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| Georgia General Assembly |
SB16.html
01 SB16/AP
Senate Bill
16
By: Senators Cheeks of the 23rd, Harbison
of the 15th, Stokes of the 43rd, Gingrey of the
37th and Stephens of the 51st
AS PASSED
AN ACT
To amend Chapter 1 of Title 7 of the Official Code of
Georgia Annotated, known as the "Financial Institutions Code of Georgia," so as
to change the provisions relating to definitions; to change the provisions
relating to real estate loans; to change the provisions relating to corporate
stock and securities; to change the provisions relating to boards of directors;
to change the provisions relating to merger plans; to provide for department
review of certain mergers; to change the provisions relating to the effect of
issuance of a certificate of merger or consolidation; to provide for department
review of a plan of conversion; to change the provisions relating to the powers
of Georgia state banks; to change the provisions relating to third-party
payment services; to change the provisions relating to mortgage broker licenses;
to change the provisions relating to the financial requirements for licensing
and registration of mortgage brokers; to clarify the requirements relative to
licensees and registrants; to change the provisions relating to renewal of
licenses and registrations; to provide for disclosure of written complaints
received by the department; to make changes in the provisions relating to rule
making; to authorize the department to prescribe standards related to accuracy
of required disclosures; to provide for civil penalties or fines; to provide for
related matters; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Chapter 1 of Title 7 of the Official Code of Georgia
Annotated, relating to financial institutions, is amended by striking paragraphs
(7) and (11) of Code Section 7-1-4 relating to definitions, and inserting in
lieu thereof two new paragraphs (7) and (11) to read as
follows:
"(7)
'Bank' means a corporation existing under the laws of this state on April 1,
1975, or organized under this chapter and authorized to engage in the business
of receiving deposits withdrawable on demand or deposits withdrawable after
stated notice or lapse of time; 'bank' shall also include national banks located
in this state for the purpose of Part 6 of Article 2 of this chapter, relating
to deposits, safe-deposit agreements, and money received for transmission, and
Article 8 of this chapter, relating to multiple deposit accounts; provided,
however, that 'bank' shall not include a credit union, a building and loan
association, a savings and loan association, or a licensee under Article 4 of
this chapter. 'Bank' shall include a federal or state credit union for the
purposes of Part 6 of Article 2 of this chapter, provided that this inclusion is
not intended to grant or expand any powers to credit unions not authorized in
Part 6 of Article 2 of this chapter or by other
law."
"(11)
Reserved."
SECTION 2.
Said chapter is further amended by striking paragraph (2) of
subsection (b) of Code Section 7-1-286, relating to real estate loans, and
inserting in lieu thereof a new paragraph (2) to read as
follows:
"(2)
A loan in connection with which the bank takes a real estate lien as security in
the exercise of banking prudence but as to which it is relying for repayment
on:
(A) The general credit of the obligor or of an
installment buyer or of a lessee of the real
estate;
(B) Collateral other than the real estate
lien;
(C) A guaranty or an agreement to take over or
purchase the loan, in the event of default, by a financially responsible person
other than a person engaged in the business of guaranteeing real estate loans;
or
(D) An agreement by a financially responsible
person to take over or purchase the loan, or to provide funds for payment
thereof, within a period of two years from the date of the
loan;
and there is documentation in the file setting
forth the applicable facts to support reliance on this
paragraph."
SECTION 3.
Said chapter is further amended by striking Code Section
7-1-288, relating to corporate stock and securities, and inserting in lieu
thereof a new Code Section 7-1-288 to read as
follows:
"7-1-288.
(a)
Except as provided in subsections (b) and (c) of this Code section and in Code
Section 7-1-261, a bank may not engage in any transaction with respect to shares
of stock or other capital securities of any
corporation.
