MARVIN MANDEL, Governor                                1879

(1) A lender may charge interest at an
effective rate of simple interest not in excess of 12
percent per annum on the unpaid principal of a loan if:

(i) There is a written agreement
signed by the borrower which sets forth the stated rate
of interest charged by the lender;

(ii) The loan is not secured by a first
mortgage or first deed of trust on real property;

(iii) The loan is not fully secured by
investment securities or savings accounts; and

(iv) The borrower is required to repay
the loan in periodic installments, which may be regular,
irregular, equal or unequal installments.]

(C) LOANS NOT SECURED BY RESIDENTIAL REAL PROPERTY
- 18 PERCENT MAXIMUM FOR $3,500 AND UNDER; AND 12 PERCENT
MAXIMUM OVER $3,500.

(1)    SUBJECT TO PARAGRAPH (2) OF THIS
SUBSECTION, A LENDER MAY CHARGE INTEREST AT THE FOLLOWING
EFFECTIVE RATES OF SIMPLE INTEREST:

(I)    WITH RESPECT TO A LOAN NOT
EXCEEDING $3,500, 18 PERCENT PER ANNUM ON THE UNPAID
PRINCIPAL BALANCE OF THE LOAN; AND

(II)   WITH RESPECT TO A LOAN EXCEEDING
$3,500, 12 PERCENT PER ANNUM ON THE UNPAID PRINCIPAL
BALANCE OF THE LOAN.

(2)    THE RATES PERMITTED BY THIS SUBSECTION
MAY BE CHARGED ONLY IF:

(I) THERE IS A WRITTEN AGREEMENT
SIGNED BY THE BORROWER WHICH SETS FORTH THE STATED RATE
OF INTEREST CHARGED BY THE LENDER;

(II) THE LOAN IS NOT SECURED BY A FIRST
MORTGAGE OR FIRST DEED OF TRUST ON REAL PROPERTY;

(III)  THE BORROWER IS REQUIRED TO REPAY
THE LOAN IN PERIODIC INSTALLMENTS, WHICH MAY BE REGULAR,
IRREGULAR, EQUAL OR UNEQUAL INSTALLMENTS;

(IV)   THE LOAN IS NOT SECURED BY A
CONFESSION OF JUDGMENT OR POWER OF ATTORNEY TO THE LENDER
OR TO A THIRD PERSON TO CONFESS JUDGMENT OR APPEAR FOR
THE BORROWER IN A JUDICIAL PROCEEDING;

(V)    THE LOAN IS NOT SECURED BY AN
INSTRUMENT IN WHICH BLANKS ARE LEFT TO BE FILLED AFTER
EXECUTION;

(VI)   THE LOAN IS NOT SECURED BY A NOTE,