Sec. 1. 9-A MRSA §1-202, sub-§7, as amended by PL 1987, c. 129, §10, is further amended to read:

7. A loan or consumer credit sale made exclusively for the purpose of deferring or financing educational expenses and on which the finance charge does not exceed that rate per year on the unpaid balances of the amount financed, as shall be established by federal law, or, for loans or consumer credit sales for which federal law does not establish a rate, the highest rate established for educational loans under any federal program and which is insured, guaranteed, subsidized or made directly by the Federal Government, a state, a nonprofit private loan guaranty or organization, by the educational institution itself or through an endowment or trust fund affiliated with such an institution; or

Sec. 2. 9-A MRSA §1-202, sub-§8, śC, as amended by PL 1987, c. 396, §2, is further amended to read:

C. With respect to a creditor other than a supervised financial organization, the exemption provided by this subsection shall apply applies to articles II Articles 2, III 3, IV 4 and V 5 only.; or

Sec. 3. 9-A MRSA §1-202, sub-§10 is enacted to read:

10.__A no-interest credit sale by any affiliate of an international nonprofit housing organization that builds and renovates affordable housing that is sold for no profit to the organization.__The exclusion in this subsection does not apply to Article 6, Part 1 or section 6-201, section 6-202, section 6-203, subsection 1 or section 6-204 or Article 8.

SUMMARY

This bill adds a provision to the Maine Consumer Credit Code concerning no-interest credit sales by any affiliate of an international nonprofit housing organization that builds and renovates affordable housing that is sold for no profit to the organization to clarify that, other than the truth-in-lending provisions of Article 8 and certain administration provisions of Article 6, the Maine Consumer Credit Code does not apply to those sales.