Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 100 of chapter 140 of the General Laws, as appearing in the 1988 Official Edition, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- No charge, bonus, fee, expense or demand of any nature whatsoever, except as herein provided, shall be made upon loans to which said sections relate; provided, however, that a licensee may, if the loan agreement so provides, assess and collect a charge, not to exceed ten dollars, for any check, draft or order for the payment of money submitted in accordance with said agreement which is returned unpaid or not honored by a bank or other depository.

SECTION 2. Chapter 184 of the General Laws is hereby amended by striking out section 17C, as so appearing, and inserting in place thereof the following section:-

Section 17C. Any mortgagee, when processing an application for a loan to be secured by a first mortgage on residential property located in the commonwealth of four or less units and occupied or to be occupied in whole or in part by the mortgagor shall, upon the issuance to the applicant of a letter of commitment to or denial of such application, include therein a statement that the applicant has thirty days from the date of said letter to request a copy of any report, wherever and by whomever prepared, utilized by the mortgagee in connection with any such application and containing an opinion as to the value of said residential property. Upon written request of the said applicant, a copy of any such report shall be provided without additional charge or fee within thirty days from the date of such request; provided, however, that a mortgagee shall not be required to make such copy available if the applicant rescinds the transaction. A mortgagee, appraiser or employee or other agent of the mortgagee shall not be liable in damages to the applicant, or to the seller or agent of the seller of such property on account of the disclosure or the contents of any such report.

SECTION 3. Chapter 255B of the General Laws is hereby amended by striking out section 11, as so appearing, and inserting in place thereof the following section:-

Section 11. The holder of a retail installment contract may, if the contract so provides, collect a delinquency and collection charge on each installment in default for a period of not less than fifteen days in an amount not in excess of five percent of each installment or five dollars, whichever is less, and assess and collect a charge, not to exceed ten dollars, for any check, draft or order for the payment of money submitted in accordance with said contract which is returned unpaid or not honored by a bank or other depository.

SECTION 4. Chapter 255C of the General Laws is hereby amended by striking out section 15, as so appearing, and inserting in place thereof the following section:-

Section 15. A premium finance agreement may provide for the payment by the insured of a delinquency, collection and cancellation charge as provided in section one hundred and sixty-two B of chapter one hundred and seventy-five, and the regulations issued thereunder, and for the assessment and collection of a charge, not to exceed ten dollars, for any check, draft or order for the payment of money submitted in accordance with said agreement which is returned unpaid or not honored by a bank or other depository.

SECTION 5. Chapter 255D of the General Laws is hereby amended by striking out section 20, as so appearing, and inserting in place thereof the following section:-

Section 20. The holder of a retail installment sale agreement may, if the agreement so provides, collect a delinquency and collection charge on each installment in default for a period of not less than fifteen days in an amount not in excess of five percent of each installment or five dollars, whichever is less, and assess and collect a charge, not to exceed ten dollars, for any check, draft or order for the payment of money submitted in accordance with said agreement which is returned unpaid or not honored by a bank or other depository.

SECTION 6. The provisions of section one and sections three, four and five shall apply only to agreements and contracts entered into on or after the effective date of this act.