Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB794 Compare Versions

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 794 By: Coleman of the Senate
7	37
8	38		and
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10	40		McEntire of the House
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15	45		An Act relating to loans; amending 14A O.S. 2021,
16	46		Section 3-508A, which relates to loan finance charge
17	47		for supervised loans; allowing for certain loan rat e
18	48		for total calculation of loan finance charge;
19	49		defining term; and providing an effective date .
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25		-	SUBJECT: Loans
26		-
27	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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29	56		SECTION 1. AMENDATORY 14A O.S. 2021 , Section 3-508A, is
30	57		amended to read as follows:
31		-
32	58		Section 3-508A. (1) With respect to a supervised loan,
33	59		including a loan pur suant to a revolving loan account, a supervised
34	60		lender may contract for an d receive a loan finance charge not
35	61		exceeding that permi tted by this section.
36		-
37	62		(2) The loan finance charge, calculated according to the
38	63		actuarial method, may not exceed the equivalen t of the greater of
39	64		either of the following:
	65	+	(a) the total of:
40	66
41		-	(a) the total of:
	67	+	SB794 HFLR Page 2
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43	93		(i) thirty-two percent (32%) plus the federal funds
44	94		rate per year on that part of the unpaid balanc es
45	95		of the principal which is Seven Thousand Dollars
46	96		($7,000.00) or less;
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48		-	ENR. S. B. NO. 794 Page 2
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50	97		(ii) twenty-three percent (23%) plus the federal funds
51	98		rate per year on that part of the unpaid balances
52	99		of the principal which is more than Seven
53	100		Thousand Dollars ($7,000.00) but doe s not exceed
54	101		Eleven Thousand Dollars ($11,000.00); and
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56	102		(iii) twenty percent (20%) plus the federal funds rate
57	103		per year on that part of the unpaid balances of
58	104		the principal which is more than Eleven Thousand
59	105		Dollars ($11,000.00); or
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61	106		(b) twenty-five percent (25%) plus the federal funds rate
62	107		per year on the unpaid balances of the principal.
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64	108		(3) This section does not limit or restrict the manner of
65	109		contracting for the loan finance charge, whether by way of add-on,
66	110		discount, or otherwise, so long as the rate of the loan finance
67	111		charge does not exceed that permitted by this section. If the loan
68	112		is precomputed:
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70	113		(a) the loan finance charge may be calculated on the
71	114		assumption that all scheduled payments will be made
72	115		when due; and
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74	143		(b) the effect of prepayment is gov erned by the provisions
75	144		on rebate upon prepayment (Section 3 -210).
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77	145		(4) In addition to th e loan finance charge permitted in this
78	146		section and other charges permitted in this act, a supervised lender
79	147		may assess a lender closin g fee not to exceed Twenty -eight Dollars
80	148		and eighty-five cents ($28.85) upon consummation of the loan.
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82	149		(5) The term of a loan, for the purpose of this section,
83	150		commences on the date the loan is made. Differences in the lengths
84	151		of months are disregarded a nd a day may be counted as one -thirtieth
85	152		(1/30) of a month. Subject to classifications and differentiations
86	153		the lender may reasonably establish, a part of a month in excess of
87	154		fifteen (15) days may b e treated as a full month if periods of
88	155		fifteen (15) days or less are disregarded and if that procedure is
89	156		not consistently used to obtain a greater yield than would otherwise
90	157		be permitted.
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92		-	ENR. S. B. NO. 794 Page 3
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94	158		(6) Subject to classifications and differentiations the lender
95	159		may reasonably establish, he may make the same loan financ e charge
96	160		on all principal amount s within a specified range. A loan finance
97	161		charge so made does not violate subsection (2 ) of this section if:
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99	162		(a) when applied to the median amount within each range,
100	163		it does not exceed the maximum permitted in subsection
101	164		(2) of this section; and
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103	165		(b) when applied to the lowest amount within each range,
104	166		it does not produce a rate of loan finan ce charge
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105	194		exceeding the rate calculated according to paragraph
106	195		(a) of this subsection by more than eight percent (8%)
107	196		of the rate calculated according to paragraph (a) of
108	197		this subsection.
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110	198		(7) As used in this section, the “federal funds rate” means the
111	199		rate published by the Board of Governors of the Federal Reserve
112	200		System in its statistical release H.15 Selected Interest Rates and
113	201		in effect as of the first day of each m onth immediately preceding
114	202		the month during which the loan is consummated.
115		-
116	203		SECTION 2. This act shall become effective November 1, 2023.
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119		-	ENR. S. B. NO. 794 Page 4
120		-	Passed the Senate the 22nd day of March, 2023.
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122		-
123		-
124		-	Presiding Officer of the Senate
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127		-	Passed the House of Representatives the 17th day of April, 2023.
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129		-
130		-
131		-	Presiding Officer of the House
132		-	of Representatives
133		-
134		-	OFFICE OF THE GOVERNOR
135		-	Received by the Office of the Governor this _______ _____________
136		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
137		-	By: _______________________________ __
138		-	Approved by the Governor of the State of Oklahoma this _____ ____
139		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
140		-
141		-	_________________________________
142		-	Governor of the State of Oklahoma
143		-
144		-
145		-	OFFICE OF THE SECRETARY OF STATE
146		-	Received by the Office of the Secretary of State this _______ ___
147		-	day of __________________, 20 _______, at _______ o'clock _______ M.
148		-	By: _______________________________ __
	205	+	COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
	206	+	PENSIONS, dated 04/03/2023 - DO PASS.