                                 CODE OF VIRGINIA

REQUIRED AND PROHIBITED ACTIVITIES AND CONDUCT (§ 6.2-1524)

A. Each licensee shall maintain at all times the minimum unencumbered liquid
assets prescribed by &#xA7; 6.2-1507.

B. A licensee or other person subject to this chapter shall not advertise,
display, distribute or broadcast, or cause or permit to be advertised,
displayed, distributed or broadcast, in any manner whatsoever, any false,
misleading, or deceptive statement or representation with regard to the rates,
terms, or conditions for loans made under this chapter. The Commission may
require that charges or rates of charge, if stated by a licensee, be stated
fully and clearly in such manner as it deems necessary to prevent
misunderstanding by prospective borrowers. The Commission may permit or require
licensees to refer in their advertising to the fact that their business is under
state supervision, subject to conditions imposed by it to prevent false,
misleading, or deceptive impression as to the scope or degree of protection
provided by this chapter.

C. A licensee shall not take a lien upon real estate as security for any loan
made under the provisions of this chapter, except a lien arising upon rendition
of a judgment. Any lien taken in violation of this subsection shall be void.

D. A licensee shall, at the time any loan is made, deliver to the borrower, or
if there are two or more borrowers to one of them, a statement disclosing (i)
the names and addresses of the licensee and of the principal debtor on the loan
contract, and (ii) a statement in compliance with Consumer Financial Protection
Bureau Regulation Z (12 C.F.R. Part 1026).

E. A licensee shall give the borrower a receipt for all cash payments. The
Commission may specify the form and content of such receipts in keeping with the
intent and purpose of this chapter.

F. A licensee shall permit payment to be made in advance in whole, or in part
equal to one or more full installments. The licensee may apply the payment first
to any amounts that are due and unpaid at the time of such payment.

G. A licensee shall, upon repayment of the loan in full, (i) mark plainly every
obligation and security other than a security agreement executed by the borrower
with the word &#8220;Paid&#8221; or &#8220;Canceled,&#8221; (ii) mark satisfied
any judgment, (iii) restore any pledge, (iv) cancel and return any note and any
assignment given by the borrower to the licensee, and (v) release any security
agreement or other form of security instrument that no longer secures an
outstanding loan between the borrower and the licensee.

H. In the event of collection by foreclosure sale or otherwise, a licensee shall
pay and return to the borrower, or to another person entitled thereto, any
surplus arising after the payment of the expenses of collection, sale or
foreclosure and satisfaction of the debt.

I. A licensee shall not take any confession of judgment or any power of attorney
running to himself or to any third person to confess judgment or to appear for
the borrower in a judicial proceeding. Any such confession of judgment or power
of attorney to confess judgment shall be void.

J. A licensee shall not take any note, promise to pay, or instrument of security
in which blanks are left to be filled in after execution, or that does not give
the amount of the loan, a clear description of the installment payments
required, and the rate of interest charged. A licensee may also include the
disclosures required by Consumer Financial Protection Bureau Regulation Z (12
C.F.R. Part 1026) in the note, promise to pay, or instrument of security.

K. Every loan contract shall be in writing, be signed by the borrower, provide
for repayment of the amount loaned in substantially equal monthly installments
of principal and interest, and include the following statement: &#8220;This loan
is made pursuant to Chapter 15 of Title 6.2 of the Code of Virginia&#8221;.
Nothing contained in this chapter shall prevent (i) a loan being considered a
new loan because the proceeds of the loan are used to pay an existing loan
contract or (ii) a licensee from entering into a loan contract providing for an
odd first payment period of up to 45 days and an odd first payment greater than
other monthly payments because of such odd first payment period.

L. A licensee shall include as part of every loan application a question
regarding whether the potential borrower has been approached, including via
telephone or electronic means, by any person to send money in consideration of
receiving money via a government or lottery organization.

HISTORY: Code 1950, §§ 6-309, 6-310, 6-311, 6-312, 6-313, 6-315; 1956, c. 71;
1966, c. 584, §§ 6.1-279, 6.1-280, 6.1-281, 6.1-282, 6.1-283, 6.1-284.1,
6.1-285; 1968, c. 489; 1974, c. 371; 1983, c. 500; 1987, c. 683, § 6.1-284.1;
1995, c. 2; 1997, c. 113; 2001, c. 308; 2010, c. 794; 2016, c. 501; 2020, cc.
1215, 1258; 2023, c. 287.