HCS HB 540 -- LENDING INSTITUTION SERVICES

SPONSOR:  Jones (89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 13 to 1.

This substitute allows lending institutions to sell deficiency
waiver addendums, guaranteed asset protections, or similar
products purchased as part of a loan transaction with collateral
at the borrower's option if the cost of the product is disclosed
in the loan contract.

Lenders may offer, sell, and finance automobile club memberships,
home and auto security plans, and other plans and services that
benefit a borrower.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill allows borrowers to add
gap insurance to a single financing plan and finance the cost of
the insurance together with the item purchased.  Banks will be
able to offer a simplified way to purchase car insurance at the
same time they finance the car purchase.

Testifying for the bill were Representative Jones (89); Missouri
Bankers Association; and Missouri Financial Services Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am