Bill Text: MO HB1876 | 2010 | Regular Session | Introduced

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Bill Title: Prohibits lenders from imposing a fine, fee, or penalty for prepaying a loan and repeals the provision allowing a prepayment fee to be charged on a second mortgage loan

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-05-14 - Referred: Financial Institutions (H) [HB1876 Detail]

Download: Missouri-2010-HB1876-Introduced.html

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SECOND REGULAR SESSION

HOUSE BILL NO. 1876

95TH GENERAL ASSEMBLY

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INTRODUCED BY REPRESENTATIVES OXFORD (Sponsor), ATKINS, WALTON GRAY, PACE, LOW, NASHEED, MORRIS, SCHIEFFER, LAMPE, NEWMAN, NORR, CURLS, SCHUPP AND FALLERT (Co-sponsors).

3487L.01I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk

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AN ACT

To repeal section 408.241, RSMo, and to enact in lieu thereof one new section relating to prepayment loan penalties.

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Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Section 408.241, RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 408.800, to read as follows:

            408.800. Notwithstanding any law to the contrary, no lender shall impose a fine, fee, or penalty for the prepayment on any loan issued in this state. As used in this section, "lender" includes any bank, savings and loan association, credit union, corporation, partnership, or any other person or entity who makes loans.

[408.241. Notwithstanding the provisions of sections 408.233 and 408.234, a prepayment fee may be charged on second mortgage loans, as defined in section 408.231, under the same provisions as is allowed under section 408.036.]

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