(b) A bank
may:
(1) Engage in transactions with respect to
issuance and transfer of shares of its own stock and capital securities and in
other transactions with respect to such stock and capital securities authorized
by this chapter;
(2) Purchase and sell shares of
stock, bonds, capital securities, and other investment products upon the order
of and for the account of a customer without recourse against
it;
(3) Receive a pledge or other security interest in
stock or capital securities in order to secure loans made in good faith, except
that it may not receive such interests in its own stock or capital securities
nor lend in one or more transactions, involving one or more borrowers, more than
30 percent of its statutory capital base on the stock or capital securities of
any corporation (including therein loans made directly to the corporation
without ample security but excluding obligations representing the sale of
federal or correspondent funds to another financial institution). The
department may, by regulation or otherwise, specify that two or more
corporations are so interrelated that their stock shall be regarded as the stock
of one corporation for the purposes of this
subsection.
(c) Notwithstanding any other provisions
of law to the contrary, a bank may acquire and hold for its own
account:
(1) Shares of stock of a federal reserve bank
without limitation of amount;
(2) Shares of stock or
interests in:
(A) Any state or federal government
sponsored instrumentality for the guarantee, underwriting, or marketing of
residential housing or financing of residential
housing;
(B) A business development corporation or
small minority business development corporation authorized under Article 6 of
this chapter;
(C) An agricultural credit corporation
duly organized under the laws of this state having authority to make loans to
farmers of this state for agricultural purposes under programs administered by
the federal farm credit system;
(D) A bank service
corporation created to provide support services for one or more financial
institutions;
(E)(i) A bank principally engaged in
foreign or international banking or banking in a dependency or insular
possession of the United States, either directly or through the agency,
ownership, or control of local institutions in foreign countries or in such
dependencies or insular possessions, including the stock of one or more
corporations existing pursuant to Section 25(a) of the Federal Reserve Act,
provided that, before a bank may purchase a majority interest in any such
banking institution, it shall enter into an agreement with the department to
restrict its operations in such manner as the department may prescribe; and
provided, further, that, if the department determines that said restrictions
have not been complied with, it may order the disposition of said stock upon
reasonable notice.
(ii) A bank engaged in providing
banking or other financial services to depository financial institutions, which
bank´s ownership consists primarily of such depository financial
institutions;
(F) A corporation engaged in functions
or activities that the bank or trust company is authorized to carry on,
including, but not limited to: conducting a safe-deposit business; holding real
estate; acting as a financial planner or investment adviser; offering of a full
range of investment products; promoting and facilitating international trade and
commerce; and exercising powers incidental to financial activities as provided
in paragraph (11) of Code Section 7-1-261; in addition to functions or
activities which include exercising powers granted by department regulations or
exercising powers determined by the commissioner to be financial in nature or
incidental to the provision of financial services, so long as these activities
do not pose undue risk to the safety and soundness of the financial institution
and are consistent with the objectives of this chapter as stated in Code Section
7-1-3; provided, however, unless the bank is exempt, nothing contained in this
subparagraph shall relieve any such corporation from undertaking registration,
licensing, or other qualification to engage in such functions or activities as
may otherwise be required by law; and
(G) Other
corporations created pursuant to act of Congress or pursuant to Chapter 3 of
Title 14, known as the 'Georgia Nonprofit Corporation Code,' for the purpose of
meeting the agricultural, housing, health, transit, educational, environmental,
or similar needs where the department determines that investment therein by
banks is in the public interest;
(3) Shares of stock
of small business investment companies organized under acts of Congress and
doing business in this state, provided that the aggregate investment by the bank
in such shares shall not exceed 5 percent of its statutory capital base;
and
(4) Shares of stock or partnership interests in a
corporation or partnership the primary business of which, as determined by the
department, is to promote the public welfare or community development by
engaging in the development of low and moderate-income housing, job training and
job placement programs, credit counseling, public education regarding financial
matters, small business development, and other similar purposes. The ability to
invest in such stock or partnership interests shall also be subject to such
limitations and approval procedures as the department deems necessary in order
to assure that such investments are not a safety and soundness
concern.
