0001|                            HOUSE BILL 238
    |
0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
    |
0003|                            INTRODUCED BY
    |
0004|                             MURRAY RYAN
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|                                   
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO LENDING INSTITUTIONS; EXPANDING THE AUTHORITY OF
    |
0012|     LENDING INSTITUTIONS TO SELL CERTAIN INSURANCE AND ANNUITIES;
    |
0013|     REPEALING AND ENACTING A CERTAIN SECTION OF THE NMSA 1978.
    |
0014|     
    |
0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0016|          Section 1.  Section 59A-12-10 NMSA 1978 (being Laws 1984,
    |
0017|     Chapter 127, Section 211, as amended) is repealed and a new
    |
0018|     Section 59A-12-10 NMSA 1978 is enacted to read:
    |
0019|          "59A-12-10.  [<u>NEW MATERIAL</u>]  LICENSING OF LENDING
    |
0020|     INSTITUTION--DEFINITIONS AND EXCEPTIONS.--
    |
0021|               A.  As used in this section:
    |
0022|                    (1)  "lending institution" means an
    |
0023|     institution, including its holding company, subsidiary or
    |
0024|     affiliate, whose business includes accepting deposits or
    |
0025|     lending money in New Mexico, including banks, savings and loan
    |
0001|     associations and credit unions; "lending institution" does not
    |
0002|     include insurance companies;
    |
0003|                    (2)  "holding company", "subsidiary" and
    |
0004|     "affiliate" mean those terms as defined in regulations adopted
    |
0005|     by the superintendent, except "bank holding company" means that
    |
0006|     term as defined in Section 2 of the federal Bank Holding
    |
0007|     Company Act of 1956; and
    |
0008|                    (3)  "public utility" means a private employer
    |
0009|     subject to the jurisdiction of the New Mexico public utility
    |
0010|     commission or the state corporation commission, or its
    |
0011|     successor entity, that is engaged in the business of providing
    |
0012|     telecommunications, electric, gas, water or stream heat
    |
0013|     services to the public.
    |
0014|               B.  A lending institution may be licensed to sell:
    |
0015|                    (1)  any insurance except title insurance in
    |
0016|     accordance with the Insurance Code and to the extent authorized
    |
0017|     by federal and state lending institution regulators; and
    |
0018|                    (2)  annuities to the extent authorized by law
    |
0019|     and federal and state lending institution regulators, but
    |
0020|     nothing in this paragraph shall affect the rights and
    |
0021|     obligations of nationally chartered lending institutions.
    |
0022|               C.  A public utility or its holding company,
    |
0023|     subsidiary or affiliate shall not be licensed to sell insurance
    |
0024|     or act as a broker for insurance in New Mexico.
    |
0025|               D.  As used in Subsections E through Y of this
    |
0001|     section, "insurance" means all products defined or regulated as
    |
0002|     insurance under the Insurance Code except:
    |
0003|                    (1)  credit life, credit accident and health,
    |
0004|     credit involuntary unemployment, credit casualty and credit
    |
0005|     property insurance;
    |
0006|                    (2)  insurance placed by a lending institution
    |
0007|     on the collateral pledged as security for a loan when the
    |
0008|     debtor breaches the contractual obligation to provide that
    |
0009|     insurance; and
    |
0010|                    (3)  private mortgage insurance and financial
    |
0011|     guarantee insurance.
    |
0012|               E.  A lending institution shall not require as a
    |
0013|     condition precedent to the extension of credit, or any
    |
0014|     subsequent renewal thereof, or the procurement of other bank
    |
0015|     services that the customer purchase insurance through a
    |
0016|     particular insurer, agent or broker.
    |
0017|               F.  A lending institution shall not extend credit,
    |
0018|     lease or sell property or furnish any other service or fix or
    |
0019|     vary the consideration for any of the foregoing on the
    |
0020|     condition or requirement that the customer obtain insurance
    |
0021|     from that lending institution or from a particular insurer,
    |
0022|     agent or broker.
