BILL NUMBER: SB 49	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        DECEMBER 19, 2014

   An act to amend Section 22202 of the Financial Code, relating to
finance lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 49, as introduced, Walters. Consumer loans.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Business Oversight. Under existing law, on any loan
made that is secured by real property, an appraisal fee not to exceed
the actual cost of the appraisal is authorized to be charged by the
licensee if a written appraisal is provided to the licensee by a
qualified appraiser. Under existing law, only one fee for appraising
the same real property is authorized to be collected unless the
borrower has obtained a new or additional loan and more than one year
has elapsed since the prior appraisal. Existing law specifies that
this fee is not included in, among other things, charges, as defined
for purposes of this law.
   This bill would make nonsubstantive changes to that definition.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22202 of the Financial Code is amended to read:

   22202.  "Charges" do not include any of the following:
   (a) Commissions received as a licensed insurance agent or broker
in connection with insurance written as provided in Section 22313.
   (b) Amounts not in excess of the amounts  specified
  set forth  in subdivision (c) of Section 3068 of
the Civil Code paid to holders of possessory liens, imposed pursuant
to Chapter 6.5 (commencing with Section 3067) of Title 14 of Part 4
of Division 3 of the Civil Code, to release motor vehicles that
secure loans subject to this division.
   (c) Court costs, excluding attorney's fees, incurred in a suit and
recovered against a debtor who defaults on his or her loan.
   (d) Fees paid to a licensee for the privilege of participating in
an open-end credit program, which fees are to cover administrative
costs and are imposed upon executing the open-end loan 
agreement   agreement,  and on annual renewal dates
or anniversary dates thereafter.
   (e) Amounts received by a licensee from a seller, from whom the
borrower obtains money, goods, labor, or services on credit, in
connection with a transaction under an open-end credit program that
are paid or deducted from the loan proceeds paid to the seller at the
direction of the borrower and  which   that
 are an obligation of the seller to the licensee for the
privilege of allowing the seller to participate in the licensee's
open-end credit program. Amounts received by a licensee from a seller
pursuant to this subdivision may not exceed 6 percent of the loan
proceeds paid to the seller at the direction of the borrower.
   (f) Actual and necessary fees not exceeding five hundred dollars
($500) paid in connection with the repossession of a motor vehicle to
repossession agencies licensed pursuant to Chapter 11 (commencing
with Section 7500) of Division 3 of the Business and Professions
 Code   Code,  provided that the licensee
complies with Sections 22328 and 22329, and actual fees paid to a
licensee in conformity with Sections 26751 and 41612 of the
Government Code in an amount not exceeding the amount specified in
those  sections   provisions  of the
Government Code.
   (g) Moneys paid to, and commissions and benefits received by, a
licensee for the sale of goods, services, or insurance, whether or
not the sale is in connection with a loan, that the buyer by a
separately signed authorization acknowledges is optional, if sale of
the goods, services, or insurance has been authorized pursuant to
Section 22154.