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Introduced Version Senate Bill 468 History

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WEST virginia legislature

2016 regular session

Introduced

Senate Bill 468

By Senators Gaunch and Ashley

[Introduced February 2, 2016;
Referred to the Committee on Banking and Insurance; and then to the Committee on the Judiciary.
]

A BILL to amend and reenact §46A-6K-3 of the Code of West Virginia, 1931, as amended, relating to accrual of interest during the rescission period, on a loan where a right of rescission applies.

Be it enacted by the Legislature of West Virginia:


That §46A-6K-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 6K. GOOD FUNDS SETTLEMENT ACT.


§46A-6K-3. Duty of lender; accrual of interest.

The lender shall, at or before loan closing, cause disbursement of loan funds to the settlement agent; however, in the case of a refinancing, or any other loan where a right of rescission applies, the lender shall, within one business day after the expiration of the rescission period required under the federal Truth-in-Lending Act (15 U.S.C. §1601 et seq.), cause disbursement of loan funds to the settlement agent, unless the loan is rescinded by the customer. All funds disbursed by the lender to the settlement agent must be collected funds. The lender is not entitled to receive or charge any interest on the loan until disbursement of loan funds and loan closing has occurred  The lender is entitled to charge and receive interest on the loan during the rescission period required under the federal Truth-in-Lending Act (15 U.S.C. §1601 et seq.).

 

NOTE: The purpose of this bill is to allow a lender to charge and receive interest on a loan that is rescindable by the borrower, during the rescission period allowed by the federal Truth in Lending Act.

Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.

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