SB 165 — AN ACT relating to consumer loan companies.

UNOFFICIALCHAPTER COPY123 231 RSCHAPTER 123 ( SB 165/GA165 ) AN ACT relating to consumer loan companies.

Page 1 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA (b) The[Such] charges authorized under paragraph (a) of this subsection shall be computed in advance at the agreed rate on scheduled unpaid principal balances of the cash advance on the assumption that all scheduled payments will be made when due.

(3) For any loan contract, a licensee and borrower may agreeagree:[that :[that the] PageLegislative 2Research ofCommission 8PDF SB016510.100Version -ACTS 1159OF -THE XXXXGENERAL 3/3/2023ASSEMBLY 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA (a) On a first installment date that is[may be] not more than fifteen (15) days more than one (1) month;

and (b) That the amount of the first[such] installment may be increased by one-one-thirtieth thirtieth (1/30) of the portion of the charges applicable to a first installment period of one (1) month for each extra day.

Page 3 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA (d) At the time a deferment is made, the borrower shall be given a statement or receipt showing:

Thereafter, in lieu of charging, Page 4 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA collecting, or receiving charges as provided in subsections (1) to (6)[ inclusive] of this section, charges may be charged, collected, and received as provided in[by] subsection (8) of this section until the loan contract is fully paid.

CHAPTER 123 3 (b) The[Such] charges permitted under paragraph (a) of this subsection shall not be paid, deducted, received in advance, or compounded, but shall be computed, collected, and received only on unpaid[ principal] balances for the time actually outstanding.

The lawful fees actually and necessarily paid out by the licensee to any public official for filing, recording, or releasing in any public office any Page 5 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA instrument securing the loan;

(12) A[No] licensee shall not directly or indirectly charge, contract for, or receive any interest or consideration greater than the lender would be permitted by law to Page 6 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA charge if the lender[he] were not a licensee:[ hereunder] (a) Upon any loan in the amount or of the value of more than fifteen thousand dollars ($15,000), excluding charges;[,] or (b) In any case in which the licensee permits any individual as borrower, indorser, guarantor, or surety for any borrower, or otherwise, to owe on any loan or loans directly or contingently, or both, to the licensee at any time the sum of more than fifteen thousand dollars ($15,000)[ for principal], excluding charges.

(2) A returned payment[bad check] charge of twenty-five dollars ($25)[,] or the amount passed on from other financial institutions and payment processors, whichever is greater, for each[any] check, draft, electronic fund transfer, negotiable order of withdrawal, or electronic payment[like instrument] returned, unpaid, or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY otherwise dishonored for any reason[ by a depository institution], which charge the licensee may charge and collect[,] through regular billing procedures, or otherwise, from the borrower;

This] charge shall be limited to a maximum of one hundred Page 7 of 8 SB016510.100 - 1159 - XXXX 3/3/2023 12:12 PM GA UNOFFICIAL COPY 23 RS SB 165/GA fifty dollars ($150).

(c) In the event of prepayment, any portion of a loan processing fee above seventy-five[fifty] dollars ($75[$50]) shall be subject to refund in the same manner as other charges pursuant to KRS 286.4-530(6).286.4- 530(6).

PageBecame 8law ofwithout 8Governor's SB016510.100signature -March 115929, -2023. XXXX 3/3/2023 12:12 PM GA