S.1347 Cheap Alternatives to Payday Advances Act 109th Congress

S.1347 Cheap Alternatives to Payday Advances Act 109th Congress


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Text: S.1347 — 109th Congress (2005-2006) All Information (Except Text)

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Shown Right Right Here: Introduced in Senate (06/30/2005)

To authorize demonstration task funds to entities to give low-cost, little loans.

Mr. Akaka introduced the following bill; that has been read twice and referred to your Committee on Banking, Housing, and Urban Affairs

To authorize demonstration task funds to entities to give low-cost, tiny loans.

SECTION 1. give system for low-cost options to pay day loans .

(a) brief name .—This area can be cited due to the fact “Low-Cost Alternatives to payday advances Act”.

(b) Definitions .—In this Act:

(1) C OMMUNITY DEVELOPING STANDARD BANK .—The term “community development institution that is financial means any company which has been certified as a residential district development lender pursuant to area 1805.201 of name 12, Code of Federal Regulations.

(2) F EDERALLY INSURED DEPOSITORY ORGANIZATION .—The term “federally insured depository institution” means any insured depository institution (as defined in area 3 regarding the Federal Deposit Insurance Act (12 U.S.C. 1813)) or any insured credit union (as defined in area 101 of this Federal Credit Union Act (12 U.S.C. 1752)).

(3) P AYDAY LOAN .—The term “payday loan” means any deal by which a tiny advance loan was created to a customer in trade for—

(A) the individual check or share draft regarding the customer, into the quantity of the advance and also a cost, where presentment or settlement of these check or share draft is deferred by contract for the events until a designated future date; or

(B) the authorization for the customer to debit the deal account or share draft account regarding the customer, when you look at the number of the advance plus a cost, where account that is such be debited on or following a designated future date.

(c) Establishment of program .—The Secretary regarding the Treasury (described in this behave as the “Secretary”) is authorized to award demonstration task funds (including multi-year funds) to qualified entities to give low-cost, little loans to people who provides options to more expensive, predatory pay day loans.

(d) Eligible entities .—An entity is qualified to get a grant under this Act if this kind of entity is—

(1) a business described in section 501(c)(3) for the Internal sales Code of 1986 and exempt from tax under area 501(a) of these Code;

(2) a federally insured depository institution;

(3) a residential area development standard bank; or

(4) a partnership made up of 1 or maybe more regarding the entities described in paragraphs (1) through (3).

( ag ag ag e) Application .—An qualified entity desiring a grant under this Act shall sign up into the Secretary such kind and containing information that is such the Secretary may necessitate.

(f) stipulations .—

(1) P ERCENTAGE SPEED .—For purposes of the Act, a qualified entity that’s a federally insured depository institution will probably be susceptible to the apr promulgated by the nationwide Credit Union management’s Loan Interest Rates under component 701 of name 12, Code of Federal Regulations regarding the that loan supplied to a customer pursuant for this https://www.paydayloanssolution.org/installment-loans-tn Act.

(2) F INANCIAL LITERACY AND EDUCATION POSSIBILITIES .—Each qualified entity granted a grant under this Act shall provide monetary literacy and training possibilities, such as for example appropriate guidance solutions or academic courses, every single consumer supplied with that loan pursuant for this Act.

(g) Limitation on administrative expenses .—Each qualified entity granted a grant under this Act can use less than 6 % of this total number of such grant in almost any financial 12 months when it comes to administrative expenses of holding out of the programs funded by such grant this kind of year that is fiscal.

(h) assessment and report .—For each financial 12 months in which a grant is granted under this Act, the Secretary shall submit a study to Congress containing a description of this tasks funded, amounts distributed, and quantifiable outcomes, as appropriate and available.

(i) Regulations .—The Secretary is authorized to promulgate laws to implement and administer the grant system under this Act.

(j) Authorization of appropriations .—There is authorized become appropriated towards the Secretary, when it comes to give system described in this Act, such sums as can be necessary, which shall stay available until expended.