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The Committee on Banking and Insurance (Bennett) recommended the

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following amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1.  Part II of chapter 687, Florida Statutes,

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consisting of ss. 687.149-687.162, is created to read:

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     687.149 This part may be cited as the "Credit Enhancement

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Loan Act."

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     687.150 Legislative findings and intent.--

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     (1) Customer education for unbanked and underbanked

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customers is necessary in order to educate them on the various

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options for customer credit and financial services that are

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available.

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     (2) Mainstream banking services should be made available to

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unbanked customers to meet their individual financial needs.

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     (3) Accurate and understandable disclosure of agreement

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terms, conditions, and the cost of obtaining credit is absolutely

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essential.

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     (4) It is necessary to provide and support ongoing

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activities to equitably provide mainstream financial services and

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credit products to financially underserved customers while

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providing a vehicle to bridge the gap of the financial

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empowerment divide by:

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     (a) Providing a vehicle for banking services and mainstream

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credit products to build and rebuild credit histories to enable

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customers in all segments of the financial spectrum, especially

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the financially underserved and unbanked populations, to improve

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their credit ratings and qualify for mainstream financial

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services;

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     (b) Setting forth a minimum set of parameters to establish

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a credit enhancement loan that other financial institutions may

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offer to qualified customers; and

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     (c) Recognizing that there is often a high cost to a

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financial institution in serving this segment of the customer

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financial marketplace, and therefore a higher-risk-based interest

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rate shall be permitted to cover this higher risk when a credit

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enhancement loan is offered.

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     687.151 Purpose.--The purpose of this part is to:

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     (1) Provide general regulatory powers to be exercised by

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the Financial Services Commission and the Office of Financial

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Regulation in relation to the regulation of credit enhancement

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loans, services, and charges. This part applies to all licensees

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under the authority of this part in issuing credit enhancement

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loans.

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     (2) Provide for and promote, subject to the provisions of

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this part:

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     (a) The safe and sound conduct of the business of credit

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enhancement loans.

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     (b) The maintenance of public confidence in the industry.

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     (c) The protection of the interests of the public in the

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system.

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     (d) The deterrence of the use of credit enhancement loans

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as a vehicle for money laundering.

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     (e) The opportunity for licensees to be and remain

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competitive with each other and with other business organizations

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existing under the laws of this state, and with other

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organizations organized under the laws of other states, the

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United States, or foreign countries.

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     (f) The opportunity for licensees to effectively serve the

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convenience and needs of their customers and the public and to

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participate in and promote the economic progress and welfare of

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this state and the United States.

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     (g) The opportunity for the management of licensees to

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exercise their business judgment within the framework of this

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part.

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     (h) Rulemaking power and administrative discretion to the

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commission as is necessary, in order that the supervision and

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regulation of licensees may be flexible and readily responsive to

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changes in economic conditions, in technology, and in practices.

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Any person aggrieved by any rule, order, or act of the department

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may appeal to the office or commission for review upon giving

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notice in writing within 60 days after such rule, order, or act

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is adopted, issued, or done. Any aggrieved party to a decision of

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the office is entitled to an appeal pursuant to chapter 120.

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     687.152 Definitions.--As used in this part, the term:

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     (1) "Amount of the extension of credit" means the aggregate

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of the loan amounts, services fees, and other charges authorized

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by this part.

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     (2) "Commission" means the Financial Services Commission.

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     (3) "Credit enhancement loan" means a short-term loan that

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complies with all of the requirements of this part.

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     (4) "Creditable assets" means cash or bank deposits, loans,

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or extensions of credit made as a licensee pursuant to this part

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or any other amounts as the office may approve, or any

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combination of two or more of these amounts.

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     (5) "Customer" means any person who borrows money from any

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licensee or who pays or obligates himself or herself to pay any

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money or otherwise furnishes any valuable consideration to any

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licensee for any act of the licensee as a licensee.

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     (6) "Lending" means, but is not limited to, endorsing or

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otherwise securing extensions of credit or contracts for the

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repayment of extensions of credit.

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     (7) "License" means the license issued by the office under

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the authority of this part to issue credit enhancement loans.

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     (8) "Licensee" means a person to whom one or more licenses

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have been issued.

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     (9) "Loan" means a loan made within this state by a

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licensee pursuant to this part.

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     (10) "Office" means the Office of Financial Regulation.

