KRS 286.4-540: Duties of licensee.

Every licensee shall:

(1) Deliver to the borrower at the time of making a loan, or to one (1) of them if there

are two (2) or more obligors on the loan, a statement showing in clear and distinct

terms the amount and date of the loan and the date of its maturity, the nature of the

security for the loan, the name and address of the borrower and of the licensee, the

schedule of payments or a description thereof, and the agreed charges or rate of

charge on such loan provided, that when charges are contracted for under KRS

286.4-530(1), the statement shall show the cash advance and the amount of the note

including charges, the additional charges contracted for in case of default or

deferment and that a refund is required for prepayment in full;

(2) Furnish to the borrower a receipt for ea ch cash payment made on account of any

such loan at the time each payment is made but no receipt need be given where

payment is made by check or money order; and the use of a coupon book system

shall be deemed compliance with this section;

(3) Upon the rep ayment of the loan in full, mark indelibly with the word "Paid" or

"Canceled" every obligation signed by the borrower and release or provide the

borrower with evidence to release any mortgage which no longer secures an

obligation, restore any pledge, and c ancel and return every note and assignment

given to the licensee by the borrower.