    |
0023|               G.  A lending institution shall not impose a
    |
0024|     requirement on an insurance agent or broker who is not
    |
0025|     associated with the lending institution that is not imposed on
    |
0001|     an insurance agent or broker who is associated with that
    |
0002|     institution or, unless otherwise authorized by applicable
    |
0003|     federal or state law, require a debtor, insurer, broker or
    |
0004|     agent to pay a separate charge in connection with the handling
    |
0005|     of insurance that is required under a contract.
    |
0006|               H.  A lending institution that sells insurance on
    |
0007|     its premises shall:
    |
0008|                    (1)  conspicuously post a notice that is
    |
0009|     clearly visible to anyone who may purchase insurance that
    |
0010|     insurance is not a deposit account insured by a federal deposit
    |
0011|     insuring agency;
    |
0012|                    (2)  orally inform a prospective purchaser of
    |
0013|     insurance that insurance is not a deposit account insured by a
    |
0014|     federal deposit insuring agency; and
    |
0015|                    (3)  provide a written disclosure to the
    |
0016|     customer containing the following statements before the sale of
    |
0017|     insurance is complete:
    |
0018|                         (a)  insurance is not a lending
    |
0019|     institution deposit account and is not insured by its federal
    |
0020|     deposit insuring agency;
    |
0021|                         (b)  insurance is not an obligation of or
    |
0022|     guaranteed by the lending institution;
    |
0023|                         (c)  the customer is not required to
    |
0024|     obtain insurance from a particular lending institution, agent
    |
0025|     or broker; and
    |
0001|                         (d)  where applicable, insurance involves
    |
0002|     investment risk, including potential loss of principal.
    |
0003|               I.  The promotion and sale of insurance by a lending
    |
0004|     institution shall be effectuated in such a manner so as to
    |
0005|     avoid confusion between federally insured deposit products
    |
0006|     offered by a lending institution and the nonfederally insured
    |
0007|     insurance sold.  Insurance advertisements and other promotional
    |
0008|     material shall be accurate and not misleading or deceptive. 
    |
0009|     Insurance advertising and other promotional materials regarding
    |
0010|     insurance shall include disclosures that contain language that
    |
0011|     is the same or substantially similar to the following:
    |
0012|                    (1)  insurance is not a lending institution
    |
0013|     deposit and is not insured by its federal deposit insuring
    |
0014|     agency;
    |
0015|                    (2)  insurance is not an obligation of or
    |
0016|     guaranteed by the lending institution; and
    |
0017|                    (3)  where applicable, insurance involves
    |
0018|     investment risk, including potential loss of principal.
    |
0019|               J.  Insurance operations may be conducted by the
    |
0020|     lending institution, its holding company, an affiliate or
    |
0021|     subsidiary of either or through a separate corporate entity or
    |
0022|     partnership.
    |
0023|               K.  A lending institution shall not use nonpublic
    |
0024|     information for the purpose of selling or soliciting the
    |
0025|     purchase of insurance or provide nonpublic customer information
    |
0001|     to a third party for the purpose of another's sale or
    |
0002|     solicitation of the purchase of insurance without written
    |
0003|     authorization from the customer.  As used in this subsection,
    |
0004|     "nonpublic customer information" means information regarding a
    |
0005|     person that has been derived from a record of a financial
    |
0006|     institution.  "Nonpublic customer information" does not include
    |
0007|     customer names and addresses and telephone numbers or
    |
0008|     information about an individual that could be obtained from an
    |
0009|     unaffiliated credit bureau that is subject to the Fair Credit
    |
0010|     Reporting Act by a third party that is not entering into a
    |
0011|     credit relationship with the individual but has a legitimate
    |
0012|     need for the information in connection with a business
    |
0013|     transaction with the individual, except that "nonpublic
    |
0014|     customer information" includes information concerning insurance
    |
0015|     premiums, the terms and conditions of insurance coverage,
    |
0016|     insurance expirations, insurance claims and insurance history
    |
0017|     of an individual.
