§ 962 — Limitations

§ 962. Limitations. 1. Municipal corporations may accept such payments\nfrom a corporation extending loans for such purpose, if the loan\ncorporation has a paid-up capital of at least one million dollars and\ncharges not more than four per centum interest on unpaid balances on\nmoneys loaned, nor more than two per centum of the amount of the loan as\na service charge in connection therewith; provided, however, that in the\nevent of a default in the payment of such a loan, the loan corporation\nmay charge six per centum interest per annum on all sums in default. The\nloan corporation shall, within three days after receiving the same,\ndeposit the conditional tax receipt with a banking institution, trust\ncompany, state bank, national bank, or federal reserve bank of the\ndistrict in which the municipal corporation is located.\n 2. A corporation or banking institution qualifying under the\nprovisions of section ten hundred fifty-four of this chapter and\npossessing all of the qualifications required under this section may\nalso engage in the business of lending money to taxpayers and accepting\nconditional tax receipts as provided in this title.\n