74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
SA to A-Eng. HB 2204
 
LC 876/HB 2204-A4
 
                      SENATE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2204
 
                    By COMMITTEE ON COMMERCE
 
                             May 29
 
  On page 1 of the printed A-engrossed bill, line 2, after '
725.340' insert ', 725.600'.
  After line 4, insert:
  '  { +  SECTION 1. + } ORS 725.600 is amended to read:
  ' 725.600. As used in ORS 725.600 to 725.625:
  ' (1) A lender is:
  ' (a) 'In the business of making title loans' if at least 10
percent of all loans made by the lender are title loans.
  ' (b) 'In the business of making payday loans' if at least 10
percent of all loans made by the lender are payday loans.
  ' (2) 'Lender' includes individuals, corporations,
associations, firms, partnerships, limited liability companies
and joint stock companies. 'Lender' does not include a financial
institution or trust company, as those terms are defined in ORS
706.008.
  ' (3)(a) 'Payday loan' means a loan, other than a purchase
money loan:
  ' (A) Made primarily for personal, family or household
purposes;
  ' (B) Made for a period of 60 days or less or for which the
lender may demand repayment within 60 days; and
  ' (C) Usually evidenced by a check or electronic repayment
agreement provided by or on behalf of the borrower.
  ' (b) 'Payday loan' does not include a loan for a period of
more than 60 days, the repayment of which the lender may
accelerate upon a default by the borrower.
  ' (4) 'Title loan' means { + : + }
  '  { +  (a) + } A loan, other than a purchase money loan { + ,
that is + }:
  '  { - (a) - } (A) Secured by the title to a motor vehicle,
recreational vehicle, boat or mobile home;
  ' (B) Made for a period of 60 days or less  { - ; - }
  '  { - (C) - }  with a single payment payback; and
  '  { - (D) - }  { +  (C) + } Made by a lender in the business
of making title loans;   { - or - }
  ' (b)  { + A loan + } that is secured, substantially equivalent
to a title loan as defined in paragraph (a) of this subsection,
and designated as a title loan by rule or order of the Director
of the Department of Consumer and Business Services  { - . - }
 { + ; or + }
  '  { +  (c) A sale-leaseback arrangement between a consumer and
a purchaser for a motor vehicle, recreational vehicle, boat or
mobile home when:
  ' (A) Title and all rights to the vehicle, boat or mobile home
do not transfer from the consumer to the purchaser in a bona fide
sale of the vehicle, boat or mobile home, or the consumer retains
equity in the vehicle, boat or mobile home following the
consumer's sale to the purchaser;
  ' (B) The purchaser and the consumer agree within 60 days of
the consumer's sale of the vehicle, boat or mobile home to the
purchaser that the consumer has an option to or will repurchase
the vehicle, boat or mobile home from the purchaser for a nominal
price or a price other than the market value of the vehicle, boat
or mobile home determined at the time the lease expires;
  ' (C) The purchaser or an agent of the purchaser, during the
term of any lease of the vehicle, boat or mobile home to the
consumer, holds a check, electronic repayment agreement or other
evidence provided by or on behalf of the consumer of the
consumer's agreement to repurchase the vehicle, boat or mobile
home; or
  ' (D) The director by rule or order designates the
sale-leaseback arrangement as a title loan. + } ' .
  In line 5, delete '1' and insert '2'.
  On page 2, line 27, delete '2.' and insert '3.'.
  On page 3, delete lines 38 and 39 and insert:
  '  { +  SECTION 4. + }  { + The amendments to ORS 725.600 and
725.615 by sections 1 and 2 of this 2007 Act apply to title loans
that are made, entered into or renewed on or after July 1,
2007. + } ' .
  In line 40, delete '4' and insert '5'.
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