COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0894-01
Bill No.: SB 365
Subject: Banks and Financial Institutions; Business and Commerce; Contracts and Contractors; Fees; Mortgages and Deeds
Type: Original
Date: January 31, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Economic Development - Division of Finance and Division of Credit Unions indicated that this proposal would have no fiscal impact on their agencies.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small business could be fiscally impacted due to the increase in late charge fees.
DESCRIPTION
This proposal modifies the allowable charge for a late payment of an installment or minimum payment to $15 or an amount not to exceed 5% of each installment or minimum payment due, whichever is greater. Currently, the allowable charge is $25 or an amount not to exceed 5% of each installment or minimum payment due, which is less. In addition, the default charge on any second mortgage loan for any payment not paid in full within 15 days of its scheduled due date is modified to $15 or an amount not to exceed 5% of each installment or minimum payment due, whichever is greater. Currently, the allowable charge is $25 or an amount not to exceed 5% of each installment or minimum payment due, which is less.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Economic Development
Division of Finance
Division of Credit Unions
Mickey Wilson, CPA
Director
January 31, 2003