(a) If the principal amount of a loan is less than three hundred thousand dollars ($300,000), no lender shall charge or receive from any borrower or require in connection with any loan any borrower, directly or indirectly, to pay, deliver, transfer, or convey or otherwise confer upon or for the benefit of the lender or any other person, firm, or corporation any sum of money, thing of value, or other consideration other than that which is pledged as security or collateral to secure the repayment of the full principal of the loan, together with fees and interest provided for in this Chapter or Chapter 53 of the General Statutes.
(b) Repealed by Session Laws 2003-401, s. 2, effective October 1, 2003, and applicable to contracts entered into or renewed on or after that date.
(c) The provisions of this section shall not prevent a borrower from selling, transferring, or conveying property other than security or collateral to any person, firm, or corporation for a fair consideration so long as such transaction is not made a condition or requirement for any loan.
(d) Notwithstanding any contrary provision of State law, any lender may collect money from the borrower for the payment of (i) bona fide loan-related goods, products, and services provided or to be provided by third parties, (ii) taxes, filing fees, recording fees, and other charges and fees paid or to be paid to public officials, and (iii) fees payable to the federal government, any state or local government or any federal, state, or local governmental agency in connection with a loan made pursuant to a loan program sponsored by or offered through the federal government, any state or local government or any federal, state or local government agency, including loan guarantee and tax credit programs. No third party shall charge or receive (i) any unreasonable compensation for loan-related goods, products, and services, or (ii) any compensation for which no loan-related goods and products are provided or for which no or only nominal loan-related services are performed. Loan-related goods, products, and services include fees for tax payment services, fees for flood certification, fees for pest-infestation determinations, mortgage brokers' fees, appraisal fees, inspection fees, environmental assessment fees, fees for credit report services, assessments, costs of upkeep, surveys, attorneys' fees, notary fees, escrow charges, and insurance premiums (including, for example, fire, title, life, accident and health, disability, unemployment, flood, and mortgage insurance).
(e) Notwithstanding any contrary provision of State law, any lender may receive the proceeds from any insurance policies where loss occurs under the terms of such policies.
(f) This section shall not be applicable to any corporation licensed as a "Small Business Investment Company" under the provisions of the United States Code Annotated, Title 15, section 66, et seq., nor shall it be applicable to the sale or purchase of convertible debentures, nor to the sale or purchase of any debt security with accompanying warrants, nor to the sale or purchase of other securities through an organized securities exchange. (1961, c. 1142; 1969, c. 127; c. 1303, s. 5; 1993, c. 226, s. 12; 1999-332, s. 4; 2000-140, s. 40(c); 2003-401, s. 2.)
Notes of Decisions
Kessing v. Nat'l Mortg. Corp., 180 S.E.2d 823 (N.C. 1971).
· cites it 27× “Defendant first contends that the court erred in ruling that G.S. § 24-8 as amended was applicable to the loan in question.”
Hamilton v. Mortg. Info. Servs., Inc., 711 S.E.2d 185 (N.C. Ct. App. 2011).
· cites it 16× “The “closing fee” as it relates to the unreasonableness of the fee under N.C. Gen. Stat. § 24-8 (d). This allegation survives as to Defendant MIS only.”
Bumpers v. Cmty. Bank of N. Va., 747 S.E.2d 220 (N.C. 2013).
· cites it 10× “In this case we must simply consider whether the actual fees charged by defendant 8While plaintiffs have relinquished any claims under section 24-8, I do not believe we are barred from considering how that statute informs our reading of section 75-1.”
Abbington Spe, LLC v. U.S. Bank, Nat'l Ass'n, 352 F. Supp. 3d 508 (E.D.N.C. 2016).
· cites it 8× “In opposing defendants' motion to dismiss, Abbington clarifies that it relies on N.C. Gen. Stat. § 24-8 to support its seventh claim.”
Shepard v. Ocwen Fed. Bank, FSB, 638 S.E.2d 197 (N.C. 2006).
· cites it 6× “Moreover, for loans of less than $300,000, including plaintiffs' loan, any fee or interest imposed by a lender that is not affirmatively permitted by Chapter 24 or Chapter 53 of the General Statutes is prohibited by N.”
Nw. Bank v. Barber, 339 S.E.2d 452 (N.C. Ct. App. 1986).
· cites it 4× “Defendant first contends that the trial court erred when it failed to apply the provisions of G.S. 24-8 to the evidence. G.S. 24-8 provides in pertinent part: No lender shall charge or receive from any borrower or require in connection with a loan any borrower, directly or…”
Rosenthal's Bootery, Inc. v. Shavitz, 268 S.E.2d 250 (N.C. Ct. App. 1980).
· cites it 2× “Resolution of this issue depends on whether the loan was made on or before 2 July 1969 since the statute governing interest rates on commercial loans, G.S. § 24-8, was amended effective 2 July 1969.”
West Raleigh Grp. v. Massachusetts Mut. Life Ins., 809 F. Supp. 384 (E.D.N.C. 1992).
· cites it 2× “Similarly, N.C.Gen. Stat. § 24-8 limits permissible loan fees and charges on loans not in excess of $300,-000 to such interest rates and fees as are expressly permitted by Chapter 24 of the General Statutes.”
Pigford v. Bd. of Adj. of City of Kinston, 270 S.E.2d 535 (N.C. Ct. App. 1980).
“” In the record before us there is no allegation or evidence that the petitioner is the owner of property affected by the board’s ruling.”
Tomlin v. Dylan Mortg. Inc., 2000 NCBC 9 (N.C. Bus. Ct. 2000).
· cites it 3× “Specifically, N.C.G.S. § 24-8 states: No lender shall charge or receive from any borrower .”
— N.C. Gen. Stat. § 24-8(a) — 1 case
Shepard v. Ocwen Fed. Bank, FSB, 638 S.E.2d 197 (N.C. 2006).
“Moreover, for loans of less than $300,000, including plaintiffs' loan, any fee or interest imposed by a lender that is not affirmatively permitted by Chapter 24 or Chapter 53 of the General Statutes is prohibited by N.”
— N.C. Gen. Stat. § 24-8(d) — 2 cases
Bumpers v. Cmty. Bank of N. Va., 747 S.E.2d 220 (N.C. 2013).
“In this case we must simply consider whether the actual fees charged by defendant 8While plaintiffs have relinquished any claims under section 24-8, I do not believe we are barred from considering how that statute informs our reading of section 75-1.”
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