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2013 -- H 6209 | |
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LC02716 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
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RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS | |
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Introduced By: Representatives Baldelli-Hunt, and Ferri | |
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Date Introduced: June 05, 2013 | |
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Referred To: House Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 19-14.2-8 of the General Laws in Chapter 19-14.2 entitled "Small |
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Loan Lenders" is hereby amended to read as follows: |
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19-14.2-8. |
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Internet lending prohibited. -- (a) Every small loan lender may lend up to five thousand dollars |
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($5,000) in the aggregate to one borrower and may charge, contract for, and receive on the loan |
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interest on the unpaid principal balance on a loan at a rate not exceeding the following: |
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(1) Loans up to and including three hundred dollars ($300), three percent (3%) per |
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month; |
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(2) Loans exceeding three hundred dollars ($300) but not exceeding eight hundred |
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dollars ($800), two and one-half percent (2.5%) per month; and |
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(3) Loans exceeding eight hundred dollars ($800), but not exceeding five thousand |
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dollars ($5,000), two percent (2%) per month. |
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(b) No small loan shall, in this state, be entered into through an exclusively Internet-based |
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transaction. As used herein, the term "exclusively Internet-based transaction" shall mean a small |
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loan wherein the entire application process is to be conducted and completed over the Internet. |
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SECTION 2. This act shall take effect upon passage. |
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LC02716 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO FINANCIAL INSTITUTIONS -- SMALL LOAN LENDERS | |
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This act would prohibit small loans from being entered into through an exclusively |
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Internet-based transaction. |
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This act would take effect upon passage. |
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LC02716 | |
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