    |
0018|               L.  A lending institution selling insurance in New
    |
0019|     Mexico shall establish at least one in-state lending office.
    |
0020|               M.  Records relating to the insurance transactions
    |
0021|     of a lending institution, including files relating to and
    |
0022|     reflecting customer complaints, shall be kept separate and
    |
0023|     apart from all records relating to the banking transactions of
    |
0024|     the lending institution.  Records pertaining to insurance
    |
0025|     activities of the lending institution or copies of those
    |
0001|     records shall be kept in the principal in-state office in the
    |
0002|     state of the financial institution and shall be subject to the
    |
0003|     inspection and audit by the insurance department.  If the
    |
0004|     department determines to inspect and audit the records relating
    |
0005|     to the insurance activities of a lending institution, that
    |
0006|     institution shall make available to the department, at a
    |
0007|     location of the lending institution in the state, knowledgeable
    |
0008|     personnel to assist in the interpretation of the lending
    |
0009|     institution's records.
    |
0010|               N.  A lending institution, or officer, director or
    |
0011|     employee acting on behalf of the institution, who qualifies for
    |
0012|     issuance of an agent or broker's license pursuant to the
    |
0013|     Insurance Code may be issued an agent or broker license
    |
0014|     authorizing the sale of insurance.
    |
0015|               O.  A lending institution shall not pay a commission
    |
0016|     or other valuable consideration to a person for services of an
    |
0017|     insurance agent unless the person performing the service held a
    |
0018|     valid insurance agent license for the class of insurance for
    |
0019|     which the service was rendered or performed at the time the
    |
0020|     service was performed.  No person, other than a person properly
    |
0021|     licensed in accordance with the Insurance Code, shall accept
    |
0022|     any commission or valuable consideration for those services.
    |
0023|               P.  A lending institution shall not offer an
    |
0024|     inducement to a customer to purchase insurance from the
    |
0025|     institution other than as plainly expressed in the insurance
    |
0001|     policy.  Investment programs, memberships or other programs
    |
0002|     designed or represented to waive, reduce, pay, produce or
    |
0003|     provide funds to pay all or part of the cost on insurance are
    |
0004|     an illegal inducement.
    |
0005|               Q.  A lending institution may not in the same
    |
0006|     transaction solicit the purchase of insurance from a customer
    |
0007|     who has applied for a loan from the institution before the time
    |
0008|     the customer has received a written commitment from the lending
    |
0009|     institution with respect to that loan, or, in the event that no
    |
0010|     written commitment has been or will be issued in connection
    |
0011|     with the loan, a lending institution shall not solicit the
    |
0012|     purchase of insurance before the time the customer receives
    |
0013|     notification of approval of the loan by the lending
    |
0014|     institution, and the institution creates a written record of
    |
0015|     the loan approval.
    |
0016|               R.  Solicitation for the purchase of insurance by
    |
0017|     the lending institution shall be conducted only by persons
    |
0018|     whose responsibilities do not include loan transactions or
    |
0019|     other transactions involving the extension of credit, except
    |
0020|     that at a lending institution location having three or fewer
    |
0021|     persons with lending authority, solicitation for the sale of
    |
0022|     insurance may be conducted by a person with responsibilities
    |
0023|     for loan transactions involving the extension of credit so long
    |
0024|     as the person primarily responsible for making the specific
    |
0025|     loan or extension of credit is not the same person engaged in
    |
0001|     the solicitation for the purchase or sale of insurance for that
    |
0002|     same transaction.
    |
0003|               S.  If insurance is required as a condition of
    |
0004|     obtaining a loan, the credit and insurance transactions shall
    |
0005|     be completed independently and through separate documents.
