Bill Text: WV SB468 | 2016 | Regular Session | Enrolled

West Virginia Senate Bill 468 (Prior Session Legislation)

Bill Title: Allowing lender charge and receive interest on rescindable loan during rescission period

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2016-05-13 - Chapter 43, Acts, Regular Session, 2016 [SB468 Detail]

Download: West_Virginia-2016-SB468-Enrolled.html

WEST virginia legislature

2016 regular session

Enrolled

Committee Substitute

for

Senate Bill 468

By Senators Gaunch and Ashley, original sponsors

[Passed March 11, 2016; in effect 90 days from passage]

AN ACT to amend and reenact §46A-6K-3 of the Code of West Virginia, 1931, as amended, relating to allowing accrual of interest during rescission period on a loan during the rescission period required under the federal Truth-in-Lending Act; providing exception if the loan is rescinded; and providing exception if the loan is for the purpose of paying in full a prior loan made by the same lender.

Be it enacted by the Legislature of West Virginia:

That §46A-6K-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 6K. GOOD FUNDS SETTLEMENT ACT.

§46A-6K-3. Duty of lender; accrual of interest.

The lender shall, at or before loan closing, cause disbursement of loan funds to the settlement agent; however, in the case of a refinancing, or any other loan where a right of rescission applies, the lender shall, within one business day after the expiration of the rescission period required under the federal Truth-in-Lending Act (15 U. S. C. §1601 et seq.), cause disbursement of loan funds to the settlement agent, unless the loan is rescinded by the customer. All funds disbursed by the lender to the settlement agent must be collected funds. The lender may charge and receive interest on the loan during the rescission period required under the federal Truth-in-Lending Act (15 U. S. C. §1601 et seq.): Provided, That the lender may not receive any interest if the loan is rescinded by the customer: Provided, however, That the lender may not charge or receive interest on the loan during the rescission period, if the loan is for the purpose of paying a prior loan made by the same lender in full.