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     (11) "Person" means any person, firm, partnership,

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association, or corporation, or other legal entity.

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     687.153 Requirements of registration; penalties.--

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     (1) A person may not engage in the business of offering

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credit enhancement loans in amounts of $3,000 or less and

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contract for, exact, or receive, directly or indirectly, on or in

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connection with any credit enhancement loan, any charges whether

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for interest, compensation, consideration, or expense, or any

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other purpose whatsoever, which in the aggregate are greater than

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authorized by this part and without first having obtained a

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license from the office.

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     (2) The provisions of subsection (1) apply to any person

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who seeks to avoid its application by any device, subterfuge, or

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pretense whatsoever.

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     (3) Any person not exempt from this part who fails to

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comply with or who otherwise violates any of the provisions of

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this section or any rule of the office adopted pursuant to this

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part commits a misdemeanor of the first degree, punishable as

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provided in s. 775.082 or s. 775.083. Each violation shall be

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considered a separate offense. The office shall provide the

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district attorney of the court having jurisdiction of any offense

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under this part with facts and evidence in his or her actual or

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constructive possession and shall testify as to those facts upon

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the trial of any person for any offense under this part.

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     (4) Any contract for the extension of credit or the

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collection of which violates any provision of this part or rule

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issued pursuant to this part, except as a result of accidental or

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bona fide error of computation, is void. The licensee or any

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other party in violation does not have any right to collect,

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receive, or retain any principal or charges whatsoever with

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respect to that extension of credit.

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     687.154 Application.--Application for a license to make

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credit enhancement loans under this part shall be in the form

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prescribed by rule of the commission. The commission may require

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each applicant to provide any information reasonably necessary to

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determine the applicant's eligibility for licensure. The

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applicant shall also provide information that the office requires

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concerning any officer, director, controling person, member,

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partner, or joint venturer of the applicant or any person having

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the same or substantially similar status or performing

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substantially similar functions or concerning any individual who

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is the ultimate equitable owner of a 10 percent or greater

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interest in the applicant. The office may require information

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concerning any such applicant or person, including, but not

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limited to, his or her full name and any other names by which he

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or she may have been known, age, social security number,

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residential history, qualifications, educational and business

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history, and disciplinary and criminal history. The applicant

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shall provide evidence, on a consolidated basis and computed in

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accordance with generally accepted accounting principles, of a

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minimum net worth of not less than $1 million at the time of the

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application for a license. At the time of making such

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application, the applicant shall pay to the office a

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nonrefundable biennial license fee of $2,500. Applications,

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except for applications to renew or reactivate a license, must

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also be accompanied by a nonrefundable investigation fee of

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$2,500. An application is considered received for purposes of s.

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120.60 upon receipt of a completed application form as prescribed

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by commission rule, a nonrefundable application fee of $2,500,

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and any other fee prescribed by law. The commission may adopt

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rules requiring electronic submission of any form, document, or

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fee required by this part if such rules reasonably accommodate

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technological or financial hardship. The commission may prescribe

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by rule requirements and procedures for obtaining an exemption

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due to a technological or financial hardship.

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     687.155 Fees.--Fees provided for in this part shall be

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collected by the office and shall be remitted to the State

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Treasury to the credit of the regulatory trust fund under the

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office. The office may employ such examiners or clerks to assist

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the office as it deems necessary and fix their compensation. The

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commission may adopt rules requiring electronic submission of any

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fee required by this section if such rules reasonably accommodate

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technological or financial hardship. The commission may prescribe

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by rule requirements and procedures for obtaining an exemption

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due to a technological or financial hardship.

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     687.156 License.--

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     (1) Upon the filing of an application for a license and

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payment of all applicable fees, the office shall, unless the

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application is to renew or reactivate an existing license, make

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an investigation of the facts concerning the applicant's

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background. If the office determines that a license should be

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granted, it shall issue the license for a period not to exceed 2

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years. Biennial licensure periods and procedures for renewal of

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licenses shall be established by rule of the commission. If the

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office determines that grounds exist under this part for denial

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of an application other than an application to renew a license,

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it shall deny such application.

