Florida Senate - 2009 SB 318
By Senator Sobel
31-00372A-09 2009318__
1 A bill to be entitled
2 An act relating to the removal of discriminatory
3 language in the criminal usury laws; amending s.
4 687.071, F.S.; removing the term “shylocking” from
5 certain provisions of state law relating to loan
6 sharking; deleting the terms “shylock” and
7 “shylocking” from the definitions of “loan shark” and
8 “loan sharking,” respectively; amending s. 772.102,
9 F.S.; conforming a reference to changes made by the
10 act; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Section 687.071, Florida Statutes, is amended to
15 read:
16 687.071 Criminal usury, loan sharking; shylocking.—
17 (1) DEFINITIONS.—The following words and phrases, as used
18 in this section, shall have the following meanings:
19 (a) “Person” shall be construed to be defined as provided
20 in s. 1.01.
21 (b) “Creditor” means any person who makes an extension of
22 credit or any person claiming by, under, or through such person.
23 (c) “Debtor” means any person who receives an extension of
24 credit or any person who guarantees the repayment of a loan of
25 money for another person.
26 (d) “Extension of credit” means to make or renew a loan of
27 money or any agreement for forbearance to enforce the collection
28 of such loan.
29 (e) “Extortionate extension of credit” means any extension
30 of credit whereby it is the understanding of the creditor and
31 the debtor at the time an extension of credit is made that delay
32 in making repayment or failure to make repayment could result in
33 the use of violence or other criminal means to cause harm to the
34 person, reputation, or property of any person.
35 (f) “Loan shark” or “shylock” means any person as defined
36 herein who lends money unlawfully under subsection (2),
37 subsection (3), or subsection (4).
38 (g) “Loan sharking” or “shylocking” means the act of any
39 person as defined herein lending money unlawfully under
40 subsection (2), subsection (3), or subsection (4).
41 (2) Unless otherwise specifically allowed by law, any
42 person making an extension of credit to any person, who shall
43 willfully and knowingly charge, take, or receive interest
44 thereon at a rate exceeding 25 percent per annum but not in
45 excess of 45 percent per annum, or the equivalent rate for a
46 longer or shorter period of time, whether directly or
47 indirectly, or conspires so to do, commits shall be guilty of a
48 misdemeanor of the second degree, punishable as provided in s.
49 775.082 or s. 775.083.
50 (3) Unless otherwise specifically allowed by law, any
51 person making an extension of credit to any person, who shall
52 willfully and knowingly charge, take, or receive interest
53 thereon at a rate exceeding 45 percent per annum or the
54 equivalent rate for a longer or shorter period of time, whether
55 directly or indirectly or conspire so to do, commits shall be
56 guilty of a felony of the third degree, punishable as provided
57 in s. 775.082, s. 775.083, or s. 775.084.
58 (4) Any person who shall knowingly and willfully make an
59 extortionate extension of credit to any person or conspire so to
60 do commits shall be guilty of a felony of the second degree,
61 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
62 In any prosecution under this subsection, evidence that the
63 creditor then had a reputation in the debtor's community for the
64 use or threat of use of violence or other criminal means to
65 cause harm to the person, reputation, or property of any person
66 to collect extensions of credit or to punish the nonrepayment
67 thereof shall be admissible.
68 (5) Books of account or other documents recording
69 extensions of credit in violation of subsections (3) or (4) are
70 declared to be contraband, and any person, other than a public
71 officer in the performance of his or her duty, and other than
72 the person charged such usurious interest and person acting on
73 his or her behalf, who shall knowingly and willfully possess or
74 maintain such books of account or other documents, or conspire
75 so to do, commits shall be guilty of a misdemeanor of the first
76 degree, punishable as provided in s. 775.082 or s. 775.083.
77 (6) No person shall be excused from attending and
78 testifying or producing any books, paper, or other document
79 before any court upon any investigation, proceeding, or trial,
80 for any violation of this section upon the ground or for the
81 reason that the testimony or evidence, documentary or otherwise,
82 required of the person may tend to convict him or her of a crime
83 or subject the person to a penalty or forfeiture, but no person
84 shall be prosecuted or subjected to any penalty or forfeiture
85 for or on account of any transaction, matter, or thing
86 concerning which he or she may so testify or produce evidence,
87 documentary or otherwise, and no testimony so given or produced
88 shall be received against the person upon any criminal
89 investigation or proceeding.
90 (7) No extension of credit made in violation of any of the
91 provisions of this section shall be an enforceable debt in the
92 courts of this state.
93 Section 2. Paragraph (a) of subsection (2) of section
94 772.102, Florida Statutes, is amended to read:
95 772.102 Definitions.—As used in this chapter, the term:
96 (2) “Unlawful debt” means any money or other thing of value
97 constituting principal or interest of a debt that is legally
98 unenforceable in this state in whole or in part because the debt
99 was incurred or contracted:
100 (a) In violation of any one of the following provisions of
101 law:
102 1. Section 550.235, s. 550.3551, or s. 550.3605, relating
103 to dogracing and horseracing.
104 2. Chapter 550, relating to jai alai frontons.
105 3. Section 687.071, relating to criminal usury and, loan
106 sharking, and shylocking.
107 4. Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
108 849.25, relating to gambling.
109 Section 3. This act shall take effect July 1, 2009.