Default, Deregulation and Nebraska's Small Loan Act
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Authors
Culhane, Marianne
Issue Date
1981
Volume
14
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|In 1979, the Unicameral significantly limited the default remedies for loans under Nebraska's Installment Loan Act (the ILA), a usury statute allowing up to 24% interest on personal loans of $7000 or less. Although the ILA was intended to apply only to licensed small loan companies, the National Bank Act of 1864 and the Depositary Institutions Deregulation Act of 1980 preempt that limitation. These two federal statutes may be interpreted to give banks, savings and loans, and credit unions the right to make loans at the ILA rates. When these lenders make loans at the high ILA interest rates, the policy of competitive equality underlying federal lending law subjects them, like small loan companies, to the new ILA default rules. The federal statutes in this way give the ILA amendments broader scope than the Unicameral anticipated. The ILA amendments affecting formal collection practices on secured credit are drawn mainly from another consumer protection statute, the Uniform Consumer Credit Code (the UCCC). The ILA, like the UCCC, defines default by statute and not by contract, forbids the creditor to accelerate the debt or repossess the collateral until a payment is at least 30 days overdue...
Description
Citation
14 Creighton L. Rev. 1 (1980-1981)
Publisher
Creighton University School of Law