The bill amends the Regulatory Loan Act of 1939 by updating the language regarding the validity of assignments or orders for payment of compensation used to secure loans made by licensed lenders. Specifically, it states that such assignments are not valid, and it clarifies that a chattel mortgage or other lien on household goods is also not valid unless it is in writing and signed in person by the borrower. Additionally, if the borrower is married, both spouses must sign the document for it to be valid, although the written consent of a spouse is not required if the spouses have been living separately for at least five months prior to the creation of the lien.

The bill also includes a provision that it will not take effect unless certain joint resolutions become part of the state constitution. This ensures that the amendments to the loan regulations are contingent upon further legislative action. The changes aim to enhance consumer protection by ensuring that borrowers are fully informed and consenting to any agreements involving their compensation or household goods.

Statutes affected:
House Introduced Bill: 493.17