2019 -- S 0888

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LC002626

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS - SMALL LOAN LENDERS

     Introduced By: Senators Ciccone, Lombardo, and Lombardi

     Date Introduced: May 22, 2019

     Referred To: Senate Finance

     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 with a written instrument signed by the borrower and licensee as defined in § 19-14-1.

     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), fees 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 - SMALL LOAN LENDERS

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     This act would allow small loan lenders to charge fees on loans up to five thousand

dollars ($5,000) provided the fees are disclosed and agreed to in a written instrument signed by

the borrower and the licensee.

     This act would take effect upon passage.

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