Senate Bill 2028

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    Florida Senate - 2000                                  SB 2028

    By Senator Grant





    13-1140-00

  1                      A bill to be entitled

  2         An act relating to consumer finance; amending

  3         s. 516.031, F.S.; providing for delinquency

  4         charges on consumer finance loans; prescribing

  5         standards for imposition of such charges;

  6         providing an effective date.

  7

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

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10         Section 1.  Paragraph (a) of subsection (3) of section

11  516.031, Florida Statutes, is amended to read:

12         516.031  Finance charge; maximum rates.--

13         (3)  OTHER CHARGES.--

14         (a)  In addition to the interest, delinquency, and

15  insurance charges herein provided for, no further or other

16  charges or amount whatsoever for any examination, service,

17  commission, or other thing or otherwise shall be directly or

18  indirectly charged, contracted for, or received as a condition

19  to the grant of a loan, except:

20         1.  An amount not to exceed $10 to reimburse a portion

21  of the costs for investigating the character and credit of the

22  person applying for the loan;

23         2.  An annual fee of $25 on the anniversary date of

24  each line-of-credit account;

25         3.  Charges paid for brokerage fee on a loan or line of

26  credit of more than $10,000, title insurance, and the

27  appraisal of real property offered as security when paid to a

28  third party and supported by an actual expenditure;

29         4.  Intangible personal property tax on the loan note

30  or obligation when secured by a lien on real property;

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    Florida Senate - 2000                                  SB 2028
    13-1140-00




  1         5.  The documentary excise tax and lawful fees, if any,

  2  actually and necessarily paid out by the licensee to any

  3  public officer for filing, recording, or releasing in any

  4  public office any instrument securing the loan, which fees may

  5  be collected when the loan is made or at any time thereafter;

  6         6.  The premium payable for any insurance in lieu of

  7  perfecting any security interest otherwise required by the

  8  licensee in connection with the loan, if the premium does not

  9  exceed the fees which would otherwise be payable, which

10  premium may be collected when the loan is made or at any time

11  thereafter;

12         7.  Actual and reasonable attorney's fees and court

13  costs as determined by the court in which suit is filed; or

14         8.  Actual and commercially reasonable expenses of

15  repossession, storing, repairing and placing in condition for

16  sale, and selling of any property pledged as security; or.

17         9.  A delinquency charge not to exceed $10 for each

18  payment in default for a period of not less than 10 days, if

19  the charge is agreed upon in writing between the parties

20  before it is imposed.

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22  Any charges, including interest, in excess of the combined

23  total of all charges authorized and permitted by this chapter

24  constitute a violation of chapter 687 governing interest and

25  usury, and the penalties of that chapter apply. In the event

26  of a bona fide error, the licensee shall refund or credit the

27  borrower with the amount of the overcharge immediately but

28  within 20 days from the discovery of such error.

29         Section 2.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                                  SB 2028
    13-1140-00




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  2                          SENATE SUMMARY

  3    Authorizes the imposition of delinquency charges on
      consumer finance loans, so long as the charge does not
  4    exceed $10 for each payment in default, the period of
      default is at least 10 days, and the charge is agreed to
  5    in writing by the parties before it is imposed.

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