Senate Bill 1974

    Florida Senate - 1998                                  SB 1974

    By Senator Rossin





    35-1028-98

  1                      A bill to be entitled

  2         An act relating to consumer finance and

  3         installment sales; amending s. 516.05, F.S.;

  4         requiring certain licensees to report

  5         bankruptcy filings to the Department of Banking

  6         and Finance; amending s. 520.085, F.S.;

  7         providing for acquisition fees on

  8         simple-interest contracts; creating s. 520.997,

  9         F.S.; providing for certain licensees to report

10         bankruptcy filings to the department; providing

11         an effective date.

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13  Be It Enacted by the Legislature of the State of Florida:

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15         Section 1.  Subsection (9) is added to section 516.05,

16  Florida Statutes, to read:

17         516.05  License.--

18         (9)  A licensee that is the subject of a voluntary or

19  involuntary bankruptcy filing must report such filing to the

20  department within 7 business days after the filing date.

21         Section 2.  Subsection (3) of section 520.085, Florida

22  Statutes, is amended to read:

23         520.085  Simple-interest contracts.--A retail

24  installment contract under The Motor Vehicle Retail Sales

25  Finance Act may provide that the rate of finance charge be

26  calculated on a simple-interest basis subject to the following

27  provisions:

28         (3)  The provisions of s. 520.09 which prescribe a

29  refund credit upon prepayment in full before maturity of the

30  unpaid balance of a retail installment contract shall not be

31  applicable to a simple-interest contract. However, the lender

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                  SB 1974
    35-1028-98




  1  may impose an acquisition charge for services performed on

  2  behalf of the borrower for preparation of the retail

  3  installment contract, not to exceed $75, if the contract is

  4  prepaid in full within 6 months after the effective date of

  5  the contract.

  6         Section 3.  Section 520.997, Florida Statutes, is

  7  created to read:

  8         520.997  Report of action in bankruptcy.--A licensee

  9  that is the subject of a voluntary of involuntary bankruptcy

10  filing must report such filing to the department within 7

11  business days after the filing date.

12         Section 4.  This act shall take effect July 1, 1998.

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15                          SENATE SUMMARY

16    Revises certain consumer finance and installment sales
      provisions. Requires certain licensees to report
17    bankruptcy filings. Allows for acquisition fees on simple
      interest contracts.
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