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     (2) The office shall approve or deny every application for

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a license within 90 days following the date a complete

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application is submitted. This period may be extended by the

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written consent of the applicant. The office shall notify the

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applicant of the date when the application is deemed complete. In

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the absence of approval or denial of the application, or consent

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to the extension of the 90-day period, the application shall be

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deemed approved and the office shall issue the license effective

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as of the first day after the 90-day or extended period has

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elapsed. If the office reasonably determines from a preliminary

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investigation that the applicant does not satisfy the conditions

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set forth in s. 687.154, the office shall notify the applicant in

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writing and offer specific findings of fact as to the provisions

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of this section which have not been met.

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     (3) A license that is not renewed at the end of the

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biennium established by the commission shall automatically revert

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to inactive status. An inactive license may be reactivated upon

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submission of a completed reactivation application, payment of

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the biennial license fee, and payment of a reactivation fee that

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equals the biennial license fee. A license expires on the date on

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which it has been inactive for 6 months.

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     (4) Only one place of business for the purpose of making

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loans under this part may be maintained under one license, but

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the office may issue additional licenses to a licensee upon

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compliance with all the provisions of this part governing

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issuance of a single license.

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     (5) Each licensee shall report, on a form prescribed by

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rule of the commission, any change to the information contained

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in any initial application form or any amendment to such

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application not later than 30 days after the change is effective.

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     (6) Each licensee shall report any changes in the partners,

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officers, members, joint venturers, directors, or control persons

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of any licensee, or changes in the form of business organization,

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by written amendment in such form and at such time as the

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commission specifies by rule.

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     (a) In any case in which a person or a group of persons,

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directly or indirectly or acting by or through one or more

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persons, proposes to purchase or acquire a controlling interest

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in a licensee, such person or group must submit an initial

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application for licensure before such purchase or acquisition at

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such time and in such form as the commission prescribes by rule.

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     (b) As used in this subsection, the term "controlling

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interest" means possession of the power to direct or cause the

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direction of the management or policies of a company whether

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through ownership of securities, by contract, or otherwise. Any

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person who directly or indirectly has the right to vote 25

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percent or more of the voting securities of a company or is

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entitled to 25 percent or more of the company's profits is

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presumed to possess a controlling interest.

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     (c) Any addition of a partner, officer, member, joint

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venturer, director, or control person of the applicant who does

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not have a controlling interest and who has not previously

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complied with the provisions of s. 687.154(1) is subject to such

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provisions unless required to file an initial application in

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accordance with paragraph (a).

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     (d) The commission shall adopt rules pursuant to ss.

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120.536(1) and 120.54 providing for the waiver of the application

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required by this subsection if the person or group of persons

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proposing to purchase or acquire a controlling interest in a

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licensee has previously complied with the provisions of s.

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516.03(1) with the same legal entity or is currently licensed

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with the office under this part.

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     (7) A licensee may conduct the business of making loans

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under this part within a place of business in which other

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business is solicited or engaged in, unless the office shall find

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that the conduct of such other business by the licensee results

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in an evasion of this part.

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     (8) Licenses are not transferable or assignable. A licensee

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may invalidate any license by delivering it to the office with a

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written notice of the delivery, but such delivery does not affect

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any civil or criminal liability or the authority to enforce this

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part for acts committed in violation thereof.

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     (9) The office may refuse to process an initial application

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for a license if the applicant or any person with power to direct

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the management or policies of the applicant's business is the

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subject of a pending criminal prosecution in any jurisdiction

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until conclusion of such criminal prosecution.

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     (10) A licensee who is the subject of a voluntary or

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involuntary bankruptcy filing must report such filing to the

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office within 7 business days after the filing date.

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     687.157 Appeal.--The applicant is entitled to an informal

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hearing on the decision that the applicant does not satisfy the

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conditions set forth in this part if the applicant requests an

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informal hearing in writing within 30 days after receipt by the

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applicant of the notification. In the event of an informal

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hearing, to be held before the office, the office shall

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reconsider the application and, after the hearing, issue a

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written order granting or denying the application. The applicant

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is entitled to a formal appeal and hearing as prescribed in

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chapter 120.

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     687.158 Prohibited acts and practices; administrative

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enforcement.--

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     (1) The office may issue an order revoking or suspending

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the right of a licensee and an officer, agent, employee, or

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representative to do business in this state as a licensee if the

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office finds, after due notice and hearing, or opportunity for

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hearing, that the licensee or an officer, agent, employee, or

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representative of that licensee has done any of the following:

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     (a) Failed to comply with the rules, instructions, or

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orders issued by the office;

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     (b) Failed or refused to submit its reports to the office;

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     (c) Failed to pay fees for examination and supervision that

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are validly due and owed; or

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     (d) Knowingly furnished false information to the commission

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or office.

