| Chapter 075 |
| 2022 -- H 7434 SUBSTITUTE A Enacted 06/15/2022 |
| A N A C T |
| RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- CREDIT CARD LENDING |
Introduced By: Representatives Barros, Solomon, Kennedy, and Alzate |
| Date Introduced: February 11, 2022 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 6-26.1-1 of the General Laws in Chapter 6-26.1 entitled "Credit Card |
| Lending" is hereby amended to read as follows: |
| 6-26.1-1. Definitions. |
| For purposes of this chapter, the following definitions shall apply: |
| (1) "ACH", also known as the Automated Clearing House Network, means the electronic |
| funds-transfer system comprised of a network of associated institutions that process computer- |
| based electronic financial transactions between originating and receiving depository financial |
| institutions. ACH in the United States is governed by NACHA, the former National Automated |
| Clearing House Association. |
| (1)(2) "Credit card device" includes any means of making a credit card transaction |
| available to a borrower pursuant to a credit card plan, including, but not limited to, a card, draft or |
| check, identification code, other means of identification, or other credit device or code, whether |
| made directly or indirectly by means of telephone, point of sale terminal, automated teller machine, |
| computer or other electronic or other communication or device, or through the mail. |
| (2)(3) "Credit card lender" or "lender" means any entity that is a lending institution as |
| defined by § 19-9-1, or licensee as defined by § 19-14-1, that offers or extends credit in the form |
| of a credit card transaction. |
| (3)(4)(5)"Credit card transaction" means any loan or extension of credit made pursuant to |
| a credit card plan. Without limitation of the foregoing, a credit card transaction may be extended |
| under a credit card plan by a credit card lender's acquisition of obligations arising out of the |
| honoring by a merchant or other third-party; a credit card lender or other financial institution |
| (whether chartered or organized under the laws of this or any other state, the District of Columbia, |
| the United States, or any district, territory, or possession of the United States, or any foreign |
| country); or a government or governmental subdivision or agency of a credit card device. |
| (4)(5)(4) "Credit card plan" or "plan" means any arrangement or plan between a borrower |
| and a credit card lender or issuer, including, without limitation, lines of credit directly between a |
| borrower and a credit card lender or issuer, for open-end, revolving extensions of credit made |
| available through a credit card device or other means of settlement between the credit card lender |
| or issuer and the merchant, such as ACH or electronic-only credit card devices, provided, however, |
| said "credit card plan" or "plan" does not include an extension of credit the repayment of which is |
| secured by real property. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004453/SUB A |
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