INTRODUCED BY J. WILLIAMS, CALTAGIRONE, HORSEY, HASAY, D. EVANS,
           ALLEN, KAISER, COY, LESCOVITZ, KENNEY, PETRONE, LaGROTTA,
           McCALL, STETLER, RAYMOND, EACHUS, CRUZ, NICKOL, PRESTON,
           ROBINSON, TANGRETTI, THOMAS, TRICH, WATERS, YOUNGBLOOD,
           GODSHALL, CLARK AND WRIGHT, JUNE 6, 2001

        REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
           JUNE 6, 2001

                                     AN ACT

     1  Regulating the terms and conditions of certain subprime mortgage
     2     loan transactions.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5                             CHAPTER 1
     6                         GENERAL PROVISIONS
     7  Sec 101.  Short title.
     8     This act shall be known and may be cited as the Consumer
     9  Equity Protection Act.
    10  Section 102.  Legislative findings.
    11     The General Assembly finds and declares as follows:
    12         (1)  All citizens are entitled to fair access to credit
    13     and the ability to share in the American dream of
    14     homeownership, including those whose financial or other
    15     personal circumstances make them vulnerable to predatory
    16     lenders who could take advantage of them by making or

     1     arranging high-cost loans that borrowers may not be able to
     2     repay and by refinancing mortgage loans with added fees that
     3     result in the borrower's equity being stripped.
     4         (2)  The subprime lending market provides loans to many
     5     borrowers who have impaired credit, and this lending market
     6     performs a significant service to citizens of this
     7     Commonwealth, particularly those in distressed urban areas.
     8         (3)  Legislation affecting the subprime market should not
     9     be overly broad and should restrict only those relatively few
    10     predatory lenders who are purposefully engaged in patterns
    11     and practices of unfair treatment to vulnerable consumers.
    12         (4)  The legitimate conventional and subprime markets
    13     should not be subject to the same restrictions, prohibitions,
    14     remedies and penalties as the high-cost loans which meet
    15     thresholds that distinguish them from loans in other markets.
    16  Section 103.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     "Affiliate."  Any entity that controls, is controlled by or
    21  is under common control with another entity, as determined under
    22  the Bank Holding Company Act of 1956 (70 Stat. 133, 12 U.S.C. §
    23  1841 et. seq.).
    24     "Bridge loan."  A loan with a maturity of less than 18 months
    25  which only requires payments of interest until such time as the
    26  entire unpaid balance is due and payable.
    27     "Covered loan."  A consumer credit mortgage loan transaction
    28  involving property located within this Commonwealth, that is
    29  considered a mortgage under section 103(aa) of the Truth in
    30  Lending Act (Public Law 90-321, 15 U.S.C. § 1602(aa)), and
    20010H1703B2114                  - 2 -

     1  regulations adopted pursuant thereto by the Federal Reserve
     2  Board, including 12 C.F.R. § 226.32 (relating to requirements
     3  for certain closed-end home mortgages), for which the original
     4  principal balance of the loan is less than $100,000.
     5     "Creditor."  A person considered a creditor pursuant to 12
     6  C.F.R. § 226.2(a)(17) (relating to definitions and rules of
     7  construction).
     8     "Department."  The Department of Banking of the Commonwealth.
     9     "Gross income."  An obligor's gross income as set forth on a
    10  credit application, the obligor's financial statement, a credit
    11  report, financial information provided to the lender by or on
    12  behalf of the obligor or as determined by any other reasonable
    13  means by a lender.
    14     "Lender."  Any creditor that in any 12-month period
    15  originates at least one covered loan. The creditor to whom the
    16  covered loan is initially payable, either on the face of the
    17  note or contract or by agreement when there is no note or
    18  contract, shall be deemed to be the lender.
    19     "Median family income."  Median family income for the
    20  Metropolitan Statistical Area (MSA) as defined by the Director
    21  of the United States Office of Management and Budget in which
    22  property which secures a covered loan is located, or for loans
    23  secured by property not located within an MSA, the
    24  nonmetropolitan median family income for the Commonwealth, as
    25  reported in the most recent estimates made available by the
    26  United States Department of Housing and Urban Development at the
    27  time a loan application is received or the latest such estimates
    28  made available in the preceding calendar year, whichever amount
    29  is lower. To the extent such information is not readily
    30  available from the United States Department of Housing and Urban
    20010H1703B2114                  - 3 -

