74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
SA to A-Eng. HB 2203 (A to RC)
 
LC 873/HB 2203-A8
 
                      SENATE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2203
           (INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
 
                    By COMMITTEE ON COMMERCE
 
                             May 30
 
  On page 2 of the printed A-engrossed bill, delete lines 17
through 19 and insert:
  ' (2) The provisions of ORS 725.600 to 725.625 do not prevent a
lender from recovering amounts associated with the collection of
a defaulted loan that are authorized by statute or awarded by a
court of law.
  '  { +  SECTION 2a. + }  { + If House Bill 2204 becomes law,
section 2 of this 2007 Act (amending ORS 725.615) is repealed and
ORS 725.615, as amended by section 2, chapter ___, Oregon Laws
2007 (Enrolled House Bill 2204), is amended to read: + }
  ' 725.615. (1) A lender in the business of making title loans
may not:
  ' (a) Make or renew a title loan at a rate of interest that
exceeds 36 percent per annum, excluding a one-time origination
fee for a new loan;
  ' (b) Charge an origination fee for a new title loan of more
than $10 for each $100 of the amount of the loan;
  ' (c) Make or renew a title loan for a term of less than 31
days;
  ' (d) Charge a consumer any fee or interest other than a fee or
interest described in paragraph (a)   { - or - }  { + , + }
(b) { +  or (e) + } of this subsection or in subsection (2) of
this section;
  '  { +  (e) Charge the consumer more than the actual amount
that the vendor or service provider charges the lender for access
to or use of the system described in section 5 of this 2007
Act; + }
  '  { - (e) - }  { +  (f) + } Include any of the following
provisions in a title loan contract:
  ' (A) A hold-harmless clause;
  ' (B) A confession of judgment or other waiver of the right to
notice and the opportunity to be heard in an action;
  ' (C) An agreement by the consumer not to assert any claim or
defense arising out of the contract against the lender or any
holder in due course;
  ' (D) An executory waiver or a limitation of exemption from
attachment, execution or other process on real or personal
property held by, owned by or due to the consumer, unless the
waiver or limitation applies only to property subject to a
security interest executed in connection with the loan; or
  ' (E) A clause permitting the continuation of interest after
repossession of the consumer's motor vehicle, recreational
vehicle, boat or mobile home;
  '  { - (f) - }  { +  (g) + } Conduct a title loan business
where liquor or lottery tickets are sold or where gambling
devices are located;
  '  { - (g) - }  { +  (h) + } Require or accept from a consumer
a set of keys to the motor vehicle, recreational vehicle, boat or
mobile home whose title secures the title loan;
  '  { - (h) - }  { +  (i) + } Make more than one outstanding
loan that is secured by one title;
  '  { - (i) - }  { +  (j) + } Renew an existing loan that is
secured by one title more than two times after the loan is first
made; or
  '  { - (j) - }  { +  (k) + } Make a new title loan to a
consumer within seven days of the date on which a previous title
loan expires.
  ' (2)(a) A lender in the business of making title loans may not
charge the consumer more than one fee per loan transaction for
dishonored checks or insufficient funds, regardless of how many
checks or debit agreements the lender obtains from the consumer
for the transaction. The fee may not exceed $20.
  ' (b) A lender in the business of making title loans may not
collect a fee for a dishonored check under ORS 30.701 or seek or
recover statutory damages and attorney fees from a consumer for a
dishonored check under ORS 30.701. The lender may recover from
the consumer any fee charged to the lender by an unaffiliated
financial institution for each dishonored check. For a dishonored
check or insufficient funds, the fees described in this
subsection are the only remedy a lender may pursue and the only
fees a lender may charge.
  '  { +  (3) The provisions of ORS 725.600 to 725.625 do not
prevent a lender from recovering amounts associated with the
collection of a defaulted loan that are authorized by statute or
awarded by a court of law. + } ' .
  On page 3, delete lines 11 through 13 and insert:
  ' (3) The provisions of ORS 725.600 to 725.625 do not prevent a
lender from recovering amounts associated with the collection of
a defaulted loan that are authorized by statute or awarded by a
court of law.'.
  In line 28, delete 'shall' and insert 'may'.
  In line 33, delete the first 'shall' and insert 'may'.
  In line 44, after '(4)' insert 'If the system described in
subsection (1) of this section is developed and implemented,'.
  On page 4, after line 33, insert:
  '  { +  SECTION 8a. + } If House Bill 2204 becomes law, section
8 of this 2007 Act is amended to read:
  '  { +  Sec. 8. + } (1) Sections 4 and 6 of this 2007 Act and
the amendments to ORS 725.370 by section 1 of this 2007 Act apply
to loans made or renewed on or after the operative date specified
in section 10 of this 2007 Act.
  ' (2) Section 5 of this 2007 Act and the amendments to ORS
725.615 and 725.622 by sections   { - 2 - }  { +  2a + } and 3 of
this 2007 Act apply to loans made or renewed on or after the
operative date specified in section 11 of this 2007 Act.'.
  On page 5, after line 2, insert:
  '  { +  SECTION 11a. + } If House Bill 2204 becomes law,
section 11 of this 2007 Act is amended to read:
  '  { +  Sec. 11. + } Section 5 of this 2007 Act and the
amendments to ORS 725.615 and 725.622 by sections   { - 2 - }
 { +  2a + } and 3 of this 2007 Act become operative January 1,
2008.'.
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