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AL HB314
Bill
Status
5/17/2017
Primary Sponsor
Ken Johnson
Click for details
AI Summary
HB314 Summary
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Increases maximum loan amount under Alabama Small Loan Act from $1,000 to $1,500 for licensed lenders.
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Adjusts interest rates for loans based on lending authority: 3% monthly on principal up to $200 and 2% monthly on principal between $200-$1,500.
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Establishes minimum loan term of 3 months and maximum term of 18 months (alternative rate structure allows maximum of 18 months).
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Provides alternative rate structure allowing acquisition charges up to 10% of principal plus installment account handling charges ranging from $12-$26 per month depending on loan amount.
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Applies to loan contracts entered into after the effective date; does not affect existing contracts.
Legislative Description
Small loans under Ala. Small Loan Act, minimum and maximum amount of loans increased and corresponding interest rates, max term of loans, Secs. 5-18-4, 5-18-10, 5-18-13, 5-18-15 am'd.
Banks and Banking
Last Action
Delivered to Governor at 8:39 p.m. on May 17, 2017.
5/17/2017