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SB366 SUB1 Senate Bill 366 History

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Key: Green = existing Code. Red = new code to be enacted
COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 366

(By Senators Manchin, Helmick, Blatnik, Chafin, Craigo, Dittmar, Sharpe, Wagner, Wiedebusch, Wooton, Kimble, Scott and Yoder.)

____________


[Originating in the Committee on the Judiciary;

reported February 27, 1996.]

____________

A BILL to repeal article seven, chapter thirty-one of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact sections two, five and six, article one, chapter thirty-one-a of said code; to amend and reenact sections four, five and eight, article two of said chapter; to amend and reenact sections fourteen and twenty-two, article four of said chapter; to amend and reenact section two, article seven of said chapter; to amend article eight of said chapter by adding thereto a new section, designated section eight-a; to amend and reenact section twelve-a of said article; to amend and reenact sections one hundred two and one hundred three, article one, chapter forty-six-a of said code; to amend and reenact sections one hundred four and one hundred eleven, article three of said chapter; to amend and reenact sections one hundred one, one hundred two, one hundred three, one hundred four, one hundred five, one hundred seven, one hundred eight, one hundred nine, one hundred ten, one hundred eleven, one hundred twelve and one hundred thirteen, article four of said chapter; to further amend said article by adding thereto a new section, designated section one hundred ten-a; to amend and reenact sections one hundred one and one hundred three, article five of said chapter; to amend and reenact sections one hundred three and one hundred fifteen, article seven of said chapter; to amend and reenact section one hundred one, article eight of said chapter; and to amend and reenact section five-d, article six, chapter forty-seven of said code, all relating to the supervision and regulation of banking institutions; eliminating separate licensing requirements for supervised lenders and industrial loan companies; creating a license requirement for regulated consumer lenders; defining and redefining terms; making certain technical revisions consistent with new terminology; removing obsolete language; clarifying procedures for the subpoena of records from the commissioner of banking; commissioner to impose terms and conditions necessary to protect confidentiality, financial integrity and rights of privacy; providing for the certification and licensure of financial institutions; establishing the annual assessment for regulated consumer lenders; providing for the unauthorized disclosure of information from a financial report and establishing a civil penalty therefor; establishing limitations on finance charges; requiring the rebate of portion of unearned prepaid finance charges; setting forth licensure requirements for regulated consumer lenders and establishing a fee therefor; when license may be revoked, suspended or forfeited; licensee to maintain records and file annual report with commissioner; providing for the examination by the commissioner of loans, business and records of every licensee at least every eighteen months; limiting authorized finance charges for regulated consumer lenders; setting forth restrictions on security interests; permissible conduct other than making loans; prohibiting certain conduct; substantial benefit required when refinancing at higher rate; exceptions; providing for the continuation of and for the combination of certain licenses; setting forth civil and criminal liability; establishing civil and criminal penalties; providing for the division of administrative powers to enforce consumer credit and protection laws; notification to state tax commissioner; establishing operative date of legislative enactment; authorizing certain deductions upon rebate of unearned finance charges; and clarifying definition of "loan or credit investigation fees".

Be it enacted by the Legislature of West Virginia:
That article seven, chapter thirty-one of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that sections two, five and six, article one, chapter thirty-one-a of said code be amended and reenacted; that sections four, five and eight, article two of said chapter be amended and reenacted; that sections fourteen and twenty-two, article four of said chapter be amended and reenacted; that section two, article seven of said chapter be amended and reenacted; that article eight of said chapter be amended by adding thereto a new section, designated section eight-a; that section twelve-a of said article be amended and reenacted; that sections one hundred two and one hundred three, article one, chapter forty-six-a of said code be amended and reenacted; that sections one hundred four and one hundred eleven, article three of said chapter be amended and reenacted; that sections one hundred one, one hundred two, one hundred three, one hundred four, one hundred five, one hundred seven, one hundred eight, one hundred nine, one hundred ten, one hundred eleven, one hundred twelve and one hundred thirteen, article four of said chapter be amended and reenacted; that said article be further amended by adding thereto a new section, designated section one hundred ten-a; that sections one hundred one and one hundred three, article five of said chapter be amended and reenacted; that sections one hundred three and one hundred fifteen, article seven of said chapter be amended and reenacted; that section one hundred one, article eight of said chapter be amended and reenacted; and that section five-d, article six, chapter forty-seven of said code be amended and reenacted, all to read as follows:
CHAPTER 31A. BANKS AND BANKING.

ARTICLE 1. GENERAL PROVISIONS AND DEFINITIONS.

§31A-1-2. Definitions.

As used in this chapter, unless the context in which used plainly requires a different meaning:
(a) The word "action", in the sense of a judicial proceeding, means any proceeding in a court of competent jurisdiction in which rights are adjudicated and determined and shall embrace and include recoupment, counterclaim, setoff and other related, similar and summary proceedings;
(b) The words "bank" and "banking institution" mean a corporation heretofore or hereafter chartered to conduct a banking business under the laws of West Virginia or an association heretofore or hereafter authorized to conduct a banking business in West Virginia under the laws of the United States and having its principal office in this state and shall embrace and include a savings bank, savings and loan association, trust company or an institution combining banking and trust company facilities, functions and services so chartered or authorized to conduct such business in this state, and shall include industrial banks authorized by article seven, chapter thirty-one of this code, subject to the limitations therein imposed on such industrial banks and further subject to the limitations imposed thereon in this article;
(c) The words "bankers' bank" mean a banking institution, insured by the federal deposit insurance corporation, the stock of which is owned exclusively by banks and other depository institutions, and such banking institution and all subsidiaries thereof are engaged exclusively in providing services for banks and other depository institutions and their officers, directors and employees;
(d) The term "banking business" means the functions, services and activities contained, detailed and embraced in sections thirteen and fourteen, article four of this chapter, and as elsewhere defined by law;
(e) The word "board" means the West Virginia board of banking and financial institutions;
(f) The words "branch bank" mean an office or other place at which a bank performs any or all banking business. For purposes of this chapter, a branch bank does not include:
(1) A bank's principal place of business;
(2) Any customer bank communication terminals installed and operated pursuant to section twelve-b, article eight of this chapter; and
(3) Any loan origination office authorized by section twelve- c, article eight of this chapter;
(g) The words "commissioner" or "commissioner of banking" mean the commissioner of banking of West Virginia;
(h) The word "community" means a city, town or other incorporated area, or, where not so incorporated, a trading area;
(i) The word "department" means the department of banking of West Virginia;
(j) The words "deputy commissioner" or "deputy commissioner of banking" mean the deputy commissioner of banking of West Virginia;
(k) The word "fiduciary" means any trustee, agent, executor, administrator, curator, committee, guardian or conservator, special commissioner, receiver, trustee in bankruptcy, assignee for creditors, or any holder of a similar position of trust or responsibility;
(l) The words "financial institutions" mean banks, building and loan associations, industrial banks, industrial loan companies, supervised lenders regulated consumer lenders, credit unions and all other similar institutions, whether persons, firms or corporations, which are by law under the jurisdiction and supervision of the commissioner of banking;
(m) The word "officer" when referring to any financial institution, means any person designated as such in the bylaws and includes, whether or not so designated, any executive officer, the chairman of the board of directors, the chairman of the executive committee, and any trust officer, assistant vice president, assistant treasurer, assistant secretary, assistant trust officer, assistant cashier, assistant comptroller, or any other person who performs the duties appropriate to those offices, and the terms "executive officer" as herein used, when referring to banking institutions, means an officer of a bank whose duties involve regular, active and substantial participation in the daily operations of such institution and who, by virtue of his position, has both a voice in the formulation of the policy of the bank and responsibility for implementation of the policy, such responsibility of and functions performed by the individual, and not his title or office, being determinative of whether he is an "executive officer";
(n) The word "person" or "persons" means any individual, partnership, society, association, firm, institution, company, public or private corporation, state, governmental agency, bureau, department, division or instrumentality, political subdivision, county commission, municipality, trust, syndicate, estate or any other legal entity whatsoever, formed, created or existing under the laws of this state or any other jurisdiction;
(o) "Regulated consumer lender" means a person authorized to make or take assignments of regulated consumer loans pursuant to chapter forty-six-a of this code;
(o) (p) The words "safe-deposit box" mean a safe-deposit box, vault or other safe-deposit receptacle maintained by a lessor bank, and the rules relating thereto apply to property or documents kept therein in the bank's vault under the joint control of lessor and lessee;
(p) (q) The words "state bank" or "state banking institution" mean a bank chartered under the laws of West Virginia, as distinguished from a national banking association; and
(q) (r) The words "trust business" mean the functions, services and activities contained, detailed and embraced in section fourteen, article four of this chapter, and as elsewhere defined by law and as may be included within the meaning of the term "banking business".
§31A-1-5. Lending and investing powers and authority of fiduciaries, financial institutions, governmental entities and other persons.

The state of West Virginia, counties, municipalities, political subdivisions and agencies and instrumentalities of any of them, fiduciaries, building and loan associations, industrial loan companies regulated consumer lenders, insurance companies, fraternal benefit societies, and other persons lawfully engaging in the lending and investing business and services shall have and are hereby authorized and empowered to exercise the same lawful rights and privileges as are banking institutions under provisions of sections twenty-seven, twenty-eight and twenty-nine, article four of this chapter.
§31A-1-6. Deposit insurance required for banking and other lending depository institutions.

All building and loan associations established pursuant to article six, chapter thirty-one, industrial banks established pursuant to article seven, chapter thirty-one, credit unions established pursuant to article ten, chapter thirty-one, members of the savings and loan association of the state of West Virginia established pursuant to article eleven, chapter thirty-one and all banking institutions governed by the provisions of this chapter shall qualify for and obtain federal deposit insurance, or shall obtain insurance as approved by the commissioner of banking in an amount equal to that provided by the federal deposit insurance corporation for eligible institutions.
Each such institution which fails to obtain deposit insurance as required herein by the first day of July, one thousand nine hundred seventy-eight shall be prohibited from conducting any business as a lending institution until such insurance is obtained, except that the commissioner may grant continuances for compliance with this section for any institution showing good cause for such a continuance.
ARTICLE 2. DIVISION OF BANKING.

§31A-2-4. Jurisdiction of commissioner; powers, etc., of department transferred to commissioner; powers and duties of commissioner.

