An Act To Provide Parity in Lending by State-chartered Financial Institutions LR0926(02) . Fiscal Note for Bill as Amended by Committee Amendment 11" S .. 52:< Committee: Insurance and Financial Services
Maine Legislature, Session 121, LD 0614
Committee Amendment CA_A_S82 (Senate)
Amends: 9-A MRSA §2, 9-B MRSA §429

COMMITTEE AMENDMENT "4,, to S • P . 
223, L.D. 614, Bi11, "An 
Act To Provide Parity in Lending by State-chartered Financial 
Institutions" 
Amend the bi11 by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. I. 9-A MRSA §2-509, as enacted by PL 1973, c. 762, §l, 
is amended to read: 
§2-509. Right to prepay 
Subject to the provisions on rebate upon prepayment, section 
2-510, the consumer may prepay in full the unpaid balance of a 
consumer credit transaction at any time without penalty, except 
for minimum charges as permitted by law. 
Notwithstanding any 
other 
prov~s~on of 
this Title. 
a 
reasonable 
charge 
may 
be 
assessed upon a consumer related to prepayment of a consumer loan 
made by a 
supervised financial organization and secured by an 
interest in land. other than a high-rate. high-fee mortgage. as 
defined in section 8-103. subsection 1. paragraph F 1. if the 
charge is reasonably calculated to offset the cost of origination 
of the loan. 
The administrator shall adopt rules to implement 
this section. 
Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
Sec. 2. 9-B MRSA §429, sub-§§2 and 3, as repealed and replaced 
by PL 1983, c. 679, §2, are amended to read: 
2. 
Payment 
of 
interest or 
dividends. 
Each 
mortgagee 
holding funds of a mortgagor in aR a required escrow account on 
Page l-LR0926(2) 
COMMITTEE AMENDMENT 
%..~ 
COMMITTEE AMENDMENT 
S.P. 223, L.D. 614 
behalf of itself or another mortgagee for the payment of taxes or 
insurance premiums with respect to mortgaged property located in 
this State shall pay the mortgagor, at least quarterly, dividends 
or interest on the account at a rate of not less than ~%-~e~-yea~ 
50% of the I-year Treasury Bill rate. as published in a financial 
newspaper of national circulation. as of the first business day 
of the year in which the guarterly interest or dividend is paid. 
The dividends or interest paid under this subsection may not be 
reduced by any charge for service or maintenance of the account. 
3. 
Computing" and crediting- interest. 
Under subsection 2, 
interest sliall !IlY.tt be computed on the daily balances in the 
account from the date of receipt to the date of disbursement and 
sliall ~ 
be credited to the account as of the last business day 
of each quarter of a calendar or fiscal year. 
If tlie such an 
account is closed or discontinued before the last business day of 
a quarter of a calendar or fiscal year, interest sliall must be 
computed and credited as of the day the account is closed or 
discontinued. 
For 
the 
purposes 
of tliis--seetiea calculating 
interest under subsection 2, the mortgagee may take into account 
debit balances resulting from advances and may elect to compute 
interest on the basis of the actual number of days in each 
quarter and year, or on the basis of a 30-day month and a 360-day 
year. 
At least once 
a 
year, 
the mortgagee 
shall give 
the 
mortgagor a statement showing the interest credited on the escrow 
account during the period wliieli that the statement covers.' 
SUMMARY 
This 
amendment 
replaces the bill. The 
amendment permits 
state-chartered financial institutions and mortgage companies to 
assess 
prepayment 
charges 
on 
mortgage 
loans 
except 
for 
high-rate, high-fee mortgages. 
The amendment also requires the 
Department of Professional and Financial Regulation, Office of 
Consumer Credit Regulation and Bureau of Financial Institutions 
to jointly adopt rules related to the ability of supervised 
financial organizations to assess prepayment charges. 
The amendment permits state-chartered financial institutions 
to adjust interest rates on escrow accounts required by law. 
The 
rate may not be less than 50% of the one-year Treasury Bill 
interest rate. 
Under current law, the interest rate may not be 
less than 3%. 
The amendment removes section 3 of the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 04/22/03 ~ac:.. 
Office of Fiscal and Program Review 
LD614 
An Act To Provide Parity in Lending by State-chartered Financial 
Institutions 
LR0926(02) 
. Fiscal Note for Bill as Amended by Committee Amendment 11" S .. 52:< 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Department of Professional and Financial Regulation in implementing this bill can be 
absorbed by the Department utilizing existing resources. 
LR0926(2) - Fiscal Note = Page 1 of 1