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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 794 By: Coleman of the Senate
and
McEntire of the House
An Act relating to loans; amending 14A O.S. 2021,
Section 3-508A, which relates to loan finance charge
for supervised loans; allowing for certain loan rat e
for total calculation of loan finance charge;
defining term; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 14A O.S. 2021 , Section 3-508A, is
amended to read as follows:
Section 3-508A. (1) With respect to a supervised loan,
including a loan pur suant to a revolving loan account, a supervised
lender may contract for an d receive a loan finance charge not
exceeding that permi tted by this section.
(2) The loan finance charge, calculated according to the
actuarial method, may not exceed the equivalen t of the greater of
either of the following:
(a) the total of:
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(i) thirty-two percent (32%) plus the federal funds
rate per year on that part of the unpaid balanc es
of the principal which is Seven Thousand Dollars
($7,000.00) or less;
(ii) twenty-three percent (23%) plus the federal funds
rate per year on that part of the unpaid balances
of the principal which is more than Seven
Thousand Dollars ($7,000.00) but doe s not exceed
Eleven Thousand Dollars ($11,000.00); and
(iii) twenty percent (20%) plus the federal funds rate
per year on that part of the unpaid balances of
the principal which is more than Eleven Thousand
Dollars ($11,000.00); or
(b) twenty-five percent (25%) plus the federal funds rate
per year on the unpaid balances of the principal.
(3) This section does not limit or restrict the manner of
contracting for the loan finance charge, whether by way of add-on,
discount, or otherwise, so long as the rate of the loan finance
charge does not exceed that permitted by this section. If the loan
is precomputed:
(a) the loan finance charge may be calculated on the
assumption that all scheduled payments will be made
when due; and
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(b) the effect of prepayment is gov erned by the provisions
on rebate upon prepayment (Section 3 -210).
(4) In addition to th e loan finance charge permitted in this
section and other charges permitted in this act, a supervised lender
may assess a lender closin g fee not to exceed Twenty -eight Dollars
and eighty-five cents ($28.85) upon consummation of the loan.
(5) The term of a loan, for the purpose of this section,
commences on the date the loan is made. Differences in the lengths
of months are disregarded a nd a day may be counted as one -thirtieth
(1/30) of a month. Subject to classifications and differentiations
the lender may reasonably establish, a part of a month in excess of
fifteen (15) days may b e treated as a full month if periods of
fifteen (15) days or less are disregarded and if that procedure is
not consistently used to obtain a greater yield than would otherwise
be permitted.
(6) Subject to classifications and differentiations the lender
may reasonably establish, he may make the same loan financ e charge
on all principal amount s within a specified range. A loan finance
charge so made does not violate subsection (2 ) of this section if:
(a) when applied to the median amount within each range,
it does not exceed the maximum permitted in subsection
(2) of this section; and
(b) when applied to the lowest amount within each range,
it does not produce a rate of loan finan ce charge
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exceeding the rate calculated according to paragraph
(a) of this subsection by more than eight percent (8%)
of the rate calculated according to paragraph (a) of
this subsection.
(7) As used in this section, the “federal funds rate” means the
rate published by the Board of Governors of the Federal Reserve
System in its statistical release H.15 Selected Interest Rates and
in effect as of the first day of each m onth immediately preceding
the month during which the loan is consummated.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
PENSIONS, dated 04/03/2023 - DO PASS.