2015 New Hampshire Revised Statutes
Title XXXVI - PAWNBROKERS AND MONEYLENDERS
Chapter 399-A - REGULATION OF SMALL LOANS, TITLE LOANS, AND PAYDAY LOANS
Section 399-A:1 - Definitions.

[RSA 399-A:1 effective until January 1, 2016; see also RSA 399-A:1 set out below.]     399-A:1 Definitions. –
    In this chapter:
    I. "Branch office'' means a business location within this state of a person required to be licensed under this chapter. Branch office does not include a person's principal office location.
    I-a. "Check'' means a draft drawn on the account of an individual or individuals at a depository institution.
    I-b. "Affiliate'' means a partnership, corporation, trust, limited liability company, or other organization that directly or indirectly owns, is under common ownership with, or is directly or indirectly owned by, a lender.
    II. "Closed-end loan'' means a loan other than an open-end loan.
    III. "Commissioner'' means the bank commissioner.
    III-a. "Department'' means the banking department.
    III-b. "Direct owner'' means any person, including individuals, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee.
    IV. "Engaged in the business of making title loans'' means that at least 10 percent of all loans made by the lender are title loans.
    V. "Financial institution'' means a bank, savings institution, credit union, or trust company.
    V-a. "Indirect owner'' means, with respect to direct owners and other indirect owners in a multilayered organization:
       (a) In the case of an owner that is a corporation, each of its shareholders that beneficially owns, has the right to vote, or has the power to sell or direct the sale of, 25 percent or more of that corporation.
       (b) In the case of an owner that is a partnership, all general partners and those limited and special partners that have the right to receive upon dissolution, or have contributed, 25 percent or more of the partnership's capital.
       (c) In the case of an owner that is a trust, the trust, each trustee and each beneficiary of 25 percent or more of the trust.
       (d) In the case of an owner that is a limited liability company ("LLC''):
          (1) Those members that have the right to receive upon dissolution, or have contributed, 25 percent or more of the LLC's capital; and
          (2) If managed by elected managers, all elected managers.
       (e) In the case of an indirect owner, the parent owners of 25 percent or more of their subsidiary.
    VI. "License'' means the authority to do business issued by the commissioner under the provisions of this chapter.
    VII. "Licensee'' means a person to whom one or more licenses have been issued under this chapter.
    VIII. "Lender'' means individuals, corporations, associations, firms, partnerships, limited liability companies, and joint stock companies or other forms of organizations that lend money or give credit temporarily on condition that the amount borrowed be returned, usually with an interest fee. "Lender'' shall not include a financial institution. "Lender'' shall include a person who for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly:
       (a) Acts as an intermediary, finder, or agent of a lender or borrower for the purpose of negotiating, arranging, finding, or procuring loans, or commitments for loans.
       (b) Offers to serve as an agent for any person in an attempt to obtain a loan.
       (c) Offers to serve as an agent for any person who has money to lend for a loan.
       (d) Performs services or any of the business functions auxiliary or supplemental to the production, distribution or maintenance of loans for a lender.
       (e) Acts as a credit services organization as defined in RSA 359-D:2, II.
    IX. "Open-end loan'' means an open-end credit arrangement pursuant to which a creditor may permit a borrower from time to time to obtain loans from the creditor as described in RSA 358-K:1, XI.
    X. "Payday loan'' means a short-maturity, secured or unsecured loan, other than a title loan.
    XI. "Payday loan lender'' means a person engaged in the business of making payday loans.
    XII. "Person'' means any individual, firm, voluntary association, joint-stock company, incorporated society, partnership, association, trust, corporation, limited liability company, or legal or commercial entity or group of individuals however organized.
    XIII. "Principal'' of the applicant or licensee means an owner with 10 percent or more ownership interest, corporate officer, director, member, general or limited liability partner, limited partner with 10 percent or more ownership interest, trustee, beneficiary of 10 percent or more of the trust that owns the applicant or licensee, indirect owner, senior manager, New Hampshire branch manager, and any person occupying similar status or performing similar functions.
    XIII-a. "Principal office'' means the main office location of a person required to be licensed under this chapter.
    XIII-b. "Publicly traded'' means a company whose securities are traded on a securities exchange system approved and supervised by the Securities and Exchange Commission, including but not limited to the NYSE, AMEX, BSE, and NASDAQ. The term also includes a public reporting company that is subject to sections 12 or 15(d) of the Securities Exchange Act of 1934.
    XIV. "Small loan'' means a closed-end loan in the amount of $10,000 or less or an open-end loan with a line of credit of $10,000 or less, and where the lender contracts for, exacts or receives, directly or indirectly, or where the borrower pays for, directly or indirectly in connection with any such loan any charges, whether for interest, examination, commission, compensation, service, brokerage, endorsement fees, other fees, consideration, expense or otherwise, which in the aggregate are greater than 10 percent per annum except for the lawful fees, if any, actually and necessarily paid out by the lender to any public officer, for filing or recording in any public office any instrument securing such loan and except for the reasonable costs, charges, and expenses, including court costs actually incurred in connection with a repossession of the security or an actual sale of the security.
    XV. "Small loan lender'' means any person engaged in the business of making small loans, including title loans and payday loans.
    XVI. "Title loan'' means a loan, other than a purchase money loan:
       (a) (1) Secured by the title to a motor vehicle;
          (2) Made for a period of 60 days or less;
          (3) With a single payment payback; and
          (4) Made by a lender in the business of making title loans; or
       (b) That is secured, substantially equivalent to a title loan, and designated as a title loan by rule or order of the commissioner.
