Senate
House
Joint
Bill Status
WV Code
Audits/ Reports
Educational
Contact
home
home

Introduced Version Senate Bill 193 History

DOWNLOAD  wpd  |  Email


sb193 intr
Senate Bill No. 193

(By Senator Minard)

____________

[Introduced January 10, 2008; referred to the Committee on Banking and Insurance.]

____________




A BILL to amend and reenact §46A-4-110 of the Code of West Virginia, 1931, as amended, relating to the sale of home and automobile membership plans by consumer lenders; defining automobile and home membership plans; specifying conditions for sale of plans by licensees; and requiring enrollment authorizations to be filed with the commissioner.

Be it enacted by the Legislature of West Virginia:
That §46A-4-110 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-110. Conduct of business other than making loans.
(1)(a) No licensee shall conduct the business of making loans under the provisions of this article within any office, room or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as may be authorized in writing by the commissioner upon his or her finding that the character of such other business is sufficiently related to that of a financial institution and is such that the granting of such authority would not facilitate evasions of this article or of the rules lawfully made hereunder, except nothing herein shall prohibit the licensee from purchasing installment sales contracts or the sale or provision of insurance authorized by section one hundred nine, article three of this chapter, or from making loans authorized under the provisions of the West Virginia Secondary Mortgage Loan Act as set forth in article seventeen, chapter thirty-one of this code, or from soliciting or selling automobile and home membership plans, subject to requirements of subsection (d) of this section, or from engaging in any business previously approved by the commissioner prior to the first day of September, one thousand nine hundred ninety-six.
(2)(b)
A licensee may purchase, hold and convey real property as follows:
(a)(1)
As shall be necessary for the convenient transaction of its business;
(b)(2)
As is mortgaged to it in good faith by way of security for loans made by or money due to such regulated consumer lender;
(c)(3)
As is conveyed to it in satisfaction of debts previously contracted in the course of its dealings;
(d)(4)
As is acquired by the sale on execution or judgment or decree of any court in its favor.
(3)(c)
A licensee shall not purchase, hold or convey any real property in any other case or for any other purpose whatsoever. Real property shall be conveyed only by authority of the board of directors of any such regulated consumer lender. No real property acquired upon foreclosure in the cases contemplated in subdivision (b) (2), or acquired under subdivisions (c) (3) and (d) (4), subsection (b) of this section shall be held for a longer time than ten years, unless such period shall be extended by the Commissioner of Banking.
(d) A licensee may sell automobile or home membership plans subject to the following conditions:
(1) The purchase of the plan by the customer is strictly voluntary and never made a condition to the extension of credit or granting of the loan;
(2) The customer may pay for the plan either by currency, personal check or draft, money order, credit card or with a proceeds check made payable to the customer and endorsed by the customer to the plan;
(3) The customer shall receive and sign a copy of the enrollment authorization;
(4) The customer may cancel the plan for a full refund paid directly to the customer within thirty days from the effective date of enrollment in the plan; thereafter, the member shall receive a prorated refund of the remaining portion of the membership in the plan;
(5) No claims or other benefits derived from the plan shall be paid to the licensee; and
(6) Copies of the plans' enrollment authorization shall be submitted to the commissioner by the licensee prior to the sale and solicitation of the plans within this state.
(e) An automobile or home membership plan is a membership plan that offers security for home and automobile ownership, respectively. Components of these plans may include health insurance deductible coverage; extended warranties for items of personalty excluding motor vehicles; home security services; property insurance deductibles coverage; home security information; ambulance and paramedic expense; emergency care reimbursement; automobile security services; travel services; prepaid legal services; and other services and benefits reasonably related to home and automobile ownership.



NOTE: The purpose of this bill is to allow consumer lenders to sell home and automobile membership plans to their customers.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2014 West Virginia Legislature **