[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 4116 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 4116

  To amend the Federal Deposit Insurance Act, to clarify the scope of 
 provisions relating to applicable rates of interest and other charge 
                              limitations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 8, 2006

Mrs. Lincoln (for herself and Mr. Pryor) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Deposit Insurance Act, to clarify the scope of 
 provisions relating to applicable rates of interest and other charge 
                              limitations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF SCOPE OF APPLICABLE RATE PROVISION.

    Section 44(f) of the Federal Deposit Insurance Act (12 U.S.C. 
1831u(f)) is amended by adding at the end the following new paragraphs:
            ``(3) Other persons.--In the case of any other person in 
        the State described in paragraph (1), the maximum interest rate 
        or amount of interest, discount points, finance charges, fees, 
        or other similar charges that may be charged, taken, received, 
        or reserved from time to time, until judgment, in any loan, 
        discount, or credit sale made, or upon any note, bill of 
        exchange, financing transaction, or other evidence of debt 
        issued to or acquired by any other person may not exceed 17 
        percent per annum, or such lower limit as is imposed by the 
        State legislature.
            ``(4) Other person defined.--For purposes of paragraph (3), 
        the term `other person'--
                    ``(A) means any person engaged in the business of 
                lending, or of selling or financing the sale of 
                personal property (and any servicers incidental to the 
                sale of personal property) in such State, including any 
                person or entity engaged in the business of providing 
                cash advances or loans to any consumer in exchange 
                for--
                            ``(i) a consumer's personal check or share 
                        draft, in the amount of the advance plus a fee, 
                        where presentment or negotiation of such check 
                        or share draft is deferred by agreement of the 
                        parties until a designated future date;
                            ``(ii) a consumer authorization to debit 
                        the consumer's transaction account, in the 
                        amount of the advance plus a fee, where such 
                        account will be debited on or after a 
                        designated future date; or
                            ``(iii) holding title or means of access to 
                        personal property pending repayment of the 
                        obligation; and
                    ``(B) with regard to any person or entity described 
                in paragraph (3), does not include an insured 
                depository institution.''.
                                 <all>