AMENDMENT(S) REJECTED BY THE SENATE

SEN. LOCKE

1. Line 182, introduced, after line 181

insert

28. Notwithstanding § 6.1-460 of this Act, a licensee shall not cause the borrower to pay interest on a payday loan at a rate exceeding 72 percent  annually.  For purposes of this section, the term “interest” includes all fees and amounts payable directly or indirectly by the borrower as a condition  of, incident to, attendant to, or arising out of a payday loan.

SEN. REYNOLDS

1. Line 61, introduced, after at least

strike

seven

insert

60

SEN. EDWARDS (WITHDRAWN)

1. Line 80, introduced, after more than

strike

three payday loans

insert

one payday loan

SEN. EDWARDS (WITHDRAWN)

5. Line 182, introduced, after line 181

insert

28. Each licensee shall conspicuously post in its licensed location an alternative lending signboard and shall allow any person acting on behalf of an alternative lender to post on the alternative lending signboard an alternative lending posting. Each alternative lending signboard posted in a licensed location shall be situated so that alternative lending postings posted to the signboard are reasonably accessible for reading by individuals entering the licensed location. Each licensee shall ensure that alternative lending postings are not defaced or damaged and once posted are not removed from the alternative lending signboard by any person other than a person acting on behalf of the alternative lender who posted the alternative lending posting. At any time that the number of alternative lending postings exceeds the capacity of the alternative lending signboard, the licensee shall post in its licensed location as many additional alternative lending signboards as are necessary to permit the posting of all alternative lending postings. The posting of an alternative lending posting on a licensee's alternative lending signboard shall not constitute a warranty or other statement of the licensee regarding the veracity of the information on any alternative lending posting or that an individual will qualify for a loan described in an alternative lending posting.

As used in this subdivision:

"Alternative lender" means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code that has a program whereby it may make unsecured loans to individuals in amounts not exceeding $500.

"Alternative lending posting" means a paper, cardboard, or plastic sign that is approximately 11 inches high and 8.5 inches wide, appropriate for being posted on or affixed to an alternative lending signboard, on which an alternative lender advertises, promotes, or describes its program or programs for making unsecured loans to individuals in amounts not exceeding $500, which shall state the amount of payments and the amount of any finance charge, expressed as an annual percentage rate, and any fees and charges charged on a loan under the program, using as an example a $300 loan payable in 14 days.

"Alternative lending signboard" means a board, composed of wood, cork, or a similar durable material, with dimensions not less than two feet high and three feet wide, that is appropriate for the posting of alternative lending postings via tape, pins, staples, or similar means and that contains a caption centered across the top, in bold, capital letters not less than two inches high, stating "ALTERNATIVE LENDERS," and beneath it a subcaption in bold, capital letters not less than one inch high, stating "THE ENTITIES WHO HAVE POSTED INFORMATION TO THIS BOARD MAY BE WILLING TO MAKE AN UNSECURED LOAN TO YOU AT A LOWER COST THAN WHAT A PAYDAY LOAN WILL COST YOU. YOU ARE ENCOURAGED TO INVESTIGATE LOW-COST ALTERNATIVES TO PAYDAY LOANS."

29. Each licensee shall permit any regulated lender, acting through any agent or employee, to place within each licensed location, on a counter, table, or similar location, its brochures, pamphlets, or like informational literature that advertises any program offered by the regulated lender for unsecured loans to individuals that are intended to provide an alternative to payday loans. Each licensee shall ensure that regulated lender's brochures, pamphlets, and like informational literature are not defaced or damaged by the licensee or its agents or employees and remain accessible to individuals who enter the licensed location. The placing of a regulated lender's brochures, pamphlets, and like informational literature within the licensed location shall not constitute a warranty or other statement of the licensee regarding the veracity of the information contained therein or that an individual will qualify for a loan described therein. As used in this subdivision, "regulated lender" means any bank, trust company, savings and loan association, savings bank, consumer finance company, or credit union operating within the Commonwealth.

SEN. EDWARDS

6. Line 182, introduced, after line 181

insert

28. Each licensee shall conspicuously post in its licensed location an alternative lending signboard and shall allow any person acting on behalf of an alternative lender to post on the alternative lending signboard an alternative lending posting. Each alternative lending signboard posted in a licensed location shall be situated so that alternative lending postings posted to the signboard are reasonably accessible for reading by individuals entering the licensed location. Each licensee shall ensure that alternative lending postings are not defaced or damaged and once posted are not removed from the alternative lending signboard by any person other than a person acting on behalf of the alternative lender who posted the alternative lending posting. At any time that the number of alternative lending postings exceeds the capacity of the alternative lending signboard, the licensee shall post in its licensed location as many additional alternative lending signboards as are necessary to permit the posting of all alternative lending postings. The posting of an alternative lending posting on a licensee's alternative lending signboard shall not constitute a warranty or other statement of the licensee regarding the veracity of the information on any alternative lending posting or that an individual will qualify for a loan described in an alternative lending posting.

As used in this subdivision:

"Alternative lender" means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code that has a program whereby it may make unsecured loans to individuals in amounts not exceeding $500.

"Alternative lending posting" means a paper, cardboard, or plastic sign that is approximately 11 inches high and 8.5 inches wide, appropriate for being posted on or affixed to an alternative lending signboard, on which an alternative lender advertises, promotes, or describes its program or programs for making unsecured loans to individuals in amounts not exceeding $500, which shall state the amount of payments and the amount of any finance charge, expressed as an annual percentage rate, and any fees and charges charged on a loan under the program, using as an example a $300 loan payable in 14 days.

"Alternative lending signboard" means a board, composed of wood, cork, or a similar durable material, with dimensions not less than two feet high and three feet wide, that is appropriate for the posting of alternative lending postings via tape, pins, staples, or similar means and that contains a caption centered across the top, in bold, capital letters not less than two inches high, stating "ALTERNATIVE LENDERS," and beneath it a subcaption in bold, capital letters not less than one inch high, stating "THE ENTITIES WHO HAVE POSTED INFORMATION TO THIS BOARD MAY BE WILLING TO MAKE AN UNSECURED LOAN TO YOU AT A LOWER COST THAN WHAT A PAYDAY LOAN WILL COST YOU. YOU ARE ENCOURAGED TO INVESTIGATE LOW-COST ALTERNATIVES TO PAYDAY LOANS."