The bill amends the Regulatory Loan Act of 1939 by revising Section 17, which pertains to the validity of assignments or orders for payment of compensation used to secure loans made by licensed lenders. The bill specifies that such assignments are not valid, and it introduces a requirement that any chattel mortgage or lien on household goods must be 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, unless they have been living separately for at least five months prior to the mortgage or lien.

The amendments also replace the term "shall" with "is" in several instances, clarifying the conditions under which these financial agreements are considered valid. The bill includes a provision stating that it will not take effect unless certain joint resolutions become part of the state constitution, ensuring that the changes are contingent upon broader constitutional approval.

Statutes affected:
House Introduced Bill: 493.17