(d) A bank acquiring stock or an interest in
an entity listed in paragraph (2) of subsection (c) of this Code section shall
be subject to the following limitations:
(1) Where the
entity carries on only such activities as the bank could legally perform itself,
there is no limitation on investment;
(2) Where the
activities of the entity go beyond those that the bank could legally perform,
the bank´s investment may not exceed 10 percent of its statutory capital
base; and
(3) Where the investment is in stock of the
Federal Home Loan Bank, there is no limitation on the bank´s investment,
provided such investment is for the purpose of utilizing the services of the
Federal Home Loan Bank.
(e) Prior approval by the
department is required for acquisitions listed in subparagraphs (D) through (G)
of subsection (c) of this Code section. The department, by regulation, may
permit expedited or notice only procedures and may provide for applicable
administrative fees.
(f) The department may by rule or
regulation prescribe less restrictive investment limitations than those
contained in this Code section for banks meeting certain financial and
management
criteria."
SECTION 4.
Said chapter is further amended by striking subsections (b)
and (c) of Code Section 7-1-480, relating to boards of directors, and inserting
thereof two new subsections to read as
follows:
"(b)
Seventy-five percent of the directors shall be citizens of the United States and
at least a majority shall:
(1) Reside in Georgia;
or
(2) Reside within 40 miles of any banking location
authorized to offer a complete banking or trust
service.
(c) The residency requirements of paragraphs
(1) and (2) of subsection (b) of this Code section shall not apply to banks
having branches in states other than Georgia, provided the residency of
directors is consistent with the bank´s articles of incorporation and
bylaws."
SECTION 5.
Said chapter is further amended by striking subsections (b)
and (e) of Code Section 7-1-530, relating to authority to merge or consolidate,
and inserting in lieu thereof two new subsections to read as
follows:
"(b)
A corporation other than a bank or trust company may be merged into or
consolidated with a bank or trust company, provided
that:
(1) The resulting institution is a bank or trust
company;
(2) The resulting institution holds only
assets and liabilities and is engaged only in activities which may be held or
engaged in by a bank or trust company; and
(3) The
merger or consolidation is not otherwise
unlawful."
"(e)
In the case of a merger of a Georgia state bank with any other bank or banks,
with the Georgia bank as the resulting bank, any assets, lines of business,
activities, or powers which may accrue to the resulting bank which would not be
allowed for a Georgia state bank shall be provided for in the plan of merger.
Such plan shall include the proposal for holding or disposal of such assets or
the continuation or termination of such line of business, activity, or power.
The department shall review the plan to determine whether, in the interest of
safety and soundness and consistent with the other objectives of Code Section
7-1-3, the activity, power, asset, or line of business should be approved,
denied, or phased out within a reasonable period of time, to be determined by
the department."
SECTION 6.
Said chapter is further amended by striking subsection (e)
of Code Section 7-1-536, relating to the effect of merger or consolidation, and
inserting in lieu thereof a new subsection (e) to read as
follows:
"(e)
The resulting bank or trust company shall have the authority to engage only in
such business and exercise only such powers as are then permissible upon
original incorporation under this chapter and shall be subject to the same
prohibitions and limitations as it would then be subject to upon original
incorporation. It may, however, subject to permission of the department as set
out in Code Sections 7-1-530 and 7-1-555, engage in any business and exercise
any right that any bank or trust company which is a party to the plan could
lawfully exercise or engage in immediately prior to the merger or
consolidation."
SECTION 7.
Said chapter is further amended by striking paragraph (5) of
subsection (b) of Code Section 7-1-555, relating to the effect of issuance of
certificate of merger or consolidation, and inserting in lieu thereof a new
paragraph (5) to read as
follows:
"(5)
The bank or trust company shall have the authority to engage only in such lines
of business and activities and exercise only such powers or hold such assets as
are then permissible upon original incorporation under this chapter and shall be
subject to the same prohibitions and limitations as it would then be subject to
upon original incorporation; provided, however, that if the converting
institution owns or holds assets, engages in any business, or has powers that
would not be allowed for a state bank, then the plan of conversion shall include
a plan for holding or disposal of such nonconforming assets or the continuation
or termination of such line of business, activity, or power. The department
shall review the plan to determine whether, in the interest of safety and
soundness and the other objectives of Code Section 7-1-3, the activity, power,
asset, or line of business should be approved, denied, or phased out within a
reasonable period of time, to be determined by the department;
and".
