SENATE BILL 913

Sponsored By:

Senators Klausmeier and Brochin

Entitled:

Credit Regulation - Prepayment Charge or Penalty - Prohibition

Synopsis:

Prohibiting a lender that terminates a line of credit from requiring a borrower who is in good standing with the lender to pay a prepayment charge or penalty on a partial or full prepayment of the unpaid principal balance of the line of credit; providing that existing obligations or contract rights may not be impaired by the Act; and applying the Act.

History by Legislative and Calendar Date

Senate Action

2/23

First Reading Senate Rules

3/8

Re-referred Finance

Hearing 3/20 at 1:00 p.m.

3/21

Withdrawn

House Action

No Action

Sponsored by:

Senator Katherine Klausmeier, District 8

Senator Jim Brochin, District 42

Bill indexed under the following Subjects:

Consumer Protection -see also- Unfair Trade Practices

Credit

Fees -see also- Devt Fees and Taxes; Reimbursement Rates

Financial Institutions -see also- Banks; Credit Unions; etc.

Loans -see also- Mortgages

Penalties

Bill affects the following Statute:

Commercial Law

( 12-105 )

Documents:

Bill Text (Displayed in PDF Format): First Reading, Third Reading, Enrolled

Fiscal and Policy Note (Displayed in PDF Format): Available

Amendments: None offered