     1  Development in a form suitable for use by lenders, the
     2  Department of Banking shall periodically publish or otherwise
     3  make available to lenders median family income information for
     4  MSAs and nonmetropolitan areas that may be relied upon by
     5  lenders for purposes of this act.
     6     "Mortgage broker."  A person required to be licensed as a
     7  mortgage broker, limited mortgage broker or loan correspondent
     8  pursuant to the act of December 22, 1989 (P.L.687, No.90), known
     9  as the Mortgage Bankers and Brokers Act, or as a secondary
    10  mortgage loan broker pursuant to the act of December 12, 1980
    11  (P.L.1179, No.219), known as the Secondary Mortgage Loan Act.
    12     "Municipality."  A county, city, borough, incorporated town
    13  or township.
    14     "Obligor."  Each obligor, co-obligor, cosigner or guarantor
    15  obligated to repay a covered loan.
    16     "Person."  A corporation, partnership, limited liability
    17  company, business trust or any other common enterprise or
    18  undertaking involving two or more persons, association of two or
    19  more persons, estate, trust, foundation or natural person.
    20     "Political subdivision."  A municipality, school district,
    21  vocational school district or municipal authority.
    22     "Principal balance."  The amount of a promissory note secured
    23  by a mortgage in a consumer credit mortgage transaction.
    24     "Servicer."  A servicer as defined in section 6(i)(2) of the
    25  Real Estate Settlement Procedures Act of 1974 (Public Law 93-
    26  533, 12 U.S.C. § 2605(i)(2)).
    27  Section 104.  Relationship to other laws.
    28     (a)  General rule.--All political subdivisions of this
    29  Commonwealth, including home rule municipalities, shall be
    30  prohibited from enacting and enforcing ordinances, resolutions
    20010H1703B2114                  - 4 -

     1  and regulations pertaining to the financial or lending
     2  activities of persons who:
     3         (1)  are subject to the jurisdiction of the department,
     4     including activities subject to this act;
     5         (2)  are subject to the jurisdiction or regulatory
     6     supervision of the Board of Governors of the Federal Reserve
     7     System, the Office of the Comptroller of the Currency, the
     8     Office of Thrift Supervision, the National Credit Union
     9     Administration, the Federal Deposit Insurance Corporation,
    10     the Federal Trade Commission or the United States Department
    11     of Housing and Urban Development; or
    12         (3)  that originate, purchase, sell, assign, securitize
    13     or service property interests or obligations created by
    14     financial transactions or loans made, executed or originated
    15     by persons referred to in paragraph (1) or (2) or assist or
    16     facilitate such transactions.
    17  The requirements of this subsection shall apply to all
    18  ordinances, resolutions and regulations pertaining to financial
    19  or lending activities, including any ordinances, resolutions or
    20  ordinances disqualifying persons from doing business with a
    21  political subdivision based upon financial or lending activities
    22  or imposing reporting requirements or any other obligations upon
    23  persons regarding financial or lending activities.
    24     (b)  Corporate powers.--Nothing in this act shall be deemed
    25  to limit the corporate powers of incorporated institutions or
    26  their subsidiaries subject to the act of November 30, 1965
    27  (P.L.847, No.356), known as the Banking Code of 1965, or to
    28  impose conditions, limitations or restrictions upon the exercise
    29  of such powers contrary to the provisions of section 201 of the
    30  Banking Code of 1965.
    20010H1703B2114                  - 5 -

