AN INITIATIVE MEASURE
PAYDAY LOAN REFORM ACT
TEXT OF PROPOSED AMENDMENT
BE IT ENACTED BY THE PEOPLE OF THE STATE OF ARIZONA:
Section 1. Title
This measure shall be known as the Payday Loan Reform Act.
Section 2. Purpose and Intent
The people of Arizona declare that the intent and purpose of this Act is to:
1. Reduce the cost of small dollar, short-term consumer loans;
2. Promote responsible consumer lending practices;
3. Provide consumers with borrowing options on fair terms that allow a reasonable time to repay a loan;
4. Regulate the covered products in a comprehensive and efficient manner;
5. Make clear that internet lenders are subject to the laws of this State; and,
6. Reduce the number of store-front locations in our neighborhoods.
Section 3. 6-1251, Arizona Revised Statutes is amended to read:
In this chapter, unless the context otherwise requires:
1. "Branch office" means any office operated by a licensee to provide deferred presentment services.
2. "Check" means a draft signed by the maker and made payable to a person that is licensed pursuant to this chapter with the name of the maker preprinted on the face of the check OR AN ELECTRONIC DEBIT AGREEMENT THAT COMPLIES WITH TITLE 44, CHAPTER 26.
3. "Deferred presentment services" means a transaction pursuant to a written agreement in which the licensee accepts a check and agrees to hold the check for at lea[More...]