Definitions

Definitions. The following words and phrases, when used in these Regulations or in the related statutes shall, for the purposes of these Regulations, have the meanings respectively ascribed to them in this section, except where the context clearly describes and indicates a different meaning: 1. “Actuarial Method” shall have the same meaning as it is used in the Federal Truth-In- Lending Act in determining the annual percentage rate. 2. “Commissioner” means the Commissioner of the Department of Banking and Consumer Finance of the State of Mississippi. 3. “Department” means the Department of Banking and Consumer Finance of the State of Mississippi. 4. “Licensee” means any person holding a license from the Department of Banking and Consumer Finance to conduct business under the Small Loan Privilege Tax Law and the Small Loan Regulatory Law. 5. “Loan” means a loan that is made to individuals primarily for personal, family or household purposes. Licensing under the Mississippi Small Loan Regulatory Law and Small Loan Privilege Tax Law does not apply to persons engaged in the business of extending credit to borrowers primarily for business or commercial purposes. 6. “Pre-computed Loan” means a loan on which the finance charge is calculated for the entire term of the loan and added to the State Amount Financed to determine the total amount of payments. 7. “State Amount Financed” means the amount financed as defined by the Federal Truth-In- Lending Act and Regulation Z, plus the closing fee authorized by state law, including all charges in the amount of credit extended which are not a part of the finance charge, the total being the amount of credit which will be paid to the borrower or to another person on his behalf. The following are a part of the State Amount Financed and not a part of the finance charge: (i) actual cost of authorized insurance premiums (ii) closing costs excluded from the definition of finance charge by State law; and (iii) any reasonable fee paid to an attorney for the investigation of a title. 8. “State Contract Rate” means the annual percentage rate of the finance charge determined by the actuarial method for the term of the loan, calculated on the State Amount Financed, as defined herein. 9. “State Finance Charge” represents an amount paid by the debtor for receiving a loan that is calculated by using the State Contract Rate, the term of the note and the State Amount Financed. 10. “Term of Loan” means the period of time from the date of the loan through the scheduled date of the final payment. 11. “The Rule of 78’s” is a formula used for calculating earnings and rebates for pre-computed loans. 12. “Total Amount of Note,” “Total Amount of Loan,” “Total Payments” and “Total Amount Repayable” each mean the total sum of payments to be paid by the borrower to the lender according to the schedule of payments.