HOUSE AMENDMENT

    190-957AX-32                                   Bill No. HB 299

    Amendment No. 3 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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11  The Committee on Business Regulation & Consumer Affairs

12  offered the following:

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14         Amendment to Amendment (112271) 

15         On page 15, lines 3-22

16  remove from the amendment:

17         all of said lines

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19  and insert in lieu thereof:

20         Section 10.  Title loan charges; payment.--

21         (1)  A title loan lender may charge a maximum interest

22  rate of 8 percent per month which shall be calculated, as

23  required in subsection (2), not to exceed the equivalent

24  maximum rate of 96 percent per annum.  In determining

25  compliance with the statutory maximum interest, the

26  computations must be simple interest and not add-on interest

27  or any other computations.  The original principal amount is

28  the same amount as the amount financed, as defined by the

29  federal Truth in Lending Act and Regulation Z of the Board of

30  Governors of the Federal Reserve System.  When a borrower

31  makes payment to the title loan lender, the borrower shall

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    File original & 9 copies    03/24/99
    hbd0007                     08:36 am         00299-brca-463385




                                                   HOUSE AMENDMENT

    190-957AX-32                                   Bill No. HB 299

    Amendment No. 3 (for drafter's use only)





 1  make payment of at least 10 percent of the principal and the

 2  title loan lender shall reduce the original principal amount

 3  in an amount of no less than 10 percent of the amount received

 4  by the title loan lender for each payment.  When the total

 5  principal amount is paid down to an amount less than $10, any

 6  payment received shall be applied to reduce the principal

 7  amount to zero.  Any remaining payment amount may then be

 8  applied to the reduction of interest which may be due.

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    File original & 9 copies    03/24/99
    hbd0007                     08:36 am         00299-brca-463385