132.16 (5) Upon granting registration under this section, the secretary of state department shall issue his or her a certificate to the petitioners, setting forth the fact of the registration.
32,2625
Section
2625. 132.16 (6) of the statutes is amended to read:
132.16 (6) The fees of the secretary of state department for registration or reregistration under this section, searches made by the secretary of state department, and certificates issued by the secretary of state department under this section, shall be the same as provided by law for similar services. The fees collected under this section shall be paid by the secretary of state department into the state treasury.
32,2626
Section
2626. 137.01 (1) (a) of the statutes is amended to read:
137.01 (1) (a) The governor shall appoint notaries public who shall be United States residents and at least 18 years of age. Applicants who are not attorneys shall file an application with the secretary of state department of financial institutions and pay a $20 fee.
32,2627
Section
2627. 137.01 (1) (b) of the statutes is amended to read:
137.01 (1) (b) The secretary of state
financial institutions shall satisfy himself or herself that the applicant has the equivalent of an 8th grade education, is familiar with the duties and responsibilities of a notary public and, subject to ss. 111.321, 111.322 and 111.335, does not have an arrest or conviction record.
32,2628
Section
2628. 137.01 (1) (d) of the statutes is amended to read:
137.01 (1) (d) Qualified applicants shall be notified by the secretary of state department of financial institutions to take and file the official oath and execute and file an official bond in the sum of $500, with a surety executed by a surety company and approved by the secretary of state financial institutions.
32,2629
Section
2629. 137.01 (1) (e) of the statutes is amended to read:
137.01 (1) (e) The qualified applicant shall file his or her signature, post-office address and an impression of his or her official seal, or imprint of his or her official rubber stamp with the secretary of state department of financial institutions.
32,2630
Section
2630. 137.01 (1) (g) of the statutes is amended to read:
137.01 (1) (g) At least 30 days before the expiration of a commission the secretary of state department of financial institutions shall mail notice of the expiration date to the holder of a commission.
32,2631
Section
2631. 137.01 (2) (a) of the statutes is amended to read:
137.01 (2) (a) Except as provided in par. (am), any United States resident who is licensed to practice law in this state is entitled to a permanent commission as a notary public upon application to the secretary of state department of financial institutions and payment of a $50 fee. The application shall include a certificate of good standing from the supreme court, the signature and post-office address of the applicant and an impression of the applicant's official seal, or imprint of the applicant's official rubber stamp.
32,2632
Section
2632. 137.01 (2) (am) of the statutes is amended to read:
137.01 (2) (am) If a United States resident has his or her license to practice law in this state suspended or revoked, upon reinstatement of his or her license to practice law in this state, the person may be entitled to receive a certificate of appointment as a notary public for a term of 4 years. An eligible notary appointed under this paragraph is entitled to reappointment for 4-year increments. At least 30 days before the expiration of a commission under this paragraph the secretary of state department of financial institutions shall mail notice of the expiration date to the holder of the commission.
32,2633
Section
2633. 137.01 (2) (b) of the statutes is amended to read:
137.01 (2) (b) The secretary of state
financial institutions shall issue a certificate of appointment as a notary public to persons who qualify under the requirements of this subsection. The certificate shall state that the notary commission is permanent or is for 4 years.
32,2634
Section
2634. 137.01 (2) (c) of the statutes is amended to read:
137.01 (2) (c) The supreme court shall file with the secretary of state department of financial institutions notice of the surrender, suspension or revocation of the license to practice law of any attorney who holds a permanent commission as a notary public. Such notice shall be deemed a revocation of said commission.
32,2635
Section
2635. 137.01 (6) (a) of the statutes is amended to read:
137.01 (6) (a) The secretary of state
financial institutions may certify to the official qualifications of any notary public and to the genuineness of the notary public's signature and seal or rubber stamp.
32,2636
Section
2636. 137.01 (6m) of the statutes is amended to read:
137.01 (6m) Change of residence. A notary public does not vacate his or her office by reason of his or her change of residence within the United States. Written notice of any change of address shall be given to the secretary of state department of financial institutions within 10 days of the change.
