The definitions set forth in
this section apply throughout this chapter unless the context
clearly requires a different meaning.
(1) "Person" includes individuals, partnerships,
associations, limited liability companies, limited liability
partnerships, trusts, corporations, and all other legal entities.
(2) "License" means a single license issued under the
authority of this chapter with respect to a single place of
business.
(3) "Licensee" means a person to whom one or more licenses
have been issued.
(4) "Director" means the director of financial institutions.
(5) "Insurance" means life insurance, disability insurance,
property insurance, involuntary unemployment insurance, and such
other insurance as may be authorized by the insurance
commissioner.
(6) "Add-on method" means the method of precomputing
interest payable on a loan whereby the interest to be earned is
added to the principal balance and the total plus any charges
allowed under this chapter is stated as the loan amount, without
further provision for the payment of interest except for failure
to pay according to loan terms. The director may adopt by rule a
more detailed explanation of the meaning and use of this method.
(7) "Simple interest method" means the method of computing
interest payable on a loan by applying the annual percentage
interest rate or its periodic equivalent to the unpaid balances
of the principal of the loan outstanding for the time outstanding
with each payment applied first to any unpaid penalties, fees, or
charges, then to accumulated interest, and the remainder of the
payment applied to the unpaid balance of the principal until paid
in full. In using such method, interest shall not be payable in
advance nor compounded, except that on a loan secured by real
estate, a licensee may collect at the time of the loan closing up
to but not exceeding forty-five days of prepaid interest. The
director may adopt by rule a more detailed explanation of the
meaning and use of this method.
(8) "Applicant" means a person applying for a license under
this chapter.
(9) "Borrower" means any person who consults with or retains
a licensee or person subject to this chapter in an effort to
obtain or seek information about obtaining a loan, regardless of
whether that person actually obtains such a loan.
(10) "Loan" means a sum of money lent at interest or for a
fee or other charge and includes both open-end and closed-end
loan transactions.
(11) "Loan originator" means a person employed, either
directly or indirectly, or retained as an independent contractor
by a licensee, to make or assist a person in applying to obtain a
loan.
(12) "Making a loan" means closing a loan in a person's
name, or advancing, offering to advance, or making a commitment
to advance funds to a borrower for a loan.
(13) "Mortgage broker" means the same as defined in RCW 19.146.010, except that for purposes of this chapter, a licensee
or person subject to this chapter cannot receive compensation as
both a consumer loan licensee making the loan and as a mortgage
broker in the same loan transaction.
(14) "Officer" means an official appointed by the company
for the purpose of making business decisions or corporate
decisions.
(15) "Principal" means any person who controls, directly or
indirectly through one or more intermediaries, alone or in
concert with others, a ten percent or greater interest in a
partnership; company; association or corporation; or a limited
liability company, and the owner of a sole proprietorship.
(16) "Senior officer" means an officer of a licensee at the
vice president level or above.
(17) "Third party service provider" means any person other
than the licensee or a mortgage broker who provides goods or
services to the licensee or borrower in connection with the
preparation of the borrower's loan and includes, but is not
limited to, credit reporting agencies, real estate brokers or
salespersons, title insurance companies and agents, appraisers,
structural and pest inspectors, or escrow companies.
[2001 c 81 § 1; 1994 c 92 § 161; 1991 c 208 § 2.]