LD 788, Page 6 - 122th Legislature, FIRST REGULAR Session

	2.__Dishonored instrument charge.__If an instrument held by a
lender as a result of a deferred deposit loan is returned to the
lender from a financial institution due to insufficient funds, a
closed account or stop payment order, the lender may contract for
and collect a returned instrument charge, not to exceed $25. The
charge under this subsection is not permitted if the instrument
dishonored by a financial institution or a stop payment order is
placed by the consumer due to forgery or theft of the instrument.
This subsection does not prohibit a lender from also exercising all
civil means authorized by law to collect the face value of the
instrument and any costs or attorney's fees awarded by a court and
incurred as a result of the dishonored instrument, except that an
award of attorney's fees may not exceed the total amount of the
deferred deposit loan.

For the purposes of this section, "financial institution" has
the same meaning as in Title 9-B, section 131, subsection 17.

§6194.__Prohibited practices

A lender may not engage in any of the following business
practices.

1.__Prohibited clauses.__A lender may not obtain any agreement
from the consumer:

A.__Giving the lender or any 3rd party a power of attorney
or authority to confess judgment for the consumer;

B.__Authorizing the lender or any 3rd party to bring suit
against the consumer in a court outside this State; or

C.__Waiving any right granted to the consumer under this
chapter.

2.__Renewal.__A lender may not renew the same loan more than
twice.

3.__Postdated instrument.__A lender may not require or accept
a postdated instrument as security for or in payment of a loan.

4.__Obligation on more than one loan.__A lender may not cause
a consumer to be obligated on more than one loan at any time for
the purpose of increasing charges payable by the consumer.

5.__Other security.__A lender may not take an interest in any
property other than an instrument as security for a loan.

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