3 AAC 12.080. Accounting records

(a) The licensee shall maintain a record of each loan, showing the number of the loan, date of the loan, name of the borrower, and amount of the loan.

(b) The licensee shall maintain a separate account record for each loan made to any one borrower. Each account record must state the

(1) loan number;

(2) date of the loan;

(3) name and address of the borrower;

(4) name of any endorsers, comakers, cosigners, or sureties;

(5) cost of any insurance;

(6) amount of recording and releasing fees and dates of payment of recording and releasing fees as paid out for filing a financing statement or termination statement including the fee required for securing a lien on a vehicle title;

(7) description of security;

(8) rate at which charges are to be computed;

(9) terms of repayment;

(10) face amount of note;

(11) amount of payment showing the

(A) date of payment;

(B) amount paid on principal;

(D) remaining principal balance;

(E) , (F) repealed 4/13/79.

(c) If a portion of the interest earned is not paid at the time payment is made, the account record must show either the date to which interest is paid or the amount of interest then due but unpaid.

(d) When any loan is prepaid in full, either by cash or renewal, refunds of any unearned premiums must be recorded on the account record.

(e) If payment is made in any way other than in the ordinary course of business, it shall be noted on the account record, for example, payment by sale of security, insurance claim or endorser.

(f) Deletions may not be made in the payment section of any account record. The entries must correspond with the receipts given to the borrower.

(g) Account records that are paid in full or renewed and that no longer reflect an active loan must be accumulated in a separate section of the files of the licensee and retained from one departmental examination to the next. After the examination, these records may be filed in a permanent file.

(h) All payments must be credited to the account records on the day they are received.

(i) Adequate files must be kept of all information required by AS 06.20 and this chapter.

(j) Proper records must be maintained showing all cash receipts and disbursements.

(k) An alphabetical record must be maintained and show the name of each borrower, endorser, comaker, cosigner, or surety who is currently indebted, directly or indirectly, to the licensee, together with sufficient information to locate the account record and showing liability on all loans.

( l ) A general ledger must be maintained and posted at least once a month as of the close of business on a fixed date, preferably the last business day of each month, and a trial balance prepared from it. All receipts and disbursements of any amount must be entered to subsidiary records as of the day they occur.

(m) Records segregating income and expense accounts must be kept in a manner that will facilitate checking the annual reports required by AS 06.20. Combination forms may be used if approved by the department.

History: In effect before 7/28/59; am 6/30/77, Register 62; am 10/16/2003, Register 168

Authority: AS 06.20.160

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