An Act
ENROLLED SENATE
BILL NO. 1687 By: Leewright of the Senate
and
McEntire of the House
An Act relating to supervised loans; amending 14A
O.S. 2021, Section 1-106, which relates to change in
dollar amounts; removing section reference;
designating dollar amounts subject to change;
providing for conditions of change s; amending 14A
O.S. 2021, Section 3-508B, which relates to charges
for supervised loans; changing amount thresholds;
creating additional amount thresholds; providing
maximum terms for loan amounts; and providing an
effective date.
SUBJECT: Supervised loans
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
SECTION 1. AMENDATORY 14A O.S. 2021, Section 1 -106, is
amended to read as follows:
Section 1-106. (1) From time to time the dollar amounts in
paragraphs (a), (b) a nd (c) of subsection (2) of Section 2 -201,
paragraph (a) of subsection (1) of Section 2 -203, subsection (1) of
Section 2-407, Section 2-413, paragraph (b) of subsection (1) of
Section 3-203, Section 3-203.1, subsection (4) of Section 3-508A,
subsection (1) of Section 3-508B, subsection (1) of Section 3 -510,
paragraphs (a) and (b) of Section 3 -511, Section 3-514, and
subsections (2) and (3) of Section 5-103 of the Uniform Consumer
Credit Code, are hereby designated as subject to change and shall
change, as provided in this section and the rules of the
Administrator, according to and to the extent of changes in the
ENR. S. B. NO. 1687 Page 2
Consumer Price Index for Urban Wage Ea rners and Clerical Workers:
U.S. City Average, All Items, 1967=100, compiled by the Bureau of
Labor Statistics, United States Department of Labor, and hereafte r
referred to as the Index. The Index for December of the year 1973
shall be deemed the Referenc e Base Index. The dollar amounts
established by rule of the Administrator in paragraph (e) of
subsection (1) of Section 2-104, paragraph (b) of subsection (1) of
Section 2-106 and paragraph (d) of Section 3 -104 of the Uniform
Consumer Credit Code in effec t on January 1, 1982, shall remain in
full force and effect.
(2) From time to time, the dollar amounts in subsection (1) of
Section 3-508B of the Uniform Consumer Credit Code are hereby
designated as subject to c hange and shall change, as provided in
this section and the rules of the Administrator, according to and to
the extent of changes in the Consumer Price Index for Urban Wage
Earners and Clerical Wor kers: U.S. City Average, All Items, 1982-
84=100, compiled by the Bureau of Labor Stat istics, United States
Department of Labor, and hereafter ref erred to as the Index. The
Index for December 2021 shall be de emed the Reference Base Index.
(3) The designated dollar am ounts referenced in subsection (1)
of this section shall change on July 1 of each year if th e
percentage of change, calculated to th e nearest whole percentage
point, between the Index at the end of the preceding year and the
Reference Base Index is te n percent (10%) or more, but:
(a) the portion of the percentage change in the Index in
excess of a multiple of ten percent (10%) shall b e
disregarded and the dollar amounts shall change only
in multiples of ten percent (10%) of the amounts
appearing in the Uniform Consumer Credit Code; and
(b) the dollar amounts shall not change if the amounts
required by this section are those currently in effect
pursuant to the Uniform Consumer Credit Code as a
result of earlier application of this section.
(3) (4) The designated dollar amounts referenced in subsection
(2) of this section shall change on July 1 of e ach year if the
percentage of change, calculated to the nearest whole percentage
ENR. S. B. NO. 1687 Page 3
point, between the Index at the end of the pre ceding year and the
Reference Base Index is one percent (1 %) or more, but:
(a) the portion of the percentage change in the Index in
excess of three percent (3%) shal l be disregarded and
shall change only in multiples of one percent (1%), to
a maximum of three percent (3%); and
(b) the dollar amounts shall no t change if the amounts
required by this section are those currently in effe ct
pursuant to the Uniform Consumer Credit Code as a
result of earlier application of this section.
(5) If the Index is revised, the percentage of change pursu ant
to this section shall be calculated on the basis of th e revised
Index. If a revision of the Index changes the Reference Base Index,
a revised Reference Base Index shall be determined by multiplying
the Reference Base Index then applicable by the rebas ing factor
furnished by the United States Bureau of Labor Statistics. If the
Index is superseded, the Index referred to in this s ection shall be
the one represented by the United States Bureau of Labor Sta tistics
as reflecting most accurately changes in t he purchasing power of the
dollar for consumers.
(4) (6) The rules of the Administ rator shall:
(a) include the method for calcu lating the changes in
dollar amounts required by subsection (2) of this
section;
(b) be amended in accordance with the Administr ative
Procedures Act to include changes in the Index
required by subsection (3) of this section including,
if applicable, the n umerical equivalent of the
Reference Base Index under a revised Reference Base
Index and the designation or title of any index
superseding the Index; and
(c) provide for appropriate notic e to licensees and other
interested persons of any changes in the do llar
amounts which result from changes required by
subsection (2) of this sectio n no later than April 30
ENR. S. B. NO. 1687 Page 4
of each year. Each dolla r amount subject to change as
provided in this section sha ll be listed in an
appendix to the rules of the Administrator and sh all
be published in the Oklahoma Administrative Code.