     1     (c)  Preemption.--Any provision of this act preempted by
     2  Federal law with respect to a national bank or Federal savings
     3  association shall not apply to the same extent to an operating
     4  subsidiary of a national bank or Federal savings association
     5  which satisfies the requirements for operating subsidiaries
     6  established in 12 C.F.R. § 5.34 (relating to operating
     7  subsidiaries) or 559.3 (relating to what are the characteristics
     8  of, and what requirements apply to, for subordinate
     9  organizations of Federal savings associations).
    10     (d)  Interpretation.--The provisions of this act shall be
    11  interpreted and applied to the fullest extent practical in a
    12  manner consistent with applicable Federal laws and regulations,
    13  policies and orders of Federal regulatory agencies and shall not
    14  be deemed to constitute an attempt to override Federal law.
    15                             CHAPTER 2
    16                       PROTECTION OF OBLIGORS
    17  Section 201.  Limitations on covered loan terms.
    18     (a)  Limitation of balloon payment.--No covered loan may
    19  contract for a scheduled payment that is more than twice as
    20  large as the average of earlier scheduled monthly payments
    21  unless such balloon payment becomes due and payable not less
    22  than 120 months after the date of the loan. This prohibition
    23  does not apply when the payment scheduled is adjusted to account
    24  for the seasonal or irregular income of the obligor or if the
    25  purpose of the loan is a bridge loan connected with or related
    26  to the acquisition or construction of a dwelling intended to
    27  become the obligor's principal dwelling.
    28     (b)  No call provision.--No covered loan may contain a call
    29  provision that permits the lender, in its sole discretion, to
    30  accelerate the indebtedness. This prohibition does not apply
    20010H1703B2114                  - 6 -

     1  when repayment of the loans has been accelerated:
     2         (1)  by default;
     3         (2)  pursuant to a due-on-sale provision;
     4         (3)  where there is fraud or material misrepresentation
     5     by an obligor in connection with the loan; or
     6         (4)  where there is any action or inaction by the obligor
     7     that adversely affects the lender's security for the loan or
     8     any rights of the lender in such security.
     9     (c)  No negative amortization.--Except for loans to obligors
    10  with gross income in excess of 150% of median family income, no
    11  covered loan may contract for a payment schedule with regular
    12  periodic payments that cause the principal balance to increase.
    13  This subsection shall not prohibit negative amortization as a
    14  consequence of a temporary forbearance or restructure consented
    15  to by the obligor.
    16     (d)  No increased interest rate upon default.--No covered
    17  loan may contract for any increase in the interest rate as a
    18  result of a default. This provision shall not apply to periodic
    19  interest rate changes in a variable rate loan otherwise
    20  consistent with the provisions of the loan agreement, provided
    21  the change in the interest rate is not occasioned by the event
    22  of default or permissible acceleration of the indebtedness.
    23     (e)  No advance payments.--No covered loan may include terms
    24  under which any periodic payments required under the loan are
    25  paid in advance from the loan proceeds.
    26     (f)  Limitations on prepayments fees.--The following
    27  limitation on prepayment fee shall be observed:
    28         (1)  A prepayment fee or penalty shall be permitted only
    29     during the first 60 months after the date of execution of a
    30     covered loan.
    20010H1703B2114                  - 7 -

