16RS House Bill 520

House Bill 520

Actions

Last Action	posted in committee
Title	AN ACT relating to flexible credit loans.
Bill Documents	Bill
Bill Request Number	1654
Sponsor	J. Bell
Summary of Original Version	Establish Subtitle 12 of KRS Chapter 286 and create new sections of that subtitle to define terms; require a license to engage in the business of flex loans; require that any applicant seeking a license provide a person upon whom service of process may be served; void any flex loan made by a person not licensed by the state; allow the commissioner of the Department of Financial Institutions to void a flex loan for violations; grant the commissioner authority to issue equitable remedies; establish the qualifications of an applicant for a license to make flex loans; establish the form requirements for an application to make flex loans; establish the filing fee for a license and establish requirements for additional materials to accompany any application, and allow the commissioner to require a background check at the expense of the applicant; require the commissioner to investigate completed applications for compliance and if the requirements have been satisfied to issue a license to the applicant; grant the commissioner authority to take adverse action on a licensee after notice and a hearing for certain violations; establish the procedures for an adverse action taken by the commissioner; require licenses to expire each June 30; prohibit transfer of a license, and set out requirements for a change of control of a licensee; for the collection of interest and fees on a flex loan; set the maximum principal amount of a flex loan; allow for the collection of fees after a default by a borrower; to prohibit unfair or deceptive acts by a licensee; establish requirements of disclosure by a licensee to a borrower; establish requirements for record-keeping by a licensee; exempt flex loans from KRS 360.010; grant authority to the commissioner to promulgate administrative regulations; grant investigatory and subpoena powers to the commissioner; allow the commissioner to issue cease and desist orders, and to bar persons from the business of a licensee; allow the commissioner authority to enter consent orders and to seek criminal or civil penalties; allow for a written complaint to be submitted to the commissioner, and allow the commissioner to petition a court for enforcement; establish notification requirements of certain events; require the filing of an annual report by a licensee; require the commissioner to prepare a reports and analysis reflecting results of operations of licensees; allow the commissioner to license applications through a multi-state automated licensing system; establish a database for flex loans and reporting requirements for licensees to the database; establish the information a licensee may access under a database; exempt certain reported information from disclosure; prohibit local government units from regulating or having authority over flex loan plans; establish the name of this subtitle as the “Flexible Credit Act.”
Index Headings of Original Version	Loans and Credit - Flex loan plans, licensees, creation of Banks and Financial Institutions - Flex loan plans, licensees, creation of Bonds of Surety - Flex loan plans, licensee application, requirements for Commerce - Flex loan plans, licensees, creation of Consumer Affairs - Flex loan plans, licensees, creation of Short Titles and Popular Names - Flexible Credit Act

02/26/16	introduced in House
02/29/16	to Banking & Insurance (H)
03/07/16	posted in committee