Banking and Finance


P HB72

Limited access to safe-deposit box. Allows access to a safe-deposit box for the purpose of looking for a will or power of attorney by interested persons when the lessee of the safe-deposit box has become incapacitated. Under current law, access is limited to persons having an interest in locating a will of a decedent.
Patron - Howell

P HB97

Limitations on obligations of borrowers. Increases the maximum amount of obligations that a borrower may owe to a state bank to 15 percent of the sum of the bank's capital, surplus, and loan loss reserves. Currently, a bank's loan loss reserves are not included in calculating the bank's loans-to-one-borrower limit. The bill also permits the State Corporation Commission to authorize state banks to make loans to one borrower in amounts authorized under laws applicable to national banks.
Patron - Dudley

P HB98

Payment of small account balances. Increases from $10,000 to $15,000 the maximum account balance of a decedent that a bank, savings institution or credit union may pay to the surviving spouse or distributees.
Patron - Dudley

P HB440

Consumer Real Estate Settlement Protection Act (CRESPA); definition of "settlement agent." Amends the definition of "settlement agent" to include any person who conducts the settlement conference or handles funds in the transaction.
Patron - Woodrum

P HB940

Payday lending; usury; penalties. Establishes requirements for the conduct of payday lending. A "payday loan" is a transaction where the lender (i) accepts a check or similar instrument from the borrower; (ii) agrees to hold the check for a period of time prior to negotiation or presentment; and (iii) gives the borrower the amount of the check less the permitted interest charge. If the borrower does not pay the loan by the due date, the lender may obtain repayment by cashing the borrower's check. The measure caps the fee that a payday lender may charge at $15 per $100 advanced to the borrower. The minimum term is seven days. Lenders are prohibited from renewing or "rolling over" such loans. Payday lenders are required to be licensed with the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violators are subject to civil and criminal penalties. Making unlicensed loans, or arranging or brokering payday loans, is punishable as a Class 6 felony.
Patron - Morgan

P HB1121

Credit unions; reserves and risk assets. Replaces the current statutory reserve requirements applicable to credit unions with the reserve requirements established by federal National Credit Union Administration regulation. The bill also repeals the statutory definition of risk assets.
Patron - Bryant

P SB81

Payments to employees for referrals of settlement service and related businesses. Provides that an employer may compensate its own bona fide employees for referrals of insurance business. Payments to employees for referrals of insurance business are subject to the conditions that apply generally to exceptions from insurance licensing requirements.
Patron - Wampler

P SB556

Consumer Real Estate Settlement Protection Act; licensing of settlement agents. Exempts title insurance companies that have their financial statements audited annually by an independent certified public accountant from the requirement that settlement agents have their escrow accounts audited annually by an independent certified public accountant.
Patron - Stosch


F HB174

Money transmission services. Exempts money transmitters from the requirement that they post a surety bond if they perform only money transmission services that are originated by business entities.
Patron - Woodrum

F HB372

Real estate settlements; duties of lender. Requires a mortgage lender to provide all loan documents to the settlement agent at least 72 hours prior to closing.
Patron - Athey

F HB1197

Prohibited lending practices. Prohibits any person from engaging in the business of making, arranging or brokering short-term cash advances pursuant to agreements under which consumer checks, share drafts or authorizations to debit accounts of consumers are used as security for such advances, and the payment is deferred until a future designated date.
Patron - Dudley

F SB67

Settlement Agent Lien Release Act. Authorizes a settlement agent who has paid the obligation secured by a mortgage or deed of trust to release the lien by executing and filing a certificate of satisfaction. This procedure is available only if the settlement agent has delivered a notice of intent to release the mortgage and a copy of the payoff letter to the lien creditor and the lien creditor does not within 90 days notify the settlement agent that (i) another release has been recorded, (ii) the obligation secured by the mortgage has not been paid, or (iii) the lien creditor otherwise objects to the release of the mortgage. This optional procedure applies only to transactions involving not more than four residential dwelling units.
Patron - Watkins


© 2002 by the Division of Legislative Services.