§ 108. Rates of interest; installment obligations; personal loan\ndepartments. 1. Except as otherwise provided in this section, no bank or\ntrust company shall take, receive, reserve or charge on any loan or\ndiscount made, or upon any note, bill of exchange or other evidence of\ndebt, negotiable or otherwise, interest, as computed pursuant to this\nsubdivision, at a rate greater than the rate prescribed by the\nsuperintendent of financial services pursuant to section fourteen-a of\nthis chapter, or, if no rate has been so prescribed, six per centum per\nannum, or two dollars if the interest so computed is less than that\namount. Such interest may be taken in advance, reckoning the days for\nwhich the note, bill or evidence of debt has to run. If interest is so\ntaken in advance and the maturity of the debt is accelerated and\njudgment is obtained, or the debt is otherwise paid prior to its normal\ndate of maturity, the bank or trust company shall refund to the obligor\nor his legal representative, as the case may be, the unearned interest\npreviously deducted and the unused portion of any premiums charged for\ninsuring the obligor under a group credit insurance policy, such refund\nto be calculated in accordance with the method described in paragraph\n(e) of subdivision four of this section. A reasonable charge by a bank\nor trust company for the collection of a bona fide bill of exchange,\nnote or other evidence of debt payable at a place other than the place\nwhere purchased, discounted or sold, in addition to the interest, shall\nnot be considered interest for the purpose of any law regulating the\nmaximum rate of interest which may be charged, taken or received.\n Anything contained in this subdivision to the contrary\nnotwithstanding, the charging of interest or discount on a loan or\ndiscount made outside this state at a rate allowed by the laws of the\njurisdiction where such loan is made, or the acquisition by a bank or\ntrust company of a part interest or the entire interest in any loan or\ndiscount heretofore or hereafter made by a bank or trust company or any\nother banking institution, shall not be a violation of this section.\n 2. Any bank or trust company may purchase or otherwise acquire from\nthe payee, owner or holder thereof any obligation in writing to pay in\ninstallments all or part of the price of personal property or that of\nthe performance of services, whether that obligation be a negotiable\npromissory note or other evidence of debt, or any accounts receivable,\nwhether or not they are obligations in writing, or any lease of personal\nproperty, and may lease personal property acquired by it, doing so for\nsuch price or rentals or other consideration and upon such additional\nterms and conditions as may be mutually agreeable.\n 3. Upon advances of money, repayable on demand, to an amount not less\nthan five thousand dollars, made upon documents of title within article\nseven of the uniform commercial code or negotiable instruments within\narticle three or article eight of the uniform commercial code pledged as\ncollateral security for such repayment, any bank or trust company may\nreceive or contract to receive and collect as compensation for making\nsuch advances any sum which may be agreed upon by the parties to such\ntransaction.\n 4. (a) A bank or trust company may operate a personal loan department\nat all or at any one or more of its authorized places of business in\naccordance with the requirements of this subdivision. The records of\nsuch department shall be kept in such form as the superintendent may\nfrom time to time prescribe. The superintendent may, after giving notice\nof the contemplated action and reasonable opportunity to be heard, order\nthat the operation of such department be discontinued if he shall find\nthat the bank or trust company has failed to conform to any requirement\nof this subdivision. The superintendent may forthwith, and for a period\nnot to exceed thirty days pe
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