Banking and Finance

P Passed

P HB573
Credit unions; fiduciary accounts. Provides credit unions with the same protections and authorizations regarding the issuing of shares and maintaining of share accounts in the name of persons or entities for membership in the credit union as fiduciaries as other financial institutions enjoy. The credit union is held harmless for the payment of funds from or the delivery of funds into such account as long as the fiduciary has signed for such payment or delivery. The credit union need not inquire into whether the fiduciary is breaching his obligation when the fiduciary purchases shares in his own name with funds from the fiduciary account or with funds from other accounts of his principal; however, the credit union must not pay the amount of such shares if it has actual knowledge that the fiduciary is breaching his fiduciary obligation or that issuing the shares or paying the withdrawal constitutes bad faith.
Patron - Bryant

P SB212
Consumer finance licensees. Allows the State Corporation Commission, upon receipt of written notice of intent, to authorize the operation of another related business in a consumer finance licensee's office without a formal investigation and finding of fact. However, the Commission's authority to request various information concerning the other business is preserved, along with its authority to investigate the conduct of such other business and to prohibit or limit the conduct of such other business if it is operating unlawfully or not in the public interest.
Patron - Holland

P SB250
Consumer Finance Act. Eliminates the requirement that the Bureau of Financial Institutions annually make and publish an analysis and recapitulation of the annual reports filed by lenders licensed to do business under the Consumer Finance Act.
Patron - Holland

P SB251
Identifying a business as a bank. Rewrites existing law that prohibits a person, entity, or organization that is not authorized to engage in banking or trust business from using signs or written materials indicating that it is a bank, and from using words such as "bank," "banking," "banker" or "trust" in connection with any business other than the business of banking. A violation remains a Class 6 felony. The changes remove outdated terminology and make technical corrections.
Patron - Holland

P SB376
Nonprofit debt counseling agencies; fees and qualifications. Authorizes licensed nonprofit debt counseling agencies to be reimbursed for the cost of a credit report and actual bank charges for automatic account debiting for debt repayment. The maximum monthly fee is increased from five to 20 dollars. No person or organization outside the Commonwealth may offer its debt counseling services to persons in the Commonwealth without qualifying under State Corporation Commission standards and paying the applicable license fee. The bill also requires such agencies to provide the debtor with a separate written notice informing the debtor that the provision of debt pooling and distribution services may have a derogatory effect on the debtor's credit report and credit scores.
Patron - Stosch

P SB620
Consumer Real Estate Settlement Protection Act; licensing requirements, standards and financial responsibility. Requires title insurance agents acting in the capacity of settlement agents to be licensed. No insurer may intentionally make any materially false or misleading statement or entry on a settlement statement. In addition to current statutory penalties, the State Corporation Commission may order a penalty of up to $5,000 for each violation; issue a temporary or permanent injunction, or restraining order; and order restitution to be made. These penalties are not exclusive of penalties set out by other licensing authorities, including penalties for the unauthorized practice of law. An insurer licensed for the business of title insurance who knows or believes one of its agents has committed any act of larceny in that agent's provision of escrow, closing or settlement services shall file with the Commission a complete statement of the relevant facts and circumstances. Statements are privileged communications, and do not subject the insurer, or its representative, to any liability.
Patron - Barry

C Carried Over

C HB488
Revolving credit and open-end sales and loan plans; telephonic credit solicitations. Requires creditors who solicit consumers by telephone to receive a signed, written application from a consumer prior to extending credit.
Patron - Orrock

C HB1515
Financial institutions; deferred presentment services. Establishes the requirements for operation in the business of deferred presentment services, or payday lending. "Deferred presentment services" is defined as a transaction pursuant to a written agreement between a licensee and the maker of a check whereby the licensee: (i) accepts a check from the maker dated on the date it was written; (ii) agrees to hold the check for a period of time prior to negotiation or presentment; and (iii) pays to the maker of the check the amount of the check, less the permitted fee. Anyone engaging in the business of deferred presentment services must be licensed with the State Corporation Commission by applying for a license, paying a $1,000 license fee, and posting a $10,000 bond. The SCC is authorized to investigate the affairs, business premises and records of deferred presentment services licensees and promulgate regulations to enforce this chapter. Violators of the bill's provisions are subject to both civil and criminal penalties.
Patron - Morgan


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