LOAN ORIGINATION/LATE PAYMENT CHARGE CHANGES. (NEW)

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View NCGA Bill Details2017-2018 Session
House Bill 810 (Public) Filed Tuesday, April 11, 2017
AN ACT TO MODERNIZE THE LOAN ORIGINATION FEE FOR NORTH CAROLINA BANKS AND TO ADJUST THE LATE PAYMENT CHARGE FOR CERTAIN LOANS.
Intro. by Destin Hall, Bradford, Stone, Saine.
Status: Ref To Com On Rules, Calendar, and Operations of the House (House Action) (Jun 12 2018)

SOG comments (1):

Long title change

Submitted by jhenders@sog.unc.edu on

Senate committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO CLARIFY STAFFING STANDARDS FOR BOARDING KENNELS OFFERING DOG DAY CARE SERVICES.

Bill History:

H 810

Bill Summaries:

  • Bill H 810 (2017-2018)
    Summary date: Jun 11 2018 - View Summary

    Senate amendment makes the following changes to the 2nd edition.

    Makes organizational changes to the proposed changes to GS 24-1.1(e) concerning loan origination fees for North Carolina banks. Modifies the proposed table setting out maximum origination fees by principal amount for a loan or extension of credit with a principal amount less than $100,000, with the table now setting the maximum origination fee at $100 for loans or extensions with a principal amount of $0 to $1,499.99 and $150 for loans or extension with a principal amount of $1,500 to $19,999.99 (previously, set the maximum origination fee at $150 for loans or extension with a principal amount of $0 to $19,999). Further modifies the table to provide for the difference in cents between the specified levels of principal amounts. Adds a new subdivision (e)(3), prohibiting a loan or extension of credit with a principal amount of less than $5,000 from having an annual percentage rate that exceeds 36%, inclusive of the charged permitted by subsection (e) and the interest rate provisions of subsection (c). Specifies that annual percentage rate as used here is calculated using the standards established by the federal Truth In Lending Act (15 USC 1601, et seq.) and all regulations and rulings issued pursuant to that Act. Limits the application of new subdivision (e)(3) to situations where the borrower is a natural person and the debt is incurred primarily for personal, family, or household purposes. 

    Adds to the proposed changes to GS 24-10.1(b)(1), concerning late payment charges imposed by lenders on a party to a loan or extension of credit. The previous edition proposed to prohibit a late payment charge greater than $35 or 4% of the amount of the past due payment for a loan or extension of credit that (1) is made by a bank or savings institution organized under NC or federal law, (2) is not secured by real property, and (3) is governed by GS 24-1.1 (regarding contract rates and fees for specified loans and extensions of credit, amended by the act). Further requires the loan or extension of credit to have an original balance greater or equal to $1,500 for the proposed prohibition in subdivision (b)(1) to apply. 

    Banking and Finance
    GS 24
  • Bill H 810 (2017-2018)
    Summary date: Jun 7 2018 - View Summary

    Senate committee substitute makes the following changes to the 1st edition.

    Deletes the content of the previous edition and replaces it with the following.

    Amends GS 24-1.1 to limit bank loan origination fees for loans or extension of credit with a principal amount of $100,000 or greater to 1/4 of 1% of the principal amount and to an amount ranging from $150 to $250 for loans or extension of credit with a principal amount ranging from $0 to $99,999 (was, the origination fee could not exceed the greater of 1/4 of 1% of the outstanding balance or $50). Makes additional technical and clarifying changes.

    Amends GS 24-10.1 to set the following limitations on late payment charges, which under current law are capped at 4% of the amount of the payment past due. A late payment charge must not exceed (1) the amount disclosed with particularity to the borrower under the Federal Consumer Credit Protection Act, if applicable; (2) for a loan or extension of credit that meets all of the following conditions, the greater of $35 or 4% of the amount of the payment past due: the loan or extension of credit is made by a bank or savings institution organized under the law of this state or the United States, the loan or extension of credit is not secured by real property, and the loan or extension of credit is governed by GS 24-1.1. Limits the charge to 4% of the amount of the payment past due for any other type of loan or extension of credit governed by GS 24-1.1 (concerning a loan, purchase money loan, advance, commitment for a loan or forbearance) or GS 24-1.1A (concerning home loans). Makes additional organizational, clarifying, and technical changes.

    Effective October 1, 2018, and applies to contracts entered into, renewed, or modified on or after that date.

    Makes conforming changes to the act's titles.

    Banking and Finance
    GS 24
  • Bill H 810 (2017-2018)
    Summary date: Apr 12 2017 - View Summary

    Amends GS 19A-23 to amend the definition of housing facility to include common areas and to definecommon area (an area within a housing facility providing an open space where more than four dogs are free to exercise or play together). Changes the definition of primary enclosure to mean any structure used to immediately restrict four or fewer (was, restrict an animal) animals to a limited amount of space.

    Amends GS 19A-24(a)(1). Provides that boarding kennels that offer dog care services, and, as to each common area, (1) have a ratio of dogs to employees within the housing facility of no more than 15 to one and (2) have no more than 50 dogs in any common area at any time, shall not as to such day care services be subject to any regulations issued by the Board of Agriculture that impose further supervisory requirements on the number of dogs that are permitted within the common area or any primary enclosure beyond a requirement that at least one staffer be present in a common area at all times that five or more dogs are within the common area.

    Effective October 1, 2017.

    Animals, Business and Commerce
    GS 19A
View: All Summaries for Bill