06 LC 28
2900
Senate
Bill 558
By:
Senators Hamrick of the 30th, Shafer of the 48th, Cagle of the 49th and Williams
of the 19th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 5 of Title 7 of the Official Code of Georgia Annotated, relating
to credit cards and credit card banks, so as to correct typographical,
stylistic, and other errors; to rearrange and renumber certain provisions; to
provide that any credit card transaction where the credit card issuer is a
domestic lender or credit card bank and any credit card account created by a
domestic lender or credit card bank shall be exempt from the provisions of
Chapter 17 of Title 16; to provide for related matters; to provide an effective
date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
5 of Title 7 of the Official Code of Georgia Annotated, relating to credit cards
and credit card banks, is amended by striking Code Section 7-5-2, relating to
definitions, and inserting in lieu thereof a new Code Section 7-5-2 to read as
follows:
"7-5-2.
As
used in this chapter, the term:
(1)
'Affiliate' means the same as that set forth in paragraph (1) of Code Section
7-1-4.
(2)
'Commissioner'
and
'department' shall have the
meanings
meaning
provided in
paragraphs
paragraph
(13) and
(16) of Code Section 7-1-4.
(3)
'Credit card' means any type of arrangement or loan agreement pursuant to which
a domestic lender or credit card bank gives a debtor the privilege of using a
credit card or other credit confirmation or device of any type in transactions
out of which debt arises:
(A)
By the domestic lender or credit card bank honoring a draft or similar order for
the payment of money created, authorized, issued, or accepted by the debtor;
or
(B)
By the domestic lender or credit card bank paying or agreeing to pay the
debtoŕs
obligation.
(4)
'Credit card account' means an arrangement between a domestic lender or credit
card bank and a debtor for the creation of debt pursuant to a credit card and
under which:
(A)
The domestic lender or credit card bank may permit the debtor to create debt
from time to time;
(B)
The unpaid balance of principal of such debt and the loan, finance, or other
appropriate charges are debited to an account;
(C)
A loan finance charge is computed or an interest rate imposed upon the
outstanding balances of the
debtoŕs
account from time to time; and
(D)
The domestic lender or credit card bank is to render bills or statements to the
debtor at regular intervals, the amount of which bills or statements is payable
by and due from the debtor on a specified date as stated in such bill or
statement or, at the option of the debtor, but subject to the terms and
conditions of the credit card account, may be paid by the debtor in
installments.
(5)
'Credit card bank' means a national bank located in this state or a bank
organized under the laws of this state which, in either event, the activities of
which are limited to those permitted under Code Section 7-5-3.
(6)
'Department' shall have the meaning provided in paragraph (16) of Code Section
7-1-4.
(6)(7)
'Domestic lender' means any bank, savings and loan association, savings bank,
credit union, or other business organization organized or chartered under the
laws of this state or the United States, which in any event is authorized by law
to accept deposits and make loans and has its principal place of business in
this state.
(7)(8)
'Foreign lender' means any bank, savings and loan association, savings bank,
credit union, or other business organization organized or chartered under the
laws of the United States, or any state other than this state, or the District
of Columbia, which in any event is authorized by law to accept deposits and make
loans and has its principal place of business outside this state.
(8)(9)
'Holding
For
purposes of this chapter, 'holding
company' means any company that controls a domestic or foreign lender or a
credit card bank. The term 'company' and 'control' shall have the meanings set
forth in Code Section 7-1-605.
(9)(10)
'Qualifying organization' means a corporation, partnership, or other entity
which at all times maintains an office in the State of Georgia at which it
employs at least 250 persons residing in this state who are directly or
indirectly engaged in providing the following services, either for the
qualifying organization or on behalf of other domestic or foreign lenders or
credit card banks:
(A)
The distribution of credit cards or other devices designed and effective to
access credit card accounts;
(B)
The preparation of periodic statements of amounts due under credit card
accounts;
(C)
The receipt from credit card holders of amounts paid on or with respect to such
accounts; or
(D)
The maintenance of financial records reflecting the status of such accounts from
time to time.
The
term 'qualifying organization' shall also include any domestic bank and credit
card bank satisfying the employment and activities requirements set forth in
this
paragraph."
SECTION
2.
Said
chapter is further amended by striking subsection (c) of Code Section 7-5-4,
relating to credit card charges and fees, and inserting in lieu thereof a new
subsection (c) to read as follows:
"(c)
A credit card account between any domestic lender or credit card bank and a
debtor shall be governed solely by the laws of the State of Georgia and federal
law unless otherwise expressly agreed in writing by the parties. A domestic
lender or credit card bank may, as specified in the written agreement governing
a credit card account, modify in any respect any terms or conditions of such
credit card account, upon such prior written notice of such modification as
specified by the terms of the written agreement governing the credit card
account or by the Truth in Lending Act (15 U.S.C. Section 1601, et seq.). Any
such notice provided by a domestic lender or credit card bank shall specify that
the debtor has the right to surrender the credit card whereupon the debtor shall
have the right to continue to pay off his
or
her credit card account in the same manner
and under the same terms and conditions as then in effect. The
debtoŕs
failure to surrender the credit card prior to the
modificatiońs
becoming effective shall constitute a consent to the
modification."
SECTION
3.
Said
chapter is further amended by inserting a new Code Section 7-5-7 to read as
follows:
"7-5-7.
Any
credit card transaction where the credit card issuer is a domestic lender or
credit card bank and any credit card account created by a domestic lender or
credit card bank shall be exempt from the provisions of Chapter 17 of Title
16."
SECTION
4.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.