Sec. B-1. 9-A MRSA §1-106, as amended by PL 1985, c. 819, Pt. A, §9, is repealed.
Sec. B-2. 9-A MRSA §1-301, sub-§14, ¶A, as amended by PL 1987, c. 396, §6, is further amended to read:
A. Except as provided in paragraph B, a "consumer loan" is a loan made by a person regularly engaged in the business of making loans in which:
(i) the debtor is a person other than an organization;
(ii) the debt is incurred primarily for a personal, family or household purpose;
(iii) either the debt is payable in instalments installments or a finance charge is made; and
(iv) either the amount financed does not exceed $25,000 or the debt is secured by manufactured housing or an interest in land. for loans made by:
(a) A supervised financial organization, either the amount financed does not exceed $25,000 or the debt is secured by manufactured housing or an interest in land; or
(b) A supervised lender other than a supervised financial organization, either the amount financed does not exceed $35,000 or the debt is secured by manufactured housing or an interest in land.
Sec. B-3. 9-A MRSA §2-201, sub-§2, ¶A, as amended by PL 1985, c. 763, §21, is further amended to read:
A. The total of:
(i) 30% per year on that part of the unpaid balances of the amount financed which that is $700 $1,000 or less;
(ii) 21% per year on that part of the unpaid balances of the amount financed which that is more than $700 $1,000 but does not exceed $2,000 $2,800; and
(iii) 15% per year on that part of the unpaid balances of the amount financed which that is more than $2,000 $2,800; or
Sec. B-4. 9-A MRSA §2-201, sub-§8, as amended by PL 1985, c. 763, Pt. A, §23, is repealed.
Sec. B-5. 9-A MRSA §2-302, sub-§2, ¶A, as amended by PL 1987, c. 129, §34, is further amended to read:
A. Every applicant shall also, at the time of filing such application, file with the administrator, if he the administrator so requires, a bond satisfactory to the administrator in an amount not to exceed $25,000. The terms of the bond must run concurrent with the period of time during which the license will be in effect. The bond shall must run to the State for the use of the State and of any person or persons who may have a cause of action against the licensee under this Act. The bond shall must be conditional that the licensee will faithfully conform to and abide by the provisions of this Act and to all rules and regulations lawfully made by the administrator hereunder and will pay to the State and to any such person or persons any and all amounts of money that may become due or owing to the State or to such person or persons from the licensee under and by virtue of this Act during the period for which the bond is given;
Sec. B-6. 9-A MRSA §2-307, sub-§2, as amended by PL 1985, c. 763, Pt. A, §27, is further amended to read:
2. With respect to a supervised loan in which the amount financed is $2,000 $2,800 or less, a lender may not take a security interest in the principal residence of the consumer. This subsection does not apply when the lender holds a first mortgage on the residence at the time the loan is made or when the loan is made pursuant to an open-end credit plan involving a commitment to advance amounts in excess of $2,000 $2,800. Notwithstanding Title 14, no judgment of foreclosure of a mortgage upon the principal residence of a consumer may be entered on account of the consumer's failure to repay supervised loans under an open-end credit plan, unless the consumer's outstanding balance described in section 8-205, subsection 2, paragraph I, has at some time exceeded $2,000 $2,800 and the consumer has not paid the account in full subsequent to the date of the last periodic statement showing an outstanding balance in excess of $2,000 $2,800.
Sec. B-7. 9-A MRSA §2-307, sub-§3, as amended by PL 1985, c. 763, Pt. A, §28, is repealed.
Sec. B-8. 9-A MRSA §2-308, sub-§1, as amended by PL 1985, c. 819, Pt. A, §11, is further amended to read:
1. Except as provided in section 3-308, supervised loans, not made pursuant to open-end credit and in which the amount financed is $700 $1,000 or less and the principal of which is payable in more than a single payment, shall must be scheduled to be payable in substantially equal installments at equal periodic intervals except to the extent that the schedule of payments is adjusted to the seasonal or irregular income of the debtor and over a period of not more than 25 months.
Sec. B-9. 9-A MRSA §2-308, sub-§2, as amended by PL 1985, c. 763, Pt. A, §30, is repealed.
Sec. B-10. 9-A MRSA §2-401, sub-§2, as repealed and replaced by PL 1987, c. 129, §39, is amended to read:
2. With respect to a consumer loan, other than a loan pursuant to open-end credit, a lender may contract for and receive a finance charge calculated according to the actuarial method, not exceeding the equivalent of the greater of either of the following:
A. The total of:
(i) 30% per year on that part of the unpaid balances of the amount financed which that is $700 $2,000 or less;
(ii) 21% 24% per year on that part of the unpaid balances of the amount financed which that is more than $700 $2,000 but does not exceed $2,000 $4,000; and
(iii) 15% 18% per year on that part of the unpaid balances of the amount financed which that is more than $2,000; or $4,000.
B. 18% per year on the unpaid balances of the amount financed.
Notwithstanding paragraph A, with respect to a consumer loan in which the amount financed exceeds $8,000, a lender may not contract for and receive a finance charge calculated according to the actuarial method in excess of 18% per year on the entire amount of the loan.
