Senate Bill No. 5
(By Senator Minard)
[Introduced February 9, 2005; referred to the Committee on
Banking and Insurance.]
A BILL to amend and reenact §46A-4-101 of the Code of West
Virginia, 1931, as amended; and to amend said code by adding
thereto a new section, designated §46A-4-102a, all relating to
the authority of regulated consumer lenders to make loans
requiring continuing education of individual regulated
consumer lender loan originators.
Be it enacted by the Legislature of West Virginia:
That §46A-4-101 of the Code of West Virginia, 1931, as
amended, be amended and reenacted; and that said code be amended by
adding thereto a new section, designated §46A-4-102a, all to read
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-101. Authority to make loans.
Unless a person has first obtained a license from the Commissioner authorizing him or her
to make regulated consumer
shall or she may
not engage in the business of:
(1) Making regulated consumer loans; or
(2) Taking assignments of
undertaking direct collection
of payments from or enforcement of rights against consumers arising
from regulated consumer loans: Provided, That undertaking
collection of or enforcement of rights under regulated consumer
loans for an affiliate does not require a regulated consumer lender
§46A-4-102a. Loan originator continuing education.
(a) For the purposes of this article, "loan originator" means
an individual who, on behalf of a licensed regulated consumer
lender and in exchange for compensation by that regulated consumer
lender, negotiates or arranges, or who offers to negotiate or
arrange, or originates or processes a regulated consumer loan.
(b) Beginning with the year two thousand six, each regulated
consumer lender shall certify to the Commissioner on or before the
thirty-first day of January, that every loan originator employed by
that licensed regulated consumer lender has received at least seven
hours of continuing education during the prior calendar year. Both
the course of instruction and the entity providing the continuing
education must receive prior approval from the Commissioner as
satisfying the continuing education requirement established in this section before the Commissioner may accept a certification from a
licensee. The Commissioner shall make available a list of entities
and courses that have been approved for continuing education hours
and the list may include courses provided by a licensed regulated
consumer lender. Employment of a loan originator who has not
completed the required continuing education constitutes a violation
of this article and subjects the regulated consumer lender to civil
NOTE: The purpose of this bill is to require a license for
entities that only take assignment of regulated consumer loans or
for entities that only service regulated consumer loans; and
require seven hours of continuing education annually for loan
originators employed by regulated consumer lender licensees.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
§46A-4-102a is new; therefore, strike-throughs and
underscoring have been omitted.