HB4603ham001 97TH GENERAL ASSEMBLY

Rep. Naomi D. Jakobsson

Filed: 2/24/2012

09700HB4603ham001 LRB097 18014 JLS 66496 a

AMENDMENT TO HOUSE BILL 4603

AMENDMENT NO. ______. Amend House Bill 4603 on page 1, by replacing lines 16 and 17 with the following:

"title-secured loans, which are loans upon which interest is charged at an annual percentage rate exceeding 36% in"; and

on page 1, by replacing lines 20 through 22 with the following:

"title to a motor vehicle, and upon which a licensee may charge, contract for, and receive thereon interest at the rate agreed upon by the licensee and borrower. For purposes of this"; and

on page 9, line 7, by changing "may" to "shall"; and

on page 9 by replacing line 10 with the following: "contract. The title may secure no additional principal until the preceding loan is repaid in full."; and

on page 10 by inserting immediately below line 1 the following:

"(c) Before issuing a title-secured loan, a licensee shall determine that the borrower has the capacity to repay the loan. The determination shall be based upon the borrower's gross income, rather than the value of the asset covered by the title.".