Section 110.40 File of Original Papers

Section 110

Section 110.40  File of

Original Papers

a)         Files

1)         A separate file shall be maintained for each obligor and shall

contain the note, security agreement, or financing statement, wage assignment,

acknowledged copy of the disclosure statement of loan, insurance certificate, a

separately signed statement indicating the borrower has received a copy of

right to rescind (if required), or waiver, if any, and all other evidence of

indebtedness or security pertaining to the loan, except when said documents are

in the custody of a court or of an agent for collection, or are hypothecated as

herein provided.  Evidence of disclosure must be retained for two years from

the date of the loan.  A licensee may maintain these files in any medium or

format which accurately reproduces original documents or papers.

2)         When an obligor is also a co-maker or obligor on another loan,

the file of such obligor shall be cross-referenced to the other, unless such

cross-reference is included on the alphabetical record required by Section

110.60.

b)         All legal instruments bearing evidence of indebtedness taken

in connection with a loan and executed by an obligor including the disclosure

statement of loan shall bear the loan number.

c)         No licensee shall offer to or accept from an obligor any

instruments that contain blank terms.

d)         All spaces or sections not used in the preparation of legal

documents shall be ruled out or designated as “none”, or “n/a”.

e)         Any amendments to closed-end contracts shall be signed by the

obligor and creditor.

f)         The name and address of the licensee making the loan shall

appear on any note, wage assignment, security agreement or other legal

instrument taken from an obligor before the proceeds of the loan are delivered.