Sec. B-11. 9-A MRSA §2-401, sub-§6, as amended by PL 1985, c. 763, Pt. A, §32, is repealed.
Sec. B-12. 9-A MRSA §2-502, sub-§5, as amended by PL 1985, c. 763, Pt. A, §35, is repealed.
Sec. B-13. 9-A MRSA §3-301, sub-§1, as amended by PL 1985, c. 763, Pt. A, §36, is further amended to read:
1. With respect to a consumer credit sale, a seller may take a security interest in the property sold. In addition, a seller may take a security interest in goods upon which services are performed or in which goods sold are installed or to which they are annexed, or in land to which the goods are affixed or which is maintained, repaired or improved as a result of the sale of the goods or services, if in the case of a security interest in land the debt secured is $2,000 $2,800 or more, or, in the case of a security interest in goods, the debt secured is $700 $1,000 or more. Except as provided with respect to cross-collateral, section 3-302, a seller may not otherwise take a security interest in property of the buyer to secure the debt arising from a consumer credit sale.
Sec. B-14. 9-A MRSA §3-301, sub-§4, as amended by PL 1985, c. 763, Pt. A, §37, is repealed.
Sec. B-15. 9-A MRSA §4-301, sub-§3, as amended by PL 1985, c. 763, Pt. A, §40, is further amended to read:
3. With respect to a transaction, except pursuant to open-end credit, a creditor may not contract for or receive a separate charge for insurance against loss of or damage to property, unless the amount financed exclusive of charges for the insurance is $1,000 $1,400 or more and the cash price of the item or property is $1,000 $1,400 or more.
Sec. B-16. 9-A MRSA §4-301, sub-§5, as amended by PL 1985, c. 763, Pt. A, §40, is repealed.
Sec. B-17. 9-A MRSA §5-103, sub-§2, as amended by PL 1985, c. 763, Pt. A, §41, is further amended to read:
2. If a creditor takes possession of or voluntarily accepts surrender of goods in which he that creditor has a security interest to secure a debt and the amount financed is $2,000 $2,800 or less, the consumer and any sureties are not personally liable to the creditor for the unpaid balance of the debt.
Sec. B-18. 9-A MRSA §5-103, sub-§6, as amended by PL 1985, c. 763, Pt. A, §41, is repealed.
Sec. B-19. 9-A MRSA §6-106, sub-§6, as enacted by PL 1987, c. 129, §67, is amended to read:
6. The expenses of the administrator necessarily incurred in the examination or investigation of any person engaged in conduct governed by this Act shall must be chargeable to that person. The expenses of the administrator incurred in the examination of supervised financial organizations must be assessed in accordance with the provisions of Title 9-B, section 214, subsection 1. That With respect to any other person, that person shall must be assessed for the actual expenses incurred by the administrator, including, but not necessarily limited to, travel expenses and the proportionate part of the salaries and expenses of examiners engaged in the examination or investigation. Notwithstanding this subsection, for a person other than a supervised financial organization, the administrator may adjust the examination assessments to make more equitable travel-related costs that result from a creditor's location in this State. Notice of the assessment of those costs shall must be given to the person by the administrator as soon as feasible after the close of the examination or investigation and the person shall must have the time specified by the administrator to pay the assessment, which may not be less than 30 days.
Sec. B-20. 9-A MRSA §6-201, as amended by PL 1989, c. 70, §2, is further amended to read:
This Part applies to a person engaged in this State in entering into consumer credit transactions and to a person having an office or place of business in this State who takes assignments of and undertakes direct collection of payments from or enforcement of rights against debtors arising from these transactions. In addition, this Part applies to a person, wherever
located, who takes assignments of and undertakes direct collection of payments from or enforcement of rights against debtors arising from a consumer credit sale of a motor vehicle subject to this Title.
Sec. B-21. 9-A MRSA §10-202, as enacted by PL 1989, c. 70, §3, is amended to read:
Each application shall must be accompanied by evidence of a surety bond, in a form approved by the administrator in the aggregate amount of $10,000, to run to the State for use by the State and any person or persons who may have a cause of action against a credit services organization. The terms of the bond must run concurrent with the period of time during which the license will be in effect.
Sec. B-22. 32 MRSA §11032, as enacted by PL 1985, c. 702, §2, is amended to read:
The superintendent administrator shall require each licensee to file and maintain in force a surety bond, in a form prescribed by the superintendent and acceptable to him, the administrator and in such sum as he the administrator may deem reasonably necessary, to safeguard the interests of the public. The terms of the bond must run concurrent with the period of time during which the license will be in effect. The bond may be cancelled by the surety on the bond by giving 30 days' notice to the superintendent administrator, but the cancellation shall may not in any manner affect the liability of the surety as to anything occurring prior to the cancellation.
Sec. B-23. 32 MRSA §11036, sub-§1, as enacted by PL 1985, c. 702, §2, is amended to read:
1. Financial statements. The superintendent administrator may at any time require a licensee to submit to the bureau a verified financial statement such financial statements as determined necessary for examination by the superintendent administrator so that he the administrator may determine whether or not the licensee is financially responsible to carry on a debt collector's business.
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