SCS/HCS/HB 1446 - This act allows political subdivisions and public entities to deposit funds in deposit accounts in financial institutions when the institution redeposits the money through a deposit placement program. Under the program the financial institution shall arrange for the redeposit in one or more United States financial institutions and serve as a custodian for the public entity with respect to the funds. Public entity funds in excess of the amount insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Share Insurance Fund (NCUSIF) shall be secured. The full amount redeposited shall be FDIC or NCUSIF insured and on the same date that the public funds are redeposited, the financial institution shall receive an amount of deposits from customers of other financial institutions under the deposit placement program that are equal to the amount of the redeposited public funds. This act creates a definition for "boat slip" or "watercraft slip" for the purposes of real estate appraisers, establishing that such object is a part of a boat dock serving a common interest community and thus, real property.
Agreements to operate or share automated teller machines shall not prohibit owners from charging access fees or surcharges to users with bank accounts in foreign countries.
The act also allows lending institutions to offer, sell, and finance service contracts, motor vehicle service contracts, and vehicle protection devices issued by registered providers, automobile club memberships, and other plans and services providing a benefit to the borrower if the cost is disclosed separate from the loan contract. In addition, lenders may not require the purchase of the plan as a condition for approval of loan. Purchasers of the plans must be entitled to cancel the transaction and receive a refund within 30 days of purchase. Purchasers of the plans must provide a separate and apart from the loan document a written acknowledgment of their intent to purchase the plan. No plan may include reimbursement for a deductible on a property insurance claim and shall clearly be identified as optional and not required purchase.
This act specifically authorizes the sale of deficiency waiver addendums and guaranteed asset protection products with respect to certain consumer loans, second mortgage loans, and retail credit sales provided such products are purchased as part of a loan transaction with collateral, at the borrower's consent, and the cost of the product is disclosed in the loan contract. The borrower's consent to the purchase of the product shall be in writing and acknowledge receipt of the required disclosures by the borrower (Sections 408.140, 408.233, and 408.300). Each deficiency waiver addendum, guaranteed asset protection, or other similar product must provide that in the event of termination of the product prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for such product shall be paid or credited promptly to the debtor. No refund of less than $1 need be made. The formula to be used in computing the refund shall be the pro rata method. The act also provides consumers a free look period with respect to deficiency waiver addendums and guaranteed asset protection products. A debtor may cancel the product within 15 days of its purchase and shall receive a complete refund or credit of premium. This right shall be set forth in the loan contract, or by separate written disclosure. This right shall be disclosed at the time the debt is incurred in ten-point type and in a manner reasonably calculated to inform the debtor of this right.
The probate code is modified to allow conservators of estates of protectees to invest liquid assets in financial institutions insured by the National Credit Union Share Insurance Fund in addition to the Federal Deposit Insurance Corporation.
This act is similar to SB 777 (2010) and SB 773 (2010).
CHRIS HOGERTY