Bill Text: VA HB1124 | 2016 | Regular Session | Prefiled
Bill Title: Consumer finance companies; regulation of companies.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2016-02-09 - Stricken from docket by Commerce and Labor by voice vote [HB1124 Detail]
Download: Virginia-2016-HB1124-Prefiled.html
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16103910D Be it enacted by the General Assembly of Virginia: 1. That §§6.2-1502, 6.2-1507, 6.2-1517, 6.2-1519, 6.2-1526 through 6.2-1529, and 6.2-1531 of the Code of Virginia are amended and reenacted as follows: §6.2-1502. Certain persons ineligible as licensees; exception for subsidiaries; applicability to certain persons. A. No person doing business under the authority of any law of the Commonwealth or of the United States relating to banks, savings institutions, trust companies, building and loan associations, industrial loan associations, or credit unions shall be eligible for licensure under this chapter. B. Nothing contained in subsection A or any other section of this title shall be construed to prevent a subsidiary of a bank or savings institution from becoming a licensee under this chapter. A licensee that is a subsidiary or affiliate of a bank or savings institution shall be governed by the provisions of this chapter, and all regulations adopted hereunder, as fully as if such licensee were not such a subsidiary or affiliate. C. The provisions of § 6.2-1501 shall not apply to any person who (i) does not maintain a physical presence in the Commonwealth and (ii) does not elect to become licensed under this chapter. Electing to become licensed under this chapter shall constitute a waiver of the benefit of any and all laws of the Commonwealth and other states that are inconsistent with the provisions of this chapter. §6.2-1507. Issuance of license. A. The Commission shall issue and deliver to the applicant a
license to make loans in accordance with the provisions of this chapter at the
location 1. That the financial responsibility, experience, character and general fitness of the applicant and its members, senior officers, directors, and principals are such as to command the confidence of the public and to warrant belief that this business will be operated lawfully, honestly, fairly and efficiently within the purpose of this chapter; 2. That the applicant has available, for the operation of the business at the specified location, liquid assets of at least $50,000 if the specified location is in a locality with a population of more than 20,000, or of at least $25,000 if the location is not in a locality with a population of more than 20,000; and 3. That the applicant has complied with all of the prerequisites to obtaining the license prescribed by §6.2-1505. If the Commission fails to make the findings required by subdivisions 1, 2, and 3, it shall deny the application for a license. B. Notwithstanding the provisions of subsection A, if the
applicant has an existing license at another location 1. That the general fitness of the licensee is such as to command the confidence of the public and to warrant belief that this business will be operated lawfully, honestly, fairly and efficiently within the purpose of this chapter; and 2. That the applicant has complied with all of the prerequisites to obtaining the license prescribed by §6.2-1505. If the Commission fails to make the findings required by subdivisions 1 and 2, it shall deny the application for a license. C. If the Commission denies an application for a license, it shall notify the applicant of the denial. The Commission shall retain the application fee. §6.2-1517. Place of business generally. A. Not more than one place of business shall be maintained under the same license. B. The Commission may issue more than one license to the same licensee upon compliance, as to each additional license, with all applicable provisions of this chapter governing issuance of a single license. C. No licensee shall conduct the business of making loans provided for by this chapter under any other name or at any place of business within or outside the Commonwealth other than as designated in the license. §6.2-1519. Changing place of business. A. A licensee may change its place of business to a different
location 1. Within the original locality; 2. From the original locality to a location in a contiguous locality; or 3. Approved by the Commission. B. A licensee shall notify the Commission of a change in the
place of business that meets the criterion set forth
in subdivision A 1 or 2 within 10 days of such relocation.
Upon receipt of the notification, the Commission shall issue and deliver to the
licensee an amended license covering the new location if it finds that the
change in the place of business meets C. Applications for approval under subdivision A 3 shall be made in writing on a form provided by the Commissioner and shall be accompanied by payment of a $250 nonrefundable application fee. The application shall be approved unless the Commission finds that the applicant does not have the required liquid assets or has not conducted business under this chapter efficiently, fairly, in the public interest, and in accordance with law. The application shall be deemed approved if notice to the contrary has not been mailed by the Commission to the applicant within 30 days of the date the application is received by the Commission. After approval, the applicant shall give written notice to the Commissioner within 10 days of the commencement of business at the relocated place of business. §6.2-1526. Wage assignments. A. A valid assignment or order for the payment of future salary, wages, commissions, or other compensation for services may be given as security for a loan made by any licensee, notwithstanding the provisions of any other law to the contrary. B. No assignment of, or order for payment of, any salary,
wages, commissions, or other compensation for services, earned or to be earned,
given to secure any loan made by any licensee shall be valid unless
C. Under the assignment or order, an amount equal to not more than 10 percent of the borrower's salary, wages, commissions, or other compensation for services shall be collectible from the employer of the borrower by the licensee at the time of each payment to the borrower of the salary, wages, commission, or other compensation for services, from the time that a copy of the assignment, verified by the oath of the licensee or his agent, together with a similarly verified statement of the amount unpaid upon the loan and a printed copy of this section, is served upon the employer. §6.2-1527. Liens on household furniture. No chattel mortgage or other lien on household furniture then
in the possession and use of the borrower given to secure any loan made by a
licensee shall be valid unless it is in writing, signed §6.2-1528. Exemptions unimpaired. A. Nothing in this chapter shall have the effect of impairing any rights on the part of anyone as to exemptions under the poor debtors law or under any other applicable exemption law now in effect or hereafter enacted. B. The provisions of §6.2-1529. Collection of loans made outside Commonwealth. A. No loan made outside the Commonwealth for which greater rates of interest, consideration or charges than are permitted by the law applicable to such loan in the state in which the loan was made, have been charged, contracted for, or received shall be collected in the Commonwealth. Every person in any way participating in an effort to enforce the collection of such loan in the Commonwealth shall be subject to the provisions of this chapter. B. This section shall not apply to loans that are made by licensees in accordance with the provisions of this chapter. §6.2-1531. Examination. The Commission shall, as often as it deems to be in the public
interest, examine the affairs, business, office, and records of each licensee
that pertain to any business licensed under this chapter. Such examination
shall be conducted at least once in every three-year period. The licensee shall
furnish promptly by mail or otherwise such facts and statements in connection
with its business |