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     (2) Upon receipt of an order revoking or suspending the

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right of that licensee to do business in this state from the

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office, the licensee shall immediately surrender his or her

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license to the office. Within 5 days after the entry of an order

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to cease business in this state, the office shall place on file

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his or her findings of fact and mail or otherwise deliver a copy

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to the licensee. Any licensee who fails to make any extension of

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credit during any period of 90 consecutive days after being

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licensed shall surrender his or her license to the office.

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     (3) Any licensee may surrender any license by delivering it

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to the office with written notice of the surrender, but the

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surrender does not affect the licensee's civil or criminal

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liability for acts committed before the surrender of the license.

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     (4) A revocation, suspension, or surrender of any license

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does not impair or affect the obligation of any preexisting

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lawful contract between the licensee and any obligor.

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     (5) The office may reinstate a suspended license or issue a

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new license to a person whose license has been revoked or

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surrendered if and when he or she demonstrates that a fact or

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condition does not exist that clearly would have justified the

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office in refusing originally to issue the license under this

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part.

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     (6) The licensee is entitled to a formal appeal and hearing

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as prescribed in chapter 120.

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     687.159 Procedures for disciplinary actions.--

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     (1) The office may issue and serve upon any person a

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complaint stating charges whenever the office has reason to

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believe that such person has engaged in or is engaging in conduct

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described in s. 687.158.

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     (2) The complaint must contain a statement of the facts and

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notice of opportunity for a hearing pursuant to s. 120.57.

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     (3) If a hearing is not requested within the time allowed

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by s. 120.57, or if a hearing is held and the office finds that

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any of the charges are true, the office may enter an order

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directing the licensee to cease and desist from engaging in the

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conduct complained of and to take reasonable corrective action.

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The office may also issue an order suspending or barring any

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licensee or affiliated party from continuing to be employed by or

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associated with any licensee during the period such order is in

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effect.

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     (4) If any person named in such order fails to respond to

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the complaint within the time allotted in s. 120.57, such failure

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constitutes a default and justifies the entry of a cease and

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desist order or removal order.

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     (5) A contested or default cease and desist order or

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removal order, pursuant to subsections (3) and (4), is effective

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when produced in writing and served upon the money transmitter,

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money transmitter-affiliated party, or the person named therein.

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An uncontested cease and desist order or removal order is

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effective as agreed.

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     (6) Whenever the office finds that conduct described in s.

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687.158 is likely to cause substantial dissipation of assets or

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earnings of the licensee or insolvency or substantial prejudice

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to the customers or authorized vendor, it may issue an emergency

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removal order or an emergency cease and desist order requiring

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any person to disassociate itself from participating in the

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affairs of the licensee. The emergency order is effective

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immediately upon service of the order upon the person and remains

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effective for 90 days. Such person may object to the issuance of

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the emergency order pursuant to the provisions of chapter 120.

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Such objection must be in writing and must include a request for

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a formal hearing which shall be promptly instituted and acted

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upon. If the office begins nonemergency proceedings, the

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emergency order remains effective until the conclusion of the

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proceedings under s. 120.57.

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     687.160 Investigations, subpoenas, hearings, and

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witnesses.--

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     (1) When the office has reasonable cause, supported by

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written evidence, to believe that any person is violating or is

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threatening to violate any provision of this part, the office may

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in addition to all actions provided for in this part, and without

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prejudice to those other actions, enter an order requiring a

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person to desist or to refrain from a violation. An action may be

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brought in the name of the office to enjoin the person from

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engaging in or continuing the violation or from doing any act or

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acts in furtherance of the violation. In any action to desist, an

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order or judgment may be entered awarding any preliminary or

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final injunction as may be deemed proper. In addition to all

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other means provided by law for the enforcement of a restraining

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order or injunction, the court in which the action is brought may

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impound and appoint a receiver for the property and business of

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the defendant, including any books, papers, documents, and

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records that the court deems reasonably necessary to prevent

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violations of this part through or by means of the use of that

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property and business. The receiver, when appointed and

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qualified, shall have those powers and duties pertaining to

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custody, collection, administration, winding up, and liquidation

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of the property and business as shall from time to time be

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conferred upon him or her by the court.