SECTION 8.
Said chapter is further amended by striking subsection (b)
of Code Section 7-1-628.6, relating to powers of out-of-state banks branching
into Georgia, and inserting in lieu thereof a new subsection (b) to read as
follows:
"(b)
A Georgia state bank may conduct any activities at any branch outside Georgia
that are authorized by Georgia law or that are permissible for a bank chartered
by the host state where the branch is located, except to the extent such
activities are expressly prohibited by the laws of this state or by any
regulation or order of the commissioner applicable to the Georgia state bank and
except where the activity is one that requires approval from the department, in
which case such approval must be secured; provided, however, that the
commissioner may waive any prohibition or requirement for approval if he or she
determines, by order or regulation, that the involvement of out-of-state
branches of the Georgia state bank in particular activities would not threaten
the safety or soundness of such
bank."
SECTION 9.
Said chapter is further amended by striking Code Section
7-1-670, relating to third-party payment services, and inserting in lieu thereof
a new Code Section 7-1-670 to read as
follows:
"7-1-670.
(a)
Any credit union may apply to the department for permission to offer third-party
payment services to its members. The department shall exercise its discretion
in determining whether to approve such request but shall not grant its approval
until it is satisfied that:
(1) The convenience and
need of the membership will be served by the proposed
change;
(2) There is reasonable promise of adequate
support of the program in light of:
(A) The
competition offered by existing financial
institutions;
(B) The financial history of the credit
union and its membership; and
(C) The opportunities
for profitable employment of depositors´ funds as indicated by the average
demand for credit, the number of potential depositors, the volume of
transactions, and stability of the common bond;
(3)
The managerial resources, internal controls, and operating procedures of the
credit union are sufficient to administer the program in a safe and sound
manner; and
(4) The capital and reserves of the credit
union are adequate in light of current economic conditions and asset quality of
the credit union.
(b) A credit union meeting certain
financial and managerial criteria specified by department rule, regulation, or
policy shall be exempt from the need for prior approval. Prior notice of intent
to offer third-party payment services will be provided to the
department.
(c) Upon the commencement of third-party
payment services, a credit union shall be subject to Code Sections 7-1-286,
pertaining to real estate loans; 7-1-287, pertaining to investment securities;
7-1-288, pertaining to corporate stock and securities; 7-1-371, pertaining to
legal reserve requirements; and rules and regulations of the department relating
to the foregoing Code sections of law and shall not pay a greater rate of
interest on third-party payment accounts than is allowed to be paid by
commercial banks.
(d) Authority to offer third-party
payment services may be suspended or revoked in accordance with Code Section
7-1-91."
SECTION 10.
Said chapter is further amended by striking "and" at the end
of paragraph (6), by striking the period and inserting in lieu thereof "; and"
at the end of paragraph (7), and by adding following paragraph (7) of subsection
(b) of Code Section 7-1-1003, relating to applications for licenses, a new
paragraph (8) to read as
follows:
"(8)
For mortgage brokers, evidence of satisfaction of experience or education
requirements, as required by regulations of the
department."
SECTION 11.
Said chapter is further amended by striking Code Section
7-1-1003.2, relating to financial requirements for licensing and registration,
and inserting in lieu thereof a new Code Section 7-1-1003.2 to read as
follows:
"7-1-1003.2.
(a)
Each licensed mortgage broker must provide the department with a bond. The bond
for a mortgage broker shall be in the principal sum of $50,000.00 or such
greater sum as the department may require and the bond shall meet the other
requirements of subparagraph (c)(2)(B) of this Code section. In lieu of a bond,
a mortgage broker may provide the department with an audited financial statement
that discloses that the broker has a bona fide and verifiable tangible net worth
of $25,000.00. Upon initial application and submission of the bond, such
mortgage brokers must submit an unaudited financial statement certified to be
true and correct by the mortgage broker.