(a) Subject to the powers vested in the board by article three of this chapter, the commissioner shall have supervision and jurisdiction over state banks (other than those banks excepted by the provisions of section eleven of this article), industrial loan companies regulated consumer lenders, building and loan associations, supervised lenders, credit unions, and all other persons now or hereafter made subject to his supervision or jurisdiction. All powers, duties, rights and privileges vested in the department are hereby vested in the commissioner. He shall be the chief executive officer of the department of banking and shall be responsible for the department's organization, services and personnel, and for the orderly and efficient administration, enforcement and execution of the provisions of this chapter and all laws vesting authority or powers in or prescribing duties or functions for the department or the commissioner.
(b) The commissioner shall:
(1) Maintain the office for the department at the state capitol, and there keep a complete record of all the department's transactions, of the financial conditions of all financial institutions and such records of the activities of other persons as the commissioner may deem important. Notwithstanding any other provision of this code, heretofore or hereafter enacted, the records relating to the financial condition of any financial institution and any information contained therein shall be confidential for the use of the commissioner and authorized personnel of the department of banking. No person shall divulge any information contained in any such records except as hereafter authorized in response to a valid subpoena or subpoena duces tecum issued pursuant to law in a criminal proceeding or in a civil enforcement action brought by state or federal regulatory authorities. Subpoenas shall first be directed to the commissioner, who shall authorize disclosure of relevant records and information therefrom upon a determination of good cause, imposing terms and conditions as are deemed necessary to protect the confidential nature of the records, the financial integrity of the financial institution or the person to whom the records relate, and the legitimate privacy interests of any individual named in such records. Conformity with federal procedures shall be sought where the institution maintains federal deposit insurance. The commissioner shall have and may exercise reasonable discretion as to the time, manner and extent the other records in his office and the information contained therein shall be available for public examination.
(2) Require all financial institutions to comply with all the provisions of this chapter and other applicable laws, or any rule and regulation promulgated or order issued thereunder.
(3) Investigate all alleged violations of this chapter and all other laws which he is required to enforce and of any rule and regulation promulgated or order issued thereunder.
(c) In addition to all other authority and powers vested in the commissioner by provisions of this chapter and other applicable laws, the commissioner is authorized and empowered:
(1) To provide for the organization of the department and the procedures and practices thereof and implement the same by the promulgation of rules and regulations and forms as appropriate, which rules and regulations shall be promulgated in accordance with article three, chapter twenty-nine-a of this code;
(2) Employ, direct, discipline, discharge and establish qualifications and duties for all personnel for the department, including, but not limited to, examiners, assistant examiners, conservators and receivers, to establish the amount and condition of bonds for such thereof as he deems appropriate and to pay the premiums thereon, and if he so elects, to have all such personnel subject to and under the classified service of the state personnel department;
(3) To cooperate with organizations, agencies, committees and other representatives of financial institutions of the state in connection with schools, seminars, conferences and other meetings to improve the responsibilities, services and stability of the financial institutions;
(4) In addition to the examinations required by section six of this article, to inspect, examine and audit the books, records, accounts and papers of all financial institutions at such times as circumstances in his opinion may warrant;
(5) To call for and require all such data, reports and information from financial institutions under his jurisdiction, at such times and in such form, content and detail, deemed necessary by him in the faithful discharge of his duties and responsibilities in the supervision of the financial institutions;
(6) Subject to the powers vested in the board by article three of this chapter, to supervise the location, organization, practices and procedures of financial institutions and, without limitation on the general powers of supervision thereof, to require financial institutions to:
(A) Maintain their accounts consistent with such regulations as he may prescribe and in accordance with generally accepted accounting practices;
(B) Observe methods and standards which he may prescribe for determining the value of various types of assets;
(C) Charge off the whole or any part of an asset which at the time of his action could not lawfully be acquired;
(D) Write down an asset to its market value;
(E) Record or file writings creating or evidencing liens or other interests in property;
(F) Obtain financial statements from prospective and existing borrowers;
(G) Obtain insurance against damage and loss to real estate and personal property taken as security;
(H) Maintain adequate insurance against such other risks as he may deem and determine to be necessary and appropriate for the protection of depositors and the public;
(I) Maintain an adequate fidelity bond or bonds on its officers and employees;
(J) Take such other action as may in his judgment be required of the institution in order to maintain its stability, integrity and security as required by law and all rules and regulations promulgated by him; and
(K) Verify any or all asset or liability accounts.
(7) Subject to the powers vested in the board by article three of this chapter, to receive from any person or persons and to consider any request, petition or application relating to the organization, location, conduct, services, policies and procedures of any financial institution and to act thereupon in accordance with any provisions of law applicable thereto;
(8) In connection with the investigations required by subdivision (3), subsection (b) of this section, to issue subpoenas and subpoenas duces tecum, administer oaths, examine persons under oath, and hold and conduct hearings, any such subpoenas or subpoenas duces tecum to be issued, served and enforced in the manner provided in section one, article five, chapter twenty-nine-a of this code. Any person appearing and testifying at such a hearing may be accompanied by an attorney employed by him;
(9) To issue declaratory rulings in accordance with the provisions of section one, article four, chapter twenty-nine-a of this code;
(10) To study and survey the location, size and services of financial institutions, the geographic, industrial, economic and population factors affecting the agricultural, commercial and social life of the state, and the needs for reducing, expanding or otherwise modifying the services and facilities of financial institutions in the various parts of the state, and to compile and keep current data thereon to aid and guide him in the administration of the duties of his office;
(11) To implement all of the provisions of this chapter (except the provisions of article three) and all other laws which he is empowered to administer and enforce by the promulgation of rules and regulations in accordance with the provisions of article three, chapter twenty-nine-a of this code;
(12) To implement the provisions of chapter forty-six-a of this code applicable to consumer loans and consumer credit sales by the promulgation of rules and regulations in accordance with the provisions of article three, chapter twenty-nine-a of this code so long as said rules and regulations do not conflict with any rules and regulations promulgated by the state's attorney general;
(13) To foster and encourage a working relationship between the department of banking and financial institutions, credit, consumer, mercantile and other commercial and finance groups and interests in the state in order to make current appraisals of the quality, stability and availability of the services and facilities of financial institutions;
(14) To provide to financial institutions and the public copies of the West Virginia statutes relating to financial institutions, suggested drafts of bylaws commonly used by financial institutions, and such other forms and printed materials as may be found by him to be helpful to financial institutions, their shareholders, depositors and patrons, and to make reasonable charges therefor;
(15) To delegate the powers and duties of his office, other than the powers and duties in this subsection hereinafter excepted, to qualified department personnel, who shall act under the direction and supervision of the commissioner and for whose acts he shall be responsible, but the commissioner may delegate to the deputy commissioner of banking and to no other department personnel the following powers, duties and responsibilities, all of which are hereby granted to and vested in the commissioner and for all of which the commissioner shall likewise be responsible:
(A) To order any person to cease violating any provision or provisions of this chapter or other applicable law or any rule and regulation promulgated or order issued thereunder;
(B) To order any person to cease engaging in any unsound practice or procedure which may detrimentally affect any financial institution or depositor thereof; and
(C) To revoke the certificate of authority, permit or license of any financial institution except a banking institution in accordance with the provisions of section thirteen of this article;
(16) To receive from state banking institutions applications to change the locations of their principal offices and to approve or disapprove such applications; and
(17) To take such other action as he may deem necessary to enforce and administer the provisions of this chapter (except the provisions of article three) and all other laws which he is empowered to administer and enforce, and to apply to any court of competent jurisdiction for appropriate orders, writs, processes and remedies.
§31A-2-5. Certificate or license to engage in business; filing of amendments to charter, bylaws and foreign statutes.

(a) No person shall engage or continue in the business of a financial institution in this state without a license or certificate to do so issued in accordance with this section, or other applicable law, which license or certificate remains unsuspended, unexpired and unrevoked except that a corporation which proposes to apply for such license or certificate may secure its charter, adopt bylaws, elect its directors and officers and perfect its organization.
(b) Application for such license or certificate shall be upon such forms and contain such information as the commissioner may prescribe. In connection with such applications every corporate financial institution shall file a certified copy of its charter and bylaws, a statement as to the amount of capital that has been subscribed and paid in and a statement of its financial condition duly verified under oath by its president or vice president and its cashier or secretary as the case may be and every financial institution other than a corporation shall file a verified statement of its financial condition.
(c) If the application be that of a banking institution, the commissioner of banking shall examine the information, documents and statements submitted and, if he finds that such banking institution has adopted bylaws which provide practical, safe, just and equitable rules and methods for the management of its business and it has complied in all respects with the provisions of this chapter and other applicable laws, he shall issue to it a certificate or license permitting it to engage in business. If the application be that of a financial institution other than a banking institution, the commissioner of banking shall examine the information, documents and statements submitted, and, if he finds that such financial institution has adequate resources for the proposed business and has provided practical, safe, just and equitable rules and methods for the management of its business, and it has complied in all respects with the provisions of this chapter and other applicable laws, and that the public convenience and advantage will be promoted by the issuance of a certificate or license thereto, he shall issue to it a certificate or license permitting it to engage in business: Provided, That any supervised lender which is operating in good standing in accordance with the provisions of article four, chapter forty-six-a shall be presumed to have established that the public convenience and advantage will be promoted in regard to its application for a certificate of authority to operate as an industrial loan company as defined in article seven, chapter thirty-one of this code in the same location for which it is licensed as a supervised lender. Such certificate or license shall be preserved and the original or copy thereof displayed in all the place places of business of such banking or other financial institution located in this state.
(d) In addition to the requirements of subsection (b) of this section, every foreign corporation applying for a license or certificate to engage in the business of a financial institution in this state shall file with the commissioner of banking a copy of the laws of the jurisdiction under which it is organized which pertain to its organization and powers and the conduct of its business. The commissioner shall examine the information, documents and statements submitted by such foreign corporation and if he finds that they provide practical, safe, just and equitable rules and methods for the management of the business of the corporation, that it has adequate resources for the proposed business and it has complied in all respects with the provisions of this chapter and other applicable laws, and that the public convenience and advantage will be promoted by the issuance of a license or certificate thereto, he shall issue to such corporation a certificate or license permitting it to engage in business in this state, which certificate or license shall authorize such corporation to engage in the business of the type of financial institution specified therein, until the thirtieth day of the following June. Thereafter a new certificate or license shall be secured annually by any such foreign corporation. The fee for the original and each additional license or certificate issued to a foreign corporation shall be one hundred dollars, unless otherwise provided by statute. A verified statement of the financial condition of every such foreign corporation shall be filed with the commissioner before the issuance of each annual certificate or license. Such certificate or license shall be preserved and displayed in the place of business of such corporation.
(e) No amendment of the charter or bylaws of any domestic or foreign corporation engaging in business in this state as a financial institution shall become effective until the proposed change shall have been submitted to and approved by the commissioner of banking; but, if the commissioner does not disapprove such proposed change within twenty days after it is received by him, it shall be deemed to have been approved. A certified copy of the amendment of any statute of another state governing such a foreign corporation shall be filed with the commissioner of banking by such foreign corporation within thirty days after such amendment becomes effective in such other state.
(f) Nothing contained in this code shall authorize any person to engage in the banking business in this state except corporations chartered to conduct a banking business under the laws of West Virginia and which hold a license or certificate to do so issued under this section or associations authorized to conduct a banking business in West Virginia under the laws of the United States and having their principal place of business in this state.
§31A-2-8. Commissioner's assessments and examination fund; assessments, costs and expenses of examinations; collection.

(a) All moneys collected by the commissioner from financial institutions and bank holding companies for assessments, examination fees, investigation fees or other necessary expenses incurred by the commissioner in administering such duties shall be paid to the commissioner and paid by the commissioner to the treasurer of the state to the credit of a special revenue account to be known as the "Commissioner's Assessment and Examination Fund" which is hereby established. The assessments and fees paid into this account shall be appropriated by law and used to pay the costs and expenses of the division of banking and all incidental costs and expenses necessary for its operations. At the end of each fiscal year, if the fund contains a sum of money in excess of twenty percent of the appropriated budget of the division of banking, the amount of the excess shall be transferred to the general revenue fund of the state. The Legislature may appropriate money to start the special revenue account.
(b) The commissioner of banking shall charge and collect from each state banking institution or other financial institution or bank holding company and pay into a special revenue account in the state treasury for the division of banking assessments as follows:
(1) For each state banking institution, a semiannual assessment payable on the first day of January and the first day of July, each year, computed upon the total assets of the banking institution shown on the report of condition of the banking institution filed as of the preceding thirtieth day of June and the thirty-first day of December respectively as follows:
Total Outstanding Balances

But NotOf Excess
OverOverThisOver
MillionMillionAmountPlusMillion
$0$2$0.0016450200
2203,290.0002056282
201006,991.00016450220
10020020,151.000106926100
2001,00030,844.000090476200
1,0002,000103,225.0000740261,000
2,0006,000177,251.0000658012,000
6,00020,000440,454.0000559886,000
20,00040,0001,224,292.00005267020,000
(2) For each industrial loan company regulated consumer lender an annual assessment payable on the first day of July, each year, computed upon the total outstanding gross loan balances and installment sales contract balances net of unearned interest shown on the report of condition of the regulated consumer lender as of the preceding thirty-first day of December respectively as follows: as provided for in section thirteen, article seven, chapter thirty- one of this code, as follows:

Total Outstanding Balances
But NotThisOf Excess
OverOverAmountPlusOver

$0$1,000,000800 - -
1,000,0005,000,000800.0004001,000,000
5,000,00010,000,0002,400.0002005,000,000
10,000,000 - 4,200.00010010,000,000
If an industrial loan company's a regulated consumer lender's records or documents are maintained in more than one location in this state, then eight hundred dollars may be added to the assessment for each additional location.
(3) For each credit union, an annual assessment as provided for in section six, article ten, chapter thirty-one of this code as follows:

Total Assets
OverBut NotThisOf Excess
OverAmountPlusOver

$0$100,000100 - -
100,000500,000300 - -
500,0001,000,000500 - -
1,000,0005,000,000500.0004001,000,000
5,000,00010,000,0002,100.0002005,000,000
10,000,000 - 3,100.00010010,000,000
(4) For each bank holding company, an annual assessment as provided for in section five, article eight-a of this chapter. The annual assessment shall not exceed ten dollars per million dollars in deposits rounded off to the nearest million dollars.
(5) For each supervised lender, an annual assessment as provided for in section one hundred five, article four, chapter forty-six-a of this code. Such annual assessment shall not exceed one hundred dollars on the first twenty-five thousand dollars of total outstanding loan balances and installment sales contract balances less unearned finance charges plus forty cents per thousand dollars on the remaining outstanding balances as of the preceding calendar year-end.
(c) The commissioner shall each December and each June prepare and send to each state banking institution a statement of the amount of the assessment due. The commissioner shall, further, each June, prepare and send to each industrial loan company, regulated consumer lender and each state credit union and each supervised lender a statement of the amount of the assessment due. The commissioner shall, annually, during the month of January, prepare and send to each bank holding company a statement of the amount of the assessment due.
Assessments shall be prescribed annually, not later than the fifteenth day of June, by written order of the commissioner, but shall not exceed the maximums as set forth in subsection (b) of this section. In setting the assessments the primary consideration shall be the amount appropriated by the Legislature for the division of banking for the corresponding annual period. Reasonable notice of the assessments shall be made to all interested parties. All orders of the commissioner for the purpose of setting assessments are not subject to the provisions of the West Virginia administrative procedures act, under chapter twenty-nine-a of this code.
(d) For making an examination within the state of any other financial institution for which assessments are not provided by this code, the commissioner of banking shall charge and collect from such other financial institution and pay into the special revenue account for the division of banking the actual and necessary costs and expenses incurred in connection therewith, as fixed and determined by the commissioner.
(e) If the records of an institution are located outside this state, the institution at its option shall make them available to the commissioner at a convenient location within the state, or pay the reasonable and necessary expenses for the commissioner or his or her representatives to examine them at the place where they are maintained. The commissioner may designate representatives, including comparable officials of the state in which the records are located, to inspect them on his or her behalf.
(f) The commissioner of banking may maintain an action for the recovery of all assessments, costs and expenses in any court of competent jurisdiction.
ARTICLE 4. BANKING INSTITUTIONS AND SERVICES GENERALLY.

§31A-4-14. Trust powers of banking institutions.

Every state banking institution, except industrial banks created and organized pursuant to the provisions of article seven, chapter thirty-one of this code, which files the reports required in the following section and which is not otherwise prohibited by the commissioner or federal bank regulators from doing so, shall have and exercise the following powers:
(a) All the powers, rights and privileges of any state banking institution;
(b) To act as trustee, assignee, special commissioner, general or special receiver, guardian, executor, administrator, committee, agent, curator, or in any other fiduciary capacity, and to take, assume, accept and execute trusts of every description not inconsistent with the constitution and laws of the United States of America or of this state; and to receive, hold, manage and apply any sinking fund on the terms and for the purposes specified in the instrument creating such fund;
(c) To act as registrar, transfer agent or dividend or coupon paying agent for any corporation;
(d) To make, hold and dispose of investments and establish common trust funds, and account therefor, pursuant to the provisions of chapter forty-four of this code;
(e) To purchase and sell and take charge of and receive the rents, issues and profits of any real estate for other persons or corporations;
(f) To act as trustee or agent in any collateral trust and in order to secure the payment of any obligations of any person, firm, private corporation, public corporation, public body or public agency to receive and hold in trust any items of personal property (including, without limitation, notes, bonds, debentures, obligations and certificates for shares of stock) with the right in case of default to sell and dispose of such personal property and to collect, settle and adjust any obligations for the payment of money, and at any sale of such personal property held by it, to purchase the same for the benefit of all or any of the holders of the obligations, to secure the payment of which such items of personal property were pledged and delivered to the trustee or agent. Any such sale may be made without any proceedings in any court, and at such times and upon such terms as may be specified in the instrument or instruments creating the trust, or, in the absence of any specification of terms, at such time and upon such terms as the trustee shall deem reasonable; and
(g) To do and perform any act or thing requisite or necessary in, or incidental to, the exercise of the general powers herein set forth.
All national banks having their principal offices in this state which have been, or hereafter may be, authorized under the laws of the United States to act as trustee and in other fiduciary capacities in the state of West Virginia shall have all the rights, powers, privileges and immunities conferred hereunder, provided they comply with the requirements hereof.
§31A-4-22. Reserves required of banking institutions; reports; penalties.

Each state banking institution, except industrial banks created and organized pursuant to the provisions of article seven, chapter thirty-one of this code, shall at all times maintain on hand as a reserve in lawful money of the United States of America an amount equal to at least seven percent of the aggregate of all of its deposits which are subject to withdrawal on demand and three percent of its time deposits. Whenever the commissioner of banking shall determine that the maintenance of sound banking practices or the prevention of injurious credit expansion or contraction makes such action advisable, he may by rule or regulation from time to time change such requirements as to reserves against demand or time deposits, or both, but the reserves so prescribed shall in no event be less than those specified in this section nor more than twice those specified. Whenever such reserve shall fall below that required, the institution shall not thereafter make any new loan or investment until the required reserve shall be restored. For the purpose of computing such reserve, all deposits requiring notice of thirty days or more for withdrawal and time certificates of deposit and Christmas savings shall be deemed time deposits, and all checking accounts, certified checks, cashier's checks, demand certificates of deposit and balances due other banks shall be deemed demand deposits. But in lieu of lawful money on hand, four fifths of such reserve may consist of balances payable on demand from any national or state bank doing business in this state or solvent banking institutions in other states. The reserve balances required herein shall be computed on the basis of average daily net deposit balances and average daily currency and coin during biweekly periods. The required reserve balance of each bank shall be computed at the close of business each day based upon its net deposit balances and currency and coin at the opening of business on the same day. The biweekly period shall end at the close of business on days to be fixed by the commissioner in his promulgated rules and regulations. When, however, the reserve computation period ends with a nonbusiness day, or two or more consecutive nonbusiness days, such nonbusiness day or days may, at the option of the banking institution, and whether or not it had a deficiency in reserve balances in such computation period, be included in the next biweekly computation period.
The commissioner shall, by rule, require regular reports from such banking institutions, which reports shall be submitted at such times and contain such information as will enable the commissioner to adequately supervise the maintenance of reserves under this section. Penalties for any deficiencies in the required reserves of any banking institution shall be assessed monthly by the commissioner on the basis of average daily deficiencies during each of the computation periods ending in the preceding calendar month. Such penalties shall be assessed at a rate of two percent per annum above the lowest rate applicable to borrowings by member banks from the federal reserve bank of the district in which such deficient institution is located on the first day of the calendar month in which the deficiencies occurred. Such penalties shall be paid by the commissioner into the treasury of the state of West Virginia and credited to the general fund.
Compliance on the part of any banking institution with the reserve requirements of the federal reserve act, as amended prior to the thirty-first day of January, one thousand nine hundred eighty-one, shall be considered full compliance with the provisions of this section. No such bank may be required to carry or maintain a reserve other than such as required under terms of the federal reserve act, as amended prior to the thirty-first day of January, one thousand nine hundred eighty-one.
ARTICLE 7. REGULATION OF FAILING FINANCIAL INSTITUTIONS.

§31A-7-2. Definitions.

As used in this article:
(a) "Commissioner" means the commissioner of banking of West Virginia and any authorized deputy or employee thereof;
(b) "Federal law" means all the provisions of Title XII of the United States Code and all rules and regulations promulgated pursuant thereto;
(c) "Financial institution" means any bank, building and loan association, industrial bank, industrial loan company, supervised lender, regulated consumer lender, credit union and any other person, firm or corporation doing business under the jurisdiction and supervision of the commissioner of banking of West Virginia;
(d) A financial institution is "about to be insolvent" when it would be unable to meet the demands of its depositors or to make adequate provision for the timely payment of its depositors if it were immediately closed for the purpose of liquidation;
(e) A financial institution is "insolvent" when it is unable to pay its debts to its depositors and other creditors in the ordinary and usual course of business or when it is in a state of balance sheet insolvency; and
(f) "Balance sheet insolvency" exists when the assets of a financial institution are less than its liabilities, exclusive of capital. For the purposes of ascertaining balance sheet insolvency, assets shall be valued at their book value, unless the commissioner of banking determines that the assets are insufficient to meet liabilities within a reasonable time making probable the liquidation of assets; and if any such determination is made, the assets shall be valued at fair market value.
ARTICLE 8. HEARINGS; ADMINISTRATIVE PROCEDURES; JUDICIAL REVIEW; UNLAWFUL ACTS; PENALTIES.

§31A-8-8a. Unauthorized disclosure of information from a financial institution examination report.

Any person having a duty to the financial institution or to a state agency to maintain the confidentiality of examination reports by the division of banking, who willfully and knowingly makes an unauthorized public disclosure of confidential information or records from a state-chartered depository financial institution examination report shall be subject to suit by the commissioner or attorney general for civil penalties of up to one thousand dollars: Provided, That no such suit shall lie where the person was ordered to make the disclosure by a court of competent jurisdiction, or lawfully compelled to make the disclosure as part of a legislative or executive agency investigation. Officials of the financial institution or the commissioner may refer matters of possible wrongdoing discovered by the examination which impact on the institution's soundness or financial integrity, or which concern possible criminal conduct to law enforcement officials or other appropriate governmental regulatory agencies, including appropriate state bar or ethics officials. Such referrals shall not constitute public disclosure.
§31A-8-12a. Banking from mobile units prohibited; prohibition not to include messenger services; limitation of messenger services.

It is illegal for any banking institution, building and loan association industrial loan company or supervised lender or regulated consumer lender to conduct its business in a facility that is a mobile unit not permanently attached to the real estate upon which it is located, except that such mobile units may be used as temporary banking quarters pending construction of a permanent bank building on the same or adjacent property thereto if a charter for said bank has previously been approved. This section shall not be construed or interpreted to prohibit a financial institution from providing messenger services to its customers by which items are received by mail, armored car service or other courier or delivery service for subsequent deposit: Provided, That all such messenger services are confined to the territorial boundaries of the county in which the principal office of such financial institution is located or within twenty-five miles of the principal office of such financial institution.
CHAPTER 46A. WEST VIRGINIA CONSUMER CREDIT

AND PROTECTION ACT.

ARTICLE 1. SHORT TITLE, DEFINITIONS AND GENERAL PROVISIONS.

§46A-1-102. General definitions.

In addition to definitions appearing in subsequent articles, in this chapter:
(1) "Actuarial method" means the method, defined by rules adopted by the commissioner, of allocating payments made on a debt between principal or amount financed and loan finance charge or sales finance charge pursuant to which a payment is applied first to the accumulated loan finance charge or sales finance charge and the balance is applied to the unpaid principal or unpaid amount financed.
(2) "Agreement" means the bargain of the parties in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance. A "consumer credit agreement" is an agreement where credit is granted.
(3) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing or manufacture of agricultural products by a natural person who cultivates, plants, propagates or nurtures the agricultural products. "Agricultural products" includes agricultural, horticultural, viticultural and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured products thereof.
(4) "Amount financed" means the total of the following items to the extent that payment is deferred:
(a) The cash price of the goods, services or interest in land, less the amount of any down payment whether made in cash or in property traded in;
(b) The amount actually paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest in or a lien on property traded in; and
(c) If not included in the cash price:
(i) Any applicable sales, use, privilege, excise or documentary stamp taxes;
(ii) Amounts actually paid or to be paid by the seller for registration, certificate of title or license fees; and
(iii) Additional charges permitted by this chapter.
(5) "Average daily balance" in a billing cycle for which a sales finance charge or loan finance charge is made is the sum of the amount unpaid each day during that cycle divided by the number of days in that cycle. The amount unpaid on a day is determined by adding to the balance, if any, unpaid as of the beginning of that day all purchases and other debits and deducting all payments and other credits made or received as of that day.
(6) The "cash price" of goods, services or an interest in land means the price at which the goods, services or interest in land are offered for sale by the seller to cash buyers in the ordinary course of business, and may include: (A) Applicable sales, use, privilege and excise and documentary stamp taxes; (B) the cash price of accessories or related services such as delivery, installation, servicing, repairs, alterations and improvements; and (C) amounts actually paid or to be paid by the seller for registration, certificate of title or license fees.
(7) "Closing costs" with respect to a debt secured by an interest in land include:
(a) Fees or premiums for title examination, title insurance or similar purposes including surveys;
(b) Fees for preparation of a deed, deed of trust, mortgage, settlement statement or other documents;
(c) Escrows for future payments of taxes and insurance;
(d) Official fees and fees for notarizing deeds and other documents;
(e) Appraisal fees; and
(f) Credit reports.
(8) "Code" means the official code of West Virginia, one thousand nine hundred thirty-one, as amended.
(9) "Commercial facsimile transmission" means the electronic or telephonic transmission in the state to a facsimile device to encourage a person to purchase goods, realty or services.
(10) "Commissioner" means the commissioner of banking of West Virginia.
(11) "Conspicuous": A term or clause is conspicuous when it is so written that a reasonable person against whom it is to operate ought to have noticed it. Whether a term or clause is conspicuous or not is for decision by the court.
(12) "Consumer" means a natural person who incurs debt pursuant to a consumer credit sale or a consumer loan.
(13) (a) Except as provided in paragraph (b) of this subdivision, "consumer credit sale" is a sale of goods, services or an interest in land in which:
(i) Credit is granted either by a seller who regularly engages as a seller in credit transactions of the same kind or pursuant to a seller credit card;
(ii) The buyer is a person other than an organization;
(iii) The goods, services or interest in land are purchased primarily for a personal, family, household or agricultural purpose;
(iv) Either the debt is payable in installments or a sales finance charge is made; and
(v) With respect to a sale of goods or services, the amount financed does not exceed twenty-five thousand dollars.
(b) "Consumer credit sale" does not include a sale in which the seller allows the buyer to purchase goods or services pursuant to a lender credit card or similar arrangement.
(14) (a) "Consumer lease" means a lease of goods:
(i) Which a lessor regularly engaged in the business of leasing makes to a person, other than an organization, who takes under the lease primarily for a personal, family, household or agricultural purpose;
(ii) In which the amount payable under the lease does not exceed twenty-five thousand dollars; and
(iii) Which is for a term exceeding four months.
(b) "Consumer lease" does not include a lease made pursuant to a lender credit card or similar arrangement.
(15) "Consumer loan" is a loan made by a person regularly engaged in the business of making loans in which:
(a) The debtor is a person other than an organization;
(b) The debt is incurred primarily for a personal, family, household or agricultural purpose;
(c) Either the debt is payable in installments or a loan finance charge is made; and
(d) Either the principal does not exceed twenty-five thousand dollars or the debt is secured by an interest in land.
(16) "Cosigner" means a natural person who assumes liability for the obligation on a consumer credit sale or consumer loan without receiving goods, services or money in return for the obligation or, in the case of a revolving charge account or revolving loan account of a consumer, without receiving the contractual right to obtain extensions of credit under the account. The term "cosigner" includes any person whose signature is requested as a condition to granting credit to a consumer or as a condition for forbearance on collection of a consumer's obligation that is in default. The term "cosigner" does not include a spouse whose signature is required to perfect a security interest. A person who meets the definition in this paragraph is a "cosigner" whether or not the person is designated as such on the credit obligation.
(17) "Credit" means the privilege granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.
(18) "Earnings" means compensation paid or payable to an individual or for his account for personal services rendered or to be rendered by him, whether denominated as wages, salary, commission, bonus or otherwise, and includes periodic payments pursuant to a pension, retirement or disability program.
(19) "Facsimile device" means a machine that receives and copies reproductions or facsimiles of documents or photographs that have been transmitted electronically or telephonically over telecommunications lines.
(20) "Federal Consumer Credit Protection Act" means the "Consumer Credit Protection Act" (Public Law 90-321; 82 Stat. 146), as amended, and includes regulations issued pursuant to that act.
(21) "Goods" includes goods not in existence at the time the transaction is entered into and gift and merchandise certificates, but excludes money, chattel paper, documents of title and instruments.
(22) "Home solicitation sale" means a consumer credit sale in excess of twenty-five dollars in which the buyer receives a solicitation of the sale at a place other than the seller's business establishment at a fixed location and the buyer's agreement or offer to purchase is there given to the seller or a person acting for the seller. The term does not include a sale made pursuant to a preexisting open-end credit account with the seller in existence for at least three months prior to the transaction, a sale made pursuant to prior negotiations between the parties at the seller's business establishment at a fixed location, a sale of motor vehicles, mobile homes or farm equipment or a sale which may be rescinded under the federal truth in lending act (being Title I of the federal consumer credit protection act). A sale which would be a home solicitation sale if credit were extended by the seller is a home solicitation sale although the goods or services are paid for, in whole or in part, by a consumer loan in which the creditor is subject to claims and defenses arising from the sale.
(23) Except as otherwise provided, "lender" includes an assignee of the lender's right to payment but use of the term does not in itself impose on an assignee any obligation of the lender.
(24) "Lender credit card or similar arrangement" means an arrangement or loan agreement, other than a seller credit card, pursuant to which a lender gives a debtor the privilege of using a credit card, letter of credit, or other credit confirmation or identification in transactions out of which debt arises:
(a) By the lender's honoring a draft or similar order for the payment of money drawn or accepted by the consumer;
(b) By the lender's payment or agreement to pay the consumer's obligations; or
(c) By the lender's purchase from the obligee of the consumer's obligations.
(25) "Loan" includes:
(a) The creation of debt by the lender's payment of or agreement to pay money to the consumer or to a third party for the account of the consumer other than debts created pursuant to a seller credit card;
(b) The creation of debt by a credit to an account with the lender upon which the consumer is entitled to draw immediately;
(c) The creation of debt pursuant to a lender credit card or similar arrangement; and
(d) The forbearance of debt arising from a loan.
(26) (a) "Loan finance charge" means the sum of: (i) All charges payable directly or indirectly by the debtor and imposed directly or indirectly by the lender as an incident to the extension of credit, including any of the following types of charges which are applicable: Interest or any amount payable under a point, discount, or other system of charges, however denominated, premium or other charge for any guarantee or insurance protecting the lender against the consumer's default or other credit loss; and (ii) charges incurred for investigating the collateral or credit worthiness of the consumer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable, unless the lender had no notice of the charges when the loan was made. The term does not include charges as a result of default, additional charges, delinquency charges or deferral charges.
(b) If a lender makes a loan to a consumer by purchasing or satisfying obligations of the consumer pursuant to a lender credit card or similar arrangement, and the purchase or satisfaction is made at less than the face amount of the obligation, the discount is not part of the loan finance charge.
(27) "Merchandise certificate" or "gift certificate" means a writing issued by a seller or issuer of a seller credit card, not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services.
(28) "Official fees" means:
(a) Fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, terminating or satisfying a security interest related to a consumer credit sale or consumer loan; or
(b) Premiums payable for insurance or fees escrowed in a special account for the purpose of funding self-insurance or its equivalent in lieu of perfecting a security interest otherwise required by the creditor in connection with the sale, lease or loan, if such premium or fee does not exceed the fees and charges described in paragraph (a) which would otherwise be payable.
(29) "Organization" means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative or association.
(30) "Payable in installments" means that payment is required or permitted by agreement to be made in: (a) Two or more periodic payments, excluding a down payment, with respect to a debt arising from a consumer credit sale pursuant to which a sales finance charge is made; (b) four or more periodic payments, excluding a down payment, with respect to a debt arising from a consumer credit sale pursuant to which no sales finance charge is made: or (c) two or more periodic payments with respect to a debt arising from a consumer loan. If any periodic payment other than the down payment under an agreement requiring or permitting two or more periodic payments is more than twice the amount of any other periodic payment, excluding the down payment, the consumer credit sale or consumer loan is "payable in installments".
(31) "Person" or "party" includes a natural person or an individual, and an organization.
(32) "Person related to" with respect to an individual means: (a) The spouse of the individual; (b) a brother, brother-in-law, sister or sister-in-law of the individual; (c) an ancestor or lineal descendant of the individual or his spouse; and (d) any other relative, by blood or marriage, of the individual or his spouse who shares the same home with the individual. "Person related to" with respect to an organization means: (a) A person directly or indirectly controlling, controlled by or under common control with the organization; (b) an officer or director of the organization or a person performing similar functions with respect to the organization or to a person related to the organization; (c) the spouse of a person related to the organization; and (d) a relative by blood or marriage of a person related to the organization who shares the same home with him.
(33) "Precomputed loan." A loan, refinancing or consolidation is "precomputed" if:
(A) The debt is expressed as a sum comprising the principal and the amount of the loan finance charge computed in advance; or
(B) The loan is expressed in terms of the principal amount; the loan installment payments are a scheduled, fixed amount including principal and interest and assume payment on the installment due date; and interest payments will not vary or result in an adjustment during the term of the loan or at its final payment as a result of the actual installment payment dates.
(34) "Precomputed sale" A sale, refinancing or consolidation is "precomputed" if:
(A) The debt is expressed as a sum comprising the amount financed and the amount of the sales finance charge computed in advance; or
(B) The debt is expressed in terms of the principal amount; the debt installment payments are a scheduled, fixed amount including principal and interest and assume payment on the installment due date; and interest payments will not vary or result in an adjustment during the term of the debt or at its final payment as a result of the actual installment payment dates.
(35) "Presumed" or "presumption" means that the trier of fact must find the existence of the fact presumed unless and until evidence is introduced which would support a finding of its nonexistence.
(36) "Principal" of a loan means the total of:
(a) The net amount paid to, receivable by or paid or payable for the account of the debtor;
(b) The amount of any discount excluded from the loan finance charge; and
(c) To the extent that payment is deferred:
(i) Amounts actually paid or to be paid by the lender for registration, certificate of title or license fees if not included in (a) of this subdivision; and
(ii) Additional charges permitted by this chapter.
(37) "Regulated consumer lender" means a person authorized to make or take assignments of regulated consumer loans.
(38) "Regulated consumer loan" means a consumer loan, including a loan made pursuant to a revolving loan account, in which the rate of the loan finance charge exceeds eighteen percent per year as determined according to the actuarial method, except where the loan qualifies for federal law preemption from state interest rate limitations, including federal law bank parity provisions, or where the lender is specifically permitted by state law other than article four of this chapter to make the loan at that rate without a requirement the lender hold a regulated consumer lender license.
(37) (39) "Revolving charge account" means an agreement between a seller and a buyer by which: (a) The buyer may purchase goods or services on credit or a seller credit card; (b) the balances of amounts financed and the sales finance and other appropriate charges are debited to an account; (c) a sales finance charge if made is not precomputed but is computed periodically on the balances of the account from time to time; and (d) there is the privilege of paying the balances in installments.
(38) (40) "Revolving loan account" means an arrangement between a lender and a consumer including, but not limited to, a lender credit card or similar arrangement, pursuant to which: (a) The lender may permit the consumer to obtain loans from time to time; (b) the unpaid balances of principal and the loan finance and other appropriate charges are debited to an account; (c) a loan finance charge if made is not precomputed but is computed periodically on the outstanding unpaid balances of the principal of the consumer's account from time to time; and (d) there is the privilege of paying the balances in installments.
(39) (41) "Sale of goods" includes any agreement in the form of a bailment or lease of goods if the bailee or lessee agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the goods involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the goods upon full compliance with his obligations under the agreement.
(40) (42) "Sale of an interest in land" includes a lease in which the lessee has an option to purchase the interest and all or a substantial part of the rental or other payments previously made by him are applied to the purchase price.
(41) (43) "Sale of services" means furnishing or agreeing to furnish services and includes making arrangements to have services furnished by another.
(42) (44)"Sales finance charge" means the sum of: (a) All charges payable directly or indirectly by the buyer and imposed directly or indirectly by the seller or issuer of a seller credit card as an incident to the extension of credit, including any of the following types of charges which are applicable: Time-price differential, however denominated, including service, carrying or other charge, premium or other charge for any guarantee or insurance protecting the seller against the buyer's default or other credit loss; and (b) charges incurred for investigating the collateral or credit worthiness of the buyer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable; unless the seller had no notice of the charges when the credit was granted. The term does not include charges as a result of default, additional charges, delinquency charges or deferral charges. If the seller or issuer of a seller credit card purchases or satisfies obligations of the consumer and the purchase or satisfaction is made at less than the face amount of the obligation, the discount is not part of the sales finance charge.
(43) (45) Except as otherwise provided, "seller" includes an assignee of the seller's right to payment but use of the term does not in itself impose on an assignee any obligation of the seller.
(44) (46) "Seller credit card" means an arrangement pursuant to which a person gives to a buyer or lessee the privilege of using a credit card, letter of credit, or other credit confirmation or identification primarily for the purpose of purchasing or leasing goods or services from that person, that person and any other person or persons, a person related to that person, or others licensed or franchised or permitted to do business under his business name or trade name or designation or on his behalf.
(45) (47) "Services" includes: (a) Work, labor and other personal services; (b) privileges with respect to transportation, use of vehicles, hotel and restaurant accommodations, education, entertainment, recreation, physical culture, hospital accommodations, funerals, cemetery accommodations, and the like; and (c) insurance.
(46) (48) "Supervised financial organization" means a any organization, corporation, or person, other than a supervised lender or an insurance company or other organization primarily engaged in an insurance business, which is required under state law to register or obtain a license from the commissioner of banking before conducting business in this state, or which is authorized under federal law or the laws of this state to make consumer loans without a license from the commissioner of banking, provided such loans are subject to supervision and examination by an official or agency of the United States.
(a) Organized, chartered or holding an authorization certificate under the laws of this state or of the United States which authorizes the person to make consumer loans; and
(b) Subject to supervision and examination with respect to such loans by an official or agency of this state or of the United States.
(47) "Supervised lender" means a person authorized to make or take assignments of supervised loans.
(48) "Supervised loan" means a consumer loan made by other than a supervised financial organization, including a loan made pursuant to a revolving loan account, where the principal does not exceed two thousand dollars, and in which the rate of the loan finance charge exceeds eight percent per year as determined according to the actuarial method.
§46A-1-103. Effect of chapter on powers of persons making consumer credit sales and consumer loans, and others; consumer protection generally.

(1) This chapter prescribes maximum charges for all creditors, except lessors and those excluded, making consumer credit sales and consumer loans, and sales and loans made subject to the provisions of this chapter by agreement, and except as otherwise provided by this chapter displaces any existing limitations and provisions regulating maximum interest and charges, minimum charges, additional charges, delinquency charges, deferral charges, allocation of charges and methods of computing rebates upon prepayment, refinancing or consolidation with respect to consumer credit sales and consumer loans, and the debtors' remedies and penalties provided by this chapter displace all existing provisions relating to remedies, penalties and forfeitures for usury and usurious contracts as to transactions covered by this chapter: Provided, That this chapter shall not displace those provisions of subdivision (6), subsection (a), section eleven, article seven, chapter thirty-one of this code relating to additional charges which may be imposed and collected by industrial loan companies.
(2) Except as provided in subsection (1) of this section or elsewhere in this chapter, this chapter does not displace powers or limitation on powers which supervised financial organizations and supervised lenders are authorized to exercise under the laws of the United States or other laws of this state in effect after the operative date of this chapter.
(3) This chapter also prescribes in various articles six and seven protective measures for consumers in transactions not necessarily involving consumer credit.
ARTICLE 3. FINANCE CHARGES AND RELATED PROVISIONS.

§46A-3-104. Finance charge for loans other than loans made pursuant to revolving loan accounts; finance charge on assigned contracts; exceptions.

(1) With respect to a consumer loan, other than a consumer loan made pursuant to a revolving loan account: (a) A bank, as defined in section two, article one, chapter thirty-one-a of this code, may contract for and receive a loan finance charge not exceeding the charge or interest permitted by the provisions of section sixteen, article ten, chapter thirty-one, section thirty, article four, chapter thirty-one-a or section five, section five-a or section five-b, article six, chapter forty-seven of this code; (b) an industrial loan company, as defined in section three, article seven, chapter thirty-one of this code, a regulated consumer lender may contract for and receive a loan finance charge not exceeding the aggregate of the interest and charges permitted by subdivisions (5) and (6), subsection (a), section eleven, article seven, chapter thirty-one section one hundred seven, article four of this chapter of this code or by the provisions of section five, section five-a or section five-b, article six, chapter forty-seven of this code; (c) a building and loan association, as defined in section two, article six, chapter thirty-one of this code, may contract for and receive a loan finance charge not exceeding the charge or interest permitted by the provisions of section seventeen, article six, chapter thirty- one of this code, or by the provisions of section five, article six, chapter forty-seven of this code; (d) (c) a credit union, as defined in section one, article ten, chapter thirty-one of this code, may contract for and receive a loan finance charge not exceeding the charge or interest permitted by the provisions of section sixteen, article ten, chapter thirty-one of this code, or by the provisions of section five, article six, chapter forty-seven of this code; and (e) (d) any other lender, other than a supervised lender, may contract for and receive a loan finance charge not exceeding the charge or interest permitted by the provisions of section five, section five-a or section five-b, article six, chapter forty-seven of this code.
(2) As an alternative to the loan finance charge allowed by subsection (1) of this section, from the effective date of this subsection until and including the first day of July, one thousand nine hundred eighty-two a lender, other than a supervised lender, may contract for and receive a loan finance charge not exceeding eighteen percent per annum calculated according to the actuarial method.
(3)(2) This section does not limit or restrict the manner of calculating the loan finance charge, whether by way of add-on, discount or otherwise, so long as the rate of loan finance charge does not exceed that permitted by this section.
(4) Notwithstanding any provision of this section to the contrary, with respect to a consumer loan involving a motor vehicle or a mobile home or with respect to a consumer loan to finance the sale from one seller of both a mobile home and the real estate upon which such mobile home is or will be located, or with respect to a consumer loan where a security interest in real estate owned by the borrower is given to the lender as collateral for such loan, a lender may from the effective date of this section and until and including the first day of July, one thousand nine hundred eighty- two, contract for and receive a loan finance charge not exceeding eighteen percent per year on the unpaid balance calculated according to the actuarial method: Provided, That the quantity of real estate involved in such consumer loan transactions involving a mobile home and real estate where such finance charge is contracted for and received shall not exceed one acre.
(5)(3) If the loan is precomputed:
(a) The loan finance charge may be calculated on the assumption that all scheduled payments will be made when due; and
(b) The effect of prepayment, refinancing or consolidation is governed by the provisions on rebate upon prepayment, refinancing or consolidation contained in section one hundred eleven of this article.
(6)(4) Notwithstanding subsection (1) of this section, the lender may contract for and receive a minimum loan finance charge of not more than five dollars when the amount loaned does not exceed seventy-five dollars, or seven dollars and fifty cents when the amount loaned exceeds seventy-five dollars.
(7)(5) An assignee of a consumer credit sale contract may collect, receive or enforce the sales finance charge provided in said contract, and any such charge so collected, received or enforced by an assignee shall not be deemed usurious or in violation of this chapter or any other provision of this code if such sales finance charge does not exceed the limits permitted to be charged by a seller under the provisions of this chapter.
(8)(6) Notwithstanding subsection (7) (5) of this section, a resident lender who is the assignee of a consumer credit sales contract executed by a resident of another state with a credit grantor in that state, from a credit grantor in another state, and said contract was executed in such other state to finance a retail purchase made by the consumer when the consumer was in that other state, may collect, receive or enforce the sales finance charge and other charges including late fees provided in said contract under the laws of the state where executed. Such charge shall not be deemed to be usurious or in violation of the provisions of this chapter or any other provisions of this code.
§46A-3-111. Application of payments on account; rebate upon prepayment, refinancing or consolidation; judgments and interest on judgments.

(1) When a consumer credit sale or consumer loan is precomputed all payments on account shall be applied to installments in the order in which they fall due, except as provided in subsection (3), section one hundred twelve of this article. When the total amount is payable in substantially equal consecutive monthly installments, the portion of the sales finance charge or loan finance charge attributable to any particular monthly installment period shall be that proportion of the sales finance charge or loan finance charge originally contracted for, as the balance scheduled to be outstanding on the last day of the monthly installment period before deducting the payment, if any, scheduled to be made on that day bears to the sum of all the monthly installment balances under the original schedule of payments. (This method of allocation is the sum of the digits method, commonly referred to as the "Rule of 78".)
(2) Upon prepayment in full of a precomputed consumer credit sale or consumer loan by cash, a new loan, refinancing, consolidation or otherwise, the creditor shall rebate to the consumer that portion of the sales finance charge or loan finance charge in the manner specified in section five-d, article six, chapter forty-seven of this code: Provided, That no rebate of less than one dollar need be made.
(3) Upon prepayment in full of a precomputed or nonprecomputed consumer credit sale or consumer loan by cash, execution of a new loan, refinancing, consolidation or otherwise, except where the loan is a purchase money loan secured by a first lien mortgage on residential property or is made by a federally-insured depository institution, the creditor shall rebate to the consumer that portion of the unearned prepaid finance charges attributable to loan or credit investigations fees, origination fees or points in the manner specified in subsection (c), section five-d, article six, chapter forty-seven of this code: Provided, That no rebate of less than one dollar need be made: Provided, however, That if the loan was made in furtherance of aiding or abetting a person to whom the loan is assigned to evade this rebate, then the rebate required herein shall apply.
(3) (4) If the maturity of a precomputed consumer credit sale or consumer loan is accelerated for any reason and judgment is obtained, the debtor is entitled to the same rebate as if the payment had been made on the date judgment is entered and such judgment shall bear interest until paid at the rate of ten percent per annum.
ARTICLE 4. REGULATED CONSUMER LENDERS SUPERVISED LENDERS.

§46A-4-101. Authority to make supervised loans regulated consumer loans.

Unless a person has first obtained a license from the commissioner authorizing him to make supervised loans regulated consumer loans, he shall not engage in the business of:
(1) Making supervised loans regulated consumer loans, or
(2) Taking assignments of and undertaking direct collection of payments from or enforcement of rights against consumers arising from supervised loans regulated consumer loans.
§46A-4-102. License to make supervised loans regulated consumer loans.

(1) The commissioner shall receive and act on all applications for licenses to make supervised loans regulated consumer loans under this chapter. Applications shall be under oath, be filed in the manner prescribed by the commissioner, and contain the information the commissioner requires by rule to make an evaluation of the financial responsibility, experience, character and fitness of the applicant, and the findings required of him before he may issue a license. At the time of the filing of the application, the sum of two hundred fifty seven hundred fifty dollars shall be paid to the commissioner as an investigation fee.
(2) No license shall be issued to a supervised financial organization other than to one licensed under the provisions of the "West Virginia Industrial Bank and Industrial Loan Company Act" as contained in article seven, chapter thirty-one of this code, primarily engaged in the business of making consumer loans through offices located within this state, or to one licensed under the provisions of the West Virginia secondary mortgage loan act as contained in article seventeen, chapter thirty-one of this code or to any banking institution as defined by the provisions of section two, article one, chapter thirty-one-a of this code. No license will be granted to any office located outside this state: Provided, That the limitation of licensing contained in this subsection shall not prevent any supervised financial organization from making supervised loans regulated consumer loans when the applicable state or federal statute, law, or rule or regulation permits. No license shall be issued to any person unless the commissioner, upon investigation, finds that the financial responsibility, experience, character and fitness of the applicant, and of the members thereof (if the applicant is a copartnership or association) and of the officers and directors thereof (if the applicant is a corporation), are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly and efficiently, within the purposes of this chapter, and the applicant has available for the operation of the business at least ten thousand dollars in capital and has, for each the specified location of operation, assets of at least two thousand dollars, and that allowing the applicant to engage in business will promote the convenience and advantage of the community in which the business of the applicant is to be conducted: Provided, That any industrial loan company which is operating in good standing in accordance with the provisions of article four, chapter forty-six-a of this code shall be presumed to have established that the public convenience and advantage will be promoted in regard to its application for a license to make supervised loans in the same location for which it is licensed as an industrial loan company.
(3) Upon written request, the applicant is entitled to a hearing on the question of his qualifications for a license if: (a) The commissioner has notified the applicant in writing that his application has been denied; or (b) the commissioner has not issued a license within sixty days after the application for the license was filed. A request for a hearing may not be made more than fifteen days after the commissioner has mailed a writing to the applicant notifying him that the application has been denied and stating in substance the commissioner's findings supporting denial of the application.
(4) Not more than one place of business shall be maintained under the same license, but the commissioner may issue more than one license to the same licensee upon compliance with all the provisions of this article governing an original issuance of a license, for each such new license. Each license shall remain in full force and effect until surrendered, forfeited, suspended or revoked.
(5) Upon giving the commissioner at least fifteen days' prior written notice, a licensee may: (a) Change the location of any place of business located within a municipality to any other location within that same municipality; or (b) change the location of any place of business located outside of a municipality to a location no more than five miles from the originally licensed location, but in no case may a licensee move any place of business located outside a municipality to a location within a municipality. A licensee may not move the location of any place of business located within a municipality to any other location outside of that municipality.
(6) A licensee may conduct the business of making supervised loans regulated consumer loans only at or from a place of business for which he holds a license and not under any other name than that stated in the license. A sale or lease in which credit is granted pursuant to a lender credit card does not violate this subsection.
(7) A license issued under the provisions of this section shall not be transferable or assignable.
(8) A licensee must be incorporated under the laws of this state. The licensee may, however, be a subsidiary of an out-of- state company or financial institution.
§46A-4-103. Revocation,or suspension or forfeiture of license.

