Maine LD 889: An Act To Protect Maine’s Small Businesses from High Interest Rates on Commercial and Business Loans

LD 889 (subjects: FINANCIAL PRACTICES , LOANS )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=889&PID=1456&snum=127


Sponsors | Actions | Bill Text | Patterns of Support


Sponsors

Principal Sponsor: Rep. Henry Beck of Waterville: (D – District 110) — e-mail | Twitter | Facebook

4 Cosponsors:

Actions

Chamber

Action
3/12/2015 House Committee on Insurance and Financial Services suggested and ordered printed.
The Bill was REFERRED to the Committee on INSURANCE AND FINANCIAL SERVICES.
Sent for concurrence. ORDERED SENT FORTHWITH.
3/12/2015 Senate On motion by Senator Whittemore of Somerset, REFERRED to the Committee on Insurance and Financial Services, in concurrence.
6/30/2015 Senate CARRIED OVER to any Special or Regular Session of the 127th Legislature pursuant to Joint Order HP 992. in concurrence
6/30/2015 House Carried over to any special and/or regular session of the 127th Legislature pursuant to Joint Order HP 992.
6/30/2015 Senate CARRIED OVER to any Special or Regular Session of the 127th Legislature pursuant to Joint Order HP 992. , in concurrence.
1/21/2016 Senate Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)

Bill Text

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An Act To Protect Maine’s Small Businesses from High Interest Rates on Commercial and Business Loans

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 9-A MRSA 5-301, as enacted by PL 1973, c. 762, 1, is repealed and the following enacted in its place:

5-301. Violations

1. Consumer loans. A creditor, an officer or employee of a creditor or any other person who willfully and knowingly violates any of the provisions of this Act or Title 9-B relating to a consumer loan or directly or indirectly counsels, aids or abets such a violation must be punished by a fine of not more than $2,500 for each offense or by imprisonment for not more than 6 months, or by both.
2. Commercial and business loans. A creditor, an officer or employee of a creditor or any other person who willfully and knowingly violates any of the provisions of this Act or Title 9-B relating to a commercial or business loan or directly or indirectly counsels, aids or abets such a violation must be punished by a fine of not more than $5,000 for each offense or by imprisonment for not more than one year, or by both. A commercial or business loan made in violation of any provision of this Act or Title 9-B may be declared void by a court upon the petition of a person to whom the loan was issued.

Sec. 2. 9-B MRSA 432, sub- 3 is enacted to read:

3. Interest; commercial and business loans. The legal interest rate, whether set forth in writing or not, on a commercial or business loan may not directly or indirectly, or through interest and expenses, exceed in the aggregate an amount greater than 25% per year upon the sum loaned or the equivalent rate for a longer or shorter period. For the purposes of this subsection, the amount to be paid upon any loan for interest or expenses includes all sums paid or to be paid by or on behalf of the borrower for interest, brokerage, recording fees, commissions, services, extension of loan or forbearance to enforce payment and all other sums charged against or paid or to be paid by the borrower for making or securing the loan, directly or indirectly, and includes all these sums when paid by or on behalf of or charged against the borrower for or on account of making or securing the loan, directly or indirectly, to or by any person, other than the lender, if the payment or charge was known to the lender at the time of making the loan or might have been ascertained by reasonable inquiry. A loan made in violation of this subsection is subject to the penalties and remedies set forth in Title 9-A, section 5-301, subsection 2.

SUMMARY

This bill caps the interest rate for commercial or business loans at 25% per year. The bill provides that violations are subject to criminal penalties of up to $5,000 or imprisonment for not more than one year or both. The bill also allows a court to void a loan issued in violation of the interest rate caps upon the petition of the person to whom the loan was issued.

Patterns of Support

Pattern of Cosponsorship by Region:

Pattern of Cosponsorship by Gender:

Pattern of Cosponsorship by Party:

Pattern of Cosponsorship by Campaign Finance Classification:

Note: Maine Clean Elections Act (MCEA) Qualified candidates only accept a small dollar value of initial contributions early in their campaigns, pledge not to accept further campaign contributions from private sources, and receive public funding for their campaigns. MCEA Non-Qualified candidates choose not to obtain public funding and instead are free to accept campaign contributions from individuals, party committees, political action committees and business sources.


This information about LD 889 was last updated on 2016-05-12.
The Open Maine Politics website is in a beta release and results should not be taken as definitive. Please visit the official website of the Maine State Legislature for entirely verifiable information.

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