Senate Bill No. 2
(By Senators Minard, Barnes and Facemire)
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[Introduced February 11, 2009; referred to the Committee on
Banking and Insurance; and then to the Committee on the
Judiciary.]
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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:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§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 2010, each regulated consumer
lender shall certify to the commissioner on or before January 31,
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.