PRINTER'S NO. 672
No. 616 Session of 1977
INTRODUCED BY BENNETT, PRATT, L. E. SMITH AND SPENCER,
MARCH 15, 1977
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, MARCH 15, 1977
AN ACT
1 Amending the act of January 30, 1974 (P.L.13, No.6), entitled
2 "An act regulating agreements for the loan or use of money;
3 establishing a maximum lawful interest rate in the
4 Commonwealth; providing for a legal rate of interest;
5 detailing exceptions to the maximum lawful interest rate for
6 residential mortgages and for any loans in the principal
7 amount of more than fifty thousand dollars and Federally
8 insured or guaranteed loans and unsecured, noncollateralized
9 loans in excess of thirty-five thousand dollars and business
10 loans in excess of ten thousand dollars; providing
11 protections to debtors to whom loans are made including the
12 provision for disclosure of facts relevant to the making of
13 residential mortgages, providing for notice of intention to
14 foreclose and establishment of a right to cure defaults on
15 residential mortgage obligations, provision for the payment
16 of attorney's fees with regard to residential mortgage
17 obligations and providing for certain interest rates by banks
18 and bank and trust companies; clarifying the substantive law
19 on the filing of and execution on a confessed judgment;
20 prohibiting waiver of provisions of this act, specifying
21 powers and duties of the Secretary of Banking, and
22 establishing remedies and providing penalties for violations
23 of this act," modifying the legislative statement as to
24 residential mortgage interest rates.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Subsection (a) of section 301, act of January 30,
28 1974 (P.L.13, No.6), referred to as the Loan Interest and
29 Protection Law, is amended to read:
1 Section 301. Residential Mortgage Interest Rates.--(a) The
2 General Assembly hereby finds that it is necessary and
3 appropriate to establish a flexible maximum lawful interest rate
4 for residential mortgages, as defined in this act, and further
5 finds that the Monthly Index of Long Term United States
6 Government Bond Yields is the appropriate basis on which such a
7 maximum rate of interest may be established[, and that the
8 Monthly Index of such Long Term United States Government Bond
9 Yields compiled by the Board of Governors of the Federal Reserve
10 System and as published by said Board of Governors in the
11 monthly Federal Reserve Bulletin accurately reflects this
12 function].
13 * * *
14 Section 2. This act shall take effect immediately.
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