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| 1 | AMENDMENT TO HOUSE BILL 537
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| 2 | AMENDMENT NO. ______. Amend House Bill 537, AS AMENDED, | ||||||
| 3 | with reference to page and line numbers of Senate Amendment No. | ||||||
| 4 | 2, as follows: | ||||||
| 5 | on page 4, line 25, by replacing "financial institution" with | ||||||
| 6 | "licensee"; and | ||||||
| 7 | on page 28, by replacing lines 2 through 11 with the following: | ||||||
| 8 | "No loan shall be made to a consumer who has an outstanding | ||||||
| 9 | balance on 2 payday loans, except that, for a period of 12 | ||||||
| 10 | months after the effective date of this amendatory Act of the | ||||||
| 11 | 96th General Assembly, consumers with an existing CILA loan may | ||||||
| 12 | be issued an installment loan issued under this Act from the | ||||||
| 13 | company from which their CILA loan was issued. | ||||||
| 14 | (e-5) No lender may charge more than $15.50 per $100 loaned | ||||||
| 15 | on
any payday loan, or more than $15.50 per $100 on the initial | ||||||
| 16 | principal balance and on the principal balances scheduled to be | ||||||
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| 1 | outstanding during any installment period on any installment | ||||||
| 2 | payday loan over the term of the loan. Except for installment | ||||||
| 3 | payday loans and except as
provided in Section 2-25, this | ||||||
| 4 | charge is considered fully
earned as of the date on which the | ||||||
| 5 | loan is made. For purposes of determining the finance charge | ||||||
| 6 | earned on an installment payday loan, the disclosed annual | ||||||
| 7 | percentage rate shall be applied to the principal balances | ||||||
| 8 | outstanding from time to time until the loan is paid in full, | ||||||
| 9 | or until the maturity date, which ever occurs first. No finance | ||||||
| 10 | charge may be imposed after the final scheduled maturity date. | ||||||
| 11 | When any loan contract is paid in full, the licensee shall | ||||||
| 12 | refund any unearned finance charge. The unearned finance charge | ||||||
| 13 | that is refunded shall be calculated based on a method that is | ||||||
| 14 | at least as favorable to the consumer as the actuarial method, | ||||||
| 15 | as defined by the federal Truth in Lending Act. The sum of the | ||||||
| 16 | digits or rule of 78ths method of calculating prepaid interest | ||||||
| 17 | refunds is prohibited.".
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