     1         (2)  A lender shall not include a prepayment fee in a
     2     covered loan unless it also makes available a loan product
     3     without a prepayment fee.
     4         (3)  No prepayment fee or penalty may be charged on a
     5     refinancing of a covered loan with a covered loan if the
     6     covered loan being refinanced is owned by the refinancing
     7     lender at the time of such refinancing.
     8  Section 202.  Restricted acts and practices.
     9     (a)  No lending without cautionary notice.--A lender may not
    10  make a covered loan unless the lender or a mortgage broker has
    11  given the following notice, or substantially similar notice, in
    12  writing, to the obligor not later than the time the notice is
    13  required under the notice provision contained in 12 CFR
    14  226.31(c) (relating to general provisions) as amended from time
    15  to time.
    16                         NOTICE TO BORROWER
    17         If you obtain this loan, the lender will have a mortgage
    18         on your home. You could lose your home and any money you
    19         put into it if you do not meet your obligations under the
    20         loan.
    21         Mortgage loan rates and closing costs and fees vary based
    22         on many factors, including your particular credit and
    23         financial circumstances, your employment history, the
    24         loan-to-value requested and the type of property that
    25         will secure your loan. The loan rate and fees could also
    26         vary based on which lender or broker you select. As an
    27         obligor, you should shop around and compare loan rates
    28         and fees.
    29         You should also consider consulting a qualified
    30         independent credit counselor or other experienced
    20010H1703B2114                  - 8 -

     1         financial advisor regarding the rate, fees and provisions
     2         of this mortgage loan before you proceed. A list of
     3         qualified counselors is available by contacting the
     4         Pennsylvania Housing Finance Agency.
     5         You are not required to complete this loan agreement
     6         merely because you have received these disclosures or
     7         have signed a loan application.
     8         Remember, property taxes and homeowner's insurance are
     9         your responsibility. Not all lenders provide escrow
    10         services for these payments. You should ask your lender
    11         about these services.
    12         Also, your payments on existing debts contribute to your
    13         credit ratings. You should not accept any advice to
    14         ignore your regular payments to your existing creditors.
    15  Provision of a consumer information pamphlet or other
    16  publication prepared by the Office of Consumer Protection of the
    17  Office of Attorney General regarding covered loans shall be
    18  deemed to constitute a substantially similar notice.
    19     (b)  No lending without due regard to repayment ability.--A
    20  lender shall not engage in a pattern or practice of making
    21  covered loans based on the consumer's collateral without regard
    22  to the consumer's repayment ability, including, but not limited
    23  to, the consumer's current and expected income, current
    24  obligations, employment status and other financial resources
    25  other than the obligor's equity in the dwelling which secures
    26  repayment of the loan. An obligor shall be presumed to be able
    27  to make the scheduled payments to repay the obligation if, at
    28  the time the loan is consummated, the obligor's scheduled
    29  monthly payments disclosed on the loan application do not exceed
    30  50% of the obligor's monthly gross income. For purposes of
    20010H1703B2114                  - 9 -

     1  determining median income, the income of all obligors shall be
     2  considered. The requirements of this subsection shall apply only
     3  to obligors whose income, as reported on the loan application,
     4  is no greater than 120% of the median family income. No
     5  presumption shall arise that an obligor is not able to make the
     6  scheduled payments if the obligor's scheduled monthly payments
     7  exceed 50% of the obligor's monthly gross income as determined
     8  pursuant to this subsection.
     9     (c)  Refinancing of existing covered loan with a new covered
    10  loan.--A lender may not charge any points in connection with a
    11  covered loan if the proceeds of the covered loan are used to
    12  refinance an existing covered loan held by the lender and the
    13  last financing was within one year of the current refinancing;
    14  provided, however, this provision shall not prohibit a lender
    15  from charging points in connection with any additional proceeds
    16  paid to or for the account of the obligor, other than charges or
    17  costs attributable to the covered loan, in connection with the
    18  refinancing. For purposes of this subsection, additional
    19  proceeds shall be defined as the amount over and above the
    20  current principal balance of the existing covered loan;
    21  provided, however, in the event the lender refunds all the
    22  points on the covered loan being refinanced, the additional
    23  proceeds shall be the principal balance of the new covered loan.
    24     (d)  No refinancing of certain low-rate loans.--A lender
    25  shall not replace or consolidate a zero interest rate or low-
    26  rate loan made by a governmental or nonprofit lender with a
    27  covered loan within the first ten years of the zero interest or
    28  low-rate loan unless the current holder of the loan consents in
    29  writing to the financing. For purposes of this subsection, a
    30  low-rate loan shall be defined as a loan that carries a current
    20010H1703B2114                 - 10 -

