S-1431               _______________________________________________

                                                   SENATE BILL NO. 4113

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators McDermott, Sellar and Johnson

Read first time 2/8/85 and referred to Committee on Financial Institutions.

AN ACT Relating to credit card interest; and adding a new section to chapter 19.52 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 19.52 RCW to read as follows:

          Notwithstanding RCW 19.52.020, a financial institution in this state may charge a rate of interest on the unpaid balance of a financial institution credit card which is not greater than the interest rate that may be charged on unpaid balances of financial institution credit cards issued by any financial institution located within or without this state that issues such cards to persons residing within this state.  A financial institution credit card is a card or device issued under an arrangement pursuant to which the issuing financial institution gives to a card holder residing in this state the privilege of obtaining credit from the issuer or other persons in purchasing or leasing property or services, obtaining loans, or otherwise, and the issuer of which is not principally engaged in the business of selling goods.

          "Financial institution" means any bank or trust company, mutual savings bank, credit union, or savings and loan association organized pursuant to the laws of one of the United States of America or the United States of America, or the laws of a foreign country if also qualified to conduct business in any one of the United States of America, or pursuant to the laws of the United States of America.