2018 -- S 2333

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS

     Introduced By: Senators Ciccone, Lombardi, and Goodwin

     Date Introduced: February 15, 2018

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 19-14.2-8 and 19-14.2-12 of the General Laws in Chapter 19-14.2

entitled "Small Loan Lenders" are hereby amended to read as follows:

     19-14.2-8. Maximum loan and interest rate.

     (a) Every small loan lender may lend up to five thousand dollars ($5,000) in the

aggregate to one borrower and may charge, contract for, and receive on the loan interest on the

unpaid principal balance on a loan at a rate not exceeding the following:

     (1) Loans up to and including three hundred dollars ($300), three percent (3%) per

month;

     (2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred dollars

($800), two and one-half percent (2.5%) per month; and

     (3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand

dollars ($5,000), two percent (2%) per month.

     (b) Every small loan lender may charge fees allowed pursuant to §§ 6-26-2(c) and 19-

14.2-12; provided, that the fees are disclosed in accordance with 12 CFR part 1026, and are

agreed to, in writing, by the lender and the borrower.

     19-14.2-12. Small loans -- No other charges -- Exception.

     In addition to the interest allowed in this chapter, no small loan licensee shall directly, or

indirectly, charge, contract for, or receive any other charges except credit insurance, lawful filing

fees and insurance charges, and other fees listed in § 6-26-2(c) or those disclosed pursuant to §

19-14.2-8(b) or as authorized by regulation.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS

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     This act would allow small loan lenders to charge borrowers fees pursuant to applicable

federal and state laws provided, they are disclosed and agreed to in writing.

     This act would take effect upon passage.

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