THE SENATE	S.B. NO.	2112
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INSTALLMENT LOANS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 480J-1, Hawaii Revised Statutes, is amended by amending the definition of "installment lender" or "lender" to read as follows:

""Installment lender" or "lender" means any person not exempt under section 480J-32 who is in the business of offering or making [a consumer loan,] installment loans, who arranges [a consumer loan] installment loans for a third party[,] required by this chapter to be licensed, or who acts as an agent for a third party[, regardless of whether the third party is exempt from licensure under this chapter or whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party,] required by this chapter to be licensed with respect to the third party's offering, making, or arranging of installment loans, through any method including mail, telephone, the Internet, or any electronic means."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2024.

INTRODUCED BY:

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Report Title:

Installment Lender; Lender; Division of Financial Institutions

Description:

Amends the definition of the term "installment lender" to clarify that the law is not intended to eliminate the ability of lenders to make low interest rate loans under the interest and usury law. Removes the term "consumer loan" to consistently use the defined term "installment loan".

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