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     (2) Any person aggrieved by any rule, order, or act of the

385

office may appeal to the office for review upon giving notice in

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writing within 20 days after such rule, order, or act is adopted,

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issued, or done. Any aggrieved party to a decision of the office

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shall be entitled to an appeal pursuant to s. 120.68.

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     687.161 Requirements for credit enhancement loans.--

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     (1) Every licensee under this part shall make credit

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available through credit enhancement loans in an amount not

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exceeding $3,000 at a maximum interest rate of up to 19.9 percent

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per annum. Interest shall be contracted for and collected at the

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single simple interest rate applied to the outstanding balance

395

that would earn the same amount of interest as the initial rate

396

for payment according to schedule.

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     (2) Interest on credit enhancement loans made pursuant to

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this section may not be paid, deducted, or received in advance.

399

Interest may not be compounded, but interest on extensions of

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credit shall:

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     (a) Be computed and paid only as a percentage of the unpaid

402

principal balance or portion of the unpaid principal balance; and

403

     (b) Be computed on the basis of the number of days actually

404

elapsed.

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     (3) If, however, part or all of the consideration for a

406

credit enhancement loan is the unpaid principal balance of a

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prior credit enhancement loan, the principal amount payable under

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the new credit enhancement loan may include any unpaid interest

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on the prior credit enhancement loan which has accrued within 90

410

days before the making of the new credit enhancement loan. For

411

the purpose of computing interest, a day equals 1/365 of a year.

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Any payment made on a credit enhancement loan shall be applied

413

first to any accrued interest and then to principal. Any portion

414

or all of the principal balance on a credit enhancement loan may

415

be prepaid at any time without penalty.

416

     (4) Minimum principal payment requirements on a credit

417

enhancement loan shall be 4 percent of the loan amount or $25,

418

whichever is greater. Customers shall be billed monthly at a

419

minimum.

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     (5) In addition to the interest authorized in subsection

421

(1), a licensee offering credit enhancement loans under this part

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may collect from the customer the monthly membership fee, which

423

is not to exceed $15 for processing the credit enhancement loan.

424

     (6) A maximum one-time underwriting fee may not exceed $10.

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     (7) The maximum monthly maintenance fee may not exceed $15.

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     (8) The maximum fee for a late payment on a credit

427

enhancement loan shall be $25.

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     (9) The maximum fee charged for a returned check from a

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borrower shall be $30.

430

     (10) The minimum term of a credit enhancement loan shall be

431

3 months.

432

     (11) If the consumer pays off the loan at any time, there

433

will be no prepayment penalty. No further membership or

434

maintenance fees shall be applied.

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     (12) Each licensee under this part shall report, on a

436

periodic basis based on accepted industry standards, credit

437

related data, as incurred, and without discrimination to major

438

credit bureaus to assist customers who pay in a timely manner in

439

building or rebuilding their credit histories.

440

     (13) Every licensee under this part may graduate customers

441

to better interest rates and other terms based on positive

442

payment histories in a manner submitted by the licensee and

443

approved by the commission.

444

     (14) To be eligible to apply for a credit enhancement loan,

445

a consumer must enroll in a financial literacy class or receive

446

credit counseling approved by the Financial Literacy Council as

447

created in chapter 2006-140, Laws of Florida. A certificate of

448

completion or enrollment certificate showing at least a 50-

449

percent completion of the class must be presented at the time of

450

the loan application.

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     (15) If a money judgment is obtained against any party on

452

any credit enhancement loan made under this section, neither the

453

judgment nor the credit enhancement loan shall carry, from the

454

date of the judgment, any interest in excess of 8 percent per

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annum.

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     (16) Every licensee under this part shall charge only those

457

fees and interest as authorized in this section and filed with

458

the commission.

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     (17) Every licensee under this part shall determine the

460

credit worthiness of a customer applying for a credit enhancement

461

loan based on industry-accepted or proprietary credit models.

462

     (18) A licensee may not make credit enhancement loans to

463

any customer who already has an outstanding credit enhancement

464

loan.

465

     (19) A licensee shall take every reasonable precaution to

466

prevent granting credit enhancement loans in violation of

467

subsection (1).

468

     (20) A licensee may service credit enhancement loans and

469

modify the terms of the loans within the limits authorized by s.

470

687.161 at any office operated by that licensee regardless of

471

where the credit enhancement loan was originated.

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     (21) A licensee may not take an assignment of earnings of

473

the customer for payment or as security for payment of a credit

474

enhancement loan. An assignment of earnings in violation of this

475

section is unenforceable by the assignee of the earnings and is

476

revocable by the customer. However, this section does not

477

restrict a licensee and customer from entering into an agreement

478

whereby repayment of a credit enhancement loan can be made

479

through automatic payroll deduction, direct withdrawal from a

480

checking account, or other automatic repayment plans.

481

     (22)(a) An agreement between a licensee and a customer

482

pursuant to a credit enhancement loan under this part pertaining

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to default by the customer is enforceable only to the extent that

484

the customer fails to make a payment as required by the

485

agreement.

486

     (b) A licensee may not deny any credit enhancement loan or

487

discriminate in the fixing of the amount, duration, application

488

procedures, or other terms or conditions of any credit

489

enhancement loan or services because of the race, color,

490

religion, national origin, gender, or marital status of the

491

applicant or any other person connected with the transaction.

492

     (23) With respect to a credit enhancement loan or services

493

made pursuant to this part, the agreement may not provide for

494

payment of attorney's fees by the customer.

495

     (24) A licensee may not make any credit enhancement loan

496

within this state which is in any way secured by real property.

497

     (25) A licensee may not engage in any unfair method of

498

competition or unfair or deceptive trade practices in the conduct

499

of making or providing any credit enhancement loans or services

500

to customers pursuant to this part or in collecting or attempting

501

to collect any money alleged to be due and owed by a customer.

502

     (26) At the time a credit enhancement loan is made

503

available to a customer, the licensee shall deliver to the

504

customer a written statement, with copies to additional customers

505

involved in the loan, showing in clear and distinct terms all of

506

the following:

507

     (a) The name and address of the licensee and one of the

508

primary obligors on the credit enhancement loan;

509

     (b) The date of the contract;

510

     (c) A schedule or description of required payments;

511

     (d) All applicable interest rates and fees; and

512

     (e) Any financial literacy materials available to the

513

customer.

514

     (27) At each of its places of business in this state, the

515

licensee shall make readily available to the customer, in a form

516

prescribed by the office, a full and accurate schedule of charges

517

on all credit enhancement loans currently being made available by

518

the licensee.

519

     (28) A copy of the schedule required by subsection (27) of

520

this section shall be filed in the office.

521

     (29) A licensee may not require the customer to agree to or

522

execute any confession of judgment or power of attorney in favor

523

of any licensee or in favor of any third person, and any

524

confession of judgment or power of attorney taken in violation of

525

this subsection is void.

526

     (30) A licensee subject to this part may not advertise,

527

display, distribute, telecast, or broadcast, or cause or permit

528

to be advertised, displayed, distributed, telecast, or broadcast,

529

in any manner whatsoever any false, misleading, or deceptive

530

statement or representation with regard to the rates, terms, or

531

conditions of credit enhancement loans. The office may require

532

that charges or rates of charge, if stated by a licensee, be

533

stated fully and clearly in any manner that the office deems

534

necessary to prevent misunderstanding by prospective customers.

535

The office may permit or require licensees to refer in their

536

advertising to the fact that their business is under state

537

supervision, subject to any conditions required by the office to

538

prevent an erroneous impression as to the scope or degree of

539

protection provided by this part.

540

     687.162 Records.--

541

     (1) Each licensee shall maintain all financial books and

542

records directly relating to any credit enhancement loans made or

543

provided under this part for 2 years, and the office, any deputy,

544

or a duly authorized examiner or agent or employee may examine

545

those records at any reasonable time to determine whether the

546

licensee is complying with this part and the rules adopted to

547

administer this part. The required financial books and records

548

may be maintained in any form authorized by the office. The

549

financial books and records of each licensed office shall be

550

clearly segregated. When a licensee maintains its financial books

551

and records outside this state, the licensee shall make them

552

available for examination at the place where they are maintained

553

and shall pay for all reasonable and necessary expenses incurred

554

by the office in conducting any examination. Where the data

555

processing for any licensee is performed by a person other than

556

the licensee, the licensee shall provide to the office a copy of

557

a binding agreement between the licensee and the data processor

558

which allows the office, any deputy, or a duly authorized

559

examiner or agent or employee to examine that particular data

560

processor's activities pertaining to the licensee to the same

561

extent as if the data processing services were being performed by

562

the licensee on its own premises. When billed by the office, the

563

licensee shall reimburse the office for all costs and expenses

564

incurred by the office in an examination under this subsection.

