FIRSTREGULARSESSION
HOUSEBILLNO.692
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEMURRAY.
1742H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection408.505,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
consumerinstallmentloans.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section408.505,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection408.505,toreadasfollows:
408.505.1.Thissectionshallapplyto:
2 (1)Unsecuredloansmadebylenderslicensedorwhoshouldhavebeenlicensed
3pursuanttosection408.500;
4 (2)AnypersonthattheMissouridivisionoffinancedeterminesthathasenteredintoa
5transactionthat,insubstance,isadisguisedloan;and
6 (3)AnypersonthattheMissouridivisionoffinancedetermineshasengagedin
7subterfugeforthepurposeofavoidingtheprovisionsofthissection.
8 2.Allloansmadepursuanttothissectionandsection408.500,shallhaveaminimum
9termoffourteendaysandamaximumtermofthirty-onedays,regardlessofwhethertheloan
10isanoriginalloanorrenewedloan.
11 3.Alendermayonlychargesimpleinterestandfeesinaccordancewithsections
12408.100and408.140.Nootherchargesofanynatureshallbepermittedexceptasprovided
13bythissection,includinganychargesforcashingtheloanproceedsiftheyaregivenincheck
14form.However,noborrowershallberequiredtopayatotalamountofaccumulatedinterest
15andfeesinexcessof[seventy-five] sixty-fivepercentoftheinitialloanamountonanysingle
16loanauthorizedpursuanttothissectionfortheentiretermofthatloanandallrenewals
17authorizedbysection408.500andthissection.
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 4.Aloanmadepursuanttotheprovisionsofsection408.500andthissectionshallbe
19deemedcompletedandshallnotbeconsideredarenewedloanwhenthelenderpresentsthe
20instrumentforpaymentorthepayeeredeemstheinstrumentbypayingthefullamountofthe
21instrumenttothelender.Oncethepayeehascompletedtheloan,thepayeemayenterintoa
22newloanwithalender.
23 5.Exceptasprovidedinsubsection3ofthissection,noloanmadepursuanttothis
24sectionshallberepaidbytheproceedsofanotherloanmadebythesamelenderoranyperson
25orentityaffiliatedwiththelender.Alender,personorentityaffiliatedwiththelendershall
26nothavemorethanfivehundreddollarsinloansmadepursuanttosection408.500andthis
27sectionoutstandingtothesameborroweratanyonetime.Alendercomplieswiththis
28subsectionif:
29 (1)Theconsumercertifiesinwritingthattheconsumerdoesnothaveanyoutstanding
30smallloanswiththelenderwhichintheaggregateexceedsfivehundreddollars,andisnot
31repayingtheloanwiththeproceedsofanotherloanmadebythesamelender;and
32 (2)Thelenderdoesnotknow,orhavereasontobelieve,thattheconsumer'swritten
33certificationisfalse.
34 6.Onaconsumerloantransactionwherecashisadvancedinexchangeforapersonal
35check,areturncheckchargemaybechargedintheamountsprovidedbysections408.653
36and408.654,asapplicable.
37 7.Nostateorpublicemployeeorofficial,includingajudgeofanycourtofthisstate,
38shallenforcetheprovisionsofanycontractforpaymentofmoneysubjecttothissection
39whichviolatestheprovisionsofsection408.500andthissection.
40 8.Apersondoesnotcommitthecrimeofpassingabadcheckpursuanttosection
41570.120ifatthetimethepayeeacceptsacheckorsimilarsightorderforthepaymentof
42money,heorshedoessowiththeunderstandingthatthepayeewillnotpresentitforpayment
43untillaterandthepayeeknowsorhasreasontobelievethatthereareinsufficientfundson
44depositwiththedraweeatthetimeofacceptance.However,thissectionshallnotapplyifthe
45person'saccountonwhichtheinstrumentwaswrittenwasclosedbytheconsumerbeforethe
46agreed-upondateofnegotiationortheconsumerhasstoppedpaymentonthecheck.
47 9.Alendershallnotuseadeviceoragreementthatwouldhavetheeffectofcharging
48orcollectingmorefees,charges,orinterestthanallowedbythissection,including,butnot
49limitedto:
50 (1)Enteringintoadifferenttypeoftransaction;
51 (2)Enteringintoasalesleasebackarrangement;
52 (3)Catalogsales;
53 (4)Enteringintoanyothertransactionwiththeconsumerthatisdesignedtoevadethe
54applicabilityofthissection.
HB692 2 55 10.Theprovisionsofthissectionshallonlyapplytoentitiessubjecttotheprovisions
56ofsection408.500andthissection.
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HB692 3