RS 51:1910

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RS 51:1910

CHAPTER 25. LOAN BROKERS

§1910. Definitions

For purposes of this Chapter the following definitions apply:

(1)(a) A "loan broker" is any person, firm, or corporation who, in return for any consideration from any person, promises to:

(i)Procure for such person, or assist such person in procuring a loan from any third party, or

(ii)Consider whether or not it will make a loan to such person.

(b)This Chapter shall not apply to:

(i)Any party designated and compensated by a Louisiana licensed insurance company as its agent to service loans it makes in this state;

(ii)Any attorney who arranges financing incidentally in the lawful practice of law in this state;

(iii)Any person licensed by the Louisiana Real Estate Commission who arranges financing in the normal course of representation of a client for the purchase, sale, lease, or rental of real estate;

(iv)Any financial institution chartered under Title 6 of the Louisiana Revised Statutes of 1950, a national financial institution chartered under the laws of the United States, any bank, banking institution, savings and loan, or credit union licensed and regulated by the financial institution regulatory body of any state, or a financial institution chartered under the laws of another state, or the officers or employees of the aforesaid banking or financial institutions in the performance of their duties for such banking or financial institutions;

(v)A lender licensed pursuant to the Louisiana Consumer Credit Act or by the Louisiana Office of Financial Institutions; however, such exemption shall apply only to the brokering of consumer loans.

(vi)Any person, corporation, or association licensed by the Louisiana Motor Vehicle Commission;

(vii)Any approved lender, or its employees, under the rules and regulations of the Federal Housing Administration, the Veterans Administration, the Federal National Mortgage Association, or any similar federal agency;

(viii)Any person whose fee is wholly contingent on the successful procurement of a loan from a third party and to whom no fee is paid prior to such procurement; or

(ix)Any person arranging financing for the sale of his product.

(x)Any person licensed pursuant to the Residential Mortgage Lending Act who engages in residential mortgage lending activities as defined in Chapter 14 of Title 6 of the Louisiana Revised Statutes of 1950.

(xi)Any income tax preparer who is an authorized Internal Revenue Service e-file provider and whose only brokering activity is facilitating refund anticipation loans, as defined in R.S. 9:3572.2(B)(9).

(2)A "loan" is an agreement to advance money or property in return for the promise to make payments therefor, whether such agreement is styled as a loan, a lease, or otherwise.

Added by Acts 1982, No. 811, §1. Acts 1984, No. 465, §1; Acts 1986, No. 729, §2; Acts 2000, 1st Ex. Sess., No. 34, §3, eff. April 14, 2000; Acts 2003, No. 665, §3, eff. June 27, 2003.