    |
0006|               T.  A loan for premiums on required insurance shall
    |
0007|     not be included in the primary credit without the written
    |
0008|     consent of the customer.
    |
0009|               U.  A person who engages in loan transactions at any
    |
0010|     office of, or on behalf of, a lending institution or any other
    |
0011|     agent, employee, director or officer of the institution may
    |
0012|     refer a customer who seeks to purchase, or seeks an opinion or
    |
0013|     advice on any insurance product, to a person, or may give the
    |
0014|     phone number of a person who sells or provides opinions or
    |
0015|     advice on such products only if the customer expressly requests
    |
0016|     the referral; the person who engages in loan transactions does
    |
0017|     not solicit the customer request; and the person who engages in
    |
0018|     the loan transaction does not receive any compensation for the
    |
0019|     referral.
    |
0020|               V.  The place of solicitation or sale of insurance
    |
0021|     by a lending institution to the extent practicable shall be:
    |
0022|                    (1)  physically located to be distinct from the
    |
0023|     banking activities of the institution; and 
    |
0024|                    (2)  clearly and conspicuously signed to be
    |
0025|     easily distinguishable by the public as separate and distinct
    |
0001|     from the banking activities of the institution.
    |
0002|               W.  Signs and other informational material
    |
0003|     concerning the availability of insurance products from the
    |
0004|     lending institution or third party soliciting the purchase of
    |
0005|     or selling insurance on the premises of the lending institution
    |
0006|     shall not be displayed to the extent practicable in an area
    |
0007|     where application for loans or other extensions of credit are
    |
0008|     being taken or closed. 
    |
0009|               X.  Nothing in this section grants an institution,
    |
0010|     including its holding company, subsidiary or affiliate, except
    |
0011|     those enumerated in this section, the power to sell insurance
    |
0012|     that was not allowed prior to July 1, 1997.
    |
0013|               Y.  Nothing in this section precludes the
    |
0014|     superintendent from adopting reasonable rules and regulations
    |
0015|     for the purposes of the administration of the provisions of
    |
0016|     this section, including rules and regulations for written
    |
0017|     disclosures."
    |
0018|          Section 2.  SEVERABILITY.--If any part or application of
    |
0019|     this act is held invalid, the remainder or its application to
    |
0020|     other situations or persons shall not be affected.
    |
0021|          Section 3.  EFFECTIVE DATE.--The effective date of the
    |
0022|     provisions of this act is July 1, 1997.
    |
0023|                                                   State of New Mexico
    |
0024|                      House of Representatives
    |
0025|   
    |
0001|                      FORTY-THIRD LEGISLATURE
    |
0002|                        FIRST SESSION, 1997
    |
0003|   
    |
0004|   
    |
0005|                                                January 30, 1997
    |
0006|   
    |
0007|   
    |
0008|   Mr. Speaker:
    |
0009|   
    |
0010|        Your BUSINESS AND INDUSTRY COMMITTEE, to whom
    |
0011|   has been referred
    |
0012|   
    |
0013|                        HOUSE BILL 238
    |
0014|                               
    |
0015|   has had it under consideration and reports same with
    |
0016|   recommendation that it DO PASS.
