(1) As used in this section, unless the context otherwise requires:
(a) "Borrower" means any person seeking to obtain a loan through the services of a loan finder.
(b) "Loan" has the same meaning as set forth in section 5-1-301 (25), C.R.S.
(c) "Loan finder" means any person who, directly or indirectly, serves or offers to serve as a lender or as an agent to obtain a loan or who holds himself or herself out as capable of obtaining a loan for any person; except that the following persons shall be exempt from the provisions of this section:
(I) A supervised financial organization, as defined in section 5-1-301 (45), C.R.S., and its employees, when acting within the scope of their employment;
(II) A person duly licensed to make supervised loans pursuant to part 3 of article 2 of title 5, C.R.S.;
(III) A business development corporation, created pursuant to article 48 of title 7, C.R.S.;
(IV) A pawnbroker licensed pursuant to article 11.9 of title 29, acting as such;
(V) Any governmental entity or employee thereof, acting in his official capacity;
(VI) A mortgage broker, as defined in paragraph (d) of this subsection (1), acting as such.
(d) "Mortgage broker" means any person who, directly or indirectly, serves or offers to serve as an agent for any person to obtain a loan secured by a mortgage, deed of trust, or lien on real property.
(2) A loan finder shall not charge or collect any fee from a borrower until a borrower actually receives the agreed-upon loan; except that nothing in this section shall preclude a borrower from paying for a credit check or for an appraisal of security for the loan where such payment is by check or money order made payable to a party independent of the loan finder.
(3) In any proceeding brought pursuant to this section, the burden of production with respect to an exemption from its provisions shall be upon the person claiming the exemption, and said claim of exemption shall constitute an affirmative defense.
(4) Any person who violates this section commits a class 1 misdemeanor. A violation of this section shall also constitute a class 1 public nuisance subject to the provisions of part 3 of article 13 of title 16, C.R.S.
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