The definitions in
RCW
31.45.010 and this section apply throughout
this chapter unless the context clearly requires otherwise.
"ACH" means automated clearing house, an electronic network for
financial transactions that processes credit and debit transactions.
"Act" means chapter 31.45 RCW.
"Advertise, advertising, and advertising material" means any
form of sales or promotional materials used in connection with the business.
Advertising material includes, but is not limited to, newspapers, magazines,
leaflets, flyers, direct mail, indoor or outdoor signs or displays,
point-of-sale literature or educational materials, other printed materials;
radio, television, public address system, or other audio broadcasts; internet
pages, social media, instant messages, or electronic bulletin boards.
"Affiliate" means any person who directly or indirectly through
one or more intermediaries, controls, or is controlled by, or is in common
control with another person.
"Agent" for purposes of
RCW
31.45.079 means a person who engages in the
business of making small loans by performing small loan agent services.
"Annual percentage rate" or "APR" means the cost of credit
expressed as a yearly rate, determined in accordance with the federal Truth in
Lending Act (15 U.S.C. Sec.
1601 et seq.), and Regulation Z (12 C.F.R.
Part 1026 et seq.), as amended.
The Office of the Comptroller of the Currency (OCC) has
developed an APR calculator (APRWIN) that licensees may download and use
without charge. APRWIN is available on the OCC's web site at
http://www.occ.treas.gov/aprwin.htm.
"Board director" means a director of a corporation or a person
occupying a similar status and performing a similar function with respect to an
organization, whether incorporated or unincorporated.
"Check" means the same as defined in
RCW
62A.3-104(f) and, for
purposes of conducting the business of making small loans, includes other
electronic forms of payment, including stored value cards, internet transfers,
and automated clearing house transactions.
"Check casher" means an individual, partnership, unincorporated
association, or corporation that, for compensation, engages, in whole or in
part, in the business of cashing checks, drafts, money orders, or other
commercial paper serving the same purpose.
"Check seller" means an individual, partnership, unincorporated
association, or corporation that, for compensation, engages, in whole or in
part, in the business of selling checks, drafts, money orders, or other
commercial paper serving the same purpose.
"Close of business" for the purposes of RCW 31.45.86 and these
regulations means the actual time a licensee closes for business at the
location from which a small loan was originated or 11:59 p.m. Pacific Time,
whichever is earlier.
"Default" means:
(a) The borrower's failure to repay a small loan in compliance
with the terms contained in the small loan agreement or note; or
(b) Failure to pay any installment plan payment within ten days
after the date upon which the installment was scheduled to be paid. See WAC
208-630-556(12)(b).
"Department" means the department of financial
institutions.
"Exempt entity" means a person described in
RCW
31.45.020 that is engaged in the business of
making small loans.
"Gross monthly income" means an individual's total personal
income earned during a month prior to any taxes or deductions.
"Installment plan" is a contract between a licensee and
borrower that provides that the loaned amount will be repaid in substantially
equal installments scheduled on or after a borrower's pay dates and no less
than fourteen days apart.
"Investigation" means an examination undertaken for the purpose
of detecting violations of chapter 31.45 RCW or these rules or obtaining
information lawfully required under chapter 31.45 RCW or these rules.
"License" means a license issued by the director to engage in
the business of check cashing or check selling under the provision of chapter
31.45 RCW.
"Loaned amount" means the outstanding principal balance and any
fees authorized under
RCW
31.45.073 that have not been paid by the
borrower.
"Monetary instrument" means a check, draft, money order or
other commercial paper serving the same purpose.
"Paid" means that moment in time when the licensee deposits the
borrower's check, accepts cash, or initiates an ACH withdrawal from the
borrower's account for the full amount owed on a valid small loan. If the
borrower's check is dishonored and returned unpaid by the borrower's bank, the
loan is not paid. If an ACH authorization is denied, the loan is not
paid.
"Payday advance lender" or "payday lender" means a licensee
under this chapter who has obtained a small loan endorsement under
RCW
31.45.073.
"Payday advance loan," "payday loan" or "deferred deposit loan"
means the same as a small loan.
"Postdated check" means a check delivered prior to its date,
generally payable at sight or on presentation on or after the day of its date.
"Postdated check" does not include any promise or order made or submitted
electronically by a borrower to a licensee.
"RCW" means the Revised Code of
Washington.
"Small loan" or "loan" means a loan of up to the maximum amount
and for a period of time up to the maximum term specified in
RCW
31.45.073.
"Small loan agent services" include, but are not limited
to:
(a) Marketing and advertising small loans;
(b) Collecting nonpublic personal information from consumers in
anticipation of selling the information to potential licensed lenders or other
entities providing small loan agent services;
(c) Assisting consumers in completing small loan
documentation;
(d) Providing required applicable state and federal disclosures
in connection with small loans; and
(e) Collecting on small loans.
Small loan agent services do not include (a) services performed
by any person holding a small loan endorsement or (b) collection of small loans
by a person licensed under chapter 19.16 RCW or exempt from that chapter or
otherwise authorized under Washington law to act as a collection agent.
"State" means the state of Washington.
"Unsafe or unsound financial practice" means any action, or
lack of action, the likely consequences of which, if continued, would
materially impair the net worth of a licensee or create an abnormal risk of
loss to its customers.
