Senate Bill 2272

    Florida Senate - 2000                                 SJR 2272

    By Senator Meek





    36-1200-00                                              See HB

  1                     Senate 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 the following Section 19 of

10  Article X of the State Constitution is agreed to and shall be

11  submitted to the electors of this state for approval or

12  rejection at the next general election or at an earlier

13  special election specifically authorized by law for that

14  purpose:

15                            ARTICLE X

16                          MISCELLANEOUS

17         Section 19.  Consumer credit.--

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

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

20  simple interest is void as to principal and interest.

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

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

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

24  service which is the subject of the transaction is primarily

25  for personal, family, or household purposes.

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

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

28  law creating exceptions to the general law governing interest

29  and usury and specifying the interest rates and charges which

30  may be made pursuant to such exceptions.

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






    Florida Senate - 2000                                 SJR 2272
    36-1200-00                                              See HB




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

  2  and shall not be deemed to supersede or otherwise invalidate

  3  any provisions of a commitment to insure by the Federal

  4  Housing Administration; a commitment to guarantee by the

  5  United States Department of Veterans Affairs; or a commitment

  6  to purchase a loan issued by the Federal National Mortgage

  7  Association, Governmental National Mortgage Association,

  8  Federal Home Loan Mortgage Corporation, any department,

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

10  successor of such corporation, association, department,

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

12  acts of Congress or federal regulations.

13         (e)  The provisions of this section supersede and

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

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

16  the limit established by this section or which are otherwise

17  inconsistent with this section.

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

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

20  in existence before the effective date of this section shall

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

22  credit made before the effective date of this section.

23         BE IT FURTHER RESOLVED that the following statement be

24  placed on the ballot:

25                     CONSTITUTIONAL AMENDMENT

26                      ARTICLE X, SECTION 19

27         CONSUMER CREDIT.--Proposing an amendment to the State

28  Constitution to limit to 31 percent per annum simple interest

29  the amount of interest chargeable on consumer loans or credit

30  sales.

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