Revision: Feb. 24, 2009, midnight
SB 193 – AS INTRODUCED
2009 SESSION
05/01
SENATE BILL 193
AN ACT relative to the interest rate on small loans and relative to the definition of lender for purposes of regulating such loans.
SPONSORS: Sen. Houde, Dist 5; Sen. Hassan, Dist 23; Sen. Janeway, Dist 7; Rep. Kurk, Hills 7; Rep. M. Smith, Straf 7; Rep. Butler, Carr 1; Rep. Almy, Graf 11
COMMITTEE: Commerce, Labor and Consumer Protection
This bill establishes a maximum interest rate on small loans of $10,000 or less. The bill also includes credit services organizations in the definition of lender for purposes of small loans, title loans, and payday loans.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-1013
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to the interest rate on small loans and relative to the definition of lender for purposes of regulating such loans.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Definition of Lender. Amend RSA 399-A:1, VIII by inserting after subparagraph (d) the following new subparagraph:
(e) Acts as a credit services organization as defined in RSA 359-D:2, II.
2 Maximum Charges on Small Loans. RSA 399-A:12, I and II are repealed and reenacted to read as follows:
I. For any closed-end loan in the amount of $10,000 or less, a lender may lend in money, goods, or things of value upon such security not forbidden by RSA 399-A:11, VIII as may be agreed upon, and in connection with any such loan, may contract for, exact or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense or otherwise, on the entire principal of the loan, which in the aggregate are 36 percent per annum or less.
II. For any open-end loan with a line of credit of $10,000 or less, a lender may lend in money, goods, or things of value upon such security not forbidden by RSA 399-A:11, VIII as may be agreed upon, and in connection with any such loan, may contract for, exact or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense or otherwise, on the entire principal of the loan, which in the aggregate are 36 percent per annum or less.
3 Effective Date. This act shall take effect upon its passage.