     1  interest rate two percentage points or more below the current
     2  yield on United States Treasury securities with a comparable
     3  maturity.
     4     (e)  Restrictions on covered loan proceeds to pay home
     5  improvement contracts.--A lender shall not pay a contractor
     6  under a home improvement contract from the proceeds of a covered
     7  loan other than by an instrument payable to the obligor or
     8  jointly to the obligor and the contractor or, at the election of
     9  the obligor, through a third-party escrow agent in accordance
    10  with terms established in a written agreement signed by the
    11  obligor, the lender and the contractor prior to the disbursement
    12  of funds to the contractor.
    13     (f)  Restrictions on single premium credit insurance.--A
    14  lender shall not sell any individual or group credit life,
    15  accident and health or unemployment insurance product on a
    16  prepaid single premium basis in conjunction with a covered loan
    17  unless the following conditions are met:
    18         (1)  After the expiration of 18 months from the date of
    19     enactment of this act and for an additional six-month period
    20     that may be necessary in order to secure any necessary
    21     approvals for a monthly premium credit insurance product by
    22     the department, if a lender offers any individual or group
    23     credit life, accident and health and unemployment insurance
    24     products purchased on a prepaid single premium basis in
    25     conjunction with a covered loan, the lender shall offer the
    26     obligor the option of purchasing all such insurance on a
    27     monthly premium basis.
    28         (2)  A lender shall not sell credit life, accident and
    29     health or unemployment insurance products in conjunction with
    30     a covered loan other than where the insurance premiums are
    20010H1703B2114                 - 11 -

     1     calculated, earned and paid on a monthly or other regular,
     2     periodic basis without providing a separate disclosure with a
     3     copy acknowledged by the insured no later than the time of
     4     closing in a form substantially similar to the following:
     5                  INSURANCE NOTICE TO BORROWER(S)
     6         You have elected to purchase credit life, accident and
     7         health and/or unemployment insurance in conjunction with
     8         this mortgage loan. The cost of this insurance is being
     9         prepaid and financed at the interest rate provided for in
    10         the loan.
    11         This insurance is NOT required as a condition of closing
    12         this loan and has been included with the loan at your
    13         request.
    14         At any time you have the right to cancel any or all such
    15         policies purchased in conjunction with this loan. You may
    16         cancel your policy or policies by signing and returning a
    17         copy of this notice to your lender or you may contact
    18         your lender directly.
    19         If you cancel your insurance within 30 days of the date
    20         of your loan, then you will receive either a full refund
    21         or a credit against your loan account. If you cancel your
    22         insurance at any other time, you will receive either a
    23         refund or credit against your loan account of any
    24         unearned premium.
    25         YOU MUST CANCEL WITHIN 30 DAYS OF THE DATE OF THE LOAN TO
    26         RECEIVE A FULL REFUND.
    27                   CREDIT INSURANCE CANCELLATION
    28     I (we) request that the lender cancel the __________
    29     Insurance that I (we) purchased in conjunction with my (our)
    30     mortgage loan dated _________.
    20010H1703B2114                 - 12 -

