Terms of written agreement. A licensee may make a loan for an indefinite term under a written agreement between the licensee and the borrower. Pursuant to this agreement:
1. The borrower may obtain cash advances from the licensee periodically by a check, draft, credit card or any other means or the licensee may pay out money at the borrower’s direction or on his behalf;
2. An open-end account must be established for the borrower and the amount of each cash advance made to the borrower and any interest, charges and other costs must be debited to that account and any payments on the loan or other credits must be credited to that account;
3. The interest and other charges must be computed periodically on the unpaid balance in the borrower’s account; and
4. The borrower may pay his account in full at any time without a penalty for prepayment, or if the account is not in default, in monthly installments of fixed or determinable amounts as provided in the agreement.
Last modified: February 26, 2006