Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. CS for CS for SB 2226
Barcode 369678
LEGISLATIVE ACTION
Senate . House
Comm: WD .
04/23/2009 .
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The Policy and Steering Committee on Ways and Means
(Haridopolos) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Between lines 3527 and 3528
4 insert:
5 Section 71. Section 516.01, Florida Statutes, is amended to
6 read:
7 516.01 Definitions.—As used in this chapter, the term:
8 (1) “Commission” means the Financial Services Commission.
9 (2)(1) “Consumer finance borrower” or “borrower” means a
10 person who has incurred either direct or contingent liability to
11 repay a consumer finance loan or a nonrecourse loan.
12 (3)(2) “Consumer finance loan” means a loan of money,
13 credit, goods, or choses in action, including, except as
14 otherwise specifically indicated, provision of a line of credit,
15 in an amount or to a value of $25,000 or less for which the
16 lender charges, contracts for, collects, or receives interest at
17 a rate greater than 18 percent per annum.
18 (3) “Commission” means the Financial Services Commission.
19 (4) “Control person” means an individual, partnership,
20 corporation, trust, or other organization that possesses the
21 power, directly or indirectly, to direct the management or
22 policies of a company, whether through ownership of securities,
23 by contract, or otherwise. A person is presumed to control a
24 company if, with respect to a particular company, that person:
25 (a) Is a director, general partner, or officer exercising
26 executive responsibility or having similar status or functions;
27 (b) Directly or indirectly may vote 10 percent or more of a
28 class of a voting security or sell or direct the sale of 10
29 percent or more of a class of voting securities; or
30 (c) In the case of a partnership, may receive upon
31 dissolution or has contributed 10 percent or more of the
32 capital.
33 (4) “Office” means the Office of Financial Regulation of
34 the commission.
35 (5) “Interest” means the cost of obtaining a consumer
36 finance loan and includes any profit or advantage of any kind
37 whatsoever that a lender may charge, contract for, collect,
38 receive, or in anywise obtain, including by means of any
39 collateral sale, purchase, or agreement, as a condition for a
40 consumer finance loan. Charges specifically permitted by this
41 chapter, including commissions received for insurance written as
42 permitted by this chapter, shall not be deemed interest.
43 (6) “License” means a permit issued under this chapter to
44 make and collect loans in accordance with this chapter at a
45 single place of business.
46 (7) “Licensee” means a person to whom a license is issued.
47 (8) “Nonrecourse loan” means a loan of $5,000 or less that
48 is unsecured or may be secured by the personal property of the
49 borrower, that has a term of not more than 3 years, that fully
50 amortizes over the term of the loan, and for which the borrower
51 has no liability beyond the property that is security for the
52 loan if such loan is secured, except in the instance of fraud.
53 (8) “Control person” means an individual, partnership,
54 corporation, trust, or other organization that possesses the
55 power, directly or indirectly, to direct the management or
56 policies of a company, whether through ownership of securities,
57 by contract, or otherwise. A person is presumed to control a
58 company if, with respect to a particular company, that person:
59 (a) Is a director, general partner, or officer exercising
60 executive responsibility or having similar status or functions;
61 (b) Directly or indirectly may vote 10 percent or more of a
62 class of a voting security or sell or direct the sale of 10
63 percent or more of a class of voting securities; or
64 (c) In the case of a partnership, may receive upon
65 dissolution or has contributed 10 percent or more of the
66 capital.
67 (9) “Office” means the Office of Financial Regulation of
68 the commission.
69 Section 72. Present subsections (2) through (5) of section
70 516.031, Florida Statutes, are redesignated as subsections (3)
71 through (6), respectively, a new subsection (2) is added to that
72 section, and present paragraph (a) of subsection (3) of that
73 section is amended, to read:
74 516.031 Finance charge; maximum rates.—
75 (2) NONRECOURSE LOAN.—In a nonrecourse loan transaction,
76 every licensee may charge, contract for, and receive interest
77 not to exceed 48 percent per annum on the outstanding principal
78 balance of the nonrecourse loan plus a monthly administrative
79 fee not to exceed 10 percent per month on the outstanding
80 principal balance of the nonrecourse loan
81 (4)(3) OTHER CHARGES.—
82 (a) In addition to the interest, administrative fee,
83 delinquency, and insurance charges herein provided for, no
84 further or other charges or amount whatsoever for any
85 examination, service, commission, or other thing or otherwise
86 shall be directly or indirectly charged, contracted for, or
87 received as a condition to the grant of a loan, except:
88 1. An amount not to exceed $25 to reimburse a portion of
89 the costs for investigating the character and credit of the
90 person applying for the loan;
91 2. An annual fee of $25 on the anniversary date of each
92 line-of-credit account;
93 3. Charges paid for brokerage fee on a loan or line of
94 credit of more than $10,000, title insurance, and the appraisal
95 of real property offered as security when paid to a third party
96 and supported by an actual expenditure;
97 4. Intangible personal property tax on the loan note or
98 obligation when secured by a lien on real property;
99 5. The documentary excise tax and lawful fees, if any,
100 actually and necessarily paid out by the licensee to any public
101 officer for filing, recording, or releasing in any public office
102 any instrument securing the loan, which fees may be collected
103 when the loan is made or at any time thereafter;
104 6. The premium payable for any insurance in lieu of
105 perfecting any security interest otherwise required by the
106 licensee in connection with the loan, if the premium does not
107 exceed the fees which would otherwise be payable, which premium
108 may be collected when the loan is made or at any time
109 thereafter;
110 7. Actual and reasonable attorney’s fees and court costs as
111 determined by the court in which suit is filed;
112 8. Actual and commercially reasonable expenses of
113 repossession, storing, repairing and placing in condition for
114 sale, and selling of any property pledged as security; or
115 9. A delinquency charge not to exceed $10 for each payment
116 in default for a period of not less than 10 days, if the charge
117 is agreed upon, in writing, between the parties before imposing
118 the charge.
119
120 Any charges, including interest, in excess of the combined total
121 of all charges authorized and permitted by this chapter
122 constitute a violation of chapter 687 governing interest and
123 usury, and the penalties of that chapter apply. In the event of
124 a bona fide error, the licensee shall refund or credit the
125 borrower with the amount of the overcharge immediately but
126 within 20 days from the discovery of such error.
127
128 ================= T I T L E A M E N D M E N T ================
129 And the title is amended as follows:
130 Delete line 161
131 and insert:
132 certain date; amending s. 516.01, F.S.; defining the
133 term “nonrecourse loan”; amending s. 516.031, F.S.;
134 authorizing licensees to charge and receive interest
135 and a monthly administrative fee in nonrecourse loan
136 transactions; providing limitations; providing
137 effective dates.