Strike everything after the enacting clause and insert:
"Section 1. Section 6-635, Arizona Revised Statutes, is amended to read:
START_STATUTE6-635. Other allowable fees
A. In addition to the finance charges authorized by
section 6‑632, a licensee may contract for and receive, and collect
finance charges on, the following fees:
1. A delinquency charge in an amount equal to five
per cent of the amount of any installment not paid in full within seven days
after its due date.
2. The actual costs of charges that are paid to a
third party who is not an employee of the licensee and that are incurred in
making consumer lender loans secured in whole or in part by real property,
including the charges for a preliminary title search, title examination and
report, title insurance premiums, property survey and appraisal fees.
3. Lawful fees for the acknowledging, filing and
recording, continuing or releasing in any public office of any instrument or
financing statement evidencing or perfecting a lien or security interest in
real or personal property securing a consumer lender loan or the premiums paid
for insurance in lieu of filing or recording that shall not exceed the filing
or recording fee.
4. A loan origination fee of not more than five per
cent of a closed end consumer loan or the agreed credit limit of a consumer
revolving loan, but in no event in an amount that is more than
seventy‑five dollars
except that the loan origination fee may be seven and one‑half per cent
on closed end consumer loans or consumer revolving loans with an original
principal balance of one thousand dollars or less. A
licensee shall not charge a loan origination fee:
(a) For the refinancing of a closed end consumer
loan or the renegotiating of an agreed credit limit of a consumer revolving
loan if the refinancing or renegotiating occurs within one year of the
collection of a prior loan origination fee.
(b) If the licensee charges prepaid finance charges
pursuant to section 6‑632, subsection E, paragraph 1.
5. Deferral fees authorized in section 6‑634
for precomputed consumer loans.
6. Insurance premiums as provided in section 6‑636.
7. Court costs.
8. Reasonable attorney fees if the consumer lender
loan is referred for collection to an attorney other than a salaried employee
of the licensee.
9. Costs, expenses and fees authorized in section 33‑813,
subsection B for reinstatement of a deed of trust encumbering real property
that secures a consumer lender loan.
10. Costs and expenses of exercising the power of
sale in a deed of trust encumbering real property that secures a consumer
lender loan and costs and expenses of a sale that are included in a credit bid
or that are applied from the proceeds of a trustee's sale pursuant to section
33‑812, including the payment of trustee fees and reasonable attorney
fees actually incurred.
11. Costs and expenses of retaking, holding,
preparing for sale and selling any personal property in accordance with title
47, chapter 9, article 6.
12. A fee,
not to exceed ten dollars, for preparing loan documentation and collateral
security instruments and for obtaining third party credit reports.
B. If a licensee receives a check, draft, negotiable
order of withdrawal or similar instrument drawn on a depository institution
that is offered by a consumer in full or partial payment on a consumer lender
loan and the instrument is not paid or is dishonored by the depository
institution, the licensee may charge and collect from the consumer a dishonored
check service fee pursuant to section 44‑6852.
C. In addition to the finance charges and fees
provided in this article, the licensee shall not directly or indirectly charge,
contract for or receive any further or other amount in connection with a
consumer lender loan.
D. In conjunction with the reporting requirements
prescribed in section 6‑609, on or before October 1, 2003 and every year
thereafter, a licensee shall report to the superintendent the number of closed
end consumer loans and consumer revolving loans under one thousand dollars made
in the prior two years." END_STATUTE
Amend title to conform
