HB 280 (BR 1039) - J. Bruce, J. Carr, T. Edmonds, D. Ford, J. Higdon, D. Keene, C. Meade, S. Westrom, A. Wuchner
AN ACT relating to financial services.
Create a new section of KRS Chapter 287 to restrict the use of the trade name, trademark, service mark, logo, or symbol of any financial institution regulated by the Department of Financial Institutions; amend KRS 287.010 to define terms; amend KRS 287.013 to delete the requirement that the financial institutions board meet at least quarterly; amend KRS 287.040 and 287.050 to make technical changes; amend KRS 287.065 to delete requirement that a majority of a bank board must be residents of Kentucky during their term of office; amend KRS 287.102 to exempt from certain statutes and administrative regulations banks receiving a CAMEL rating of 1 or 2; amend KRS 287.103 to make a technical change; amend KRS 287.215 to exempt any bank, trust company, or combined bank and trust company from the provisions of KRS Chapters 288 and 360; amend KRS 287.280 to exempt a bank organized as a limited liability company from the limits on loans to a person established in the statute and subject such organizations to lending limits established in federal law; amend KRS 287.350 to delete provision restricting declaration of any dividend until ten percent of net profits have been carried to the bank's surplus fund; amend KRS 287.450 to permit the commissioner to enter into joint examinations and enforcement actions with other bank supervisory agencies having concurrent jurisdiction over any bank or bank holding company; amend KRS 287.480 to permit the commissioner to enter into cooperative agreements with other bank supervisory agencies having concurrent jurisdiction over any bank or bank holding company; amend KRS 287.820 to require a bank to apply to the commissioner for permission to establish a loan production office, except for a bank the commissioner may designate by administrative regulation; amend KRS 288.410 to define "affiliate"; amend KRS 288.420 to require each consumer loan licensee to maintain a physical location in Kentucky; amend KRS 288.480 to direct that a licensee who has not paid its renewal fee by December 20 shall have its license suspended; amend KRS 288.490 to give the commissioner more enforcement powers against any license issued under KRS Chapter 288; amend KRS 288.530 to permit the charging of fees, costs, or other expenses authorized in accordance with KRS Chapter 355; amend KRS 288.530 to permit acquisition charges and installment account handling charges and other charges on loans of not less than $100 and not more than $1,000 on loans with a term of not less than three months nor more than 15 months; amend KRS 288.580 to specify unlawful acts; amend KRS 291.430 to direct the suspension of the license of a industrial loan corporation that does not renew its license by January 15; amend KRS 291.530 to delete provision requiring an annual report on financial condition be filed by every industrial loan company; amend KRS 291.550 to give the commissioner more enforcement powers against any license issued under KRS Chapter 291; amend KRS 294.020 to clarify which affiliates are exempt from the provisions of KRS Chapter 294; exempt certain consumer loan or finance companies and industrial loan companies from the provisions of KRS Chapter 294 except for KRS 294.220(2)(e) and (f) and KRS 294.110(4); exempt certain nonprofit organizations from the provisions of KRS Chapter 294, except for KRS 294.255 and 294.260; exempt from certain provisions of KRS Chapter 294 any branch certain mortgage loan companies or brokers if the branch is approved by the Department of Housing and Urban Development and approved to perform business in Kentucky; establish requirements to be met for mortgage loan companies and brokers approved and regulated by the Department of Housing and Urban Development to be exempt from certain provisions of KRS Chapter 294; amend KRS 294.032 to require an applicant for a mortgage loan broker license to have at least one owner who owns at least 20% of the applicant to provide proof of at least two years experience working in the mortgage industry; amend KRS 294.090 to give the commissioner more enforcement powers against any license issued under KRS Chapter 294; amend KRS 294.220 to prohibit a mortgage loan company or broker from delaying beyond five rather than two days the issuance of a written loan payoff amount; amend KRS 294.255 to require initial registrations of mortgage loan brokers to include evidence of completion of 12 classroom hours of education courses; authorize the commissioner to issue a temporary certificate of registration for up to 180 days to a mortgage loan officer or broker who is awaiting a criminal background check or is in the process of fulfilling the initial education requirements; require renewal of certificates of registration by June 30 of each year; amend KRS 368.080 to require the renewal of license by September 20 rather than July 1 each year and authorize suspension of license for failure to renew; amend KRS 368.100 to increase from $500 to $1,000 the maximum deferred deposit transaction from one customer; amend KRS 368.110 to give the commissioner more enforcement powers against any license issued under KRS Chapter 368; amend KRS 382.365 to require that the written notice to a lienholder of its failure to release be properly addressed and sent by first class mail or delivered in person to a corporate officer or agent for process of the lienholder at the lienholder's corporate address; amend KRS 425.501 pertaining to orders of garnishment to require a processing fee of ten dollars to be paid by the judgment plaintiff; amend KRS 287.990, 294.030, 294.034, 294.250 and various sections of KRS Chapter 368 to conform; repeal KRS 288.590, 294.265, 368.104, and 368.120.