Changes to the appendix s hall be submitted to the
Secretary of State prior to the annual deadline for
submitting material for publica tion in the Code.
Changes in the appendix shall not be construed as
rulemaking.
(5) (7) A person does not violate the Uniform Consumer Credit
Code with respect to a transaction otherwise complying with the
Uniform Consumer Credit Code if he or she relies on dollar amounts
either determined according to subsection (2) of this section or
appearing in the last rule of the Administrator announcing the t hen
current dollar amounts.
SECTION 2. AMENDATORY 14A O.S. 202 1, Section 3-508B, is
amended to read as foll ows:
Section 3-508B. 1. On loans having a principal of Three
Hundred Dollars ($300.00) Three Thousand Dollars ($3,000.00) or
less, a supervised lender may charge in lieu of the loan finance
charges specified in Sectio n 3-508A of this title, the following
amounts:
a. on any amount up to and including Twenty-nine Dollars
and ninety-nine cents ($29.99) One Hundred Sixty-one
Dollars and ninety-five cents ($161.95), there shall
be allowed an acquisition charge for making the loan
not in excess of one-tenth (1/10) of the am ount of the
principal. In addition thereto, a handling charge may
be added at the ratio of One Dollar ($1.00) Five
Dollars and forty cents ($5.40) for each Five Dollars
($5.00) Twenty-seven Dollars ($27.00) of principal,
b. on any loan in an amount in exc ess of Twenty-nine
Dollars and ninety-nine cents ($29.99) One Hundred
Sixty-one Dollars and ninety-five cents ($161.95) up
to and including the amount of Thirty-five Dollars
($35.00) One Hundred Eighty-nine Dollars ($189.00),
there shall be allowed an acqu isition charge for
ENR. S. B. NO. 1687 Page 5
making the loan not in excess of one-tenth (1/10) of
the amount of the principal. In addition thereto, an
installment account handling charge shall be allowed
not to exceed Three Dollars ($3.00) Sixteen Dollars
and twenty cents ($16.20) per month,
c. on any loan of an amount in e xcess of Thirty-five
Dollars ($35.00) One Hundred Eighty-nine Dollars
($189.00) but not more than Seventy Dollars ($70.00)
Three Hundred Seventy -eight Dollars ($378.00), there
shall be allowed an acquisition char ge for making the
loan not in excess of one-tenth (1/10) of the amount
of the principal. In addition thereto, an installment
account handling charge shall be allowed not to exceed
Three Dollars and fifty cents ($3.50) Eighteen Dollars
and ninety cents ($18.90) per month,
d. on any loan of an amount i n excess of Seventy Dollars
($70.00) Three Hundred Seventy-eight Dollars ($378.00)
but not in excess of One Hundred Dollars ($100.00)
Five Hundred and Forty Dollars ($540.00 ), there shall
be allowed an acquisit ion charge for making the loan,
not in excess of one-tenth (1/10) of the amount of the
principal. In addition thereto, an installment
account handling charge shall be allowed not to exce ed
Four Dollars ($4.00) Twenty-one Dollars and sixty
cents ($21.60) per month,
e. on any loan in an amount in exce ss of One Hundred
Dollars ($100.00) Five Hundred Forty Dollars ($540.00)
up to and including th e amount of One Hundred Fifty
Dollars ($150.00) Eight Hundred Ten Dollars ($810.00),
there shall be allowed an acqui sition charge for
making the loan not in exce ss of one-tenth (1/10) of
the amount of the principal. In addition thereto, an
installment account handling charge shall be allowed
not to exceed Four Dollars and fifty cent s ($4.50)
Twenty-four Dollars and thirty cents ($24.30) per
month,
f. on any loan of an amount in excess of One Hundred
Fifty Dollars ($150.00) Eight Hundred Ten Dollars
ENR. S. B. NO. 1687 Page 6
($810.00) but not more than Two Hundred Dollars
($200.00) One Thousand Eighty Dollars ($1,080.00),
there shall be allowed a n acquisition charge for
making the loan not in excess of one-tenth (1/10) of
the amount of the principal. In addition thereto, an
installment account handling charge sh all be allowed
not to exceed Five Dollars ($5.00) Twenty-seven
Dollars ($27.00) per month,
g. on any loan of an amount in excess of Two Hundred
Dollars ($200.00) One Thousand Eighty Dollars
($1,080.00) but not more than Two Hundred Fifty
Dollars ($250.00) One Thousand Three Hundred Fifty
Dollars ($1,350.00), there shall be allowed an
acquisition charge for making the loan not in excess
of one-tenth (1/10) of the amount of the principal.
