SB 392 (BR 2345) - T. Buford
AN ACT relating to title pledge loans.
Create a new section of KRS Chapter 368 to define terms; to authorize a title pledge lender to make loans of money on pledges of titled personal property, to exempt title pledge lenders from KRS Chapter 360, and to establish a five (5) year statute of limitations for an action to be brought by a pledgor; create a new section of KRS Chapter 368 to require title pledge lenders to obtain a license; create a new section of KRS Chapter 368 to establish the requirements to qualify for a license; create a new section of KRS Chapter 368 to establish the information and manner of the application for a license; create a new section of KRS Chapter 368 to require an annual fee of five hundred dollars ($500); create a new section of KRS Chapter 368 to require an examination by the department of every title pledge lender at least once, and not more than twice, every twenty four (24) months; create a new section of KRS Chapter 368 to exempt the Commonwealth, the commissioner, and any examiner from liability regarding the examination of a title pledge lender; create a new section of KRS Chapter 368 to establish that reports and other information relating to the examination is confidential, with certain specific exceptions; create a new section of KRS Chapter 368 to require that a fee be collected by the department for any examination; create a new section of KRS Chapter 368 to require a title pledge lender to keep records of agreements executed, to keep a copy of an agreement for a period of two (2) years, and to set forth the information that is required in each title pledge agreement; create a new section of KRS Chapter 368 to allow a title pledge lender to record the lender's security interest, and to allow the lender to require the pledgor to execute a power of attorney when signing the agreement; create a new section of KRS Chapter 368 to establish that a title pledge lender contract for an effective rate of interest not to exceed two percent (2%) per month, to allow the title pledge lender to charge a fee to defray the ordinary cost of operating a title pledge office, such as investigating the title, appraising the titled personal property, documenting and closing the title or property pledge transaction, making required reports, for all other services provided by the titled lender, advertising, for losses on titled pledge transactions, salaries, and for all other expenses incurred and specify that this fee will not be interest and that the fee may equal no more than one fifth of the original principal amount of the agreement or of the total unpaid principal balance due at the inception of any renewal of the agreement, to allow the lender to collect fees for repossession and storage, to require the title pledge lender to issue to the pledgor a disclosure form in compliance with the Federal Truth-in-Lending Act, and to set forth that by agreement the parties may renew the maturity date for additional thirty (30) day periods; create a new section of KRS Chapter 368 to set forth that the pledgor be entitled to a release of the interest and lien upon satisfaction of all outstanding obligations in accordance with the agreement, and that the power of attorney then be stamped "void"; create a new section of KRS Chapter 368 to establish that if the pledgor fails to pay all of the principal, interest, and fees owing to the lender, the lender has the right to possession of the property without judicial process; create a new section of KRS Chapter 368 to require that after the lender has taken possession of the property the lender must wait twenty (20) days before disposing of the property, to establish that all interest and fees other than storage fees cease to accrue, to establish that during the twenty (20) day period the pledgor has the sole right to redeem the property by paying all principal, interest, and fees, and to require that after the twenty (20) day period the property be sold within sixty (60) days in a commercially reasonable manner after notice is sent to the pledgor and to other qualifying secured parties, and to require that proceeds of the sale be applied to the amount owed the lender, and that any surplus be remitted to the pledgor; create a new section of KRS Chapter 368 to prohibit the title pledge lender from certain specific actions, activities, and business transactions; and create a new section of KRS Chapter 368 to establish civil and criminal penalties.
SB 392 - AMENDMENTS
SFA (1, E. Scorsone) - Require a title lender to be subject to the fees and other charges provided in KRS 288.530; prohibit a title loan transaction from being renewed, rolled over or consolidated more than three times in succession, and require that each roll over period not be for less than 30 days.
HFA (1, R. Palumbo) - Limit loan amount to $2,500 rather than $4,000.
HFA (2, J. Gooch) - Amend KRS 226.080 to set forth that pawnbrokers be subject to the fees provided in KRS 288.530.
HFA (3, J. Gooch) - Make title amendment.
HFA (4, B. Yonts) - Allow interest of up to two percent per month; permit fees up to one-fifth of the original principal amount of the title pledge agreement; allow a repossession and storage charge.
Mar 2-introduced in Senate
Mar 3-to Banking and Insurance (S)
Mar 4-reported favorably, 1st reading, to Calendar
Mar 5-2nd reading, to Rules
Mar 6-posted for passage in the Regular Orders of the Day for March 10, 1998; floor amendment (1) filed
Mar 10-passed over and retained in the Orders of the Day
Mar 11-passed over and retained in the Orders of the Day
Mar 12-passed over and retained in the Orders of the Day
Mar 16-3rd reading, passed 32-3 with floor amendment (1)
Mar 17-received in House
Mar 19-to Licensing and Occupations (H)
Mar 20-posted in committee
Mar 24-reported favorably, 1st reading, to Calendar
Mar 25-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for March 26, 1998
Mar 26-floor amendments (1) (2) and (3-title) filed
Mar 27-floor amendment (4) filed
Mar 30-3rd reading,; floor amendment (4) defeated; passed 67-29
Mar 31-received in Senate; enrolled, signed by each presiding officer, delivered to Governor
Apr 1-signed by Governor