    |
0017|   
    |
0018|                                 Respectfully submitted,
    |
0019|   
    |
0020|   
    |
0021|   
    |
0022|                                 <u>                                
</u>    |
<u></u>0023| <u>  
</u>    |
<u></u>0024| <u>                                </u>                             Fred Luna, Chairman
    |
0025|   
    |
0001|   
    |
0002|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0003| <u>   </u>
    |
0004|             (Chief Clerk)                       (Chief Clerk)
    |
0005|   
    |
0006|                        Date <u>            </u>
    |
0007|   
    |
0008|   The roll call vote was<u> 10 </u> For<u> 0 </u> Against
    |
0009|   Yes:      10
    |
0010|             Excused:  Getty, Hobbs
    |
0011|             Absent:   Olguin
    |
0012|   
    |
0013|   
    |
0014|   G:\BILLTEXT\BILLW_97\H0238
    |
0015|   
    |
0016|   
    |
0017|   
    |
0018|     
    |
0019|   
    |
0020|                      FORTY-THIRD LEGISLATURE
    |
0021|                        FIRST SESSION, 1997             HB 238/a
    |
0022|   
    |
0023|   
    |
0024|                                                  March 12, 1997
    |
0025|   
    |
0001|   
    |
0002|   Mr. President:
    |
0003|   
    |
0004|       Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
    |
0005|   whom has been referred
    |
0006|   
    |
0007|                     HOUSE BILL 238, as amended
    |
0008|   
    |
0009|   has had it under consideration and reports same with
    |
0010|   recommendation that it DO PASS, amended as follows:
    |
0011|   
    |
0012|       1.  On page 1, line 23, after "or" insert "insurance agent,
    |
0013|   solicitor or broker".
    |
0014|   
    |
0015|       2.  On page 2, line 7, strike "and".
    |
0016|   
    |
0017|       3.  On page 2, line 10, strike "its" and insert in lieu
    |
0018|   thereof "a".
    |
0019|   
    |
0020|       4.  On page 2, line 13, strike the period, insert in lieu
    |
0021|   thereof a semicolon and between lines 13 and 14, insert the
    |
0022|   following new paragraphs:
    |
0023|   
    |
0024|                "(4)  "sell" means to engage in the solicitation,
    |
0025|   sale and placement of insurance and such other related activities
    |
0001|   conducted by an agent, solicitor or broker pursuant to the
    |
0002|   Insurance Code;
    |
0003|   
    |
0004|                (5)  "service contract" means a contract issued on
    |
0005|   consumer products pursuant to which the vendor or manufacturer
    |
0006|   bears the cost of the repair or replacement of the consumer
    |
0007|   product;
    |
0008|   
    |
0009|                (6)  "insurance premium finance agreement" means an
    |
0010|   agreement by which an insured or a prospective insured promises
    |
0011|   to pay to any person engaged in the business of premium
    |
0012|   financing, the amount advanced or to be advanced under the
    |
0013|   agreement to an insurer or to an insurance agent or broker in
    |
0014|   payment of premiums on an insurance contract; and
    |
0015|   
    |
0016|   
    |
0017|   
    |
0018|   
    |
0019|   
    |
0020|   
    |
0021|                (7)  "loan transaction" and any other reference to
    |
0022|   lending or extension of credit does not include loans made by
    |
0023|   broker-dealers registered in accordance with applicable state and
    |
0024|   federal securities laws that are wholly collateralized by
    |
0025|   securities.".
    |
0001|   
    |
0002|       5.  On page 3, line 5, before the semicolon insert:
    |
0003|   
    |
0004|   ", and when providing insurance coverage to a borrower or co-
    |
0005|   borrower or both, the following insurance products:  accidental
    |
0006|   death and dismemberment, accidental disability and any other
    |
0007|   accidental casualty insurance product".
    |
0008|   
    |
0009|       6.  On page 3, line 9, strike "and".
    |
0010|   
    |
0011|       7.  On page 3, line 11, strike the period, insert a
    |
0012|   semicolon and between lines 11 and 12, insert the following new
    |
0013|   paragraphs:
    |
0014|   
    |
0015|                "(4)  annuities; 
    |
0016|   
    |
0017|                (5)  service contracts;
    |
0018|   
    |
0019|                (6)  insurance premium finance agreements; and 
    |
0020|   
    |
0021|                (7)  travel accident or baggage insurance.".
    |
0022|   
    |
0023|       8.  On page 3, line 16, after "agent" insert ", solicitor".
    |
0024|   
    |
0025|       9.  On page 3, line 21, after "agent" insert ", solicitor".
    |
0001|   
    |
0002|       10.  On page 3, line 24, after "agent" insert ", solicitor".
