Text: SSB03039 Text: SSB03041 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2502, subsections 3 and 6, Code 1 2 Supplement 1999, are amended to read as follows: 1 3 3. A delinquency charge shall not be collected under 1 4 subsection 1, paragraph "a", on an installment which is paid 1 5 in full within ten days after its scheduled or deferred 1 6 installment due date even though an earlier maturing 1 7 installment or a delinquency or deferral charge on an earlier 1 8 installment may not have been paid in full. For purposes of 1 9 this subsection,payments associated with a precomputed 1 10 transaction are applied first to current installments and then 1 11 to delinquent installments. 1 12 6. A delinquency charge shall not be collected under 1 13 subsection 4 on a payment associated with a precomputed 1 14 transaction which is paid in full on or before its scheduled 1 15 or deferred due date even though an earlier maturing payment 1 16 or a delinquency or deferred charge on an earlier payment has 1 17 not been paid in full. For purposes of this subsection, 1 18 payments associated with a precomputed transaction are applied 1 19 first to amounts due for the current billing cycle and then to 1 20 delinquent payments. 1 21 EXPLANATION 1 22 This bill provides that, with respect to an interest- 1 23 bearing transaction associated with a consumer credit 1 24 transaction that is not pursuant to an open-end credit 1 25 arrangement, a delinquency charge on a current paid-in-full 1 26 installment associated with a precomputed transaction shall 1 27 not be collected, even if a delinquency on an earlier 1 28 installment exists. By limiting the provision's applicability 1 29 to precomputed transactions, the bill allows a delinquency 1 30 charge to be collected on an installment not part of a 1 31 precomputed transaction, where the current installment due is 1 32 paid in full within 10 days after its scheduled or deferred 1 33 installment due date but an earlier maturing installment or a 1 34 delinquency or deferral charge on an earlier installment has 1 35 not been paid in full. The bill, with respect to such 2 1 transactions, eliminates the requirement that payments be 2 2 applied first to a current installment and then to delinquent 2 3 amounts. 2 4 The bill likewise provides that with respect to open-end 2 5 credit, a delinquency charge may be collected on a payment 2 6 associated with a transaction other than a precomputed 2 7 transaction where the current payment due is paid in full on 2 8 or before its scheduled or deferred due date but where an 2 9 earlier maturing payment or a delinquency or deferred charge 2 10 on an earlier payment has not been paid in full. The bill, 2 11 with respect to such transactions, eliminates the requirement 2 12 that payments be applied first to a current payment and then 2 13 to delinquent amounts. 2 14 LSB 5895SC 78 2 15 mj/as/5
Text: SSB03039 Text: SSB03041 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Feb 2 03:35:33 CST 2000
URL: /DOCS/GA/78GA/Legislation/SSB/03000/SSB03040/000201.html
jhf