HOUSE
                       3rd Reading Unamended
       March 31, 2011          HOUSE
       2nd Reading Unamended
                      March 30, 2011First Regular Session
              Sixty-eighth General Assembly
                    STATE OF COLORADO
                                                REENGROSSED
                       This Version Includes All Amendments
                       Adopted in the House of Introduction
 LLS NO. 11-0334.03 Bart Miller          HOUSE BILL 11-1290
                    HOUSE SPONSORSHIP
 Liston and Riesberg,  Balmer, Casso, Gardner B., Holbert, Kerr J., Massey, Nikkel,
 Schafer S., Stephens, Swerdfeger
 
                   SENATE SPONSORSHIP
 Heath,  Brophy, Hodge, Kopp, Tochtrop
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Economic and Business Development
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the nonrefundability of an origination fee for a
            deferred deposit loan.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted.  If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            The bill specifies that a lender may charge a nonrefundable
       origination fee deemed fully earned as of the date of a deferred deposit
       loan.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  5-3.1-105, Colorado Revised Statutes, is amended
       to read:
            5-3.1-105.  Authorized interest rate.  A lender may charge a
       finance charge for each deferred deposit loan or payday loan
       nonrefundable origination fee that may not exceed twenty percent
       of the first three hundred dollars loaned plus seven and one-half percent
       of any amount loaned in excess of three hundred dollars.  Such charge
       The nonrefundable origination fee shall be deemed fully earned as
       of the date of the transaction loan.  The lender may also charge an
       interest rate of forty-five percent per annum for each deferred deposit
       loan or payday loan.  If the loan is prepaid prior to the maturity of the
       loan term, the lender shall refund to the consumer a prorated portion of
       the annual percentage rate based upon the ratio of time left before
       maturity to the loan term.  In addition, the lender may charge a monthly
       maintenance fee for each outstanding deferred deposit loan, not to exceed
       seven dollars and fifty cents per one hundred dollars loaned, up to thirty
       dollars per month.  The monthly maintenance fee may be charged for
       each month the loan is outstanding thirty days after the date of the
       original loan transaction.  The lender shall charge only those charges
       authorized in this article in connection with a deferred deposit loan.
            SECTION 2.  Effective date - applicability.  This act shall take
       effect upon passage and shall apply to deferred deposit loans on or after
       said date.
            SECTION 3.  Safety clause.  The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.