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ENGROSSED SENATE BILL NO. 3415
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AS AMENDED BY THE HOUSE
C 224 L 85
State of Washington 49th Legislature 1985 Regular Session
By Senators Bender, McDermott, Warnke, Sellar, Newhouse, Moore and Bottiger
Read first time 1/29/85 and referred to Committee on Financial Institutions.
AN ACT Relating to authorization of adjustable interest rates not exceeding the higher of twelve percent per annum or four percentage points above the equivalent coupon issue yield; amending RCW 19.52.020; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 2, chapter 80, Laws of 1899 as last amended by section 1, chapter 78, Laws of 1981 and RCW 19.52.020 are each amended to read as follows:
(1)
Any rate of interest ((not exceeding)) shall be legal so long as the
rate of interest does not exceed the higher of: (a) Twelve percent
per annum; or (b) four percentage points above the equivalent
coupon issue yield (as published by the Federal Reserve Bank of San Francisco)
of the average bill rate for twenty-six week treasury bills as determined at
the first bill market auction conducted during the ((preceding))
calendar month((, agreed to in writing by the parties to the contract, shall
be legal, and)) immediately preceding the later of (i) the establishment
of the interest rate by written agreement of the parties to the contract, or
(ii) any adjustment in the interest rate in the case of a written agreement
permitting an adjustment in the interest rate. No person shall directly or
indirectly take or receive in money, goods, or things in action, or in any
other way, any greater interest for the loan or forbearance of any money,
goods, or things in action((: PROVIDED, That)).
(2)(a) In
any loan of money in which the funds advanced do not exceed the sum of five
hundred dollars, a setup charge may be charged and collected by the lender, and
such setup charge shall not be considered interest hereunder((: PROVIDED
FURTHER, That such)).
(b) The
setup charge ((does)) shall not exceed four percent of the amount
of funds advanced, or fifteen dollars, whichever is the lesser, except that on
loans of under one hundred dollars a minimum not exceeding four dollars may be
so charged.
(3)
Any loan made pursuant to a commitment to lend at an interest rate permitted at
the time the commitment is made shall not be usurious. Credit extended
pursuant to an open-end credit agreement upon which interest is computed on the
basis of a balance or balances outstanding during a billing cycle shall not be
usurious if on any one day during the billing cycle the rate at which
interest is charged for the billing cycle is not usurious ((on any
day during the billing cycle)).
NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.