565

     (2) Each licensee shall file annually with the office on or

566

before March 31 for the 12-month period ending the preceding

567

December 31 reports on forms prescribed by the office. These

568

annual reports shall disclose in detail and under appropriate

569

headings any changes in the information contained in the original

570

license application and other information necessary to show that

571

the licensee continues to be in compliance with this part.

572

Reports shall be verified by the oath or affirmation of the

573

owner, manager, president, vice president, cashier, secretary, or

574

treasurer of the licensee.

575

     (3) If a licensee conducts another business or is

576

affiliated with other licensees under this part or if any other

577

situation exists under which allocations of expense are

578

necessary, the licensee or licensees shall make that allocation

579

according to appropriate and generally accepted accounting

580

principles.

581

     Section 2.  This act shall take effect upon becoming a law.

582

583

================ T I T L E  A M E N D M E N T ================

584

And the title is amended as follows:

585

     Delete everything before the enacting clause

586

and insert:

587

A bill to be entitled

588

An act relating to banking and finance; creating part II

589

of ch. 687, F.S., the "Credit Enhancement Loan Act";

590

providing a short title; providing legislative intent;

591

providing purposes; providing definitions; providing

592

conditions in which a person may not engage in the

593

business of offering credit enhancing loans without a

594

license; providing penalties for violations; providing

595

that a contract for extension of credit or collecting of

596

credit is void; providing requirements for the application

597

of a license from the Office of Financial Regulation

598

within the Department of Financial Services; providing

599

requirements necessary for issuance of a license by the

600

office; providing for fees payable to the office;

601

authorizing the Financial Services Commission to adopt

602

rules; providing the office's procedures upon submission

603

of an application and appropriate fees; providing for the

604

reactivation of a license; requiring the licensee to

605

report changes in the initial application to the office;

606

requiring the commission to adopt rules for the waiver of

607

an application under certain conditions; providing that a

608

license is not transferable or assignable; authorizing the

609

office to refuse to process an initial application under

610

certain conditions; requiring a licensee who is subject to

611

bankruptcy to report the bankruptcy to the office within a

612

specified time; authorizing appeals from actions of the

613

office; authorizing the office to issue an order revoking

614

or suspending the right of a licensee to do business in

615

this state under certain circumstances; authorizing a

616

licensee to surrender a license; providing that a

617

revocation, suspension, or surrender of any license does

618

not impair or affect the obligation of any preexisting

619

lawful contract between the licensee and any obligor;

620

providing that a licensee is entitled to a formal appeal

621

and hearing; providing for the procedures for disciplinary

622

actions; authorizing the office to require a person to

623

desist or refrain under certain conditions; authorizing

624

the impoundment of property and business; providing

625

requirements for credit enhancement loans; requiring

626

licensees to report credit-related data to major credit

627

bureaus; authorizing licensees to graduate customers to

628

better interest rates; providing eligibility requirements

629

for a credit enhancement loan; prohibiting multiple loans

630

in certain situations; authorizing a licensee to modify

631

the terms of a loan; prohibiting a licensee from taking an

632

assignment of earnings of the customer for payment or

633

security for payment of a credit enhancement loan;

634

providing for enforcement of loan agreements; prohibiting

635

a licensee from making a credit enhancement loan that is

636

secured by real property and from engaging in unfair

637

methods of competition or deceptive trade practices;

638

requiring the licensee to deliver a written statement to a

639

customer regarding the terms of the loan agreement;

640

requiring the licensee to make available a schedule of

641

charges on all credit enhancement loans; prohibiting a

642

licensee from requiring a customer to agree to or execute

643

any confession of judgment or power of attorney;

644

prohibiting a licensee from advertising any deceptive

645

statement or representation with regard to the rates,

646

terms, or conditions of credit enhancement loans;

647

providing disclosure forms for the customer; requiring

648

licensees to maintain financial books and records and to

649

submit an annual report to the office; providing an

650

effective date.

4/15/2008  8:01:00 AM     21-07457-08