Service of Process by Nonresident Licensees
No person shall engage in the business of making flex loans unless the person is licensed to make flex loans pursuant to this chapter. A person shall be deemed to be engaged in the business of making flex loans in this state if the person induces a consumer, while located in this state, to enter […]
§ 45-12-104. Qualifications for Licensure — Continuing Nature
To qualify for a license to make flex loans, an applicant shall meet the following requirements: The applicant has a tangible net worth that comprises tangible assets less liabilities of not less than fifty thousand dollars ($50,000) for each location; and The financial responsibility, financial condition, business experience, character, and general fitness of the applicant […]
§ 45-12-105. Contents of Written Application for License
Each application for a license shall be in writing and made under oath or affirmation to the commissioner, in a form prescribed by the commissioner, and shall include the following: The legal name, residence and business address of the applicant and, if the applicant is a partnership, association, or corporation, of every member, officer, managing […]
§ 45-12-106. Application Requirements
Each application for a license shall be accompanied by: A filing fee of five hundred dollars ($500), which shall not be subject to refund but which, if the license is granted, shall constitute the license fee for the first license year or part thereof; provided, however, that if a supervision fee is established pursuant to […]
§ 45-12-107. Investigation of Applicants — Issuance of License — Posting of License — Term of License
Upon the filing of an application in a form prescribed by the commissioner, accompanied by the fee and documents required in § 45-12-106, the commissioner shall investigate to ascertain whether the requirements prescribed by § 45-12-104 have been satisfied. If the commissioner finds that the requirements have been satisfied, and approves the documents, the commissioner […]
§ 45-12-108. Denial of Application — Hearing
If the commissioner determines that an applicant is not qualified to receive a license, the commissioner shall notify the applicant in writing that the application has been denied, stating the basis for denial. If the commissioner denies an application, or if the commissioner fails to act on an application within ninety (90) days after the […]
§ 45-12-109. Expiration of License — Renewal — Fees — Biennial License Arrangement — Criminal History Records Check
Licenses issued pursuant to this chapter shall expire on December 31. Each license may be renewed for the ensuing twelve-month period upon application by the license holder showing continued compliance with the requirements of § 45-12-104 and the payment to the commissioner annually, between November 1 and December 31, of a license renewal fee of […]
§ 45-12-110. License Nontransferable and Nonassignable — Change in Control of Licensee — Notification to Department of Change in Place of Business
A license issued pursuant to this chapter is not transferable or assignable. The prior written approval of the commissioner is required for the continued operation of a flex loan business whenever a change in control of a licensee is proposed. The commissioner may require information deemed necessary to determine whether a new application is required. […]
§ 45-12-111. Interest, Fees, and Charges
Notwithstanding any other statutory limitation, a licensee authorized to make flex loans under this chapter may charge and collect interest, fees, and charges in a manner consistent with this section. A licensee may charge and collect a periodic interest rate not to exceed twenty-four percent (24%) per annum. In addition to the periodic interest rate […]
§ 45-12-112. Licensee to Provide to Prospective Customers Written Explanation of Interest, Fees, and Charges — Requirements for Account-Opening Statement — Billing Statements
A licensee shall provide each prospective customer, before consummation of a flex loan plan, a written explanation, in clear, understandable language, of the interest, fees, and charges to be charged by the licensee. The style, content and method of executing the required written explanation shall comply with federal truth-in-lending laws and shall contain a statement […]
§ 45-12-113. Books, Accounts and Records — Limitations and Requirements Applicable to Operation of Business of Making Flex Loans
Each licensee shall keep and use in its business any books, accounts and records the commissioner may require to effectuate this chapter and the rules promulgated pursuant to this chapter. Every licensee shall preserve the books, accounts and records for at least two (2) years. Any licensee, after receiving the prior written approval of the […]
§ 45-12-114. Law Applicable to Business of Making Flex Loans — Licensees Legally Exercising Powers Under This Chapter Not in Violation of Statutory Provisions
The business of making flex loans in accordance with this chapter shall not be subject to or controlled by any other statute governing the imposition of interest, fees or loan charges, including, but not limited to, § 47-14-104. A licensee shall not have the powers enumerated in this chapter without first complying with the law […]
§ 45-12-115. Promulgation of Rules — Investigation and Examination of Licensees — Payment of Expenses of Investigation or Examination — Exception
The commissioner may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the enforcement of this chapter. A copy of any rule adopted by the commissioner shall be mailed to the principal place of business of each license holder at least thirty (30) days before the date […]
§ 45-12-116. Grounds for Suspension or Revocation of License — Revocation or Suspension of Multiple Licenses — Hearing
The commissioner may, after notice and hearing, suspend or revoke any license if the commissioner finds that the licensee has knowingly or through lack of due care: Failed to pay any fees, expenses, or costs imposed by the commissioner under the authority of this chapter; Has committed any fraud, engaged in any dishonest activities or […]
§ 45-12-117. Authorized Actions by Commissioner Upon Violation of Chapter or Rules
If, after notice and opportunity for a hearing, the commissioner finds that a person has violated this chapter, or any rule issued pursuant to this chapter, the commissioner may take the following actions or any combination of such actions: Order the person to cease and desist violating the chapter or any rule promulgated pursuant to […]
§ 45-12-118. Grounds to Suspend or Bar a Person From Any Position of Employment, Management or Control of a Licensee
The commissioner, after notice and opportunity for a hearing, may censure, suspend for a period not to exceed twelve (12) months, or bar a person from any position of employment, management or control of a licensee, if the commissioner finds that the: Censure, suspension, or bar is in the public interest and that the person […]
§ 45-12-119. Consent Orders—emergency Actions by Commissioner
The commissioner may enter into a consent order 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 in the order. A consent order […]
§ 45-12-120. Complaints Against Licensees to Be Filed With Commissioner — Investigative Powers — Enforcement
Any person aggrieved by the conduct of a licensee under this chapter in connection with the licensee’s regulated activities may file a written complaint with the commissioner who may investigate the complaint. In the course of the investigation of the complaint, the commissioner may: Subpoena witnesses; Administer oaths; Examine any individual under oath or affirmation; […]