     1  ____________________________________________Date
     2  ____________________________________________Borrower
     3                     ACKNOWLEDGMENT OF RECEIPT
     4     I (we) acknowledge receipt of the above notice.
     5  ______________________________________________Date
     6  ______________________________________________Borrower
     7         (3)  If an obligor elects to cancel, within 30 days of
     8     the date of the covered loan, any individual or group credit
     9     life, accident and health or unemployment insurance product
    10     purchased on prepaid single premium basis in conjunction with
    11     a covered loan, the lender or the insurance company who sold
    12     the insurance or the insurance company providing the product
    13     shall give the obligor either a full premium refund or a full
    14     premium credit against the unpaid loan balance. If the
    15     obligor elects to cancel any individual or group credit
    16     insurance purchased in conjunction with a covered loan at any
    17     other time, the refund or credit shall be computed as
    18     provided or permitted by State law. The lender or insurance
    19     company shall decide whether the return of premium shall be
    20     by means of credit to the account or by refund to the
    21     obligor.
    22  This subsection shall not apply to credit life, accident, health
    23  and unemployment insurance sold by the lender for which the
    24  obligor chooses the primary beneficiary.
    25  Section 203.  Additional requirements.
    26     (a)  Reporting to credit bureaus.--A lender or its servicer
    27  shall report at least quarterly both the favorable and
    28  unfavorable payment history information of the obligor on
    29  payments due to the lender on a covered loan to a nationally
    30  recognized consumer credit reporting agency. This subsection
    20010H1703B2114                 - 13 -

     1  shall not prevent a lender or its servicer from agreeing with
     2  the obligor not to report specified payment history information
     3  in the event of a resolved or unresolved dispute with an obligor
     4  and shall not apply to covered loans held or serviced by a
     5  lender for less than 90 days.
     6     (b)  Verification of broker licensure.--A lender shall verify
     7  that each mortgage broker with whom it does business in
     8  connection with covered loans holds a license or other
     9  authorization currently in effect to do business within this
    10  Commonwealth.
    11                             CHAPTER 3
    12                  ENFORCEMENT AND CIVIL LIABILITY
    13  Section 301.  Enforcement.
    14     (a)  Enforcement.--The department may conduct examinations
    15  and investigations and issue subpoenas and orders to enforce the
    16  provisions of this act as provided by the act of May 15, 1933
    17  (P.L.565, No.111), known as the Department of Banking Code and
    18  with respect to a person licensed or subject to the following
    19  acts:
    20         (1)  The act of April 8, 1937 (P.L.262, No.66), known as
    21     the Consumer Discount Company Act.
    22         (2)  The act of November 30, 1965 (P.L.847, No.356),
    23     known as the Banking Code of 1965.
    24         (3)  The act of December 14, 1967 (P.L.746, No.345),
    25     known as the Savings Association Code of 1967,
    26         (4)  The act of December 12, 1980 (P.L.1179, No.219),
    27     known as the Secondary Mortgage Loan Act.
    28         (5)  The act of December 22, 1989 (P.L.687, No.90), known
    29     as the Mortgage Bankers and Brokers Act.
    30         (6)  The act of December 19, 1990 (P.L.834, No.198),
    20010H1703B2114                 - 14 -

     1     known as the GAA Amendments Act of 1990.
     2     (b)  Examinations and reports.--The department may examine
     3  any instrument, document, account, book, record or file of a
     4  person originating or brokering a covered loan under this act.
     5  The department may recover the cost of such examinations from
     6  the person. A person originating or brokering covered loans
     7  shall maintain its records in a manner that will facilitate the
     8  department determining whether the person is complying with the
     9  provisions of this act and the regulations promulgated under
    10  this act. The department may require the submission of reports
    11  by persons originating or brokering covered loans which shall
    12  set forth such information as the department may require.
    13     (c)  Subpoena.--In the event that a person fails to comply
    14  with a subpoena for documents or testimony issued by the
    15  department, the department may request an order from the
    16  Commonwealth Court requiring the person to produce the requested
    17  information.
    18     (d)  Administrative penalties.--If the department determines
    19  that a person has violated the provisions of this act, the
    20  department may do any combination of the following that it deems
    21  appropriate:
    22         (1)  Impose a civil penalty of up to $2,000 for each
    23     offense. The department may require the person to pay
    24     investigative costs, if any.
    25         (2)  Suspend, revoke or refuse to renew any license
    26     issued by the department.
    27         (3)  Prohibit or permanently remove an individual
    28     responsible for a violation of this act from working in his
    29     or her present capacity or in any other capacity related to
    30     activities regulated by the department.
    20010H1703B2114                 - 15 -

