PRINTER'S NO. 80
No. 108 Session of 1995
INTRODUCED BY D. R. WRIGHT, PESCI, TRELLO AND CIVERA,
JANUARY 19, 1995
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
JANUARY 19, 1995
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," further defining "residential mortgage."
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. The definition of "residential mortgage" in
27 section 101 of the act of January 30, 1974 (P.L.13, No.6),
28 referred to as the Loan Interest and Protection Law, amended
1 April 6, 1979 (P.L.15, No.4), is amended to read:
2 Section 101. Definitions.--As used in this act:
3 * * *
4 "Residential mortgage" means an obligation to pay a sum of
5 money in an original bona fide principal amount [of fifty
6 thousand dollars ($50,000) or less] set by the Department of
7 Banking, evidenced by a security document and secured by a lien
8 upon real property located within this Commonwealth containing
9 two or fewer residential units or on which two or fewer
10 residential units are to be constructed and shall include such
11 an obligation on a residential condominium unit. In setting the
12 principal amount under this definition, the following shall
13 apply:
14 (a) For 1995, the amount shall be one hundred and twenty-
15 five thousand dollars ($125,000).
16 (b) For years after 1995, the amount shall be increased by
17 the percentage increase in the Consumer Price Index for all
18 urban consumers in housing published by the Bureau of Labor
19 Statistics of the United States Department of Labor.
20 (c) The department shall publish notice of the amount in the
21 Pennsylvania Bulletin in December of each year for the following
22 year.
23 * * *
24 Section 2. This act shall take effect in 60 days.
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