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HB520 (BR1654) - J. Bell
AN ACT relating to flexible credit loans.
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.”
Feb 26, 2016 - introduced in House
Feb 29, 2016 - to Banking & Insurance (H)
Mar 07, 2016 - posted in committee