In addition thereto, an installment acco unt handling
charge shall be allowed not to exceed Five Dollars and
fifty cents ($5.50) Twenty-nine Dollars and seventy
cents ($29.70) per month, and
h. on any loan of an amount in excess of Two Hundred
Fifty Dollars ($250. 00) One Thousand Three Hundred
Fifty Dollars ($1,350.00) but not more than Three
Hundred Dollars ($300.00) One Thousand Six Hundred
Twenty Dollars ($1,620.00), there shall be allowed an
acquisition charge for making the loan not in excess
of one-tenth (1/10) of the amount of the principal.
In addition thereto, an installment account handling
charge shall be allowed not to exceed Six Dollars
($6.00) Thirty-two Dollars and forty cents ($32.40)
per month,
i. on any loan of an amount in excess of One Thousand Six
Hundred Twenty Dollars ($1,620.00) but not more than
Two Thousand Dollars ($2,000.00), there shall be
allowed an acquisition charge for making th e loan not
in excess of one-tenth (1/10) of the amount of
principal. In addition thereto, an installment
account handling charge shall be allowed not to exceed
Forty Dollars ($40.00) per month ,
ENR. S. B. NO. 1687 Page 7
j. on any loan of an amount in excess of Two Thousand
Dollars ($2,000.00) but not more than Two Thousand
Five Hundred Dollars ($2,500.00), there shall be
allowed an acquisition charge for making the loan not
in excess of one-tenth (1/10) of the amount of
principal. In addition th ereto, an installment
account handling charge shall be allowed not to exceed
Fifty Dollars ($50.00) per month, and
k. on any loan of an amount in excess of Two Thousand
Five Hundred Dollars ($2,500.00) but not more than
Three Thousand Dollars ($3,000.00), there shall be
allowed an acquisition charge for making the loan not
in excess of one-tenth (1/10) of the amount of
principal. In addition thereto, an installment
account handling charge shall be allowed not to exceed
Sixty Dollars ($60.00) per month.
2. The maximum term of any loan made under the terms of this
section shall be one (1) month for each Ten Dollars ($10.00) of
principal up to a maximum term of eighteen (18) months. Provided,
however, that under subparagraphs e through h i of paragraph 1 of
this subsection section the maximum terms shall be one (1) month for
each Twenty Dollars ($20.00) of principal up to a maximum t erm of
eighteen (18) months, and under subparagraphs j and k of paragraph 1
of this section, the maximum terms shall be one (1) month fo r each
Twenty Dollars ($20.00) of principal to a maximum term of twenty -
four (24) months.
3. The minimum term of any loan made under the terms of
subparagraphs a through h k of paragraph 1 of this subsection
section shall be no less than sixty (60) days. Any loan made under
the terms of this section shall be scheduled to be payable in
substantially equal installments at not less than thirty-day
intervals, with the first installment to be scheduled to be due not
less than one (1) calendar month after the date such loan is made .
4. Loans made under this section may be refinan ced or
consolidated according to the provisions of this s ection,
notwithstanding anything in Section 2-101 et seq. of this title to
the contrary. When a loan made unde r this section is refinanced or
consolidated, installment account handling charges on th e loans
ENR. S. B. NO. 1687 Page 8
being refinanced or consolidated must be rebated pursuant to the
provisions regarding rebate on prepayment (Section 3 -210 of this
title) as of the date of refin ancing or consolidation. For the
purpose of determining the amount of acquisition and i nstallment
account handling charges permitted in relation to the refinancing or
the consolidation of loans made under this section, the principal
resulting from the ref inancing or consolidation is the total of the
unpaid balances of the principal of the lo ans being refinanced or
consolidated, plus any new money advanced, and any delinque ncy or
deferral charges if due and unpaid, less any unearned acquisition
and installment account handling charges imposed i n connection with
loans being refinanced or consol idated.
5. On such loans under this section, no insuranc e charges or
any other charges of any nature whatsoever shall be permitted.
6. Except as otherwise provided, t he acquisition charge
authorized herein shall be deemed to be earned at the time a loan is
made and shall not be subject to refund. Provided, ho wever, in a
loan made under this section which is prepaid in full, refinanced or
consolidated within the first sixty (60) days, the acquisition
charge under this section will not be fully earned at t he time the
loan is made, but must be refunded pro rata a t the rate of one-
sixtieth (1/60) of the acquisition charge for each day from the date
of the prepayment, refin ancing or consolidation to the sixtiet h day
of the loan. On the prepayment of any loan under this section, the
installment account handling char ge shall be subject to the
provisions of Section 3-210 of this title as it relates to refunds.
Provisions of Section 3-203 of this title as it relat es to
delinquency charges and Section 3-204 of this title as it relates to
deferral charges shall apply to loans made under the secti on.
SECTION 3. This act shall become effective November 1, 2022.
ENR. S. B. NO. 1687 Page 9
Passed the Senate the 23rd day of March, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 28th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
______________________________ ___
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __