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286.4-580 Prohibited conduct.
(1)
(2)
(3)
No licensee shall take any confession of judgment or any power of attorney
running to himself or to any third person to confess judgment or to appear for
the borrower in a judicial proceeding; nor take any note or promise to pay that
does not disclose the date and amount of the loan obligation, a schedule or
description of the payments to be made thereon, and the rate or aggregate
amount of the agreed charges; nor take any instrument in which blanks are left
to be filled in after the loan is made.
No licensee shall enter into any contract of loan under this subtitle under which
the borrower agrees to make any scheduled repayment of principal more than
sixty (60) months and fifteen (15) days from the date of making such contract if
the principal amount of the loan exclusive of interest and charges is three
thousand dollars ($3,000) or less, or one hundred and twenty (120) months if
the principal amount of the loan exclusive of interest and charges exceeds
three thousand dollars ($3,000), and every such contract shall provide for
repayment of the amount lent in substantially equal installments at
approximately equal periodic intervals of time; provided, however, that when
appropriate for the purpose of facilitating payment in accordance with the
seasonable nature of obligor's main source of income, payments may be
deferred or omitted, if all other payments are increased in such manner that
such other payments are substantially equal in amount and sufficient in the
aggregate to retire the loan in the period of months as hereinabove provided.
No licensee shall take any mortgage or other lien instrument upon real estate
as security for any loan under this subtitle in which the principal is three
thousand dollars ($3,000) or less, unless such lien is subject to a prior
mortgage.
Effective:July 15, 1982
History: Amended 1982 Ky. Acts ch. 53, sec. 6, effective July 15, 1982. -Amended 1970 Ky. Acts ch. 48, sec. 4. -- Created 1960 Ky. Acts ch. 204,
sec. 18, effective June 16, 1960.
Formerly codified as KRS 288.580.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS
references within this statute have been adjusted to conform with the 2006
renumbering of that code.
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