S-3339.1 _______________________________________________
SENATE BILL 6305
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Senators Sellar, Vognild and McCaslin
Read first time 01/24/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to a national competitive retail credit market; reenacting and amending RCW 63.14.130; and repealing RCW 63.14.135.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 63.14.130 and 1989 c 112 s 1 and 1989 c 14 s 5 are each reenacted and amended to read as follows:
The service charge shall be inclusive of all charges incident to investigating and making the retail installment contract or charge agreement and for the privilege of making the installment payments thereunder and no other fee, expense or charge whatsoever shall be taken, received, reserved or contracted therefor from the buyer.
(1) ((Except
as provided in subsections (2) and (3) of this section,)) The
service charge, in a retail installment contract, shall not exceed the ((highest
of the following:
(a)
A rate on outstanding unpaid balances which exceeds six percentage points above
the average, rounded to the nearest one‑quarter of one percent, of the
equivalent coupon issue yields (as published by the Board of Governors of the
Federal Reserve System) of the bill rates for twenty-six week treasury bills
for the last market auctions conducted during February, May, August, and
November of the year prior to the year in which the retail installment contract
is executed; or
(b)
Ten dollars.
(2)
The service charge in a retail installment contract for the purchase of a motor
vehicle shall not exceed the highest of the following:
(a)
A rate on outstanding unpaid balances which exceeds six percentage points above
the average, rounded to the nearest one‑quarter of one percent, of the
equivalent coupon issue yield (as published by the Board of Governors of the
Federal Reserve System) of the bill rate for twenty-six week treasury bills for
the last market auction conducted during February, May, August, or November, as
the case may be, prior to the quarter in which the retail installment contract
for purchase of the motor vehicle is executed; or
(b)
Ten dollars.
As
used in this subsection, "motor vehicle" means every device capable
of being moved upon a public highway and in, upon, or by which any person or
property is or may be transported or drawn upon a public highway, except for
devices moved by human or animal power or used exclusively upon stationary
rails or tracks.
(3)
The service charge in a retail installment contract for the purchase of a
vessel shall not exceed the highest of the following:
(a)
A rate on outstanding balances which exceeds six percentage points above the
average, rounded to the nearest one‑quarter of one percent, of the
equivalent coupon issue yield, as published by the federal reserve bank of San
Francisco, of the bill rate for twenty-six week treasury bills for the last
market auction conducted prior to the quarter in which the retail installment
contract for purchase of the vessel is expected; or
(b)
Ten dollars.
As
used in this subsection, "vessel" means any watercraft used or
capable of being used as a means of transportation on the water, other than a
seaplane)) dollar amount or rate agreed to by contract and
disclosed under RCW 63.14.040(1)(7)(g).
(((4)))
(2) The service charge in a retail charge agreement, revolving charge
agreement, lender credit card agreement, or charge agreement, shall not exceed
((one and one-half percent per month on the outstanding unpaid balances))
the schedule or rate agreed to by contract and disclosed under RCW
63.14.120(1). If the service charge so computed is less than one dollar
for any month, then one dollar may be charged.
(((5)
A service charge may be computed on the median amount within a range which does
not exceed ten dollars and which is a part of a published schedule of
consecutive ranges applied to an outstanding balance, provided the median
amount is used in computing the service charge for all balances within such
range.))
NEW SECTION. Sec. 2. RCW 63.14.135 and 1989 c 112 s 2, 1988 c 72 s 1, & 1986 c 60 s 2 are each repealed.