Nonprofit facilitators of lending circle loans.

Authors: Representative Terri Jo Austin

Digest

Provides that after December 31, 2015, an eligible nonprofit organization may apply to the department of financial institutions (department) for a certificate of registration to facilitate the making of zero interest, low cost lending circle loans to eligible individuals who participate in lending circles in Indiana. Defines a "lending circle" as group of individuals that is voluntarily organized for the purpose of: (1) generating a source of funds by: (A) pooling or collecting contributions from individual group members; or (B) obtaining funds from other sources, including from lending circle loans; and (2) disbursing the funds to individual group members for personal, family, or household purposes. Sets forth requirements for: (1) obtaining a certificate of registration from the department; and (2) maintaining a surety bond in connection with a certificate. Sets forth certain: (1) prohibited actions; and (2) requirements; in connection with facilitating the making of a lending circle loan. Provides that an eligible nonprofit organization may charge only: (1) an administrative fee; and (2) an insufficient funds fee; in connection with facilitating the making of a lending circle loan. Allows a registered eligible nonprofit organization to cooperate with: (1) other registered eligible nonprofit organizations; and (2) nonregistered partnering organizations; in facilitating the making of a lending circle loan. Provides that the director of the department may adopt rules, policies, or guidance concerning facilitating the making of lending circle loans in Indiana. Specifies that: (1) an eligible nonprofit organization is not a loan broker for purposes of the statute concerning the licensure of mortgage loan brokers by the securities commissioner; and (2) facilitating the making of a lending circle loan is not subject to the Uniform Consumer Credit Code.