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286.7-510 Restrictions on security -- Contents of notes -- Advertising.
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In the case of loans made under KRS 286.7-410 to 286.7-600 the certificate holder
shall not take any assignment, pledge or transfer of wages to be earned or paid in
the future, nor any first lien or first mortgage on real estate as security, except such
lien as is created by virtue of a judgment or decree. Nothing in KRS 286.7-410 to
286.7-600 is intended to prevent lending institutions from making loans with
second or other junior mortgages on real estate as security, which loans are hereby
authorized.
No certificate holder shall split up or divide a loan, or permit any person to be
obligated to it under more than one (1) contract of loan at the same time for the
purpose of obtaining a greater charge than would otherwise be permitted under KRS
286.7-410 to 286.7-600.
Every note made under KRS 286.7-410 to 286.7-600 shall contain the following
information and provisions: The principal amount of the loan excluding any charge
made under KRS 286.7-410 to 286.7-600; a statement of the total charge for the
loan made under KRS 286.7-410 to 286.7-600; the amount and date of each
installment; the date of final maturity; an agreement that the borrower may prepay
the loan in whole or in part at any time, and if the loan is paid in full before
maturity, the borrower will receive a refund of the unearned portion of the charge,
as required by KRS 286.7-410 to 286.7-600. At the time the loan is made, the
lending institution shall give the borrower either a copy of the note, or a statement
of the transaction containing the provisions and information required to be
contained in the note. The lending institution shall deliver a receipt for each
payment; however, a canceled check or money order shall constitute a receipt.
In advertising for loans subject to KRS 286.7-410 to 286.7-600, every
advertisement shall conform to the following minimum requirement: Any statement
of the amount of the loan shall be the original principal amount showing in detail
the net proceeds to the borrower and any charge made under KRS 286.7-410 to
286.7-600.
KRS 286.7-410 to 286.7-600 shall not prevent a certificate holder from purchasing
or acquiring directly or indirectly, notes, chattel mortgages, installment or
conditional sales contracts, embodying liens or evidencing title retention arising
from the bona fide sale of goods or services by a seller of such goods or services.
History: Amended 1972 Ky. Acts ch. 317, sec. 5. -- Created 1962 Ky. Acts ch. 166,
sec. 6(5), (6), (7), (8), and (9).
Formerly codified as KRS 291.510.
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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