House Bill 1169

    Florida House of Representatives - 2000               HJR 1169

        By Representative Reddick






  1                      House Joint Resolution

  2         A joint resolution proposing the creation of

  3         Section 19 of Article X of the State

  4         Constitution relating to limiting interest on

  5         consumer loans or credit sales.

  6

  7  Be It Resolved by the Legislature of the State of Florida:

  8

  9         That the creation of Section 19 of Article X set forth

10  below is agreed to and shall be submitted to the electors of

11  Florida for approval or rejection at the general election to

12  be held in November 2000:

13                            ARTICLE X

14                          MISCELLANEOUS

15         Section 19.  Consumer credit.--

16         (a)  Any consumer loan or credit sale contract which

17  has a rate of interest greater than 31 percent per annum

18  simple interest is void as to principal and interest.

19         (b)  As used in this section, the term "consumer loan

20  or credit sale" means credit of no more than $500,000 that is

21  extended to a natural person in which the money, property, or

22  service which is the subject of the transaction is primarily

23  for personal, family, or household purposes.

24         (c)  The provisions of this section shall not be

25  construed to repeal, modify, or limit provisions of federal

26  law creating exceptions to the general law governing interest

27  and usury and specifying the interest rates and charges which

28  may be made pursuant to such exceptions.

29         (d)  The provisions of this section are not intended

30  and shall not be deemed to supersede or otherwise invalidate

31  any provisions of a commitment to insure by the Federal

                                  1

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






    Florida House of Representatives - 2000               HJR 1169

    146-249-00






  1  Housing Administration; a commitment to guarantee by the

  2  United States Department of Veterans Affairs; or a commitment

  3  to purchase a loan issued by the Federal National Mortgage

  4  Association, Governmental National Mortgage Association,

  5  Federal Home Loan Mortgage Corporation, any department,

  6  agency, or instrumentality of the Federal Government, or any

  7  successor of such corporation, association, department,

  8  agency, or instrumentality, pursuant to any provision of the

  9  acts of Congress or federal regulations.

10         (e)  The provisions of this section supersede and

11  repeal all provisions of the laws of this state which set a

12  maximum rate of interest chargeable in this state in excess of

13  the limit established by this section or which are otherwise

14  inconsistent with this section.

15         (f)  This section applies only to loans or advances of

16  credit made after the effective date of this section. All laws

17  in existence before the effective date of this section shall

18  remain in full force and effect as to loans and advances of

19  credit made before the effective date of this section.

20         BE IT FURTHER RESOLVED that in accordance with the

21  requirements of section 101.161, Florida Statutes, the title

22  and substance of the amendment proposed herein shall appear on

23  the ballot as follows:

24                         CONSUMER CREDIT

25         Proposes limiting to 31 percent per annum simple

26  interest the amount of interest chargeable on consumer loans

27  or credit sales.

28

29

30

31

                                  2