H-3611.1 _______________________________________________
HOUSE BILL 2349
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State of Washington 56th Legislature 2000 Regular Session
By Representatives Sullivan, O'Brien, McDonald, Kastama, Carrell, Miloscia, Lantz, Kenney, Edmonds, Clements, Wolfe, Conway, Hurst, Kessler and Santos
Read first time 01/11/2000. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to check cashers and sellers; and amending RCW 31.45.073.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 31.45.073 and 1995 c 18 s 2 are each amended to read as follows:
(1) No licensee may engage in the business of making small loans without first obtaining a small loan endorsement to its license from the director in accordance with this chapter. An endorsement will be required for each location where a licensee engages in the business of making small loans, but a small loan endorsement may authorize a licensee to make small loans at a location different than the licensed locations where it cashes or sells checks or drafts. A licensee may have more than one endorsement.
(2)(a) A licensee that has obtained the required small loan endorsement may charge interest or fees for small loans not to exceed in the aggregate fifteen percent of the principal amount borrowed. The licensee shall disclose the amount charged under this subsection in writing as an annual percentage rate no later than the time the small loan is made. The director may determine by rule which fees, if any, are not subject to the fifteen percent limitation. In addition, the director may adopt rules for disclosing the annual percentage rate under this subsection (2)(a), and shall adopt rules for disclosing the annual percentage rate under (b) of this subsection for consistency throughout the industry.
(b) A licensee shall disclose the annual percentage rate of a typical small loan in all advertising.
(3) In connection with making a small loan, a licensee may advance moneys on the security of a postdated check or draft provided the time period between the date the loan is granted and the date of the postdated check does not exceed thirty-one days. A licensee shall deposit all postdated checks or drafts as soon as practicable after the date of the check or draft has passed.
(4) No person may at any time cash or advance any moneys on a postdated check or draft in excess of the amount of goods or services purchased without first obtaining a small loan endorsement to a check casher or check seller license.
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