    XVII. "Title loan lender'' means a person engaged in the business of making title loans.
    399-A:1 Definitions. --
    In this chapter:
    I. "Affiliate'' means a partnership, corporation, trust, limited liability company, or other organization that directly or indirectly owns a lender, is under common ownership with a lender, or is directly or indirectly owned by a lender.
    II. "Annual percentage rate'' shall be calculated according to the Truth in Lending Act, Regulation Z, 12 C.F.R. section 1026.14 and 12 C.F.R. section 1026.22.
    III. "Branch office'' means a business location within this state of a person required to be licensed under this chapter. Branch office shall not include a person's principal office location.
    IV. "Check'' means a draft drawn on the account of an individual or individuals at a depository institution.
    V. "Commissioner'' means the bank commissioner.
    VI. "Control'' means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company that:
       (a) Is a director, general partner, or executive officer;
       (b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;
       (c) In the case of a limited liability company, is a managing member; or
       (d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.
    VII. "Department'' means the banking department.
    VIII. "Direct owner'' means any person, including individuals, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee.
    IX. "Engaged in the business of making title loans'' means that at least 10 percent of all loans made by the lender are title loans.
    X. "Financial institution'' means a bank, savings institution, credit union, or trust company.
    XI. "Indirect owner'' means:
       (a) In the case of an owner that is a corporation, each of its shareholders that beneficially owns, has the right to vote, or has the power to sell or direct the sale of, 25 percent or more of that corporation.
       (b) In the case of an owner that is a partnership, all general partners and those limited and special partners that have the right to receive upon dissolution, or have contributed, 25 percent or more of the partnership's capital.
       (c) In the case of an owner that is a trust, the trust, each trustee and each beneficiary of 25 percent or more of the trust.
       (d) In the case of an owner that is a limited liability company ("LLC''):
          (1) Those members that have the right to receive upon dissolution, or have contributed, 25 percent or more of the LLC's capital; and
          (2) If managed by elected managers, all elected managers.
       (e) In the case of an indirect owner, the parent owners of 25 percent or more of their subsidiary.
    XII. "Lender'' means an individual, corporation, association, firm, partnership, limited liability company, joint stock company, or other form of organization that lend money or give credit temporarily on condition that the amount borrowed be returned, usually with an interest fee. "Lender'' shall not include a financial institution. "Lender'' shall include a person who for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly:
       (a) Acts as an intermediary, finder, or agent of a lender or borrower for the purpose of negotiating, arranging, finding, or procuring loans, or commitments for loans.
       (b) Offers to serve as an agent for any person in an attempt to obtain a loan.
       (c) Offers to serve as an agent for any person who has money to lend for a loan.
       (d) Performs services or any of the business functions auxiliary or supplemental to the production, distribution or maintenance of loans for a lender.
       (e) Acts as a credit services organization as defined in RSA 359-D:2, II.
       (f) Advertises for, solicits, or holds himself out as willing to make or procure small loans, payday loans, or title loans.
       (g) Holds the servicing rights to a small loan or records small loan payments on its books and records and performs such other administrative functions as may be necessary to properly carry out the debt holders' obligations under a loan agreement.
    XIII. "Payday loan'' means a short term, secured or unsecured loan, other than a title loan.
    XIV. "Payday loan lender'' means a person engaged in the business of making payday loans.
    XV. "Person'' means any individual, firm, voluntary association, joint stock company, incorporated society, partnership, association, trust, corporation, limited liability company, or legal or commercial entity or group of individuals however organized.
    XVI. "Principal'' of the applicant or licensee means an owner with 10 percent or more ownership interest, corporate officer, director, member, general or limited liability partner, limited partner with 10 percent or more ownership interest, trustee, beneficiary of 10 percent or more of the trust that owns the applicant or licensee, indirect owner, senior manager, New Hampshire branch manager, and any person occupying similar status or performing similar functions.
    XVII. "Principal office'' means the main office location of a person required to be licensed under this chapter.
    XVIII. "Publicly traded'' means a company whose securities are traded on a securities exchange system approved and supervised by the Securities and Exchange Commission, including but not limited to the NYSE, AMEX, BSE, and NASDAQ. The term also includes a public reporting company that is subject to sections 12 or 15(d) of the Securities Exchange Act of 1934.
    XIX. "Senior manager'' means any officer of record, assistant vice president or higher, office or branch manager, director of operations, or other position the responsibilities of which provide such employee with the discretion or ability to set policy or manage or direct affairs of the licensee as a whole, or of any division or department or unit of the licensee.
    XX. "Small loan'' means a title loan, payday loan, open-end loan, or closed-end loan that:
       (a) Is $10,000 or less; and
       (b) Has an annual percentage rate of 10 percent or more except for the lawful fees, if any, actually and necessarily paid out by the lender to any public officer, for filing or recording in any public office any instrument securing such loan and except for the reasonable costs, charges, and expenses, including court costs actually incurred in connection with a repossession of the security or an actual sale of the security.
    XXI. "Title loan'' means a loan, other than a purchase money loan:
       (a)(1) Secured by the title to a motor vehicle;
          (2) Made for a period of 60 days or less;
          (3) With a single payment payback; and
          (4) Made by a lender in the business of making title loans; or
       (b) That is secured, substantially equivalent to a title loan, and designated as a title loan by rule or order of the commissioner.
    XXII. "Title loan lender'' means a person engaged in the business of making title loans.

Source. 2015, 73:1, eff. Jan. 1, 2016.