    |
0003|   
    |
0004|       11.  On page 4, line 1, after "agent" insert ", solicitor".
    |
0005|   
    |
0006|       12.  On page 4, line 3, strike "broker or" and after "agent"
    |
0007|   insert ", solicitor or broker".
    |
0008|   
    |
0009|   
    |
0010|   
    |
0011|   
    |
0012|   
    |
0013|   
    |
0014|   
    |
0015|   
    |
0016|   
    |
0017|   
    |
0018|       13.  On page 4, line 6, after "institution" insert ", except
    |
0019|   an institution that does not accept deposits that are federally
    |
0020|   insured,".
    |
0021|   
    |
0022|       14.  On page 4, line 24, after "agent" insert ", solicitor".
    |
0023|   
    |
0024|       15.  On page 5, line 3, strike "promotion and".
    |
0025|   
    |
0001|       16.  On page 5, line 4, after "institution" insert ", except
    |
0002|   an institution that does not accept deposits that are federally
    |
0003|   insured,".
    |
0004|   
    |
0005|       17.  On page 5, line 7, strike "promotional" and insert in
    |
0006|   lieu thereof "sales".
    |
0007|   
    |
0008|       18.  On page 5, line 9, strike "promotional" and insert in
    |
0009|   lieu thereof "sales".
    |
0010|   
    |
0011|       19.  On page 5, line 23, after "not" strike the remainder of
    |
0012|   the line, strike line 24 and strike line 25 through "or".
    |
0013|   
    |
0014|       20.  On page 6, line 1, after "sale" strike the remainder of
    |
0015|   the line and strike line 2 through "purchase".
    |
0016|   
    |
0017|       21.  On page 6, line 17, after the period insert:
    |
0018|   
    |
0019|   "Notwithstanding any provision in this section to the contrary,
    |
0020|   compliance with Section 603 of the federal Fair Credit Reporting
    |
0021|   Act by a lending institution shall be deemed to be full
    |
0022|   compliance with this subsection.  Nonpublic customer information
    |
0023|   does not include material excluded from the definition of
    |
0024|   "consumer report" by Section 603(d)(2)(A) of the federal Fair
    |
0025|   Credit Reporting Act.".
    |
0001|   
    |
0002|       22.  On page 6, strike lines 18 and 19.
    |
0003|   
    |
0004|       23.  Reletter the succeeding subsections accordingly.
    |
0005|   
    |
0006|       24.  On page 6, line 20, strike "transactions" and insert in
    |
0007|   lieu thereof "sales".
    |
0008|   
    |
0009|   
    |
0010|   
    |
0011|   
    |
0012|   
    |
0013|       25.  On page 7, line 2, after "institution" insert "or with
    |
0014|   the institution's resident agent, solicitor or broker". 
    |
0015|   
    |
0016|       26.  On page 7, line 7, after "state" insert "or in the
    |
0017|   office of the institution's resident agent, solicitor or broker".
    |
0018|   
    |
0019|       27.  On page 7, line 11, strike "agent" and insert in lieu
    |
0020|   thereof "agent's, solicitor's".
    |
0021|   
    |
0022|       28.  On page 7, line 16, after "agent" insert ", solicitor
    |
0023|   or broker".
    |
0024|   
    |
0025|       29.  On page 7, line 16, strike "held" and insert in lieu
    |
0001|   thereof "holds".
    |
0002|   
    |
0003|       30.  On page 7, line 17, strike "agent".
    |
0004|   
    |
0005|       31.  On page 7, line 18, strike "was" and insert in lieu
    |
0006|   thereof "is".
    |
0007|   
    |
0008|       32.  On page 7, line 19, strike "was" and insert in lieu
    |
0009|   thereof "is".
