§ 23-39-401 — Definitions

Arkansas § 23-39-401

• Jurisdiction: Arkansas
• Title: 23

Text

For purposes of this subchapter, unless the context otherwise requires: (1) "Advance fee" means any consideration which is assessed or collected prior to the closing of a loan by a loan broker; (2) "Affiliate" means any person who, directly or indirectly, through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person; (3) "Borrower" means a person obtaining or desiring to obtain a loan of money, a credit card, or a line of credit; (4) "Closing of a loan" means completion of the final steps of the transaction, except for the payment of consideration for loan services provided, whereby the borrower has full access to and use of the benefits of the loan of money, a credit card, or a line of credit; (5) (A) "Loan broker" means any person not exempt under subdivision (5)(B) of this section who: (i) For or in expectation of consideration arranges, attempts to arrange, or offers to fund a loan of money, a credit card, or a line of credit; (ii) For or in expectation of consideration assists or advises a borrower in obtaining or attempting to obtain a loan of money, a credit card, a line of credit, or related guarantee, enhancement, or collateral of any kind or nature; (iii) Acts for or on behalf of a loan broker for the purpose of soliciting borrowers; or (iv) Holds himself or herself out as a loan broker. (B) The following persons or entities shall not be considered loan brokers under subdivision (5)(A) of this section: (i) If licensed by and subject to regulation or supervision of any agency, commission, or department of the United States or of the State of Arkansas, and if engaged in the permitted activity granted pursuant to their license, permit, or registration or with express written authority for the activity from the regulatory or supervising agency: (a) Bank; (b) Savings and loan association; (c) Trust company; (d) Credit union; (e) Investment company; (f) Industrial loan company; (g) Securities broker-dealer, agent, or investment adviser; (h) Real estate broker or sales associate; (i) Attorney; (j) Federal Housing Administration or Department of Veterans Affairs approved lender; (k) Credit card company; (l) Mortgage loan company; (m) Mortgage loan broker; (n) Public utility; (o) Insurance company or agent; or (p) Motor vehicle manufacturer or dealer; (ii) Subsidiaries of licensed or chartered consumer loan companies, banks, or savings and loan associations are not loan brokers; (iii) A person extending or arranging credit, or offering to extend or arrange credit, to a partnership or corporation exclusively for commercial or business purposes; (iv) A depository financial institution chartered or licensed by an agency, commission, or department of another state, if the funds on deposit with the institution are insured by the Federal Deposit Insurance Corporation; (v) An affiliate of a person listed in subdivision (5)(B)(iii) of this section; or (vi) A bona fide seller or lessor of goods, services, or interests in real estate in a transaction in which the seller or lessor extends, arranges, or offers to extend or arrange credit that is to be used exclusively for financing the purchase or lease or for services performed by an independent third party directly related to the purchase or lease. A transaction shall not be exempt under this subdivision (5)(B)(vi) if the purchaser or lessee receives, or is to receive, a cash advance or consolidation loan in addition to the financing; and (6) "Principal" means any officer, director, partner, joint venturer, branch manager, or other person with similar managerial or supervisory responsibilities for a loan broker.

Legislative History

Acts 1993, No. 140, § 1; 1995, No. 598, § 1.