§ 962. Limitations. 1. Municipal corporations may accept such payments
from a corporation extending loans for such purpose, if the loan
corporation has a paid-up capital of at least one million dollars and
charges not more than four per centum interest on unpaid balances on
moneys loaned, nor more than two per centum of the amount of the loan as
a service charge in connection therewith; provided, however, that in the
event of a default in the payment of such a loan, the loan corporation
may charge six per centum interest per annum on all sums in default. The
loan corporation shall, within three days after receiving the same,
deposit the conditional tax receipt with a banking institution, trust
company, state bank, national bank, or federal reserve bank of the
district in which the municipal corporation is located.

2. A corporation or banking institution qualifying under the
provisions of section ten hundred fifty-four of this chapter and
possessing all of the qualifications required under this section may
also engage in the business of lending money to taxpayers and accepting
conditional tax receipts as provided in this title.