Introduced Version
Senate Bill 193 History
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Committee Substitute (1)
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 193
(By Senator Minard)
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[Introduced January 10, 2008; referred to the Committee on
Banking and Insurance.]
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A BILL to amend and reenact §46A-4-110 of the Code of West
Virginia, 1931, as amended, relating to the sale of home and
automobile membership plans by consumer lenders; defining
automobile and home membership plans; specifying conditions
for sale of plans by licensees; and requiring enrollment
authorizations to be filed with the commissioner.
Be it enacted by the Legislature of West Virginia:
That §46A-4-110 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-110. Conduct of business other than making loans.
(1)(a) No licensee shall conduct the business of making
loans under the provisions of this article within any office, room
or place of business in which any other business is solicited or
engaged in, or in association or conjunction therewith, except as may be authorized in writing by the commissioner upon his or her
finding that the character of such other business is sufficiently
related to that of a financial institution and is such that the
granting of such authority would not facilitate evasions of this
article or of the rules lawfully made hereunder, except nothing
herein shall prohibit the licensee from purchasing installment
sales contracts or the sale or provision of insurance authorized by
section one hundred nine, article three of this chapter, or from
making loans authorized under the provisions of the West Virginia
Secondary Mortgage Loan Act as set forth in article seventeen,
chapter thirty-one of this code, or from soliciting or selling
automobile and home membership plans, subject to requirements of
subsection (d) of this section, or from engaging in any business
previously approved by the commissioner prior to the first day of
September, one thousand nine hundred ninety-six.
(2)(b)
A licensee may purchase, hold and convey real
property as follows:
(a)(1)
As shall be necessary for the convenient transaction
of its business;
(b)(2)
As is mortgaged to it in good faith by way of
security for loans made by or money due to such regulated consumer
lender;
(c)(3)
As is conveyed to it in satisfaction of debts
previously contracted in the course of its dealings;
(d)(4)
As is acquired by the sale on execution or judgment
or decree of any court in its favor.
(3)(c)
A licensee shall not purchase, hold or convey any
real property in any other case or for any other purpose
whatsoever. Real property shall be conveyed only by authority of
the board of directors of any such regulated consumer lender. No
real property acquired upon foreclosure in the cases contemplated
in subdivision (b) (2), or acquired under subdivisions (c) (3) and
(d) (4), subsection (b) of this section shall be held for a longer
time than ten years, unless such period shall be extended by the
Commissioner of Banking.
(d) A licensee may sell automobile or home membership plans
subject to the following conditions:
(1) The purchase of the plan by the customer is strictly
voluntary and never made a condition to the extension of credit or
granting of the loan;
(2) The customer may pay for the plan either by currency,
personal check or draft, money order, credit card or with a
proceeds check made payable to the customer and endorsed by the
customer to the plan;
(3) The customer shall receive and sign a copy of the
enrollment authorization;
(4) The customer may cancel the plan for a full refund paid
directly to the customer within thirty days from the effective date of enrollment in the plan; thereafter, the member shall receive a
prorated refund of the remaining portion of the membership in the
plan;
(5) No claims or other benefits derived from the plan shall be
paid to the licensee; and
(6) Copies of the plans' enrollment authorization shall be
submitted to the commissioner by the licensee prior to the sale and
solicitation of the plans within this state.
(e) An automobile or home membership plan is a membership plan
that offers security for home and automobile ownership,
respectively. Components of these plans may include health
insurance deductible coverage; extended warranties for items of
personalty excluding motor vehicles; home security services;
property insurance deductibles coverage; home security information;
ambulance and paramedic expense; emergency care reimbursement;
automobile security services; travel services; prepaid legal
services; and other services and benefits reasonably related to
home and automobile ownership.
NOTE: The purpose of this bill is to allow consumer lenders to
sell home and automobile membership plans to their customers.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.