HB462 Alabama 2013 Session

Sponsors

Session

Regular Session 2013

Title

Alabama Title Loan Act, licensure by Banking Dept., bonds, fees, penalties

Description

<p class="bill_description"> This bill would create the "Alabama Title Loan Act." The bill would provide legislative intent. The bill would require licensure by the State Banking Department for a person to act as a title loan lender. The bill would provide for application for licensure. The bill would require a bond and a nonrefundable application and investigation fee. The bill would provide for inactive licenses. The bill would provide for renewal and reactivation of licenses and a fee for the license. The bill would provide for disposition of certain moneys. The bill would provide for acquisition of an interest in a licensee under certain circumstance. The bill would provide for denial, suspension, or revocation of licenses. The bill would specify acts which constitute violations for which certain disciplinary actions may be taken. The bill would provide for the imposition of a fine. The bill would provide remedies for title loans made or serviced without proper licensure</p><p class="bill_description"> The bill would provide for a title loan agreement</p><p class="bill_description"> The bill would provide for reclaiming a repossessed motor vehicle under certain circumstances. The bill would provide entitlement to certain excess proceeds of a sale or disposal of a motor vehicle</p><p class="bill_description"> The bill would provide for recordkeeping and reporting and safekeeping of property. The bill would provide for title loan interest rates. The bill would provide for extensions. The bill would provide for return of principal and interest to the borrower under certain circumstances. The bill would provide for a holding period when there is a failure to reclaim loan property. The bill would provide for the disposal of pledged property. The bill would provide for disposition of excess proceeds. The bill would prohibit certain acts. The bill would provide for the right to reclaim property. The bill would provide for lost title loan agreements. The bill would provide for a title loan lenders lien. The bill would provide for criminal penalties. The bill would provide for subpoenas, enforcement of actions, and rules. The bill would provide for investigations and complaints. The bill would authorize the department to promulgate rules and regulations. The bill would provide for more restrictive local ordinances</p><p class="bill_description"> Amendment 621 of the Constitution of Alabama of 1901 prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose</p><p class="bill_description"> The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of Amendment 621. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in Amendment 621</p><p class="bill_entitled_an_act"> An act relating to title loan transactions; creating the "Alabama Title Loan Act"; to provide legislative intent; to require licensure by the State Banking Department to act as a title loan lender; to provide for application for licensure; to require a bond, and a nonrefundable application and investigation fee; to provide for inactive licenses; to provide for renewal and reactivation of licenses; to provide for a renewal fee and a reactivation fee; to provide for disposition of certain moneys; to provide for acquisition of an interest in a licensee under certain circumstances; to provide for denial, suspension, or revocation of licenses; to specify acts which would constitute violations for which certain disciplinary actions may be taken; to provide a fine; to provide remedies for title loans made or serviced without licensure; to provide for a title loan agreement; to provide requirements; to provide for reclaiming a repossessed motor vehicle under certain circumstances; to provide entitlement to certain excess proceeds of a sale or disposal of a motor vehicle; to provide for recordkeeping and reporting and safekeeping of property; to provide for title loan interest rates; to provide for extensions; to provide for return of principal and interest to the borrower under certain circumstances; to provide a holding period when there is a failure to reclaim; to provide for the disposal of pledged property; to provide for disposition of excess proceeds; prohibiting certain acts; to provide for the right to reclaim; to provide for lost title loan agreements; to provide for a title loan lenders lien; to provide for criminal penalties; to provide for subpoenas, enforcement of actions, and rules; to provide for investigations and complaints; to authorize the department to adopt rules; and to provide for more restrictive local ordinances; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901. </p>

Subjects

Banks and Financial Institutions