32,2637
Section
2637. 137.01 (7) of the statutes is amended to read:
137.01 (7) Official records to be filed. When any notary public ceases to hold office, the notary public, or in case of the notary public's death the notary public's personal representative, shall deposit the notary public's official records and papers in the office of the secretary of state with the department of financial institutions. If the notary or personal representative, after the records and papers come to his or her hands, neglects for 3 months to deposit them, he or she shall forfeit not less than $50 nor more than $500. If any person knowingly destroys, defaces, or conceals any records or papers of any notary public, the person shall forfeit not less than $50 nor more than $500, and shall be liable for all damages resulting to the party injured. The secretary of state department of financial institutions shall receive and safely keep all such papers and records.
32,2637b
Section 2637b. 138.045 of the statutes is created to read:
138.045 Method of calculating interest. Interest on any note, bond, or other instrument computed on the declining unpaid principal balance from time to time outstanding may be computed and charged on actual unpaid balances at 1/360 of the annual rate for the actual number of days outstanding if the use of this calculation method is disclosed in the note, bond, or other instrument. This section does not apply to pawnbrokers' loans under s. 138.10.
32,2637d
Section 2637d. 138.09 (1a) (a) of the statutes is amended to read:
138.09 (1a) (a) Banks, savings banks, savings and loan associations, trust companies, credit unions, or any of their affiliates.
32,2637gc
Section 2637gc. 138.14 (1) (bd) of the statutes is created to read:
138.14
(1) (bd) "Consumer report" has the meaning given in
15 USC 1681a (d).
32,2637gd
Section 2637gd. 138.14 (1) (be) of the statutes is created to read:
138.14
(1) (be) "Consumer reporting agency" has the meaning given in
15 USC 1681a (f).
32,2637gf
Section 2637gf. 138.14 (1) (k) 1. of the statutes is amended to read:
138.14 (1) (k) 1. A transaction between an individual with an account at a financial establishment and another person, including a person who is not physically located in this state, in which the person agrees to accept from the individual one or more checks, to hold the check or checks for a period of time before negotiating or presenting the check or checks for payment, and to loan to the individual, for a term of 90 days or less, before negotiating or presenting the check or checks for payment, an amount that is agreed to by the individual.
32,2637gg
Section 2637gg. 138.14 (1) (k) 2. of the statutes is amended to read:
138.14 (1) (k) 2. A transaction between an individual with an account at a financial establishment and another person, including a person who is not physically located in this state, in which the person agrees to accept the individual's authorization to initiate one or more electronic fund transfers from the account, to wait a period of time before initiating the electronic fund transfer or transfers, and to loan to the individual, for a term of 90 days or less, before initiating the electronic fund transfer or transfers, an amount that is agreed to by the individual.
32,2637gi
Section 2637gi. 138.14 (3) of the statutes is amended to read:
138.14 (3) Exemptions. This section does not apply to banks, savings banks, savings and loan associations, trust companies, credit unions, or any of their affiliates.
32,2637gk
Section 2637gk. 138.14 (7) (e) 6. of the statutes is amended to read:
138.14 (7) (e) 6. The number of payday loans made during the preceding year that resulted in repayment under sub. (11g) (a).
32,2637gm
Section 2637gm. 138.14 (9g) (a) 6. of the statutes is amended to read:
138.14 (9g) (a) 6. Disclose to the applicant the payment requirements that may apply under sub. (11g) (a) if the loan is not paid in full at the end of the loan term.
32,2637go
Section 2637go. 138.14 (9m) of the statutes is created to read:
138.14 (9m) Income verification. Before entering into a payday loan with an applicant that has not previously been a customer of the licensee, the licensee may request the applicant's consumer report from a consumer reporting agency as part of the licensee's underwriting process and the licensee may rely on the consumer report as a permissible method of income verification in making the payday loan. The licensee may also rely on the same consumer report in underwriting and making subsequent payday loans to the same customer.
32,2637gq
Section 2637gq. 138.14 (9r) (c) 4. of the statutes is amended to read:
138.14 (9r) (c) 4. The percentage of customers originating payday loans that resulted in repayment under sub. (11g) (a).