HB 280 - AMENDMENTS
HFA (1, J. Wayne) - Delete Section 31 that increases the amount of deferred deposit transactions from five hundred dollars ($500) to one thousand dollars ($1,000).
HFA (2, R. Webb) - Delete Section 31 that increases the amount of the deferred deposit transaction from five hundred dollars ($500) to one thousand dollars ($1,000).
HFA (3, J. Bruce) - Delete Section 31 that increases the amount of deferred deposit transactions from $500 to one $1000.
HFA (4, D. Owens) - Delete subsection (13) of Section 19 that allows an acquisition charge and handling charge on loans of $100 to $1,000 for terms of 3 to 15 months.
HFA (5, K. Stein) - Delete Section 31 that increases the amount of deferred deposit transactions from $500 to $1000.
HFA (6, K. Stein) - Amend KRS 368.100 to reduce from $500 to $400 the maximum amount of a deferred deposit transaction from any one customer at any one time.
HFA (7, R. Palumbo) - Amend Section 33 to require that written notice of failure to release a satisfied lien be sent by certified mail or delivered in person to the executive officer at the main office of the institution or the agent for process with a copy to the executive officer at the main office of the institution, in lieu of first class mail or delivery in person to a corporate officer or agent for process at the lienholder's corporate address.
HFA (8, T. Kerr) - Require notice of failure to release lien be properly addressed and sent by certified mail, return receipt requested, or delivered in person to the lienholder or an agent for process of the lienholder.
HFA (9, R. Palumbo) - Amend Section 33 to require that written notice of failure to release a satisfied lien be sent by certified mail or delivered in person to the executive officer at the main office of the institution or the agent for process with a copy to the executive officer at the main office of the institution, in lieu of first class mail or delivery in person to a corporate officer or agent for process at the lienholder's corporate address.
SCS - Retain original provisions, except delete Section 9 which exempted state banks, trust companies, or combined bank and trust companies from the provisions of KRS Chapters 288 and 360.
SFA (1, D. Kelly) - Amend KRS 382.110 to provide that an authentic photocopy of any original record may be certified as a true, complete, unaltered copy of the original record on file by the official public custodian of the record; permit a certified copy of a document certified by the official public custodian of the document to be filed in any other filing officer's jurisdiction as though it were an original record; restrict application of this subsection to a record generated and filed in Kentucky; amend KRS 382.360 to require that when a mortgage is assigned to another person the assignee must file the assignment with the county clerk within 30 days after the assignment; amend KRS 382.365 to require the assignee of a lien on real property to record the assignment in the county clerk's office; require the court upon proof of satisfaction of a lien to enter a judgment noting the identity of the final lienholder or final assignee and authorizing and directing the master commissioner to execute and file with the county clerk the requisite release or assignments or both; clarify what constitutes written notice of failure to release a lien; restrict damages for failure to release a lien.
SFA (2, T. Buford) - Amend Section 1 to include Internet use and on-line businesses in the prohibition against the use of the same or similar trade name, trademark, service mark, logo, or symbol of any financial institution, regulated by the department, in any advertisements, marketing materials, or solicitations that may confuse a reasonable person that the material is endorsed or consented to by the financial institution.
SFA (3, T. Buford) - Amend provision exempting a nonprofit organization from KRS Chapter 294.
SFA (4, T. Buford) - Amend provision exempting a nonprofit organization to delete exception for any mortgage loan broker, loan officer, or originator who is an employee of a mortgage loan company or mortgage loan broker from the provisions of KRS 294.255 and KRS 294.260.
Feb 3-introduced in House
Feb 4-to Banking and Insurance (H); posted in committee
Feb 9-reported favorably, 1st reading, to Calendar
Feb 10-2nd reading, to Rules; floor amendments (1) and (2) filed
Feb 11-floor amendments (3) (4) (5) and (6) filed
Feb 14-posted for passage in the Regular Orders of the Day for Tuesday, February 15, 2005; floor amendments (7) (8) and (9) filed
Feb 15-3rd reading, passed 82-8 with floor amendments (3) and (8)
Feb 16-floor amendment (1) withdrawn; received in Senate
Feb 22-to Banking and Insurance (S)
Feb 25-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 28-2nd reading, to Rules
Mar 2-floor amendments (1) (2) (3) and (4) filed to Committee Substitute
Mar 8-recommitted to Banking and Insurance (S)