LRBa2455/1
ARG:jld:jf
2003 - 2004 LEGISLATURE
ASSEMBLY AMENDMENT 8,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2003 ASSEMBLY BILL 792
March 2, 2004 - Offered by Representative Taylor.
AB792-ASA1-AA8,2,6
3"
428.205 Assignee liability. (1) Limit on assignee liability. The liability of
4a lender who is an assignee on a covered loan that is in violation of s. 428.203 may
5not exceed the total amount of the customer's outstanding obligation under the
6covered loan, plus costs and attorney fees, if the assignee satisfies all of the following:
AB792-ASA1-AA8,2,97
(a) The assignee has in place at the time of the assignment policies that
8expressly prohibit the assignee from accepting an assignment of a covered loan that
9is in violation of s. 428.203.
AB792-ASA1-AA8,2,1610
(b) The assignee enters into a contract with the assignor of the covered loan,
11prior to the assignment, pursuant to which the assignor represents and warrants to
12the assignee that the assignor will not assign covered loans that are in violation of
13s. 428.203 to the assignee or that such a representation and warranty has been made
14to the assignor with respect to loans the assignor received from a previous assignor
15and that the assignor will assign to the assignee only loans subject to that
16representation and warranty.
AB792-ASA1-AA8,2,2117
(c) The assignee exercises reasonable due diligence at the time of the
18assignment or within a reasonable period of time thereafter to prevent the
19assignment of covered loans that are in violation of s. 428.203. As used in this
20paragraph, "reasonable due diligence" includes statistical sampling but not
21loan-by-loan review.
AB792-ASA1-AA8,2,24
22(2) Statutes of limitations in certain cases. (a) Except as provided in par. (b),
23any action brought by a customer that is subject to sub. (1) shall be commenced
24within 5 years of the date on which the loan is made.
AB792-ASA1-AA8,3,5
1(b) A customer may assert any claims and defenses against an assignee of a
2covered loan in an action that is subject to sub. (1) at any time during the term of the
3covered loan if an action to collect on the loan or to foreclose on the security for the
4loan has been commenced, the debt under the loan has been accelerated, or the loan
5has been in default for at least 60 days.
AB792-ASA1-AA8,3,7
6(3) Other rights unaffected. This section does not affect any rights or
7remedies provided to a customer under other law.".
