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7 LONG TITLE
8 Committee Note:
9 The Business and Labor Interim Committee recommended this bill.
10 Legislative Vote: 14 voting for 0 voting against 8 absent
11 General Description:
12 This bill modifies the requirements for engaging in business as a consumer lender in the
13 state.
14 Highlighted Provisions:
15 This bill:
16 ▸ requires a consumer lender to submit to the commissioner of financial institutions
17 evidence of registration through the Nationwide Multistate Licensing System and
18 Registry; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 70C-1-302, as last amended by Laws of Utah 2009, Chapter 72
27 70C-8-202, as last amended by Laws of Utah 2013, Chapter 73
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29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 70C-1-302 is amended to read:
31 70C-1-302. Definitions.
32 As used in this title:
33 (1) "Agreement" means the bargain of the parties in fact as stated in a written contract
34 or otherwise as found in the parties' language or by implication from other circumstances,
35 including:
36 (a) course of dealing;
37 (b) usage of trade; or
38 (c) course of performance.
39 (2) "Commissioner" means the commissioner of financial institutions appointed under
40 Section 7-1-202.
41 [
42 credit agreement.
43 [
44 (i) a party:
45 (A) who regularly extends consumer credit that is subject to a finance charge or is
46 payable by written agreement in more than four installments, not including a down payment;
47 and
48 (B) to whom the obligation is initially payable, either on the face of the note or
49 contract, or by agreement when there is no note or contract;
50 (ii) an issuer of a credit card that extends either open-end credit or credit that:
51 (A) is not subject to a finance charge; and
52 (B) is not payable by written agreement in more than four installments; and
53 (iii) an issuer of a credit card that extends closed-end credit that:
54 (A) is subject to a finance charge; or
55 (B) is payable by written agreement in more than four installments.
56 (b) (i) For purposes of this Subsection [
57 consumer credit regularly only if the party extends credit in the preceding calendar year:
58 (A) more than 25 times; or
59 (B) more than five times for a transaction secured by a dwelling.
60 (ii) If a person does not meet the numerical standards described in Subsection
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62 the current calendar year.
63 [
64 one to four units including any of the following if used as a residence:
65 (a) a condominium unit;
66 (b) a cooperative unit;
67 (c) a manufactured home; or
68 (d) a house.
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70 individual's account for personal services rendered or to be rendered by the individual whether
71 denominated as wages, salary, commission, bonus, or otherwise, and includes periodic
72 payments pursuant to a pension, retirement, or disability program.
73 [
74 payments, each of which is less than the original amount of the debt and scheduled as to a
75 specific amount and due date by agreement of the parties for the purpose of repaying the debt.
76 (8) "Nationwide database" means the Nationwide Multistate Licensing System and
77 Registry, described in 12 U.S.C. Sec. 5101.
78 [
79 into a binding contract.
80 Section 2. Section 70C-8-202 is amended to read:
81 70C-8-202. Notification.
82 (1) (a) A party who is subject to this part shall file notification with the department at
83 least 30 days before commencing business in this state.
84 (b) After filing the notification required by Subsection (1)(a), a party shall file a
85 notification on or before [
86 (c) A notification required by this Subsection (1) shall:
87 (i) state the name of the party;
88 (ii) state the name in which the business is transacted if different from that required in
89 Subsection (1)(c)(i);
90 (iii) state the address of the party's principal office, which may be outside this state;
91 (iv) state the address of:
92 (A) each office or retail store, if any, in this state at which credit is offered or extended
93 to a consumer; or
94 (B) in the case of a party taking an assignment of an obligation, each office or place of
95 business within this state at which business is transacted;
96 (v) if credit is extended to a consumer other than at an office or retail store in this state,
97 state a brief description of the manner in which the credit transaction occurs;
98 (vi) state the name and address in this state of a designated agent upon whom service of
99 process may be made;
100 (vii) [
101 is authorized to conduct business in this state as a domestic or foreign entity pursuant to filings
102 with the Division of Corporations and Commercial Code under Title 16, Corporations, or Title
103 48, Unincorporated Business Entity Act; [
104 (viii) include evidence satisfactory to the commissioner that the party is registered with
105 the nationwide database; and
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107 department.
108 (2) If information in a notification becomes inaccurate after filing, a party is not
109 required to file further notification until required to renew the party's notification.
110 (3) (a) A party who fails to file a notification or pay a fee required by this part may not
111 extend credit to a consumer in this state until the party fully complies with this part.
112 (b) A party who willfully violates this Subsection (3) is guilty of a class B
113 misdemeanor.
114 Section 3. Effective date.
115 This bill takes effect on May 1, 2024.