[§480J-14] Notice on assignment or sale of contract.
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[§480J-14] Notice on assignment or sale of contract.
(a)No licensee shall pledge, negotiate, sell, or assign a current and performing installment loan, except to another licensee or to a bank, savings bank, trust company, financial services loan company, or credit union organized under the laws of this State or the laws of the United States.
(b)Prior to sale or assignment of a current and performing installment loan contract held by the installment lender, the lender shall place a notice on the installment loan contract in at least twelve-point type that reads:
"INSTALLMENT LOAN
No licensee shall pledge, negotiate, sell, or assign an installment loan, except to another licensee or to a bank, savings bank, trust company, financial services loan company, or credit union organized under the laws of Hawaii or the laws of the United States."
(c)This section shall not apply to:
(1)The transfer of an installment loan to a company affiliated with the installment lender that securitizes the installment lender's loan receivables; and
(2)The pledge or other granting of a security interest in the installment loan to a financial institution in connection with asset back financing or similar lending facility of the installment lender. [L 2021, c 56, pt of §2]