Three Bills with Implications to Credit Unions Move Forward
Several bills with impact to credit unions moved forward in the Missouri General Assembly this week. Members voted two bills out of the House Financial Institutions Committee on February 19. Both HB 1218 and HB 1374 are expected to go to the House floor for debate. The Senate perfected and voted out SB 694 on February 20, and it now heads to the House of Representatives. Details about each bill are listed below.
HB 1218, sponsored by Committee Chair Tony Dugger (R-District 141), will protect credit unions’ lien priority on existing condominium mortgages. All mortgages recorded before August 28, 2014 will retain lien priority over all condo association liens. For any mortgage recorded after August 28, the condo association will have limited priority only to the extent of the unpaid common assessments for the six months preceding the foreclosure sale.
The impetus for this bill was a 2013 ruling by the Missouri Supreme Court that a condo association’s special assessment has lien priority over the lender. In this particular case, the special assessment was nearly $80,000.
HB 1374, on the other hand, aims to protect credit unions and other businesses from frivolous demand letters alleging patent infringement (also known as patent trolling). The bill is sponsored by Representative Stan Cox (R-District 52) and sets parameters to help judges determine legitimate from illegitimate patent infringement demand letters and also provides businesses affected by patent trolls the ability to seek restitution.
SB 694 is sponsored by Senator Mike Cunningham (R-District 33) and deals with payday lending. If this bill is made law, payday lenders will no longer be allowed to “roll over” an existing loan - keeping some borrowers in a perpetual ‘cycle of debt’. Instead, the borrower may enter into an extended payment plan (EPP) of either 60 days or 120 days, depending if the borrower receives their paycheck bi-monthly or monthly. According to the bill as written, payday lenders are also not allowed to issue a new loan before the EPP is repaid, and borrowers are not allowed to enter into more than one EPP in any 12 month period.
Central Chapter of Credit Unions Host Event in Jefferson City
The Central Chapter of Credit Unions held a legislative reception at Cork on February 19. A number of lawmakers attended the event throughout the evening, including members of the House and Senate Financial Institutions Committees.
For the full story, please click here.
Photo: Brent Sadler, President/CEO of United Credit Union and Representative Paul Wieland (R-District 112)
Bills You Want to Know About
Click here for an overview of the bills with potential impact to credit unions. MCUA provides this information each week, and it is updated regularly as more bills are introduced and tracked.
Financial “Tip of the Week” – Paying Down Credit Card Debt
During the 2014 legislative session, MCUA is providing lawmakers with a financial “Tip of the Week” to share with constituents. On February 20, MCUA provided tips to help consumers dig their way out of credit card debt. Read the full tip here.
For more information, please contact Amy McLard or David Kent.