PRIOR PRINTER'S NO. 2517 PRINTER'S NO. 3544
No. 1958 Session of 1975
INTRODUCED BY MESSRS. BENNETT, IRVIS, MILLIRON, FEE, PRATT,
SHUMAN, PANCOAST, STAHL, POLITE, MRS. KELLY, MESSRS.
HALVERSON AND MEBUS, NOVEMBER 25, 1975
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 22, 1976
AN ACT
1 Amending the act of September 20, 1961 (P.L.1548, No.658),
2 entitled "An act to provide for the organization,
3 incorporation, operation and supervision of cooperative
4 savings and credit associations, to be termed credit unions;
5 designating such credit unions as corporations and defining
6 their powers and duties; conferring certain powers and duties
7 on the Department of Banking; and providing penalties,"
8 further providing for rates and fines.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 19, act of September 20, 1961 (P.L.1548,
12 No.658), known as the "Credit Union Act," is amended to read:
13 Section 19. Rates and Fines.--Interest rates on loans made
14 by a credit union to its members shall not exceed the rate of
15 [six per centum] one and one-fourth per centum per month or
16 fifteen per centum per annum, [when discounted on loans which
17 are repayable in equal installments, or the rate of twelve per
18 centum per annum,] when calculated on the unpaid principal
19 balances. [On a discounted loan which is prepaid by cash,
20 renewal or otherwise, at any time prior to maturity, the credit
1 union shall refund to the borrower the amount of unearned
2 interest or discount, calculated at the original contract rate,
3 on the total amount of full installments to become due, for the
4 term of all subsequent full installment periods, provided the
5 credit union shall not be required to refund any such unearned
6 interest or discount when the amount due, computed as herein
7 provided, is less than one dollar ($1). For failure to pay an
8 installment or installments on a discounted loan when due, a
9 fine may be charged which shall in no case exceed one-fourth of
10 one per centum for each week of delinquency on the amount in
11 arrears, except that a minimum fine of five cents may be
12 charged.] When interest is calculated on the unpaid principal
13 balances, it shall be computed for the actual number of days
14 which have elapsed at the time of payment. No other charges [or
15 fines] shall be collected other than fees to public officials
16 and reasonable fees of attorneys and outside collectors or
17 outside collection agencies, provided the aggregate of such fees
18 does not exceed twenty per centum of the outstanding loan
19 balance. The taking, receiving, reserving, or charging interest
20 greater than allowed by this section shall be deemed a
21 forfeiture of the entire interest on the loan, except when such
22 overcharge is the result of a clerical error in computation. In
23 case the greater interest has been paid, the borrower may within
24 six months after payment recover from the credit union the
25 entire amount of interest paid, except when such [coverage] <--
26 OVERCHARGE is the result of a clerical error in computation in <--
27 which case only the excess interest paid may be recovered.
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