Bill Text - SB308 (2016)

(New Title) relative to the definition of small loans and relative to certain fees on small loans.


Revision: June 8, 2016, midnight

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CHAPTER 180

SB 308 - FINAL VERSION

03/17/2016   0947s

2016 SESSION

\t16-2830

\t08/05

 

SENATE BILL\t308

 

AN ACT\trelative to the definition of small loans and relative to certain fees on small loans.

 

SPONSORS:\tSen. Soucy, Dist 18; Rep. Jones, Straf. 24; Rep. Herbert, Hills. 43

 

COMMITTEE:\tCommerce

 

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AMENDED ANALYSIS

 

\tThis bill changes the definition of small loans.

 

\tThis bill also limits the amount to be charged for application or membership fees for small loans other than payday loans or title loans.

 

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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/17/2016   0947s\t16-2830

\t08/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to the definition of small loans and relative to certain fees on small loans.\t

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

\t180:1  New Paragraph; Small Loans Not Title or Payday Loans.  Amend RSA 399-A:16 by inserting after paragraph VI the following new paragraph:

\t\tVII.  Notwithstanding RSA 399-A:1, XXI(b) or any other provision of law, a loan with a contractual term of 6 months or longer with an annual percentage rate not exceeding 36 percent, as calculated under RSA 399-A:16, I, shall not be a title loan or a payday loan.

\t180:2  Small Loans Other Than Payday Loans or Title Loans; Annual Percentage Rate.  Amend RSA 399-A:16, I to read as follows:

\t\tI.  The annual percentage rate for small loans shall not exceed 36 percent.  Notwithstanding the federal definition of annual percentage rate, for purposes of calculating annual percentage rate, the finance charge shall exclude one application fee not to exceed $100 per borrower per year and one participation or membership fee not to exceed $100 per borrower per year.

\t180:3  Effective Date.  This act shall take effect 60 days after its passage.

Approved: June 3, 2016

Effective Date: August 2, 2016

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