32,2637gs
Section 2637gs. 138.14 (10) (a) 2. of the statutes is amended to read:
138.14 (10) (a) 2. If a payday loan is not paid in full on or before the maturity date, a licensee may charge, after the maturity date, interest at a rate not exceeding 2.75 percent per month, except that if a licensee makes a subsequent payday loan to the customer under sub. (12) (a), and the customer does not pay the subsequent loan in full on or before the maturity date of the subsequent loan, the licensee may charge, after the maturity date of the subsequent loan, interest at a rate not exceeding 2.75 percent per month on the subsequent loan and the licensee may not charge any interest under this subdivision on the prior loan. Interest earned under this subdivision shall be calculated at the rate of one-thirtieth of the monthly rate charged for each calendar day that the balance of the loan is outstanding. Interest may not be assessed on any interest earned under this subdivision.
32,2637gu
Section 2637gu. 138.14 (10) (am) of the statutes is amended to read:
138.14 (10) (am) Penalties. Except as provided in par. (b) 2., no licensee may impose any penalty on a customer arising from the customer's prepayment of or default or late payment on a payday loan, including any payment under sub. (11g) (a).
32,2637hc
Section 2637hc. 138.14 (11g) of the statutes is renumbered 138.14 (11g) (a) and amended to read:
138.14 (11g) (a) If Except as provided in par. (b), if a customer fails to repay a payday loan in full at the end of the loan term, the licensee that made the loan shall offer the customer the opportunity to repay the outstanding balance of the loan in 4 equal installments with due dates coinciding with the customer's pay period schedule.
32,2637he
Section 2637he. 138.14 (11g) (b) of the statutes is created to read:
138.14 (11g) (b) If a licensee offers a customer the opportunity to make repayment under par. (a), then, during the 12-month period following the offer, no licensee, including the licensee making the offer, is required to offer the customer another opportunity to repay a payday loan under par. (a).
32,2637hg
Section 2637hg. 138.14 (12) (b) of the statutes is amended to read:
138.14 (12) (b) No licensee may make a payday loan to a customer that results in the customer having an outstanding aggregate liability in principal, interest, and all other fees and charges, to all licensees who have made payday loans to the customer of more than $1,500 or 35 percent of the customer's gross monthly income, whichever is less. As provided in sub. (9m), a licensee may rely on a consumer report to verify a customer's income for purposes of this paragraph.
32,2637hi
Section 2637hi. 138.14 (14) (d) 4. of the statutes is amended to read:
138.14 (14) (d) 4. Designate Automatically designate a payday loan as paid in the database 5 days after the maturity date of the loan unless a licensee reports to the database provider before that time that the loan remains open because of the customer's failure to make payment; that the loan is open because the customer's check or an electronic redeposit is in the process of clearing the banking system; that the loan remains open because the customer's check is being returned to the licensee for insufficient funds, a closed account, or a stop payment order; or that any other factors determined by the division are applicable. If a licensee makes such a report, the database provider shall designate the payday loan as an open transaction until the database provider is notified that the transaction is closed.
32,2637hk
Section 2637hk. 138.14 (14) (h) of the statutes is amended to read:
138.14 (14) (h) The division shall, by order or rule, specify a database transaction fee of no more than $1 that the database provider shall charge to licensees to cover the costs of developing and implementing the database, and accessing the database to verify that a customer does not have any payday loans with the licensee or others that in combination with a new transaction will create a violation of this section. The database fee is payable directly to the division in a manner prescribed by the division and, if the department has contracted with a 3rd-party provider to operate the database, the division shall remit the fee to the 3rd-party provider as specified in the contract.
32,2637hm
Section 2637hm. 138.14 (14) (j) of the statutes is created to read:
138.14 (14) (j) If the database, as determined by the division, is not fully operational, or the licensee is unable to access the database and, as determined under rules promulgated by the division, the alternate process established under par. (d) 2. is also unavailable, a licensee may rely upon the written verification of the customer in a statement provided in substantially the following form in at least 12-point type:
"I DO NOT HAVE ANY OUTSTANDING PAYDAY LOANS WITH THIS LICENSEE AND I DO NOT HAVE MORE PAYDAY LOANS WITH ANY OTHER LICENSED PAYDAY LOAN PROVIDER IN THIS STATE."
32,2637kd
Section 2637kd. 138.16 (1) (a) of the statutes is created to read:
138.16 (1) (a) "Division" means the division of banking attached to the department of financial institutions.
