Text: SSB01100 Text: SSB01102 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2501, subsection 1, Code 1999, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. i. With respect to a creditor which is a 1 4 bank organized under chapter 524 or 12 U.S.C. } 21, an annual 1 5 account maintenance fee, payable in advance, for the privilege 1 6 of maintaining a demand deposit account with a line of credit 1 7 that may be accessed by the account holder writing a check. 1 8 Sec. 2. Section 537.2502, Code 1999, is amended to read as 1 9 follows: 1 10 537.2502 DELINQUENCY CHARGES. 1 11 1. With respect to aprecomputedconsumer credit 1 12transactionsale, a consumer loan, open-end credit, or a home 1 13 equity line of credit under section 535.10, the parties may 1 14 contract for a delinquency charge on any installment or 1 15 payment not paid in full within ten days after its due date, 1 16 as originally scheduled or as deferred, in an amount not 1 17 exceeding the greater of either of the following: 1 18 a. Five percent of the unpaid amount of the installment or 1 19 payment, or a maximum of twenty dollars. 1 20 b. The deferral charge that would be permitted to defer 1 21 the unpaid amount of the installment or payment for the period 1 22 that it is delinquent. 1 23 2. A delinquency charge under subsection 1, paragraph "a", 1 24 may be collected only once on an installment or payment 1 25 however long it remains in default.NoA delinquency charge 1 26mayshall not be collected with respect to a deferred 1 27 installment or payment unless the installment or payment is 1 28 not paid in full within ten days after its deferred due date. 1 29 A delinquency charge may be collected at the time it accrues 1 30 or at any time afterward. 1 31 3.NoA delinquency chargemayshall not be collected 1 32 under subsection 1, paragraph "a", on an installment or 1 33 payment which is paid in full within ten days after its 1 34 scheduled or deferred installment or payment due date even 1 35 though an earlier maturing installment or payment or a 2 1 delinquency or deferral charge on an earlier installment or 2 2 payment may not have been paid in full. For purposes of this 2 3 subsection payments on a consumer credit sale, a consumer 2 4 loan, or a home equity line of credit under section 535.10 are 2 5 applied first to current installments or payments and then to 2 6 delinquent installments or payments, and payments on open-end 2 7 credit are applied first to an amount due for the current 2 8 billing cycle and then to delinquent payments. 2 94. With respect to open-end credit, the parties may2 10contract for a delinquency charge on any payment not paid in2 11full when due, as originally scheduled or as deferred, in an2 12amount up to fifteen dollars.2 135. A delinquency charge under subsection 4 may be2 14collected only once on a payment however long it remains in2 15default. A delinquency charge shall not be collected with2 16respect to a deferred payment unless the payment is not paid2 17in full on or before its deferred due date. A delinquency2 18charge may be collected at the time it accrues or at any time2 19afterward.2 206. A delinquency charge shall not be collected under2 21subsection 4 on a payment which is paid in full on or before2 22its scheduled or deferred due date even though an earlier2 23maturing payment or a delinquency or deferred charge on an2 24earlier payment has not been paid in full. For purposes of2 25this subsection, payments are applied first to amounts due for2 26the current billing cycle and then to delinquent payments.2 27 EXPLANATION 2 28 This bill amends Code section 537.2501 and provides that in 2 29 addition to other permissible charges, a state or national 2 30 bank may charge an annual account maintenance fee, payable in 2 31 advance, for the privilege of maintaining a demand deposit 2 32 account with a line of credit that may be accessed by the 2 33 account holder writing a check. 2 34 This bill amends Code section 537.2502 relating to 2 35 delinquency charges associated with certain consumer credit 3 1 transactions. The bill provides that the parties to a 3 2 consumer credit sale, a consumer loan, or a home equity line 3 3 of credit may contract for a delinquency charge on any 3 4 installment or payment not paid in full within 10 days after 3 5 its due date, as originally scheduled or as deferred, in an 3 6 amount not exceeding the greater of five percent of the unpaid 3 7 amount of the installment or payment, or a maximum of $20; or 3 8 a deferral charge that would be permitted to defer the unpaid 3 9 amount of the installment or payment for the period that it is 3 10 delinquent. Under current law, such delinquency charge 3 11 applies only to precomputed consumer credit transactions. 3 12 The bill increases the maximum delinquency charge which may 3 13 be assessed with respect to open-end credit from $15 to the 3 14 greater of $20 or a deferral charge that would be permitted to 3 15 defer the unpaid amount for the period that it is delinquent. 3 16 The bill also provides that a delinquency charge shall not be 3 17 collected with respect to an amount that is paid in full 3 18 within 10 days after its scheduled or deferred due date. 3 19 Currently, there is no 10-day grace period and a delinquency 3 20 charge can be collected if a payment amount is not paid in 3 21 full on or before its scheduled or deferred due date. 3 22 LSB 2155SC 78 3 23 mj/sc/14
Text: SSB01100 Text: SSB01102 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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