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PRINTER'S NO. 3745
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2507
Session of
2020
INTRODUCED BY CIRESI, HANBIDGE, GALLOWAY, ULLMAN, WILLIAMS,
DELLOSO, DeLUCA, McCLINTON, SHUSTERMAN, WEBSTER, SANCHEZ,
KENYATTA, OTTEN AND TOMLINSON, MAY 13, 2020
REFERRED TO COMMITTEE ON COMMERCE, MAY 13, 2020
AN ACT
Providing for loan deferrals, repayment plans and loan
modifications by certain financial institutions for
nonprofits during the COVID-19 disaster emergency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the COVID-19
Banking on Nonprofits Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"COVID-19 disaster emergency." The proclamation of disaster
emergency issued by the Governor on March 6, 2020, published at
50 Pa.B. 1644 (March 21, 2020), and any renewal of the state of
disaster emergency.
"Credit union." A Pennsylvania State-chartered credit union.
"Department." The Department of Banking and Securities of
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the Commonwealth.
"Licensee." A corporation, person or any other type of
business entity required to be licensed by the department. The
term does not include a licensee or registrant under the act of
December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania
Securities Act of 1972.
"Nonprofit." A nonprofit organization operating with a
physical location in this Commonwealth, regardless of whether
that physical location is open to the public, and employs not
more than 50 full-time and 50 part-time individuals.
"Secretary." The Secretary of Banking and Securities of the
Commonwealth.
Section 3. COVID-19 Banking on Nonprofits Program.
(a) Establishment.--The COVID-19 Banking on Nonprofits
Program is established within the department to provide
cooperation between nonprofits and State-chartered banks, credit
unions and licensees during the COVID-19 disaster emergency.
State-chartered banks, credit unions and licensees may offer
loan deferrals, repayment plans and loan modifications to
eligible nonprofits as provided under this section.
(b) Eligibility.--A nonprofit shall be eligible for a loan
deferral, repayment plan or loan modification under this section
if:
(1) The nonprofit demonstrates that it has been
adversely impacted by the COVID-19 disaster emergency.
(2) The nonprofit is current on its loan or mortgage
payments with the State-chartered bank, credit union or
licensee.
(c) Loan deferral, repayment plan or loan modification.--To
ensure a nonprofit does not fall behind on loan or mortgage
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payments, at the request of a nonprofit, a State-chartered bank,
credit union or licensee may provide a loan deferral, repayment
plan or loan modification to a nonprofit.
(d) Conditions.--If a nonprofit receives a loan deferral,
repayment plan or loan modification under this section and fails
to comply with the terms of the agreement relating to the loan
deferral, repayment plan or loan modification, the nonprofit
shall be subject to any penalties and costs established by the
State-chartered banks, credit unions or licensees.
(e) Reporting.--State-chartered banks, credit unions and
licensees shall report information on each loan deferral,
repayment plan or loan modification provided under this section
to the department in a form and manner prescribed by the
department.
(f) Expiration.--This act shall expire two years after the
effective date of this section.
Section 4. Effective date.
This act shall take effect immediately.
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