Report Title:
Consumer Credit; Military
Description:
Requires financial institutions and creditors that extend consumer credit to members of the armed forces or reserves on active duty and their dependents, to conform their lending practices to the federal John Warner National Defense Authorization Act for Fiscal Year 2007, as amended, relating to the terms of consumer credit extended to the military and their dependents, including maximum annual percentage rates and required disclosures.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
458 |
|
TWENTY-FIFTH LEGISLATURE, 2009 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CONSUMER CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to require financial institutions and creditors that extend consumer credit to members of the armed forces or reserves on active duty and their family members, to conform their lending practices to the federal John Warner National Defense Authorization Act for Fiscal Year 2007, as amended, relating to the terms of consumer credit extended to the military and their dependents, including maximum annual percentage rates and required disclosures.
SECTION 2. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to part III of article 5 to be appropriately designated and to read as follows:
"§412:5- Terms of credit extended to military personnel and family members. Any bank that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 3. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to part III of article 6 to be appropriately designated and to read as follows:
"§412:6- Terms of credit extended to military personnel and family members. Any savings bank that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 4. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to part III of article 7 to be appropriately designated and to read as follows:
"§412:7- Terms of credit extended to military personnel and family members. Any savings and loan association that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 5. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to part III of article 9 to be appropriately designated and to read as follows:
"§412:9- Terms of credit extended to military personnel and family members. Any financial services loan company that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 6. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to part IV of article 10 to be appropriately designated and to read as follows:
"§412:10- Terms of credit extended to military personnel and family members. Any credit union that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 7. Chapter 477E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§477E- Terms of credit extended to military personnel and family members. Any creditor that extends consumer credit to a covered borrower shall comply with the provisions of Section 670 of Public Law 109-364 and Section 232 of Title 32, Code of Federal Regulations, pertaining to the extending of consumer credit to military personnel and family members.
As used in this section, "covered borrower" means a person with the following status at the time the person becomes obligated on a consumer credit transaction covered by this section:
(1) A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of thirty days or fewer, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6); or
(2) The member's spouse, the member's child as defined in 38 U.S.C. 101(4), or an individual for whom the member provided more than one-half of the individual's support for one hundred and eighty days immediately preceding an extension of consumer credit covered by this section."
SECTION 8. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
|
|