TITLE 7 BANKING AND FINANCE

Section 3. Industrial Loans, 7-3-1 through 7-3-29.

ARTICLE 13 LICENSING OF MORTGAGE LENDERS AND MORTGAGE BROKERS

7-3-7. Industrial Loan Commissioner; powers and duties generally; employees; deputy; training programs for licensees.

There is created the office of Industrial Loan Commissioner; and the Commissioner of Insurance of the State of Georgia is designated and constituted the Industrial Loan Commissioner under this chapter and is invested with all of the powers and authority provided for such Commissioner. In addition to those powers specifically enumerated, it shall be his duty and authority to supervise generally and to exercise regulatory powers over the making of loans of $3,000.00 or less in the State of Georgia by persons governed and regulated by this chapter.
The Commissioner is granted power and authority to make all rules and regulations not inconsistent with this chapter which in his judgment shall be necessary and appropriate to accomplish the purposes and objectives of this chapter, including, without limitation, the power and authority to make such rules and regulations regulating and controlling the manner in which loans of $3,000.00 or less may be made under this chapter. Such rules and regulations shall be promulgated pursuant to public hearing after notice of such hearing is advertised at least once in one newspaper in Atlanta, Georgia, having general state-wide circulation not less than ten days prior to such hearing. In addition, such rules and regulations shall be promulgated in accordance with Chapter 13 of Title 50, the "Georgia Administrative Procedure Act." Such rules and regulations so promulgated by the Commissioner in his discretion, consistent with the terms of this chapter and other applicable statutes, shall have the full force and effect of law. The Commissioner shall have authority to designate and employ and compensate agents and employees in the manner other agents and employees are employed by his department to assist him in the discharge of his duties under this chapter; and the Commissioner is authorized and empowered to delegate to an assistant or deputy authority to act in his place and stead in his absence or disability.
The Commissioner is authorized to provide for training programs and seminars at such places, at such times, and in such manner as he shall deem advisable. Such programs and seminars shall be for the purpose of acquainting licensees and employees thereof with this chapter, with the rules and regulations promulgated thereunder, and with such other matters relative to the business authorized to be carried on by a licensee under this chapter as the Commissioner shall deem necessary.

(Ga. L. 1955, p. 431, § 6; Ga. L. 1959, p. 55, § 1; Ga. L. 1963, p. 370, § 1; Ga. L. 1964, p. 288, § 1; Ga. L. 1975, p. 393, § 1; Ga. L. 1986, p. 855, § 1.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1986, "industrial loan commissioner" and "commissioner" were capitalized throughout this Code section.

Pursuant to Code Section 28-9-5, in 1987, the word "of" was inserted between "all" and "the powers" in the first sentence of subsection (a).

JUDICIAL DECISIONS

Jurisdiction of commissioner.

- Since the Georgia Industrial Loan Act, O.C.G.A. § 7-3-1 et seq., defined and prevented usury, and provided a source of regulated funds for those who had been borrowing at usurious rates from loan sharks, street shylocks, and wagebuyers, certain financial transactions involving loans, which the loan companies were involved in, came within the jurisdiction of the Act; accordingly, the industrial loan commissioner had jurisdiction over wagebuyers, contrary to the argument of the loan companies that the commissioner did not have such jurisdiction. USA Payday Cash Advance Ctrs. v. Oxendine, 262 Ga. App. 632, 585 S.E.2d 924 (2003).

Cited in Robinson v. Colonial Disct. Co., 106 Ga. App. 274, 126 S.E.2d 824 (1962); Brown v. Quality Fin. Co., 112 Ga. App. 369, 145 S.E.2d 99 (1965); Plant v. Blazer Fin. Servs., Inc., 598 F.2d 1357 (5th Cir. 1979); Oglesby v. Blazer Fin. Servs., Inc., 622 F.2d 779 (5th Cir. 1980); DOT v. Del-Cook Timber Co., 248 Ga. 734, 285 S.E.2d 913 (1982).

OPINIONS OF THE ATTORNEY GENERAL

Legislative intent to limit scope of operations of small loan lenders.

- Language employed in Ga. L. 1963, p. 370, § 1, when construed with its declared purpose of regulating the making of loans of $3,000.00 or less, expresses the General Assembly's intent to limit the area or scope of operations of small loan lenders at least to some extent. 1963-65 Op. Att'y Gen. p. 716.

Section authorizes rule limiting places at which loans may be made.

- Language used in Ga. L. 1963, p. 370, § 1 specifically empowering the commissioner to make rules and regulations which the commissioner considers necessary and appropriate to regulate small loans industry, including regulating and controlling of manner of making loans, sufficiently defines framework for a rule limiting places at which loans may be made. 1963-65 Op. Att'y Gen. p. 716.

Sales of credit insurance with loans are exempt from Rule 120-1-11-.03(2).

- Banks that make loans of the type authorized by the Georgia Industrial Loan Act (see now O.C.G.A. § 7-3-1 et seq.) and sell credit accident and health insurance in connection therewith need not comply with Rule 120-1-11-.03(2) of the Official Compilation, Rules and Regulations of the State of Georgia, which limits the length of waiting periods for such insurance. 1980 Op. Att'y Gen. No. 80-42.

Syfert Injury Law Firm

2018 Georgia Code 7-3-7 | Car Wreck Lawyer