PRINTER'S NO. 1665
No. 1379 Session of 1983
INTRODUCED BY SWEET, PICCOLA, DAWIDA, HAGARTY, HOEFFEL, FREIND,
KUKOVICH, NOYE, VAN HORNE, PRATT, MRKONIC, SAURMAN,
CALTAGIRONE, GREENWOOD, POTT, KOWALYSHYN, SCHEETZ, FISCHER,
BELFANTI, KOSINSKI, WACHOB, MADIGAN, BATTISTO, FARGO, CLYMER,
GANNON, PUNT, SEMMEL, FLICK AND BALDWIN, JULY 21, 1983
REFERRED TO COMMITTEE ON JUDICIARY, JULY 21, 1983
AN ACT
1 Amending Title 18 (Crimes and Offenses) of the Pennsylvania
2 Consolidated Statutes, adding offenses relating to criminal
3 usury and extortionate extensions of credit; and making a
4 repeal.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 911(h)(1) of Title 18 of the Pennsylvania
8 Consolidated Statutes is amended to read:
9 § 911. Corrupt organizations.
10 * * *
11 (h) Definitions.--As used in this section:
12 (1) "Racketeering activity" means:
13 (i) [any] Any act which is indictable under any of
14 the following provisions of this title:
15 Chapter 25 (relating to criminal homicide)
16 Section 2706 (relating to terroristic threats)
17 Chapter 29 (relating to kidnapping)
1 Chapter 33 (relating to arson, etc.)
2 Chapter 37 (relating to robbery)
3 Chapter 39 (relating to theft and related offenses)
4 Section 4108 (relating to commercial bribery and
5 breach of duty to act disinterestedly)
6 Section 4109 (relating to rigging publicly exhibited
7 contest)
8 Chapter 47 (relating to bribery and corrupt
9 influence)
10 Chapter 49 (relating to perjury and other
11 falsification in official matters)
12 Section 5512 through 5514 (relating to gambling)
13 Chapter 59 (relating to public indecency)
14 Subchapter C of Chapter 73 (relating to criminal
15 usury and extortionate extensions of credit).
16 (ii) [any] Any offense indictable under section 13
17 of the act of April 14, 1972 (P.L.233, No.64), known as
18 "The Controlled Substance, Drug, Device and Cosmetic Act"
19 (relating to the sale and dispensing of narcotic
20 drugs)[;] .
21 (iii) [any] Any conspiracy to commit any of the
22 offenses set forth in subparagraphs (i) and (ii) [of this
23 paragraph; or
24 (iv) the collection of any money or other property
25 in full or partial satisfaction of a debt which arose as
26 the result of the lending of money or other property at a
27 rate of interest exceeding 25% per annum or the
28 equivalent rate for a longer or shorter period, where not
29 otherwise authorized by law].
30 Any act which otherwise would be considered racketeering
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1 activity by reason of the application of this paragraph,
2 shall not be excluded from its application solely because the
3 operative acts took place outside the jurisdiction of this
4 Commonwealth, if such acts would have been in violation of
5 the law of the jurisdiction in which they occurred.
6 * * *
7 Section 2. Chapter 73 of Title 18 is amended by adding a
8 subchapter to read:
9 SUBCHAPTER C
10 CRIMINAL USURY AND EXTORTIONATE
11 EXTENSIONS OF CREDIT
12 Sec.
13 7371. Definitions.
14 7372. Construction of subchapter.
15 7373. Extortionate extension of credit.
16 7374. Extortionate collection of extension of credit.
17 7375. Criminal usury.
18 § 7371. Definitions.
19 The following words and phrases when used in this subchapter
20 shall have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Collect an extension of credit." To induce in any way any
23 person to make repayment of an extension of credit.
24 "Creditor." Any person who extends credit or any person
25 claiming by, under or through any person who extends credit.
26 "Criminal usury." Charging, taking or receiving any money,
27 things in action or other property as interest on the loan or
28 forbearance of any money, things in action or other property, at
29 a rate exceeding 36% per year or the equivalent rate for a
30 longer or shorter period, when not otherwise authorized by law.
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1 "Debtor." Any person who receives an extension of credit or
2 any person who guarantees the repayment of an extension of
3 credit or in any manner undertakes to indemnify the creditor
4 against loss resulting from the failure of any person who
5 receives an extension of credit to repay the same.
6 "Extend credit." To make or renew any loan or to enter into
7 any agreement, express or implied, whereby the repayment or
8 satisfaction of any debt or claim, whether acknowledged or
9 disputed, valid or invalid, and however arising, may or will be
10 deferred.
11 "Extortionate extension of credit." Any extension of credit
12 with respect to which it is the understanding of the creditor
13 and the debtor at the time it is made that delay in making
14 repayment or failure to make repayment may result in the use of
15 extortionate means.
16 "Extortionate means." Any means which involves the use, or
17 an express or implicit threat of use, of violence or other
18 criminal means to cause harm to the person or property of any
19 person.
20 "Repayment of an extension of credit." Includes the
21 repayment, satisfaction or discharge in whole or in part of any
22 debt or claim, acknowledged or disputed, valid or invalid,
23 resulting from or in connection with that extension of credit.
24 § 7372. Construction of subchapter.
25 This subchapter shall not be construed as authorizing the
26 conviction or punishment of a debtor because he receives,
27 guarantees, repays or agrees to repay any extension of credit or
28 indemnifies the creditor.
