HB2746sam001 102ND GENERAL ASSEMBLY

Sen. Scott M. Bennett

Filed: 5/11/2021

10200HB2746sam001 LRB102 14627 JLS 26262 a

AMENDMENT TO HOUSE BILL 2746

AMENDMENT NO. ______. Amend House Bill 2746 as follows:

on page 1, by inserting immediately below line 6 the following:

"Annual percentage rate" means the percentage rate calculated according to the Federal Reserve Board's methodology as set forth under Regulation Z, 12 CFR Part 1026."; and

on page 1, by replacing lines 13 through 23 with the following:

"(1) a person that provides money, payments, or credits to or on behalf of a borrower pursuant to the terms of an income share agreement; or

(2) any other person engaged in the business of soliciting, making, funding, or extending income share agreements."; and

on page 2, by deleting lines 1 through 5; and

on page 5, line 21, by replacing "student" with "education"; and

On page 6, line 1, by replacing "education" with "educational"; and

On page 6, line 5, by replacing "education" with "educational"; and

On page 6, line 11, by replacing "education" with "educational"; and

On page 6, line 14, by replacing "education" with "educational"; and

on page 6, line 17, by replacing "education" with "educational"; and

on page 6, by inserting immediately below line 17 the following:

"(f) Annual report exemption. A private educational lender that funds 10 or fewer new private education loans in a calendar year shall be exempt from submitting the annual report for that year. Any lender claiming this exemption shall submit a statement to the Department of Financial and Professional Regulation and the Student Loan Ombudsman certifying the number of private education loans made in that calendar year."; and

on page 6, by inserting immediately below line 25 the following:

"(2) Contents of statements for income share agreements. Each statement described in subparagraph (1) with respect to income share agreements, shall:

(A) report the consumer's total amounts financed under each income share agreement;

(B) report the percentage of income payable under each income share agreement;

(C) report the maximum number of monthly payments required to be paid under each income share agreement;

(D) report the maximum amount payable under each income share agreement;

(E) report the maximum duration of each income share agreement;

(F) report the minimum annual income above which payments are required under each income share agreement; and

(G) report the annual percentage rate for each income share agreement at the minimum annual income above which payments are required and at $10,000 income increments thereafter up to the annual income where the maximum number of monthly payments results in the maximum amount payable."; and

on page 7, by replacing lines 1 through 2 with the following:

"(3) Contents of all other loan statements. Each statement described in subparagraph (1) that does not fall under subparagraph (2) shall:"; and

on page 7, line 8, by replacing "interest" with "annual percentage"; and

on page 7, line 10, by replacing "student" with "educational"; and

on page 8, line 23, by replacing "accordingly; and" with "accordingly;"; and

on page 9, line 23, by replacing "period." with "period; and"; and

on page 9, by inserting immediately below line 23 the following:

"(3) Any institution of higher education that is also acting as a private educational lender shall provide the certification of exhaustion of federal student loan funds described in paragraphs (1) and (2) of this subsection (c) to the borrower prior to disbursing funds to the borrower. Any institution of higher education that is not eligible for funding under Title IV of the federal Higher Education Act of 1965 is not required to provide this certification to the borrower.".