     1         (4)  Order a person to cease and desist any violation of
     2     this act and to make restitution for actual damages to
     3     obligors.
     4         (5)  Impose such other conditions as the department deems
     5     appropriate.
     6     (e)  Hearings.--Any person aggrieved by a decision of the
     7  department and which has a direct interest in the decision may
     8  appeal the decision of the department to the Secretary of
     9  Banking. The appeal shall be conducted in accordance with 2
    10  Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
    11  Commonwealth agencies).
    12     (f)  Injunctions.--The department may maintain an action for
    13  an injunction or other process against any person to restrain
    14  and prevent the person from engaging in any activity violating
    15  this act.
    16     (g)  Final orders.--A decision of the Secretary of Banking
    17  shall be a final order of the department and shall be
    18  enforceable in a court of competent jurisdiction. The department
    19  shall publish the final adjudication issued in accordance with
    20  this section, subject to redaction or modification to preserve
    21  confidentiality.
    22     (h)  Appeals.--Any person aggrieved by a decision of the
    23  Secretary of Banking and which has a direct interest in the
    24  decision may appeal the decision in accordance with 2 Pa.C.S.
    25  Ch. 7 Subch. A (relating to judicial review of Commonwealth
    26  agency actions).
    27  Section 302.  Civil liability.
    28     (a)  Damages for material violations.--If a lender
    29  purposefully engages in a pattern or practice of material
    30  violations of this act, an obligor on a covered loan may
    20010H1703B2114                 - 16 -

     1  initiate a civil action to recover damages.
     2     (b)  Exclusive remedies.--The remedies provided in this
     3  chapter shall be the sole and exclusive remedies for any
     4  violation of any provision of this act. Persons engaged in the
     5  purchase, sale, assignment, securitization or servicing of
     6  covered loans shall not be held liable for the action or
     7  inactions of persons originating such loans.
     8  Section 303.  Information sharing.
     9     The department may divulge documentary or other information
    10  pertaining to enforcement of this act to Federal or State
    11  banking regulatory agencies or Commonwealth agencies as may be
    12  necessary or appropriate for the enforcement of this act, as
    13  determined by the discretion of the Secretary of Banking. The
    14  department may enter into such information sharing agreements or
    15  other types of regulatory agreements with other Federal and
    16  State banking regulatory agencies as may be reasonably necessary
    17  or appropriate for the enforcement of this act, as determined by
    18  the discretion of the Secretary of Banking.
    19  Section 304.  Regulations.
    20     The department may promulgate regulations and statements of
    21  policy for the enforcement of this act, including regulations
    22  establishing rules of procedure for the conduct of hearings
    23  pursuant to this chapter and standards to govern the imposition
    24  of civil penalties.
    25                             CHAPTER 7
    26                      MISCELLANEOUS PROVISIONS
    27  Section 701.  Applicability.
    28     The provisions of section 104(a) are intended to restate and
    29  confirm the existing law of this Commonwealth, namely that the
    30  laws of this Commonwealth relating to the financial and lending
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     1  activities are to be applied on a uniform Statewide basis. To
     2  effectuate this intent the provisions of section 104(a) shall
     3  apply both prospectively and retroactively. The remainder of
     4  this act shall apply to loans originated after the effective
     5  date of this act.
     6  Section 702.  Severability.
     7     The provisions of this act are severable and if any of its
     8  provisions shall be held unconstitutional, the decision of the
     9  court shall not affect or impair any of the remaining provisions
    10  of this act. It is hereby declared to be the legislative intent
    11  that this act would have been adopted if the unconstitutional
    12  provisions had not been included.
    13  Section 703.  Effective date.
    14     This act shall take effect as follows:
    15         (1)  Section 104(a) and this section shall take effect
    16     immediately.
    17         (2)  The remainder of this act shall take effect in one
    18     year.








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