29 § 7373. Extortionate extension of credit.
30 (a) Offenses defined.--A person commits a felony of the
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1 first degree if he:
2 (1) makes an extortionate extension of credit or
3 conspires to do so;
4 (2) willfully advances or conspires to advance money,
5 things in action or other property, whether as a gift or a
6 loan or an investment, pursuant to a partnership or profit-
7 sharing agreement or otherwise, to any person, with
8 reasonable grounds to believe that it is the intention of
9 that person to use the money, things in action or other
10 property so advanced directly or indirectly for the purpose
11 of making extortionate extensions of credit; or
12 (3) knowingly receives or conspires to receive the
13 proceeds of an extortionate extension of credit or the
14 collection of an extension of credit by extortionate means.
15 (b) Prima facie evidence.--In any prosecution under
16 subsection (a)(1), if it is shown that all of the following
17 factors were present in connection with the extension of credit
18 in question, there is prima facie evidence that the extension of
19 credit was extortionate, but this subsection is nonexclusive and
20 in no way limits the effect or applicability of subsection
21 (a)(1):
22 (1) The extension of credit was made at a rate of
23 interest at least equal to that established for criminal
24 usury.
25 (2) At the time credit was extended, the debtor
26 reasonably believed that either:
27 (i) one or more extensions of credit by the creditor
28 had been collected or attempted to be collected by
29 extortionate means or the nonrepayment thereof had been
30 punished by extortionate means; or
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1 (ii) the creditor had a reputation for the use of
2 extortionate means to collect extensions of credit or to
3 punish the nonrepayment thereof.
4 (3) Upon the making of the extension of credit, the
5 total of the extensions of credit by the creditor to the
6 debtor then outstanding, including any unpaid interest or
7 similar charges, exceeded $100.
8 (c) Reputation evidence.--In any prosecution under
9 subsection (a)(1), if evidence has been introduced tending to
10 show the existence of the factor specified in subsection (b)(1),
11 and direct evidence of the actual belief of the debtor as to the
12 creditor's collection practices is not available, then for the
13 purpose of showing the understanding of the debtor and the
14 creditor at the time the extension of credit was made the court
15 may in its discretion allow evidence to be introduced tending to
16 show the reputation as to collection practices of the creditor
17 in any community at the time of the extension.
18 (d) Additional fine.--In addition to any sentence of
19 imprisonment imposed, a person convicted of an offense under
20 subsection (a)(2) may be sentenced to pay the applicable fine or
21 twice the value of the money, things in action or other property
22 so advanced, whichever is greater.
23 (e) Amount of credit or interest.--An offense under
24 subsection (a)(1) is in no way limited by the amount of the
25 extension of credit or the interest rate charged thereon.
26 § 7374. Extortionate collection of extension of credit.
27 (a) Offense defined.--A person commits a felony of the first
28 degree if he knowingly participates in any way, or conspires to
29 do so, in the use of any extortionate means to collect or
30 attempt to collect any extension of credit or to punish any
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1 person for the nonrepayment thereof.
2 (b) Evidence of implicit threat.--In any prosecution under
3 this section, for the purpose of showing an implicit threat as a
4 means of collection, evidence may be introduced tending to show
5 that one or more extensions of credit by the creditor were, to
6 the knowledge of the person against whom the implicit threat was
7 alleged to have been made, collected or attempted to be
8 collected by extortionate means or that the nonrepayment thereof
9 was punished by extortionate means.
10 (c) Reputation evidence.--In any prosecution under this
11 section, if evidence has been introduced tending to show the
12 existence, at the time credit was extended, of the circumstances
13 described in section 7373(b)(1) (relating to extortionate
14 extension of credit), and direct evidence of the actual belief
15 of the debtor as to the collection practices of the creditor is
16 not available, then for the purpose of showing that words or
17 other means of communication, shown to have been employed as a
18 means of collection, in fact carried an express or implicit
19 threat, the court may in its discretion allow evidence to be
20 introduced tending to show the reputation of the defendant at
21 the time of the collection or attempt at collection.
22 § 7375. Criminal usury.
23 (a) Offenses defined.--A person commits a felony of the
24 second degree if he:
25 (1) engages in criminal usury, or conspires to do so;
26 (2) willfully advances, or conspires to advance, money,
27 things in action or other property, whether as a gift or a
28 loan or an investment, pursuant to a partnership or profit-
29 sharing agreement or otherwise, to any person, with
30 reasonable grounds to believe that it is the intention of
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1 that person to use the money, things in action or other
2 property so advanced directly or indirectly for the purpose
3 of engaging in criminal usury; or
4 (3) knowingly receives, or conspires to receive, the
5 proceeds of criminal usury.
6 (b) Possession of records.--A person, other than a public
7 officer in the performance of his duty as such, commits a
8 misdemeanor of the first degree if he maintains, causes to be
9 maintained, conspires to maintain or possesses any writing,
10 paper, book, instrument or article used to record criminally
11 usurious transactions, and who knows or has reasonable grounds
12 to know that the contents record a criminally usurious
13 transaction.
14 Section 3. The act of June 24, 1939 (P.L.872, No.375), known
15 as The Penal Code, as amended through 1972, is repealed.
16 Section 4. This act shall take effect immediately.
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