Requirements for making and paying of loans: Duties of licensee

1. Every licensee shall: (a) Deliver to the borrower, or if more than one, to one of them, at the time of making a loan under this chapter a copy of the loan obligation or, in lieu thereof, a statement showing in clear and distinct terms the date of the loan and amount of loan obligation and the date of its maturity, the nature of the security, if any, for the loan, the name and address of the borrower and of the licensee, and the description or schedule of payments on the loan. (b) Except as otherwise provided in subsection 2, give to the person making any cash payment on account of any loan a receipt at the time the payment is made, which receipt must show the balance due, if any, after application of the payment. A receipt for the amount of the payment only may be given temporarily and replaced within a reasonable time with a receipt as prescribed in this paragraph. (c) Permit payment in advance in an amount equal to one or more full installments at any time during the regular business hours of the licensee. (d) Upon repayment of a loan in full, mark plainly every note or other evidence of the indebtedness or assignment signed by any obligor with the word “paid” or “cancelled,” and release or provide the borrower with evidence to release any mortgage or security instrument no longer securing any indebtedness to the licensee. 2. In lieu of the receipt mentioned in paragraph (b) of subsection 1, the licensee may issue a coupon payment book to the borrower setting forth the amount and due date of each installment and containing a payment record stub corresponding to each coupon.