An Act to Make
Maine Legislature, Session 132, LD 2072
Committee Amendment CA_A_H807 (House)
Amends: 9-B MRSA §855

COMMITTEE AMENDMENT "A-" to H.P. 1385, L.D. 2072, "An Act to Make
Changes to the Laws Governing Financial Institutions and to Eliminate Certain
Administrative Fees Paid by Banks and Credit Unions Under the Maine Consumer Credit
Code"
Amend the bill in section 12 in subsection 1 in the 5th line (page 3, line 5 in L.D.) by
striking out the following: "Notwithstanding section 855. participation" and msertmg the
following: 'Participation'
Amend the bill by inserting after section 12 the following:
'See. 13. 9-B MRSA §855, sub-§l, as repealed and replaced by PL 1985, c. 94, is
amended to read:
1. Limitations. A credit union may make loans to its members secured by a mortgage
on real estate located within this State, subject to the following conditions and Imiitations.
A. The total liability of any member upon loans within this section shall be is as
established in section 854, subsection 1.
B. Ne A loan made pursuant to this section may not exceed 90% of the appraised value
of the property mortgage, as determined by the credit committee. Loans pursuant to
this section may be made in an amount not exceeding 100% of the appraised value of
the mortgage property if at least the top 20% of the loan is insured by a mortgage
guarantee insurer licensed to do business in this State or if the loan is insured or
guaranteed by the United States Department of Housmg and Urban Development.
Federal Housing Administration or any other state or federal agency.
C. The note or other obligation evidencing a first mortgage loan shall must require
monthly payment of the interest and principal thereon sufficient to repay the entire loan
2 within a period not exceeding 3 0 years, except that this provision does not apply to real
estate loans insured by the United States Department of Housing and Urban
4 Development. Federal Housing Administration.
COMMITTEE AMENDMENT
ROS
COMMITTEE AMENDMENT " U," to H,P. 1385, L.D. 2072
"f\"'
D. The note or other obligation evidencing a loan other than a first mortgage loan shatt
must require monthly payment of the interest and principal thereon sufficient to repay
the entire loan within a period not exceeding 1 5 years.'
Amend the bill by relettering or renumbermg any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment adds a provision to the bill that authorizes a state-chartered credit
union to make loans to its members secured by real estate located in other states. Under
existing law, loans must be secured by real estate located in Maine.
FISCAL NOTE REQUIRED
(See attached)
Page2-132LR2812(02)
COMMITTEE AMENDMENT
Approved: 02/09/26 i-Kt-
LD 2072 LR 2812(02)
An Act to IMake Changes to the Laws Governing Financial Instihitions and to Eliminate Certain
Administrative Fees Paid by Banks and Credit Unions Under the Maine Consumer Credit Code
Fiscal Note for Bill as Amended by Committee Amendment '^? (^\\-[
Committee: Health Coverage, Insurance and Financial Services
Fiscal Note Required: Yes
Fiscal Note
Minor cost increase - Other Special Revenue Funds
Minor revenue decrease - Qther Special Revenue Funds
Fiscal Detail and Notes
I Any additional costs to the Department of Professional and Financial Regulation, Bureau of Financial Institutions, to
implement the provisions of this bill can be absorbed within existing budgeted resources. Any revenue loss from
eliminating certain administrative fees is expected to be minor and can be absorbed within existing budgeted
resources.
LR2812(02) - Fiscal Note - Page 1 of 1