North Dakota Senate Bill 2103 (SB 2103) amends its state laws primarily relating to the licensing of money brokers and collection agencies, effective August 1, 2021.
In particular, SB 2103 amends certain exemptions and creates new exemptions from the licensing requirements of silver brokers for the following persons:
- State or federal agencies and employees of state or federal agencies solely by virtue of the individual’s official duties as an employee of the state or federal agency;
- A certified development company that qualifies as a not-for-profit organization under Section 501 (c) (3) of the Federal Internal Revenue Code in offers of: (1) loan products primarily limited to Small Business Administration, US Department of Agriculture, or other government loan products; or (2) non-government loan products limited to loans to promote community development or home ownership, and such loans are offered on favorable terms, including an interest rate equal to or less than the prime rate the Wall Street Journal and loan charges less than a quarter of a percent of the loan origination balance; and
- A non-profit corporation that qualifies as a non-profit entity under section 501 (c) (3) of the Federal Tax Code that is not primarily in the business of soliciting or brokering loans , if the nonprofit corporation makes five or fewer loans in a given year schedule, grants these loans to promote community development or home ownership, and offers these loans on favorable terms, including an interest rate. interest equal to or less than the Wall Street Journal prime rate and loan charges less than a quarter of a percent of the original loan balance.
SB 2103 also amends the provisions of North Dakota collection agencies to exempt the following entities from these licensing requirements:
- Chartered real estate brokers, if the activity carried out is regulated under the professional license of this person; and
- State or federal government agencies and employees of state or federal agencies only by virtue of the individual’s official duties as an employee of the state or federal agency.
In addition, SB 2103, among others, provides for maximum fees that a licensed silver broker can charge (for example, finance charges for a loan not exceeding an annual rate of 36%, including all charges. costs and fees necessary for the extension of credit incurred at the time of origination), fees that may be assessed by silver brokers for non-payment or late payment, certain restrictions of silver brokers on small loans under $ 2,000 and the processing of financial hardship relief agreements for deferred presentation service transactions by licensed deferred presentation service providers (payday lenders).