(b) Except as
otherwise provided in subsection (c) of this Code section, the department shall
not license or register any mortgage lender unless the applicant or registrant
submits audited financial statements covering the most recent fiscal year
preceding the date of the application or registration and such other financial
data as the department may require that disclose that the applicant or
registrant has a bona fide and verifiable tangible net worth of $250,000.00 or
such greater amount as the department may reasonably require, which net worth
must be continuously maintained as a condition of licensure or
registration.
(c) The department may issue a mortgage
lender´s license to an applicant with a bona fide and verifiable tangible
net worth of less than $250,000.00 but not less than $100,000.00, provided that
such applicant satisfies the following requirements in support of an application
for a mortgage lender´s license in addition to all other applicable
requirements for licensure under this article:
(1) The
applicant shall certify that such applicant transfers or assigns all mortgage
loans funded with such applicant´s own funds, including, but not limited
to, draws on a warehouse line of credit to another mortgage lender prior to the
due date of the first payment by the borrower but in no event later than 45 days
after the date of funding; and
(2) The applicant shall
submit the following to the department:
(A) Audited
financial statements covering the applicant´s most recent fiscal year
preceding the date of the application and such other financial data as the
department may require that disclose that the applicant has a bona fide and
verifiable tangible net worth of $100,000.00 or such greater amount as the
department may reasonably require;
(B) A corporate
surety bond in the principal amount of $100,000.00, which bond shall be for a
term and in a form satisfactory to the department, shall be issued by a bonding
company or insurance company authorized to do business in this state and
approved by the department, and shall run to the State of Georgia for the
benefit of any person damaged by noncompliance of a licensee with any condition
of such bond. Damages under the bond shall include moneys owed to the
department for fees, fines, or penalties. Such bond shall be continuously
maintained thereafter in full force. Such bond shall be conditioned upon the
applicant or the licensee conducting his or her licensed business in conformity
with this article and all applicable laws; and
(C)
Evidence of having received approval to participate as a mortgagee loan
correspondent in the mortgage insurance programs administered by the United
States Department of Housing and Urban Development.
(d)
An irrevocable letter of credit from a federally insured financial institution
in form and terms acceptable and payable to the department may be substituted
for the bond requirement for a mortgage broker or mortgage lender
license.
(e) Any person including the department who
may be damaged by noncompliance of a licensee with any condition of a bond may
proceed on such bond against the principal or surety thereon, or both, to
recover damages.
(f) The department may promulgate
rules and regulations with respect to the definition of net worth and the
requirement for maintaining net worth as a condition of licensure or
registration.
(g) Both the net worth requirement and
the bond, wherever applicable, must be continuously maintained as a condition of
licensure or
registration."
SECTION 12.
Said chapter is further amended by striking Code Section
7-1-1004, relating to investigation of applicant and its officers, and inserting
in lieu thereof a new Code Section 7-1-1004 to read as
follows:
"7-1-1004.
(a)
Upon receipt of an application for license, the department shall conduct such
investigation as it deems necessary to determine that the applicant and its
officers, directors, and principals are of good character and ethical
reputation; that the applicant demonstrates reasonable financial responsibility;
that the applicant has reasonable policies and procedures to receive and process
customer grievances and inquiries promptly and fairly; and that the applicant
has and maintains a registered agent for service in this
state.
(b) The department shall not license any
applicant unless it is satisfied that the applicant may be expected to operate
its mortgage lending or brokerage activities in compliance with the laws of this
state and in a manner which protects the contractual and property rights of the
citizens of this state.
(c) The department may
establish by rule or regulation minimum education or experience requirements for
an applicant for a mortgage broker license or renewal of such a
license.
