Senate Amendment 5255


PAG LIN




     1  1    Amend House File 2556, as passed by the House, as
     1  2 follows:
     1  3 #1.  Page 8, by inserting after line 24 the
     1  4 following:
     1  5    <Sec.    .  Section 533D.9, subsection 2, Code
     1  6 2007, is amended by adding the following new
     1  7 paragraph:
     1  8    NEW PARAGRAPH.  e.  That the licensee cannot
     1  9 initiate either civil court proceedings or arbitration
     1 10 to collect an unpaid check unless the licensee has
     1 11 provided the maker of the check the opportunity to
     1 12 repay the obligation, without any additional charges
     1 13 other than the fee and penalty as provided in this
     1 14 section, in biweekly payments of not more than ten
     1 15 percent of the face of the check until the debt is
     1 16 paid in full.  Additionally, that during this
     1 17 repayment period the licensee may not transfer or sell
     1 18 the debt owing on the unpaid check and may not report
     1 19 on the account or borrower to any credit reporting
     1 20 agency, and that the maker's failure to make any
     1 21 biweekly payment shall place the loan in default and
     1 22 that the licensee may, after proper notice, exercise
     1 23 rights against the borrower for collection of the
     1 24 unpaid balance.
     1 25    Sec.    .  Section 533D.10, subsection 1, Code
     1 26 2007, is amended by adding the following new
     1 27 paragraph:
     1 28    NEW PARAGRAPH.  g.  Initiate either civil court
     1 29 proceedings or civil or private arbitration
     1 30 proceedings to collect an unpaid check unless the
     1 31 licensee has provided the maker of the check the
     1 32 opportunity to repay the obligation without any
     1 33 additional charges, other than the fee and penalty
     1 34 provided for in section 533D.9, in biweekly payments
     1 35 of not more than ten percent of the face of the check
     1 36 until the debt is paid in full.  During this repayment
     1 37 period, the licensee may not transfer or sell the debt
     1 38 owing on the unpaid check and may not report on the
     1 39 account or borrower to any credit reporting agency.  A
     1 40 borrower's failure to make payments as required shall
     1 41 place the loan in default and the licensee may, after
     1 42 proper notice, exercise rights against the borrower
     1 43 for collection of the unpaid balance.>
     1 44 #2.  By renumbering as necessary.
     1 45
     1 46
     1 47                               
     1 48 JOE BOLKCOM
     1 49 HF 2556.301 82
     1 50 rn/nh/21032

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