                                 CODE OF VIRGINIA

LOAN DATABASE (§ 6.2-1810)

A. The Commission shall certify and contract with one or more third parties to
develop, implement, and maintain a real-time, Internet-accessible database that
contains such short-term loan information as the Commission may require from
time to time by administrative rule or policy statement.

B. The following provisions shall apply to the database:

   1. Before making a short-term loan, a licensee shall query the database
   through a Commission-certified database provider and shall retain evidence of
   the query for the Commission&#8217;s supervisory review. The database shall
   allow a licensee to make a short-term loan only if making the loan is
   permissible under the provisions of this chapter. During any period that the
   database is unavailable due to technical problems beyond the licensee&#8217;s
   control, a licensee may rely on the loan applicant&#8217;s written
   representations, rather than the database&#8217;s information, to verify that
   making the loan applied for is permissible under the provisions of this
   chapter. Because a licensee may rely on the accuracy of the applicant&#8217;s
   representations and the database&#8217;s information, a licensee is not
   subject to any administrative penalty or civil liability if that information
   is later determined to be inaccurate.

   2. The database provider shall maintain the database, take all actions it
   deems necessary to protect the confidentiality and security of the information
   contained in the database, be responsible for the confidentiality and security
   of such information, and own the information contained in the database. The
   Commission shall have access to and utilize the database as a supervision and
   enforcement tool to ensure licensees&#8217; compliance with the provisions of
   this chapter.

   3. Upon a licensee&#8217;s query, the database shall advise the licensee
   whether the applicant is eligible for a new short-term loan and, if the
   applicant is ineligible, the reason for such ineligibility. If the database
   advises the licensee that the applicant is ineligible for a short-term loan,
   then the applicant shall direct any inquiry regarding the specific reason for
   such ineligibility to the database provider rather than to the licensee. The
   information contained in the database is confidential and exempt from the
   Freedom of Information Act (&#xA7; 2.2-3700 et seq.).

   4. If a licensee and borrower consummate a loan, then the licensee shall pay a
   fee to defray the costs of submitting the database inquiry. The amount of the
   database inquiry fee shall be calculated in accordance with a schedule set by
   the Commission. The schedule shall bear a reasonable relationship to actual
   cost of the operation of the database. If a licensee submits a database
   inquiry but does not consummate a loan with the applicant, then the licensee
   shall not pay the database inquiry fee. Each licensee shall remit all database
   inquiry fees directly to the database provider on a weekly basis.

   5. If a borrower enters into a short-term loan or pays or otherwise satisfies
   a short-term loan in full, then the licensee making the loan shall report such
   event or other information to the database not later than the close of
   business on the date of such event.

HISTORY: 2008, cc. 849, 876, § 6.1-453.1; 2010, c. 794; 2020, cc. 1215, 1258.