II 109th CONGRESS 2d Session S. 4116 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.

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. .