CERTIFICATION
OF ENROLLMENT
SENATE
BILL 6338
Chapter
346, Laws of 2002
57th
Legislature
2002
Regular Session
CONSUMER LOAN ACT--LICENSEE
DISCLOSURES
EFFECTIVE
DATE: 6/13/02
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Passed by the Senate February 19, 2002
YEAS 47 NAYS 0
 BRAD OWEN
President of the Senate
Passed by the House March 6, 2002
YEAS 93 NAYS 0
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CERTIFICATE
I, Tony M. Cook, Secretary of the Senate of the State of Washington,
do hereby certify that the attached is SENATE BILL 6338 as passed by
the Senate and the House of Representatives on the dates hereon set forth.
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FRANK CHOPP
Speaker of the
House of Representatives
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 TONY M. COOK
Secretary
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Approved April 3, 2002 Place Style On Codes
above, and Style Off Codes below.
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FILED
April 3, 2002 - 10:54 a.m.
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GARY LOCKE
Governor of the State of Washington
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Secretary of State
State of Washington
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_______________________________________________
SENATE
BILL 6338
_______________________________________________
Passed
Legislature - 2002 Regular Session
State of Washington 57th
Legislature 2002 Regular Session
By
Read
first time 01/16/2002. Referred to Committee on Labor, Commerce &
Financial Institutions.
Modifying the consumer loan act.
AN
ACT Relating to the consumer loan act; and amending RCW 31.04.102.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
31.04.102 and 2001 c 81 s 9 are each amended to read as follows:
((Within
three business days following receipt of a loan application, a)) (1) For
all loans made by a licensee that are not secured by a lien on real property,
the licensee must make disclosures in compliance with the truth in lending act,
15 U.S.C. Sec. 1601 and regulation Z, 12 C.F.R. Sec. 226, and all other
applicable federal laws and regulations.
(2)
For all loans made by a licensee that are secured by a lien on real property,
the licensee shall provide to each borrower within three business days
following receipt of a loan application a written disclosure containing an
itemized estimation and explanation of all fees and costs that the borrower is
required to pay in connection with obtaining a loan from the licensee. A good
faith estimate of a fee or cost shall be provided if the exact amount of the
fee or cost is not available when the disclosure is provided. Disclosure in a
form which complies with the requirements of the truth in lending act, 15
U.S.C. Sec. 1601 and regulation Z, 12 C.F.R. Sec. 226, the real estate
settlement procedures act and regulation X, 24 C.F.R. Sec. 3500, and all other
applicable federal laws and regulations, as now or hereafter amended, shall be
deemed to constitute compliance with ((the)) this disclosure
requirement((s of this section when it is provided to the borrower within
three days of receipt of a loan application)). Each licensee shall comply
with all other applicable federal and state laws and regulations.
(3)
In addition, for all loans made by the licensee that are secured by a lien on
real property, the licensee must provide to the borrower an estimate of the
annual percentage rate on the loan and a disclosure of whether or not the loan
contains a prepayment penalty within three days of receipt of a loan
application. The annual percentage rate must be calculated in compliance with
the truth in lending act, 15 U.S.C. Sec. 1601 and regulation Z, 12 C.F.R. Sec.
226. If a licensee provides the borrower with a disclosure in compliance with
the requirements of the truth in lending act within three business days of
receipt of a loan application, then the licensee has complied with this
subsection. If the director determines that the federal government has
required a disclosure that substantially meets the objectives of this
subsection, then the director may make a determination by rule that compliance
with this federal disclosure requirement constitutes compliance with this
subsection.
Passed the Senate February 19, 2002.
Passed the House March 6, 2002.
Approved by the Governor
April 3, 2002.
Filed
in Office of Secretary of State April 3, 2002.