SB57 SUB1
Senate Bill 57 History
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COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 57
(By Senator Minard)
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[Originating in the Committee on Banking and Insurance;
reported February 21, 2007.]
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A BILL to amend and reenact §46A-4-104 of the Code of West
Virginia, 1931, as amended, relating to establishing annual
reporting requirements for regulated consumer lender
licensees; ensuring access to information needed to conduct
examinations; providing safeguards for nonpublic personal
information that consumers disclose to licensees; and
providing penalties for failure to timely file annual report.
Be it enacted by the Legislature of West Virginia:
That §46A-4-104 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-104. Records; annual reports.
(1) (a) 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 is sufficient if he or
she makes the required information reasonably available. The
records need not be kept in the place of business where 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, the two-year period is measured from the date of each
entry.
(2) On or before the fifteenth day of February each year,
every licensee shall file with the commissioner a composite annual
report in the form prescribed by the commissioner relating to all
regulated consumer loans made by him and showing in detail the
actual financial condition and the amount of the assets and
liabilities of such financial institution. 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.
(b) On or before the fifteenth day of February each year, each
licensee shall file with the commissioner a composite annual report
relating to all regulated consumer loans made by the licensee and showing in detail the actual financial condition and the amount of
the assets and liabilities of the licensee. The commissioner may
publish this information in composite form only.
(c) The commissioner may request in the report from a licensee
only the following additional information:
(1) A statement of financial condition and the amount of
assets and liabilities of the licensee;
(2) The total number and corresponding dollar amount of the
licensee's loans secured by real estate, loans secured by personal
property, unsecured loans, installment sales contracts purchased
and gross loans for each licensed location;
(3) The nature and locations of all regulated consumer loan
records not maintained at a licensee's place of business;
(4) The date of the licensee's last audit of West Virginia
offices for compliance with consumer laws, whether internal or
external, and with Internal Revenue Service currency reporting
requirements and an identification of the auditor, any written
policies relating to each reporting requirement and the procedure
for West Virginia operations;
(5) A list of Federal Trade Commission civil investigative
demands and a compilation of fines, penalties and adverse orders
issued by any other state or federal agency against the licensee;
(6) If applicable, any type of insurance products offered for
sale in West Virginia offices by the licensee
and, for each product
listed, the percentage of direct loans that were made with insurance;
(7) An explanation of any lending activity made outside of
West Virginia offices that are included in the licensee's financial
statements;
(8) A list of all other licenses that are held by the
licensee;
(9) The number and total amount of loans transferred or sold
to the licensee's affiliated companies;
(10) The number and total amount of loans transferred or sold
by the licensee to nonaffiliated companies;
(11) The types of other products or services offered in West
Virginia offices by the licensee;
(12) An organizational chart detailing the relationship
between the licensee and its parent company in the United States;
(13) A list of all litigation in which the licensee is a
defendant that has been initiated in the last twelve months,
including the type of cases and a description of the causes of
action;
(14) Any changes in information relating to the name; title;
company name, if one other than a consumer lender; address;
telephone number; and facsimile transmission number of a licensee
shall be reported promptly to the commissioner for the following:
(A) The manager of the main office designated in West Virginia
and any individual with responsibilities over other West Virginia
offices;
(B) The annual assessment contact;
(C) The financial reporting contact;
(D) The examination information contact;
(E) The state supervisor of West Virginia offices;
(F) The government relations representative;
(G) The licensing contact; and
(H) The parent company contact; and
(15) A listing of the total number of residential mortgage
loan foreclosure actions completed in the past calendar year
including the borrower's name, address, race or national origin,
sex, age, the original loan amount, the loan balance at default,
the interest rate at origination, the loan term and the total
dollar amount of all those loans in foreclosure.
(d) Nothing contained in this section may be construed to
prohibit the commissioner from requiring regulated consumer lender
licensees to gather and provide information the commissioner may
deem necessary so that he or she may efficiently conduct a thorough
examination as required by this article.
(e) The commissioner shall take steps to safeguard all
nonpublic personal information obtained in examinations of licensee
records to maintain the security of the information. Information
contained in annual reports or obtained through this section is
confidential. Without limitation of the provisions of this
section, personal information obtained by the commissioner may not
be published or released.
(f) If the licensee fails to file the composite annual report
within the specified time, the commissioner may assess a penalty of
up to five hundred dollars per day for each day the report is
overdue up to a maximum of thirty days. If a licensee's composite
annual report is overdue for more than thirty days, the
commissioner may institute proceedings pursuant to the provisions
of section one, article eight, chapter thirty-one-a of this code:
(1) for the assessment of further civil penalties; (2) for
suspension of a license; (3) for revocation of a license; or (4)
for any other remedy authorized by this article or by chapter
thirty-one-a of this code.
(NOTE: The purpose of this bill is to establish annual
reporting requirements for regulated consumer lenders and to
provide safeguards for nonpublic personal information that
consumers disclose to regulated consumer lenders or in the context
of examination of regulated consumer lenders by the Division of
Banking.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
)
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