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GA SB465

Bill

Status

Introduced

2/21/2018

Primary Sponsor

Ellis Black

Click for details

Origin

Senate

2017-2018 Regular Session

AI Summary

  • Charges for letters of credit, as defined by Code Section 11-5-102, shall not be classified as interest under Georgia's interest and usury laws
  • The letter of credit charge may be added to the principal advanced to determine whether the loan principal exceeds $3,000 and is less than $250,000
  • Applies to letters of credit issued by any bank operating under the authority of Georgia, any other state, the United States, or any U.S. territory
  • Extends the same exemption to letters of credit issued by non-banking entities, provided the issuer is not affiliated with the beneficiary through common ownership or control
  • Effective date of July 1, 2018; amends Chapter 4 of Title 7 of the Official Code of Georgia Annotated by adding new Code Section 7-4-2.1

Legislative Description

Interest and Usury; letter of credit from being classified as interest; exempt any charge

Last Action

Senate Read and Referred

2/21/2018

Committee Referrals

Banking and Financial Institutions2/21/2018

Full Bill Text

No bill text available