ENROLLED
H. B. 2358
(By Delegate Thompson)
[Passed February 18, 1999; in effect ninety days from passage.]
AN ACT to amend and reenact section one hundred ten-a, article
four, chapter forty-six-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
prohibited conduct of regulated consumer lenders.
Be it enacted by the Legislature of West Virginia:
That section one hundred ten-a, article four, chapter forty- six-a of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
46A-4-110a. Prohibited conduct.
(1) A regulated consumer lender shall not:
(a) Accept or receive deposits or sell or offer for sale its
secured or unsecured evidences or certificates of indebtedness;
(b) Pay any fees, bonuses, commissions, rewards or other consideration to any person, firm or corporation for the
privilege of using any plan of operation, scheme or device for
the organization or carrying on of business under this article,
or the use of any name, trademark or copyright to be so used:
Provided, That nothing herein prevents a regulated consumer
lender from agreeing in connection with a loan to pay a broker
fee, finders fee or dealer participation fee, or to split the
origination fee or points paid: Provided, however, That the fee
or fee split is disclosed to the borrower and where proper is
included in the finance charge; or
(c) Fail to disclose the amount of a payoff of an existing
loan within three business days of receiving a request for such
information from either the borrower or an agent acting on behalf
of the borrower.
(2) Unless preempted by federal law, no consumer loan by a
regulated consumer lender may contain any scheduled balloon
payment as set forth in this chapter. Nor may any regulated
consumer lender loan contain terms of repayment which result in
negative amortization: Provided, That nothing herein prevents
unequal payment schedules resulting from a variable rate loan or
a revolving line of credit.
(3) A regulated consumer lender may not make revolving
loans for the retail purchase of consumer goods and services by
use of a lender credit card.