    |
0010|   
    |
0011|       33.  On page 8, line 13, after the period insert:
    |
0012|   
    |
0013|   "This subsection shall not apply when a lending institution
    |
0014|   contacts a customer in the course of direct or mass marketing to
    |
0015|   a group of persons in a manner that bears no relation to the
    |
0016|   customer's loan application or credit decision.".
    |
0017|   
    |
0018|       34.  On page 8, strike lines 14 through 25, and insert in
    |
0019|   lieu thereof:
    |
0020|   
    |
0021|           "R.  The sale of insurance by a lending institution,
    |
0022|   credit union, sales financing company, insurance institution,
    |
0023|   independent company, any institution granting or arranging
    |
0024|   consumer credit or any institution soliciting or making loans in
    |
0025|   the state of New Mexico, except a broker or dealer registered
    |
0001|   under the Securities Exchange 
    |
0002|   
    |
0003|   
    |
0004|   
    |
0005|   
    |
0006|   
    |
0007|   Act of 1934, may be conducted by a person whose responsibilities
    |
0008|   include loan transactions or other transactions involving the
    |
0009|   extension of credit so long as the person who is primarily
    |
0010|   responsible for making the specific loan or extension of credit
    |
0011|   is not the same person engaged in the sale of insurance for that
    |
0012|   same transaction."
    |
0013|   
    |
0014|       35.  On page 9, line 6, before the period insert ", which
    |
0015|   may be evidenced by compliance with the federal Truth in Lending
    |
0016|   Act".
    |
0017|   
    |
0018|       36.  On page 9, line 9, after "the" insert "lending".
    |
0019|   
    |
0020|       37.  On page 9, line 18, strike "place of solicitation or"
    |
0021|   and insert in lieu thereof "location for the".
    |
0022|   
    |
0023|       38.  On page 9, line 18, strike "by" and insert in lieu
    |
0024|   thereof "on the premises of".
    |
0025|   
    |
0001|       39.  On page 9, line 19, after "institution" insert ",
    |
0002|   except an institution that does not accept deposits that are
    |
0003|   federally insured,".
    |
0004|   
    |
0005|       40.  On page 9, line 21, strike "banking" and insert in lieu
    |
0006|   thereof "lending".
    |
0007|   
    |
0008|       41.  On page 9, line 24, strike "banking" and insert in lieu
    |
0009|   thereof "lending".
    |
0010|   
    |
0011|       42.  On page 10, line 7, strike "an" and insert in lieu
    |
0012|   thereof "a lending".
    |
0013|   
    |
0014|       43.  On page 10, line 15, strike the closing quotation mark
    |
0015|   and between lines 15 and 16, insert the following new subsection:
    |
0016|   
    |
0017|           "Z.  If any of the provisions of this section are
    |
0018|   preempted by federal law, then those preempted provisions shall
    |
0019|   not apply to any person or lending institution subject to the
    |
0020|   provisions of this section."".
    |
0021|       
    |
0022|   
    |
0023|   
    |
0024|   
    |
0025|   
    |
0001|   
    |
0002|   
    |
0003|   
    |
0004|   
    |
0005|                                Respectfully submitted,
    |
0006|   
    |
0007|   
    |
0008|   
    |
0009|                                
    |
0010|   __________________________________
    |
0011|                                Roman M. Maes, III, Chairman 
    |
0012|   
    |
0013|   
    |
0014|   
    |
0015|   Adopted_______________________   Not
    |
0016|   Adopted_______________________
    |
0017|             (Chief Clerk)                          (Chief Clerk)
    |
0018|   
    |
0019|   
    |
0020|                     Date ________________________
    |
0021|   
    |
0022|   
    |
0023|   The roll call vote was <u> 5 </u> For <u> 2 </u> Against
    |
0024|           Yes:    5
    |
0025|           No:     Kidd, McKibben
    |
0001|                Excused:     Fidel, Griego, Howes
    |
0002|           Absent: None
    |
0003|   
    |
0004|   
    |
0005|   H0238CT1                                          .118651.1/a
    |
0006|   
    |