(1) The commissioner may issue to a person licensed to make supervised loans regulated consumer loans an order to show cause why his license should not be revoked or should not be suspended for a period not in excess of six months. The order shall state the place for a hearing and set a time for the hearing that is no less than ten days from the date of the order. After the hearing the commissioner shall revoke or suspend the license if he finds that:
(a) The licensee has repeatedly and willfully violated this chapter or any rule or order lawfully made or issued pursuant to this article; or
(b) The licensee has failed to remit his required annual assessment or to maintain his status as a business in good standing with the office of the secretary of state, notwithstanding notification in writing by the commissioner sent by certified mail to the licensee's last known address providing for thirty days to rectify such failure;
(c) The licensee has forfeited his license by failing to remain open for regulated consumer lending business in conformity with the rules or order of the commissioner; or
(b)(d) Facts or conditions exist which would clearly have justified the commissioner in refusing to grant a license had these facts or conditions been known to exist at the time the application for the license was made.
(2) No revocation or suspension of a license under this article is lawful unless prior to institution of proceedings by the commissioner notice is given to the licensee of the facts or conduct which warrant the intended action, and the licensee is given an opportunity to show compliance with all lawful requirements for retention of the license.
(3) If the commissioner finds that probable cause for revocation of a license exists and that enforcement of this article requires immediate suspension of the license pending investigation, he may, after a hearing upon five days' written notice, enter an order suspending the license for not more than thirty days.
(4) Nothing in this section limits the authority of the commissioner to take action against a regulated consumer lender pursuant to chapter thirty-one-a of this code.
(4)(5) Whenever the commissioner revokes or suspends a license, he shall enter an order to that effect and forthwith notify the licensee of the revocation or suspension. Within five days after the entry of the order he shall mail by registered or certified mail or deliver to the licensee a copy of the order and the findings supporting the order.
(5)(6) Any person holding a license to make supervised loans regulated consumer loans may relinquish the license by notifying the commissioner in writing of its relinquishment, but this relinquishment shall not affect his liability for acts previously committed.
(6)(7) No revocation, suspension, forfeiture or relinquishment of a license shall impair or affect the obligation of any preexisting lawful contract between the licensee and any consumer.
(7)(8) The commissioner may reinstate a license, terminate a suspension or grant a new license to a person whose license has been revoked or suspended if no fact or condition then exists which clearly would have justified the commissioner in refusing to grant a license.
§46A-4-104. Records; annual reports.

(1) Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner which will enable the commissioner to determine whether the licensee is complying with the provisions of this article. The record-keeping system of a licensee shall be sufficient if he makes the required information reasonably available. The records need not be kept in the place of business where supervised loans regulated consumer loans are made, if the commissioner is given free access to the records wherever located. The records pertaining to any loan need not be preserved for more than two years after making the final entry relating to the loan, but in the case of a revolving loan account such two-year period is measured from the date of each entry.
(2) On or before the fifteenth day of April February each year, every licensee shall file with the commissioner a composite annual report in the form prescribed by the commissioner relating to all supervised loans regulated consumer loans made by him. The commissioner shall consult with comparable officials in other states for the purpose of making the kinds of information required in annual reports uniform among the states. Information contained in annual reports shall be confidential and may be published only in composite form.
§46A-4-105. Examinations; assessments and investigations.

(1) The commissioner shall examine annually at least every eighteen months the loans, business and records of every licensee. In addition, for the purpose of discovering violations of this article or securing information lawfully required, the attorney general or the commissioner may at any time investigate the loans, business and records of any supervised lender regulated consumer lender. For these purposes he shall have free and reasonable access to the offices, places of business and records of the lender.
(2) If the lender's records are located outside this state, the lender at his option shall make them available to the commissioner at a convenient location within this state, or pay the reasonable and necessary expenses for the commissioner or his representatives to examine them at the place where they are maintained. The commissioner may designate representatives, including comparable officials of the state in which the records are located, to inspect them on his behalf.
(3) For the purposes of this section, the commissioner may administer oaths or affirmations, and upon his own motion or upon request of any party, may subpoena witnesses, compel their attendance, adduce evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition and location of any books, documents or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence.
(4) Upon failure without lawful excuse to obey a subpoena or to give testimony and upon reasonable notice to all persons affected thereby, the commissioner may apply to any circuit court of this state for an order compelling compliance.
(5) The commissioner of banking shall charge and collect from each supervised lender regulated consumer lender and pay into a special revenue account in the state treasury for the department of banking an annual assessment payable on the first day of July computed upon the total outstanding loan balances and installment sales contract balances less unearned finance charges as of the preceding calendar year-end outstanding gross loan balances and installment sales contract balances net of unearned interest as is set out in section eight, article two, chapter thirty-one-a of this code.
§46A-4-107. Loan finance charge for supervised lenders regulated consumer lenders.

(1) With respect to a supervised loan regulated consumer loan, including a revolving loan account, a supervised lender regulated consumer lender may contract for and receive a loan finance charge not exceeding that permitted by this section.
(2) On a loan of two thousand dollars or less which is unsecured by real property, the The loan finance charge, calculated according to the actuarial method, may not exceed the total of: thirty-one percent per year on the unpaid balance of the principal amount.
(a) Thirty-six percent per year on that part of the unpaid balances of the principal which is two hundred dollars or less;
(b) Twenty-four percent per year on that part of the unpaid balances of the principal which is more than two hundred dollars but does not exceed twelve hundred dollars; and
(c) Eighteen percent per year on that part of the unpaid balances of the principal which is more than twelve hundred dollars.
(3) On a loan of greater than two thousand dollars or which is secured by real property, the loan finance charge, calculated according to the actuarial method, may not exceed twenty-seven percent per year on the unpaid balance of the principal amount: Provided, That the loan finance charge on any loan greater than ten thousand dollars may not exceed eighteen percent per year on the unpaid balance of the principal amount. Loans made by regulated consumer lenders shall be subject to the restrictions and supervision set forth in this article irrespective of their rate of finance charges.
(3) (4) Where the loan is nonrevolving and is greater than two thousand dollars, the loan finance charge may include a charge of not more than a total of two percent of the amount financed for any origination fee, points or investigation fee: Provided, That where any loan, revolving or nonrevolving, is secured by real property, the loan finance charge may include a charge of not more than a total of five percent of the amount financed for any origination fee, points or investigation fee. In any loan secured by real property, such additional loan finance charges may not be imposed by the same or affiliated lender in any refinancing of that loan made within twenty-four months thereof, unless said earlier charges have been rebated by payment or credit to the consumer under the actuarial method, or the total of the earlier and proposed current charges does not exceed five percent of the amount financed. Charges permitted under this subsection shall be included in the calculation of the loan finance charge. The financing of such charges shall be permissible and shall not constitute charging interest on interest. In a revolving home equity loan, the amount of the credit line extended shall for purposes of this subsection constitute the amount financed. Other than herein provided, no points, origination fee, investigation fee or other similar prepaid finance charges attributable to the lender or its affiliates may be levied. Except as provided in section one hundred nine, article three of this chapter, no additional charges may be made, nor may any charge permitted by this section be assessed unless the loan is made. To the extent that this section overrides the preemption on limiting points and other such charges on first lien residential mortgages contained in Section 501 of the United States Depository Institutions Deregulation and Monetary Control Act of 1980, the state law limitations contained in this section shall apply. This section does not limit or restrict the manner of calculating the loan finance charge, whether by way of add-on, discount or otherwise, so long as the rate of the loan finance charge does not exceed that permitted by this section.
If the loan is precomputed:
(a) The loan finance charge may be calculated on the assumption that all scheduled payments will be made when due, and
(b) The effect of prepayment, refinancing or consolidation is governed by the provisions on rebate upon prepayment, refinancing or consolidation contained in section one hundred eleven, article three of this chapter.
(4)(5) For the purposes of this section, the term of a loan commences on the date the loan is made. Differences in the lengths of months are disregarded and a day may be counted as one thirtieth of a month. Subject to classifications and differentiations the licensee may reasonably establish, a part of a month in excess of fifteen days may be treated as a full month if periods of fifteen days or less are disregarded and if that procedure is not consistently used to obtain a greater yield than would otherwise be permitted.
(5) Subject to classifications and differentiations the lender may reasonably establish, he may make the same loan finance charge on all principal amounts within a specified range. A loan finance charge so made does not violate subsection (2) if:
(a) When applied to the median amount within each range, it does not exceed the maximum permitted by subsection (2), and
(b) When applied to the lowest amount within each range, it does not produce a rate of loan finance charge exceeding the rate calculated according to subdivision (a) of this subsection (5) by more than eight percent of the rate calculated according to said subdivision (a).

(6) With respect to a revolving loan account:
(a) A charge may be made by a supervised lender regulated consumer lender in each monthly billing cycle which is one twelfth of the maximum annual rates permitted by this section computed on an amount not exceeding the greater of:
(i) The average daily balance of the debt, or
(ii) The balance of the debt at the beginning of the first day of the billing cycle, less all payments on and credits to such debt during such billing cycle and excluding all additional borrowings during such billing cycle., or
(iii) Subject to subsection (5), the median amount within a specified range within which the average daily balance of the debt or the balance of the debt at the beginning of the first day of the billing cycle, less all payments on and credits to such debt during such billing cycle and excluding all additional borrowings during such billing cycle, is included.
For the purpose of this subdivision, a billing cycle is monthly if the billing statement dates are on the same day each month or do not vary by more than four days therefrom.
(b) If the billing cycle is not monthly, the maximum loan finance charge which may be made by a supervised lender regulated consumer lender is that percentage which bears the same relation to an applicable monthly percentage as the number of days in the billing cycle bears to thirty.
(c) Notwithstanding subdivisions (a) and (b) of this subsection six, if there is an unpaid balance on the date as of which the loan finance charge is applied, the licensee may contract for and receive a charge not exceeding fifty cents if the billing cycle is monthly or longer, or the pro rata part of fifty cents which bears the same relation to fifty cents as the number of days in the billing cycle bears to thirty if the billing cycle is shorter than monthly, but no charge may be made pursuant to this subdivision if the lender has made an annual charge for the same period as permitted by the provisions on additional charges.
(7) As an alternative to the loan finance charge charges allowed by section one-hundred-seven, sub-section subsections (2) and (4) of this article section, from the effective date of this subsection until and including the first day of July, one thousand nine hundred eighty-two, with respect to a supervised loan, including a revolving loan account, a supervised regulated consumer lender may on a loan of one thousand two hundred dollars or less contract for and receive a loan finance charge, calculated according to the actuarial method, which may not exceed the total of: interest at a rate of up to thirty-one percent per year on the unpaid balance of the principal amount, together with a nonrefundable loan processing fee of not more than two percent of the amount financed: Provided, That no other finance charges are imposed on the loan.
(a) Thirty-six percent per year on that part of the unpaid balances of the principal which is five hundred dollars or less;
(b) Twenty-four percent per year on that part of the unpaid balances of the principal which is more than five hundred dollars but does not exceed fifteen hundred one dollars; and
(c) Eighteen percent per year on that part of the unpaid balances of the principal which is more than fifteen hundred one dollars.
(8) Notwithstanding any provisions to the contrary in this section, a licensed regulated consumer lender who is the assignee of a non-revolving consumer loan contract unsecured by real property located in this state, which loan contract was applied for by the consumer when he or she was in another state, and which was executed and had its proceeds distributed in that other state, may collect, receive and enforce the loan finance charge and other charges, including late fees, provided in said contract under the laws of the state where executed: Provided, That the consumer was not induced by the assignee or its in-state affiliates to apply and obtain the loan from an out-of-state source affiliated with the assignee in an effort to evade the consumer protections afforded by this chapter. Such charges shall not be deemed to be usurious or in violation of the provisions of this chapter or any other provisions of this code.
§46A-4-108. Use of multiple loan agreements.

