                                 CODE OF VIRGINIA

LOAN TERMS AND CONDITIONS (§ 6.2-1816.1)

A licensee may engage in the business of making short-term loans, provided that
each loan meets all of the following conditions:

1. The total amount of the loan does not exceed $2,500.

2. The minimum duration of the loan is four months and the maximum duration of
the loan is 24 months; however, the minimum duration of the loan may be less
than four months if the total monthly payment on the loan does not exceed the
greater of (i) an amount that is five percent of the borrower&#8217;s verified
gross monthly income or (ii) six percent of the borrower&#8217;s verified net
monthly income.

3. The loan is made pursuant to a written loan contract that sets forth the
terms and conditions of the loan, which shall be signed by the borrower and a
person authorized by the licensee to sign such agreements and dated the same day
the loan is made and disbursed. A copy of the signed loan contract shall be
provided to the borrower. The loan contract shall disclose in a clear and
concise manner all of the following:
			a. The principal amount of the loan and the total amount of fees and charges
the borrower will be required to pay in connection with the loan pursuant to the
loan contract;			b. The amount of each payment of principal and interest, when
each payment is due, the total number of payments that the borrower will be
required to make under the loan contract, and the loan&#8217;s maturity
date;			c. If the licensee receives a check as security for the loan, evidence
of receipt from the borrower of a check, stating the amount of the check and
terms upon which the check may be presented for payment;			d. A statement,
printed in a minimum font size of 10 points, that informs the borrower that
complaints regarding the loan or lender may be submitted to the Bureau and
includes the correct telephone number, website address, and mailing address for
the Bureau;			e. Any disclosures required under the federal Truth in Lending Act
(15 U.S.C. &#xA7; 1601 et seq.) and its implementing regulations, as they may be
amended from time to time;			f. The annual percentage rate;			g. A statement,
printed in a minimum font size of 10 points, as follows: &#8220;This loan is
made pursuant to Chapter 18 of Title 6.2 of the Code of Virginia. You have the
right to rescind or cancel this loan by returning the loan proceeds check or the
originally contracted loan amount by 5 p.m. of the third business day
immediately following the day you enter into this contract.&#8221;;			h. A
statement, printed in a minimum font size of 10 points, as follows:
&#8220;Electronic payment is optional. You have the right to revoke or remove
your authorization for electronic payment at any time.&#8221;;			i. The
borrower&#8217;s mailing address.			j. Such other information relating to the
loan as the Commission shall determine, by regulation, is necessary to ensure
that the borrower is provided adequate notice of the relevant provisions of the
loan.

4. The loan is a precomputed loan and is payable in substantially equal
installments consisting of principal, fees, and interest combined. For purposes
of this section, &#8220;precomputed loan&#8221; means a loan in which the debt
is a sum comprising the principal amount and the amount of fees and interest
computed in advance on the assumption that all scheduled payments will be made
when due.

5. The loan may be rescinded or canceled on or before 5 p.m. of the third
business day immediately following the day of the loan transaction upon the
borrower returning the original loan proceeds check or paying to the licensee,
in the form of cash or other good funds instrument, the loan proceeds.

HISTORY: 2020, cc. 1215, 1258.