Senate Bill 225 (Vuich – 1983)
Chapter 58, Statutes of 1983 - SB 225
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As enacted, Senate Bill 225 affected various sections of the Financial Code, relating to loans. (See Exhibit #1d) This bill was introduced on January 31, 1983 by Senator Rose Ann Vuich who carried this measure for the Commercial Finance Lenders Association. (See Exhibits #1a and #14, document PE-4)
The bill was heard by the Senate Committee on Banking and Commerce and the Assembly Committee on Finance and Insurance. (See Exhibits #3 and #8) There were two amendments proposed for this measure as it was considered by the Legislature. (See Exhibit #1b and #1c) Senate Bill 225 was approved by the Governor and was designated Chapter 58 of the Statutes of 1983. (See Exhibits #1d and #2)
The Assembly Third Reading analysis of the bill as last amended that was produced by the Assembly Committee on Finance and Insurance explained that the bill affected “laws governing loan interest charged by Personal Property Brokers (PPB’s) and Consumer Finance Lenders (CFL’s).” (See Exhibit #10) This same analysis more specifically described the bill, stating that it:
1) Provides that finance charge restrictions, which now apply to loans under $10,000, will apply to noncommercial loans under $5,000.
2) Requires companies, when they annually report to the Corporations Commissioner, to separate information on loans under $5,000 from loans over $5,000 (rather than $10,000).
3) Modifies provisions relating to maximum loan periods on open end consumer loans to conform to the new loan amount thresholds.
4) Deletes provisions of the PPB, CFL, and Commercial Finance Lenders Laws which state that these laws do not apply to anyone who is a member of any class of person, except PPB’s, CFL’s, or commercial finance lenders, which is exempted from constitutional or statutory interest rate restrictions.
(See Exhibit #10, page 1)