2005 Regular Session
To: Banking and Financial Services; Appropriations
By: Representative Guice
AN ACT TO AMEND SECTION 75-67-121, MISSISSIPPI CODE OF 1972, TO AUTHORIZE SMALL LOAN LICENSEES TO OFFER BORROWERS THE OPPORTUNITY TO PURCHASE AUTO CLUB MEMBERSHIPS, PROVIDED THAT THE PURCHASE IS OPTIONAL AND NOT REQUIRED AS A CONDITION OF RECEIVING ANY LOAN OR OTHER EXTENSION OF CREDIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-121, Mississippi Code of 1972, is amended as follows:
75-67-121. Any licensee under this article may charge any borrower on loans of One Hundred Dollars ($100.00) or more the actual cost of recording any instrument executed as security for a loan; any reasonable fee paid to an attorney for investigating the title to any property given as security for a loan; the actual cost of any premium paid for insurance upon any property given as security for a loan, such insurance to be placed with an insurance company agent of the borrower's selection so long as it is licensed to do business in the State of Mississippi; the actual cost of any premium paid for life, health and/or accident insurance on any borrower where the amount of insurance required is not in excess of the amount of the loan and the premium for the insurance is in keeping with that usually and customarily paid for like insurance.
In addition, the licensee may offer the borrower the opportunity to purchase an auto club membership, provided that the purchase is optional and not required as a condition of receiving any loan or other extension of credit. The licensee shall allow the borrower to pay the cost of the membership using funds other than the proceeds of a loan or have the cost deducted from the proceeds of any loan obtained from the licensee.
Whenever he * * * finds it necessary, the commissioner shall have the power to adopt and enforce reasonable rules and regulations to prevent the abuse of this section and the making of excessive charges under this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 2005.