(d) The department may not issue or may
revoke a license if it finds that the applicant, or any person who is a
director, officer, partner, agent, employee, or ultimate equitable owner of 10
percent or more of the applicant, has been convicted of a felony involving moral
turpitude in any jurisdiction or of a crime which, if committed within this
state, would constitute a felony involving moral turpitude under the laws of
this state. For the purposes of this article, a person shall be deemed to have
been convicted of a crime if such person shall have pleaded guilty to a charge
thereof before a court or federal magistrate or shall have been found guilty
thereof by the decision or judgment of a court or federal magistrate or by the
verdict of a jury, irrespective of the pronouncement of sentence or the
suspension thereof, and regardless of whether first offender treatment without
adjudication of guilt pursuant to the charge was entered, unless and until such
plea of guilty, or such decision, judgment, or verdict, shall have been set
aside, reversed, or otherwise abrogated by lawful judicial process or until
probation, sentence, or both probation and sentence of a first offender have
been successfully completed and documented or unless the person convicted of the
crime shall have received a pardon therefor from the President of the United
States or the Governor or other pardoning authority in the jurisdiction where
the conviction was had or shall have received an official certification or
pardon granted by the State Board of Pardons and Paroles which removes the legal
disabilities resulting from such conviction and restores civil and political
rights in this state.
(e) The department shall be
authorized to obtain conviction data with respect to any applicant or any person
who is a director, officer, partner, agent, employee, or ultimate equitable
owner of 10 percent or more of the applicant. Upon receipt of information from
the Georgia Crime Information Center that is incomplete or that indicates an
applicant or any person who is a director, officer, partner, agent, employee, or
ultimate equitable owner of 10 percent or more of the applicant has a criminal
record in any state other than Georgia, the department shall submit to the
Georgia Crime Information Center two complete sets of fingerprints of such
applicant or such person, the required records search fees, and such other
information as may be required. Upon receipt thereof, the Georgia Crime
Information Center shall promptly transmit one set of fingerprints to the
Federal Bureau of Investigation for a search of bureau records and an
appropriate report and shall retain the other set and promptly conduct a search
of its own records and records to which it has access. The Georgia Crime
Information Center shall notify the department in writing of any derogatory
finding, including, but not limited to, any conviction data regarding the
fingerprint records check, or if there is no such finding. All conviction data
received by the department shall be used by the department for the exclusive
purpose of carrying out the responsibilities of this article, shall not be a
public record, shall be privileged, and shall not be disclosed to any other
person or agency except to any person or agency which otherwise has a legal
right to inspect the file. All such records shall be maintained by the
department pursuant to laws regarding such records and the rules and regulations
of the Federal Bureau of Investigation and the Georgia Crime Information Center,
as applicable. As used in this subsection, 'conviction data' means a record of
a finding, verdict, or plea of guilty or plea of nolo contendere with regard to
any crime, regardless of whether an appeal of the conviction has been
sought.
(f) The department may deny or revoke a
license or otherwise restrict a license if it finds that the applicant or any
person who is a director, officer, partner, agent, or ultimate equitable owner
of 10 percent or more of the applicant has had a license denied, revoked, or
suspended within three years of the date of the
application.
(g) The department may not issue a
license to and may revoke a license from an applicant or licensee if such person
employs any other person against whom a final cease and desist order has been
issued within the preceding three years, if such order was based on a violation
of Code Section 7-1-1013 or based on the conducting of a mortgage business
without a required license, or whose license has been revoked within three years
of the date such person was hired.
(h) Within 90 days
after receipt of a completed application and payment of licensing fees
prescribed by this article, the department shall either grant or deny the
request for license.
(i) A person shall not be
indemnified for any act covered by this article or for any fine or penalty
incurred pursuant to this article as a result of any violation of the law or
regulations contained in this article, due to the legal form, corporate
structure, or choice of organization of such person, including but not limited
to a limited liability
corporation."
SECTION 13.
