Introduced Version Senate Bill 5 History

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Senate Bill No. 5

(By Senator Minard)


[Introduced February 9, 2005; referred to the Committee on Banking and Insurance.]


A BILL to amend and reenact §46A-4-101 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §46A-4-102a, all relating to the authority of regulated consumer lenders to make loans ; and requiring continuing education of individual regulated consumer lender loan originators.

Be it enacted by the Legislature of West Virginia:
That §46A-4-101 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that said code be amended by adding thereto a new section, designated §46A-4-102a, all to read as follows:
§46A-4-101. Authority to make loans.
Unless a person has first obtained a license from the Commissioner authorizing him or her to make regulated consumer loans, he shall or she may not engage in the business of:
(1) Making regulated consumer loans; or
(2) Taking assignments of and or undertaking direct collection of payments from or enforcement of rights against consumers arising from regulated consumer loans: Provided, That undertaking collection of or enforcement of rights under regulated consumer loans for an affiliate does not require a regulated consumer lender license.
§46A-4-102a. Loan originator continuing education.

(a) For the purposes of this article, "loan originator" means an individual who, on behalf of a licensed regulated consumer lender and in exchange for compensation by that regulated consumer lender, negotiates or arranges, or who offers to negotiate or arrange, or originates or processes a regulated consumer loan.
(b) Beginning with the year two thousand six, each regulated consumer lender shall certify to the Commissioner on or before the thirty-first day of January, that every loan originator employed by that licensed regulated consumer lender has received at least seven hours of continuing education during the prior calendar year. Both the course of instruction and the entity providing the continuing education must receive prior approval from the Commissioner as satisfying the continuing education requirement established in this section before the Commissioner may accept a certification from a licensee. The Commissioner shall make available a list of entities and courses that have been approved for continuing education hours and the list may include courses provided by a licensed regulated consumer lender. Employment of a loan originator who has not completed the required continuing education constitutes a violation of this article and subjects the regulated consumer lender to civil administrative penalties.

NOTE: The purpose of this bill is to require a license for entities that only take assignment of regulated consumer loans or for entities that only service regulated consumer loans; and require seven hours of continuing education annually for loan originators employed by regulated consumer lender licensees.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§46A-4-102a is new; therefore, strike-throughs and underscoring have been omitted.
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