Introduced House Bill (H)

Authored by

DIGEST

Nonprofit facilitators of lending circle loans. Provides that after December 31, 2015, an eligible nonprofit organization may apply to the department of financial institutions (department) for a certificate of registration to facilitate the making of zero interest, low cost lending circle loans to eligible individuals who participate in lending circles in Indiana. Defines a "lending circle" as group of individuals that is voluntarily organized for the purpose of: (1) generating a source of funds by: (A) pooling or collecting contributions from individual group members; or (B) obtaining funds from other sources, including from lending circle loans; and (2) disbursing the Nonprofit facilitators of lending circle loans. Provides that after December 31, 2015, an eligible nonprofit organization may apply to the department of financial institutions (department) for a certificate of registration to facilitate the making of zero interest, low cost lending circle loans to eligible individuals who participate in lending circles in Indiana. Defines a "lending circle" as group of individuals that is voluntarily organized for the purpose of: (1) generating a source of funds by: (A) pooling or collecting contributions from individual group members; or (B) obtaining funds from other sources, including from lending circle loans; and (2) disbursing the funds to individual group members for personal, family, or household purposes. Sets forth requirements for: (1) obtaining a certificate of registration from the department; and (2) maintaining a surety bond in connection with a certificate. Sets forth certain: (1) prohibited actions; and (2) requirements; in connection with facilitating the making of a lending circle loan. Provides that an eligible nonprofit organization may charge only: (1) an administrative fee; and (2) an insufficient funds fee; in connection with facilitating the making of a lending circle loan. Allows a registered eligible nonprofit organization to cooperate with: (1) other registered eligible nonprofit organizations; and (2) nonregistered partnering organizations; in facilitating the making of a lending circle loan. Provides that the director of the department may adopt rules, policies, or guidance concerning facilitating the making of lending circle loans in Indiana. Specifies that: (1) an eligible nonprofit organization is not a loan broker for purposes of the statute concerning the licensure of mortgage loan brokers by the securities commissioner; and (2) facilitating the making of a lending circle loan is not subject to the Uniform Consumer Credit Code. ... View more