32,2637ke
Section 2637ke. 138.16 (1) (bm) of the statutes is created to read:
138.16 (1) (bm) "Licensed location" means the location specified in a license issued under s. 138.09 (1m) (a).
32,2637kf
Section 2637kf. 138.16 (1) (c) of the statutes is amended to read:
138.16 (1) (c) "Title loan" means a loan of $25,000 or less to a borrower, who obtains or seeks to obtain the loan for personal, family, or household purposes, that is, or is to be, secured by an interest, other than a purchase money security interest, in the borrower's motor vehicle, and that has an original term of not more than 6 months.
32,2637kg
Section 2637kg. 138.16 (1m) of the statutes is created to read:
138.16 (1m) Certificate of authorization. (a) Before a licensed lender may make title loans under this section, the licensed lender shall first obtain from the division, for each licensed location at which any title loan is to be made, a certificate authorizing the licensed lender to make title loans from that location.
(b) At the time of making an application for a certificate under par. (a), an applicant shall pay to the division an initial annual fee of $5,000. The valid period for the certificate shall be a calendar year and each certificate shall expire on the last day of the calendar year. To renew a certificate, the certificate holder shall, on or before December 10 of the year in which the certificate is to expire, pay to the division an annual renewal fee of $5,000 for the following calendar year.
32,2637kh
Section 2637kh. 138.16 (2) of the statutes is renumbered 138.16 (2) (a) and amended to read:
138.16 (2) (a) No licensed lender may make a title loan to a borrower that results in the borrower having liability for the loan, in principal, of more than 50 percent of the retail value of the motor vehicle used as security for the loan. The division shall promulgate rules for determining the retail value of a motor vehicle for purposes of this paragraph, including rules specifying nationally recognized pricing guides that may be used for determining retail value at the time of loan origination.
32,2637ki
Section 2637ki. 138.16 (2) (b) of the statutes is created to read:
138.16 (2) (b) 1. This section imposes no limit on the interest that a licensed lender may charge before the maturity date of a title loan.
2. If a title loan is not paid in full on or before the maturity date, a licensed lender may charge, after the maturity date, interest at a rate not exceeding 2.75 percent per month. Interest earned under this subdivision shall be calculated at the rate of one-thirtieth of the monthly rate charged for each calendar day that the balance of the loan is outstanding. Interest may not be assessed on any interest earned under this subdivision.
32,2637kj
Section 2637kj. 138.16 (3) of the statutes is created to read:
138.16 (3) Rescission. A borrower may rescind a title loan, before the close of business on the next day of business after the loan is made, or, if the place of business where the loan is made is open 24 hours, before 5 p.m. on the next day of business after the loan is made, by returning to the licensed lender the proceeds of the loan. The licensed lender may not charge the borrower any fee for rescinding the title loan as provided in this subsection.
32,2637kk
Section 2637kk. 138.16 (4) of the statutes is created to read:
138.16 (4) Other requirements. (a) A licensed lender may not make a title loan to a borrower that is secured by an interest in a motor vehicle if the motor vehicle is subject to another security interest.
(b) A licensed lender may not require a borrower to provide the licensed lender with a key or copy of a key to a motor vehicle used as security for a title loan as a condition for making the title loan to the borrower.
(c) A licensed lender or person acting on behalf of a licensed lender may not take possession of a motor vehicle used as security for a title loan to a borrower without sending notice to the borrower at least 20 days prior to taking possession. The notice shall state the intent to take possession and describe the basis for the right to take possession. This paragraph does not apply to possession that is obtained by a borrower's voluntary surrender of a motor vehicle.
(d) A licensed lender or other person may charge a borrower a reasonable storage fee for a motor vehicle of the borrower of which the licensed lender or person acting on behalf of the licensed lender has obtained possession, including possession that is obtained by voluntary surrender.
(e) A licensed lender shall return to a borrower the amount of any proceeds from the disposition of a motor vehicle used as security for a title loan to the borrower that exceed the borrower's liability to the licensed lender for the loan.
(f) A borrower is not liable to a licensed lender for any deficiency resulting from the licensed lender's disposition of a motor vehicle used as security for a title loan, unless the borrower has done any of the following:
