CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 5406

                        54th Legislature

                      1995 Regular Session

Passed by the Senate April 19, 1995   YEAS 41   NAYS 3 President of the Senate Passed by the House April 4, 1995   YEAS 94   NAYS 2

CERTIFICATE I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 5406 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the       House of Representatives

Secretary

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                   State of Washington

                  _______________________________________________

                            SUBSTITUTE SENATE BILL 5406

                  _______________________________________________

                              AS AMENDED BY THE HOUSE

                     Passed Legislature - 1995 Regular Session

State of Washington              54th Legislature             1995 Regular Session

By Senate Committee on Financial Institutions & Housing (originally sponsored by Senators Prentice, Sellar and C. Anderson)

Read first time 02/23/95.

Continuing market interest rates for consumer credit transactions.

     AN ACT Relating to continuing market interest rates for consumer credit transactions; adding a new section to chapter 63.14 RCW; creating new sections; repealing RCW 63.14.135; repealing 1992 c 193 s 4 (uncodified); and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The following acts or parts of acts are each repealed:

(1) 1992 c 193 s 4 (uncodified); and

(2) RCW 63.14.135 and 1992 c 193 s 2, 1989 c 112 s 2, 1988 c 72 s 1, & 1986 c 60 s 2.

NEW SECTION. Sec. 2.  This act applies prospectively only and not retroactively.  It applies only to retail installment transactions entered into on or after the effective date of this act.

NEW SECTION. Sec. 3.  The repeals in section 1 of this act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the statutes repealed or under any rule or order adopted pursuant to those statutes; nor as affecting any proceeding instituted under them.

NEW SECTION. Sec.  4.  A new section is added to chapter 63.14 RCW to read as follows:

     (1) With respect to a retail installment transaction, as defined in RCW 63.14.010(8), if the court as a matter of law finds the agreement or contract, or any clause in the agreement or contract, to have been unconscionable at the time it was made, the court may refuse to enforce the agreement or contract, may enforce the remainder of the agreement or contract, or may limit the application of any unconscionable clause to avoid an unconscionable result.

     (2) If it is claimed or it appears to the court that the agreement or contract, or any clause in the agreement or contract, may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to assist the court in making a determination regarding unconscionability.

     (3) For the purpose of this section, a charge or practice expressly permitted by this chapter is not in itself unconscionable.

NEW SECTION. Sec. 5.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

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