Said chapter is further amended by striking subsection (b)
of Code Section 7-1-1005, relating to renewal of licenses and registrations, and
inserting in lieu thereof a new subsection (b) to read as
follows:
"(b)
Any licensee or registrant making proper application, including all supporting
documents, moneys owed to the department, and all applicable fees required by
this article and any regulations promulgated by the department, for a license or
registration renewal to operate during the following license year and filing the
application prior to April 1 shall be permitted to continue to operate pending
final approval or disapproval of the application for the license or registration
renewal for the following year if final approval or disapproval is not granted
prior to July 1."
SECTION 14.
Said chapter is further amended by striking subsection (f)
of Code Section 7-1-1009, relating to maintenance of books, accounts, and
records, and inserting in lieu thereof a new subsection (f) to read as
follows:
"(f)
Examinations and investigations conducted under this article and information
obtained by the department in the course of its duties under this article are
confidential, except as provided in this subsection, pursuant to the provisions
of Code Section 7-1-70. In addition to the exceptions set forth in subsection
(b) of Code Section 7-1-70 and in paragraphs (3) and (4) of subsection (c) of
this Code section, the department is authorized to share information obtained
under this article with other state and federal regulatory agencies or law
enforcement authorities. In the case of such sharing, the safeguards to
confidentiality already in place within such agencies or authorities shall be
deemed adequate. The commissioner or an examiner specifically designated may
disclose such limited information as is necessary to conduct a civil or
administrative investigation or proceeding. The department shall compile
information on the number of written complaints received on all licensees.
Beginning August 1, 2001, and at least annually thereafter, the department shall
disclose to the public the number of such complaints together with the number of
Georgia residential mortgage loans made during the same period. In preparing
the disclosure, the department shall be authorized to rely upon the number of
mortgage loans reported to it in the mortgage license renewal application.
Information contained in the records of the department which is not confidential
and may be made available to the public upon receipt by the department of a
written request shall include the name, business address, and license number of
a licensee or registrant and the owner or owners thereof, the name and business
address of a licensee´s or registrant´s agent for service, and the
terms of or a copy of any bond filed by a licensee or
registrant."
SECTION 15.
Said chapter is further amended by striking Code Section
7-1-1012, relating to rules and regulations, and inserting in lieu thereof a new
Code Section 7-1-1012 to read as
follows:
"7-1-1012.
Without
limitation on the power conferred by Article 1 of this chapter, the department
may make reasonable rules and regulations, not inconsistent with law, for the
enforcement of this article, to effectuate the purposes of this article, and to
clarify the meaning of
terms."
SECTION 16.
Said chapter is further amended by striking Code Section
7-1-1014, relating to regulations governing disclosures required to applicants
for mortgage loans, and inserting in lieu thereof a new Code Section 7-1-1014 to
read as
follows:
"7-1-1014.
In
addition to such other rules, regulations, and policies as the department may
promulgate to effectuate the purposes of this article, the department shall
promulgate regulations governing the disclosure required to be made to
applicants for mortgage loans, including, without limitation, the following
requirements:
(1) Any person required to be licensed
or registered under this article shall provide to each applicant for a mortgage
loan prior to accepting an application fee or any third-party fee such as a
property appraisal fee, credit report fee, or any other similar fee a disclosure
of the fees payable and the conditions under which such fees may be
refundable;
(2) Any mortgage lender required to be
licensed or registered under this article shall make available to each applicant
for a mortgage loan at or before the time a commitment to make a mortgage loan
is given a written disclosure of the fees to be paid in connection with the
commitment and the loan, or the manner in which such fees shall be determined
and the conditions under which such fees may be refundable;
and
(3) Any mortgage lender required to be licensed or
registered under this article shall disclose to each borrower of a mortgage loan
that failure to meet every condition of the mortgage loan may result in the loss
of the borrower's property through foreclosure. The borrower shall be required
to sign the disclosure at or before the time of the closing of the mortgage
loan.
The department may prescribe standards regarding
the accuracy of required disclosures and may provide for applicable
administrative or civil penalties or fines for failure to provide the
disclosures or to meet the prescribed
standards."
SECTION 17.
All laws and parts of laws in conflict with this Act are
repealed.