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	Georgia General Assembly

01 LC 30 0095S

The Senate Banking and Financial Institutions Committee offered the following substitute to SB 17:

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 4 of Title 7 of the Official Code of Georgia Annotated, relating to interest and usury, so as to prohibit a person who makes more than ten loans per year to Georgia residents, which loans are for $3,000.00 or less, and who is not licensed to lend money in this state from maintaining a proceeding related to such loan transaction; to provide for definitions; 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 4 of Title 7 of the Official Code of Georgia Annotated, relating to interest and usury, is amended by adding following Code Section 7-4-10 a new Code section to read as follows:
"7-4-10.1.
(a) A person who makes more than ten loans per year to Georgia residents, or any person who succeeds to all or a partial interest in such loans, which loans are for less than $3,000.00 each, and who is not licensed to lend money in this state may not maintain a proceeding related to such loan transactions in any court in this state. Licensed to lend money shall mean permitted by Georgia law to make loans to Georgia residents either by specific license or by other specific authority of law.
(b) As used in this Code section, the term:
(1) 'Loan' means all transactions in which the true purpose and intent of the transaction are that one person lends or advances money or credit to another person with the intention that the money lent or advanced shall be repaid together with interest or any other charges for the use of the money or credit advanced. This Code section shall apply with respect to any such transaction notwithstanding the fact that one or more parties intend to disguise the nature of the transaction by means of any nomenclature or terms designed to make the transaction appear to be or resemble a transaction other than a loan. Without limiting the generality of the foregoing, any such transaction shall constitute a loan transaction for purposes of this Code section notwithstanding the fact that the transaction is denominated as a purchase, sale, lease, rental, check cashing transaction, or other transaction.
(2) 'Person' means individuals, corporations, associations, copartnerships, and all other legal and commercial entities."

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.