A supervised lender regulated consumer lender may not use multiple loan agreements with intent to obtain a higher loan finance charge than would otherwise be permitted by the provisions of this article. A supervised lender regulated consumer lender uses multiple loan agreements if, with intent to obtain a higher loan finance charge than would otherwise be permitted, he allows any person, or husband and wife, to become obligated in any way under more than one loan agreement with the supervised lender regulated consumer lender for a supervised regulated consumer loan under this article.
The excess amount of the loan finance charge provided for in agreements in violation of this section is an excess charge for the purposes of the provisions on effect of violations on rights of parties.
§46A-4-109. Restrictions on interest in land as security; assignment of earnings to supervised lender regulated consumer lender prohibited; when security interest on household furniture goods not valid; prohibitions as to renegotiation of loan discharged in bankruptcy.

(1) A supervised lender may not contract for an interest in land as security. No consumer loan of two thousand dollars or less may be secured by an interest in real property, other than a purchase money loan for such property, unless the lender is licensed in this state as a regulated consumer lender or as a secondary mortgage lender, or is a federally insured depository institution permitted to make loans in this state. A security interest taken in violation of this subsection is void. Provided, That this subsection shall not be construed as prohibiting one licensed to make loans under the provisions of the "West Virginia Industrial Bank and Industrial Loan Company Act" as set forth in the provisions of article seven, chapter thirty-one of this code, or the West Virginia secondary mortgage loan act as set forth in the provisions of article seventeen, chapter thirty- one, from taking an interest in land as security for loans made pursuant to either of those acts.
(2) Notwithstanding the provisions of section one hundred sixteen, article two of this chapter, no supervised lender regulated consumer lender shall take any assignment of or order for payment of any earnings to secure any loan made by any supervised lender regulated consumer lender under this article. An assignment or order taken in violation of this subsection is void. This subsection does not prohibit a court from ordering a garnishment to affect recovery of moneys owed by a borrower to a lender as part of a judgment in favor of said lender.
(3) Other than for a purchase money lien, no No supervised lender regulated consumer lender may take a security interest in household furniture then goods in the possession and use of the borrower. unless Where federal law permits a security interest in certain nonpurchase items deemed not to be household goods, the security agreement creating such security interest must be in writing, signed in person by the borrower, and if the borrower is married, signed in person by both husband and wife: Provided, That the signature of both husband and wife shall not be required when they have been living separate and apart for a period of at least five months prior to the making of such security agreement. A security interest taken in violation of this subsection is void.
(4) A supervised lender regulated consumer lender may not renegotiate the original loan, or any part thereof, or make a new contract covering the original loan, or any part thereof, with any borrower, who has received a discharge in bankruptcy of the original loan or any balance due thereon at the time of said discharge from any court of the United States of America exercising jurisdiction in insolvency and bankruptcy matters, unless said supervised lender regulated consumer lender shall pay to and deliver to the borrower the full amount of the loan shown on said note, promise to pay, or security, less any deductions for charges herein specifically authorized.
§46A-4-110. Conduct of business other than making loans.

(1) 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 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 and regulations lawfully made hereunder: Provided, That 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 making loans authorized under the provisions of the "West Virginia Industrial Bank and Industrial Loan Company Act" as set forth in article seven, chapter thirty-one of this code , 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) A licensee may purchase, hold and convey real property:
(a) As necessary for the convenient transaction of its business;
(b) 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) As is conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or
(d) As is acquired by the sale on execution or judgment or decree of any court in its favor.
(3) A licensee shall not purchase, hold or convey any real property in any other case or for any other purpose whatever. 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) of this subsection, or acquired under subdivisions (c) and (d) of this subsection shall be held for longer than ten years, unless such period be extended by the commissioner of banking.
§46A-4-110a. Prohibited conduct.

(1) A regulated consumer lender shall not:
(a) Accept or receive deposits or sell or offer for sale its secured or unsecured evidences or certificates of indebtedness; or
(b) Pay any fees, bonuses, commissions, rewards or other consideration to any person, firm or corporation for the privilege of using any plan of operation, scheme or device for the organization or carrying on of business under this article, or the use of any name, trademark or copyright to be so used: Provided, That nothing herein shall prevent a regulated consumer lender from agreeing in connection with a loan to pay a broker fee, finder's fee or dealer participation fee, or to split the origination fee or points paid: Provided, however, That the fee or fee splitting arrangement is disclosed to the borrower and, where proper, is included in the finance charge.
(2) Unless preempted by federal law, no consumer loan made by a regulated consumer lender may contain any scheduled balloon payment, nor may any regulated consumer lender loan contain terms of repayment which result in negative amortization: Provided, That nothing herein shall prevent unequal payment schedules resulting from a variable rate loan or a revolving line of credit.
(3) A regulated consumer lender may not make revolving loans for the retail purchase of consumer goods and services by use of a lender credit card.
§46A-4-111. Maximum interest when loan is in excess of sixteen hundred dollars.

No licensee shall directly or indirectly charge, contract for, or receive any interest, discount or consideration greater than six percent per annum upon the loan, use or forbearance of money, goods or things in action, or upon the loan, use or sale of credit, when the amount or value thereof is more than sixteen hundred dollars. The foregoing prohibition shall also apply to any licensee who permits any person, as borrower or as endorser, guarantor or surety for any borrower, or otherwise, to owe directly or contingently, or both, to the licensee at any time the sum of more than sixteen hundred dollars for principal.
§46A-4-111. Substantial benefit upon refinancing of a loan at higher rate.

(1) Any nonrevolving consumer loan or other credit that is refinanced and consolidated with a new loan under this article after the first day of September, one thousand nine hundred ninety-six at a higher finance rate than allowed merchants by section one hundred one, article three of this chapter must either provide the consumer with a substantial benefit or provide the disclosures set forth in this section. A substantial benefit accrues to the consumer if the transaction:
(a) provides the consumer at least five hundred dollars in new funds for the consumer's own use, excluding any charges connected with the loan; or
(b) provides the consumer with new funds in an amount equal to the original amount of the loan or credit.
(2) If no substantial benefit is provided, the lender must comply with the following requirements, except where such an agreement would violate section one hundred eight of this article:
(a) The lender must in a fixed rate transaction give the following disclosures in writing to the borrower prior to the execution of the new agreement:
"If you do agree to consolidate your existing obligation, you will be paying an annual percentage rate of _____% on the existing balance of $_____, instead of the rate of ______% which you are now paying.
I acknowledge receipt of this information __________ (initials of borrower)."
(b) The lender must allow the borrower the choice of repaying his or her existing loan or credit balance at the originally agreed-upon rate and obtaining any additional extension of credit under a separate agreement, notwithstanding any law other than section one hundred eight of this article which may limit the borrower's ability to have multiple loan agreements with the same lender.
(c) The lender, where it holds the prior agreement, must refund or credit to the borrower's account any unearned finance charge and any returned insurance premiums upon cancellation of the insurance sold in connection with the prior agreement.
(d) The lender shall, where applicable, provide the borrower prior to the loan's execution, conspicuous written notice of the provisions of subdivisions (a), (b) and (c) of this subsection.
(e) The commissioner may provide and require a modified disclosure form for similar transactions involving adjustable or variable rates, and where applicable, prior to the loan's execution, the borrower must be given conspicuous written notice of the provisions of subdivisions (b) and (c) of this subsection, together with the disclosure form as may be required by this subsection.
(f) Nothing in this section shall prohibit the receipt of goods or services by the borrower at the time the consolidated loan agreement is made, nor shall this section prohibit or pertain to any loan where the refinancing results in the consumer paying a lower loan finance charge rate.
§46A-4-112. Code references to small loans and small loan companies; supervised lenders and industrial loan companies; authority of the commissioner.

All references in other chapters of this code to supervised loans, supervised lenders, industrial loans, industrial loan companies, and licensees thereof, as well as to article seven, chapter thirty-one small loans, small loan lenders, small loan licensees and to article seven-a, chapter forty-seven of this Code code, shall, after the operative date of this chapter, and despite the repeal of said statute, be read, construed and understood to mean and to have reference, respectively, to supervised loan, supervised lenders, supervised lender regulated consumer loans, regulated consumer lenders, regulated consumer lender licensees, and to this article.
All authority vested by this chapter in the commissioner shall be deemed to be in addition to, and not in limitation of, the authority vested in the commissioner of banking by provisions contained in other chapters of this code.
§46A-4-113. Continuation of licensing.

All persons licensed under the provisions of article seven- a, chapter forty-seven of this code, article seven, chapter thirty-one of this code, or as supervised lenders under the prior provisions of this article on the operative date of this chapter, are licensed to make supervised loans regulated consumer loans under the provisions of this article, and all provisions of this article shall after the operative date of this chapter apply to the persons so previously licensed, including, without limitation, the provisions governing notification contained in article seven of this chapter.
The commissioner may, but is not required to, deliver evidence of licensing to the persons so previously licensed. Persons holding both supervised lender and industrial loan company licenses or operating such a licensed business in the same office will be combined and provided a single regulated lender license.
ARTICLE 5. CIVIL LIABILITY AND CRIMINAL PENALTIES.

§46A-5-101. Effect of violations on rights of parties; limitation of actions.

(1) If a creditor has violated the provisions of this chapter applying to collection of excess charges, security in sales and leases, disclosure with respect to consumer leases, receipts, statements of account and evidences of payment, limitations on default charges, assignment of earnings, authorizations to confess judgment, illegal, fraudulent or unconscionable conduct, any prohibited debt collection practice, or restrictions on interest in land as security, assignment of earnings to supervised lender regulated consumer lender, security agreement on household furniture goods for benefit of supervised lender regulated consumer lender, and renegotiation by supervised lender regulated consumer lender of loan discharged in bankruptcy, the consumer has a cause of action to recover actual damages and in addition a right in an action to recover from the person violating this chapter a penalty in an amount determined by the court not less than one hundred dollars nor more than one thousand dollars. With respect to violations arising from consumer credit sales or consumer loans made pursuant to revolving charge accounts or revolving loan accounts, or from sales as defined in article six of this chapter, no action pursuant to this subsection may be brought more than four years after the violations occurred. With respect to violations arising from other consumer credit sales or consumer loans, no action pursuant to this subsection may be brought more than one year after the due date of the last scheduled payment of the agreement.
(2) If a creditor has violated the provisions of this chapter respecting authority to make supervised loans regulated consumer loans, the loan is void and the consumer is not obligated to pay either the principal or the loan finance charge. If he has paid any part of the principal or of the finance charge, he has a right to recover in an action the payment from the person violating this chapter or from an assignee of that person's rights who undertakes direct collection of payments or enforcement of rights arising from the debt. With respect to violations arising from supervised loans regulated consumer loans made pursuant to revolving loan accounts, no action pursuant to this subsection may be brought more than four years after the violation occurred. With respect to violations arising from other supervised loans regulated consumer loans, no action pursuant to this subsection may be brought more than one year after the due date of the last scheduled payment of the agreement pursuant to which the charge was paid.
(3) A consumer is not obligated to pay a charge in excess of that allowed by this chapter, and if he has paid an excess charge he has a right to a refund. A refund may be made by reducing the consumer's obligation by the amount of the excess charge. If the consumer has paid an amount in excess of the lawful obligation under the agreement, the consumer may recover in an action the excess amount from the person who made the excess charge or from an assignee of that person's rights who undertakes direct collection of payments from or enforcement of rights against the consumer arising from the debt.
(4) If a creditor has contracted for or received a charge in excess of that allowed by this chapter, the consumer may, in addition to recovering such excess charge, also recover from the creditor or the person liable in an action a penalty in an amount determined by the court not less than one hundred dollars nor more than one thousand dollars. With respect to excess charges arising from consumer credit sales or consumer loans made pursuant to revolving charge accounts or revolving loan accounts, no action pursuant to this subsection may be brought more than four years after the time the excess charge was made. With respect to excess charges arising from other consumer credit sales or consumer loans no action pursuant to this subsection may be brought more than one year after the due date of the last scheduled payment of the agreement pursuant to which the charge was made.
(5) Except as otherwise provided, a violation of this chapter does not impair rights on a debt.
(6) If an employer discharges an employee in violation of the provisions prohibiting discharge, the employee may within ninety days bring a civil action for recovery of wages lost as a result of the violation and for an order requiring the reinstatement of the employee. Damages recoverable shall not exceed lost wages for six weeks.
(7) A creditor has no liability for a penalty under subsection (1) or (4) of this section if within fifteen days after discovering an error, and prior to the institution of an action under this section or the receipt of written notice of the error, the creditor notifies the person concerned of the error and corrects the error. If the violation consists of a prohibited agreement, giving the consumer a corrected copy of the writing containing the error is sufficient notification and correction. If the violation consists of an excess charge, correction shall be made by an adjustment or refund.
(8) If the creditor establishes by a preponderance of evidence that a violation is unintentional or the result of a bona fide error of fact notwithstanding the maintenance of procedures reasonably adapted to avoid any such violation or error, no liability is imposed under subsections (1), (2) and (4) of this section, and the validity of the transaction is not affected.
§46A-5-103. Willful violations.

(1) A supervised lender regulated consumer lender who willfully makes charges in excess of those permitted by the provisions of article four of this chapter, pertaining to supervised lenders regulated consumer lenders, shall be guilty of a misdemeanor, and, upon conviction, shall be fined not more than five thousand dollars, or imprisoned not more than one year, or both fined and imprisoned.
(2) A person who willfully engages in the business of making supervised loans regulated consumer loans without a license in violation of the provisions of article four of this chapter applying to authority to make supervised loans regulated consumer loans shall be guilty of a misdemeanor, and, upon conviction, shall be fined not more than five thousand dollars, or imprisoned not more than one year, or both fined and imprisoned.
(3) A person who willfully engages in the business of making consumer credit sales or consumer loans, or of taking assignments of rights against consumers arising therefrom and undertakes direct collection of payments or enforcement of these rights, without complying with the provisions of section one hundred fifteen, article seven of this chapter, concerning notification, shall be guilty of a misdemeanor, and, upon conviction, shall be fined not more than one hundred dollars.
(4) Any person who willfully violates any of the provisions of sections one hundred twenty-three through one hundred twenty- eight, inclusive, article two of this chapter, by committing any of the specifically described and enumerated acts contained therein, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than one thousand dollars, or imprisoned in the county jail not more than one year, or both fined and imprisoned.
ARTICLE 7. ADMINISTRATION.

§46A-7-103. Division of administrative powers; investigation and administration.

(1) With respect to regulated consumer lenders and other supervised financial organizations, the powers of examination and investigation and administrative enforcement shall be exercised by the official or agency to whose supervision the organization is subject. All other powers of the attorney general under this chapter may be exercised by him with respect to a supervised any financial organization whether or not a supervised financial organization. Notwithstanding the first sentence of this subsection and notwithstanding subsection (3) of this section, the attorney general may pursue any investigation, prosecute any suit and take any other proper action relating to the enforcement of any consumer protection provision in this chapter.
(2) If the attorney general receives a complaint or other information concerning noncompliance with this chapter by a any supervised financial organization, he shall inform the official or agency having supervisory authority over the organization concerned. The attorney general may request information about supervised financial organizations from the officials or agencies supervising them.
(3) The attorney general and any official or agency of this state having supervisory authority over supervised any financial organization are authorized and directed to consult and assist one another in maintaining compliance with this chapter. They may jointly pursue investigations, prosecute actions, and take other official actions, as they deem appropriate, if either of them otherwise is empowered to take the action.
§46A-7-115. Notification.

(1) Every person engaged in this state in making consumer credit sales or consumer loans, including any person subject to the provisions of section five-a, article twenty-three, chapter eleven of this code as a result of his consumer lending practices or any person who regularly purchases retail installment contracts or other consumer paper from a business with which it is affiliated, and every person having an office or place of business in this state who takes assignments of and undertakes direct collection of payments from or enforcement of rights against debtors arising from such sales or loans shall file notification with the state tax department within thirty days after commencing business in this state, and, thereafter, on or before the thirty-first day of January of each year. A notification shall be deemed to be in compliance with this section if the information hereinafter required is given in an application for a business registration certificate provided for in section four, article twelve, chapter eleven of this code. The state tax commissioner shall make any information required by this section available to the attorney general or commissioner upon request. The notification shall state:
(a) Name of the person;
(b) Name in which business is transacted if different from subdivision (a) of this subsection;
(c) Address of principal office, which may be outside this state;
(d) Address of all of its offices or retail stores, if any, in this state at which consumer credit sales or consumer loans are made, or in the case of a lender credit card, a description of its affiliation to any store chain, or national or regional credit card acceptance system, or in the case of a person taking assignments of obligations, the offices or places of business within this state at which business is transacted;
(e) If consumer credit sales or consumer loans, including loans secured by real property, are made otherwise than at a its retail store or office in this state, a brief description of the manner in which they are made;
(f) Address of designated agent upon whom service of process may be made in this state; and
(g) Whether supervised loans regulated consumer loans are made.
(2) If information in a notification becomes inaccurate after filing, accurate information must be filed within thirty days.
(3) The provisions of this section are not applicable to a seller whose credit sales consist entirely of sales made pursuant to a seller's credit card so long as the issuer of the card has fully complied with the provisions of this section, nor are the provisions of this section applicable to a person whose consumer lending in West Virginia is incidental and confined to access through a nonproprietary automatic teller machine or similar electronic communication terminal.
ARTICLE 8. OPERATIVE DATE AND PROVISIONS FOR TRANSITION.

§46A-8-101. Time of becoming operative; provisions for transition; enforceability of prior transactions.

(1) Except as otherwise provided in this section, this chapter shall become operative at 12:01 a. m. on the first day of September, one thousand nine hundred seventy-four.
(2) Notwithstanding the provisions of subsection (1) of this section, in order to allow sufficient time to prepare for the implementation and operation of this chapter and to act on applications for licenses to make supervised loans regulated consumer loans under this chapter as amended prior to the operative date of such chapter, the provisions of article four of this chapter, relating to supervised lenders regulated consumer lenders, and the provisions of article seven of this chapter, relating to their administration, shall, to the extent necessary, become operative for such purposes at 12:01 a. m. on July first the first day of September, one thousand nine hundred seventy-four ninety- six.
(3) Transactions entered into before this chapter becomes operative and the rights, duties and interests flowing from them thereafter may be terminated, completed, consummated or enforced as required or permitted by any statute, rule of law or other law amended, repealed or modified by this chapter as though the repeal, amendment or modification had not occurred, but this chapter applies to:
(a) Refinancings and consolidations made after this chapter becomes operative of consumer credit sales, consumer leases and consumer loans whenever made;
(b) Consumer credit sales or consumer loans made after this chapter becomes operative pursuant to revolving charge accounts or revolving loan accounts entered into, arranged or contracted for before this chapter becomes operative; and
(c) All consumer credit transactions made before this chapter becomes operative insofar as this chapter limits the remedies of creditors.
CHAPTER 47. REGULATION OF TRADE.

ARTICLE 6. MONEY AND INTEREST.

§47-6-5d Rebate upon prepayment, refinancing, consolidation or otherwise; liability and penalties for excess charges.

(a) Upon prepayment in full of a precomputed loan, credit sale or transaction, forbearance or similar transaction repayable according to its original terms over a period of thirty-six months or less, the creditor shall rebate that portion of the finance charge attributable to the prepaid periodic installment periods. When the total is payable in substantially equal consecutive monthly installments, the portion of such finance charge attributable to any particular monthly installment period shall be that proportion of charge originally contracted for, as the balance scheduled to be outstanding on the last day of the monthly installment period before deducting the payment, if any, scheduled to be made on that day bears to the sum of all the monthly installment balances under the original schedule of payments. (This method of allocation is the sum of the digits method, commonly referred to as the "Rule of 78".) For prepayment in full of a precomputed loan, credit sale or transaction, forbearance or similar transaction: (i) Repayable according to its original terms over a period of thirty-six months or less; (ii) in which unequal or irregular or other than substantially equal consecutive monthly installments are payable, the commissioner of banking shall prescribe by rule the method or procedure for the allocation of charges and the calculation or rebates consistent with the Rule of 78.
(b) Upon prepayment in full of a precomputed loan, credit sale or transaction, forbearance or similar transaction, repayable by its original terms over a period of greater than thirty-six months, an amount shall be rebated of not less than the unearned portion of the finance charge calculated by applying the rate of finance charge which was required by applicable law to be disclosed in the transaction according to the actuarial method to the unpaid balance for the time remaining as originally scheduled or as extended by deferral or otherwise for the period following prepayment. In instances where no rate of finance charge was required by law or otherwise to be disclosed, the unearned portion of the finance charge shall be calculated by applying the finance charge which was charged in the transaction according to the actuarial method to the unpaid balance for the time remaining as originally scheduled or as extended by deferral or otherwise for the period following prepayment.
(c) Unearned prepaid finance charges upon prepayment includes all prepaid finance charges for points, loan or credit origination fees or loan or credit investigation fees retained by the lender or creditor or its affiliates: Provided, That: (i) In calculating the rebate for a consumer loan or credit sale unsecured by real property where such prepaid finance charges have been imposed, the lender or creditor may deduct such charges up to a maximum of two percent of the amount financed; and (ii) in calculating the rebate for a consumer loan or credit sale secured by real property where such prepaid finance charges have been imposed, the lender or creditor may deduct such charges up to a maximum of five percent of the amount financed: Provided, however, That no such deduction totalling more than five percent of the amount financed may be made by the same lender within a twenty-four month period as a result of a refinancing. Upon prepayment in full of a consumer loan or credit sale, any unearned prepaid finance charges may be rebated by using the Rule of 78 where the original loan term is thirty-six months or less. Where the original loan term is greater than thirty-six months, any such charges shall be rebated by using the actuarial method. To the extent that this section overrides the preemption on limiting points and other such charges on first lien residential mortgages for nonpurchase money loans contained in Section 501 of the United States Depository Institutions Deregulation and Monetary Control Act of 1980, the state law limitations contained in this section shall apply: Provided further, That this subsection does not apply to loans made by federally-insured depository institutions.
(c) (d) For purposes of the rebate of unearned finance charges as required by this section, a prepayment in full shall include repayment by a new loan, extension of credit, refinancing, consolidation, forbearance or otherwise. The term "loan or credit investigation fees" does not include the reasonable costs of credit reports paid to third parties as part of the bona fide closing costs in real estate transactions, where such costs are not included as part of the finance charge.
(d) (e) As an alternative to the Rule of 78 method of rebate of determining the unearned finance charge required by this section, a creditor may rebate unearned finance charges under any other method which gives a greater rebate to the debtor than the rebate determined by the Rule of 78.
(e) (f) The provisions governing rebates as set forth in this section shall apply to all transactions entered in to on or after the first day of September, one thousand nine hundred eighty-one. For transactions entered into prior to the first day of September, one thousand nine hundred eighty-one, the provisions in effect prior to the effective date of this section [the tenth day of April, one thousand nine hundred eighty-one] of the respective chapters of this code shall be utilized to determine the rebate of unearned finance charges.
(f) (g) For consumer credit sales or consumer loans subject to the provisions of chapter forty-six-a of this code the provisions of article five of said chapter govern the imposition of liability and penalties for charging interest or a finance charge in excess of the maximum rate allowed under the provisions of this section. In all other instances, the provisions of this article govern the imposition of liability and penalties for charging interest or a finance charge in excess of the maximum allowed under this section.
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(NOTE: The purpose of this bill is to eliminate separate licensing requirements for supervised and industrial loan companies by combining them into one new regulated consumer lender license; eliminate step rates and simplify interest rate ceilings for consumer loans; limit the amount of points allowed in loans by regulated lenders except in purchase money mortgage transactions; provide disclosures for consumers seeking loan consolidation at a finance rate higher than that generally permitted consumer sales credit transactions; clarify the ability of licensed lenders to collect and pay finder fees; clarify the process for disclosing subpoenaed bank records and exam reports; clarify the ability of banks to charge the same finance rate as credit unions; clarify, revise and make consistent notification filing requirements for consumer lenders and creditors.

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


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