Introduced by Representatives Keenan of St. Albans City and Young of Orwell
Subject: Banking and insurance; financial institutions; licensed lenders; mortgage brokers; sales finance companies; money transmitters; credit unions; debt adjusters; compliance with federal law
Statement of purpose: This bill proposes to require Vermont financial institutions, licensed lenders, mortgage brokers, sales finance companies, money transmitters, credit unions, and debt adjusters to comply with the provisions of the federal truth in lending act, the federal real estate settlement procedures act, or the federal bank secrecy act.
AN ACT RELATING TO VERMONT ENTITIES’ COMPLIANCE WITH FEDERAL LAW
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 8 V.S.A. chapter 200, subchapter 6 is added to read:
Subchapter 6. Compliance with Federal Laws and Regulations
§ 10601. APPLICATION
This subchapter shall apply to all persons licensed, authorized, or registered, or required to be licensed, authorized, or registered under Parts 2 and 5 of this title.
§ 10602. COMPLIANCE WITH FEDERAL LAWS AND REGULATIONS
(a) All persons subject to this subchapter shall comply with all applicable requirements of the truth in lending act, 15 U.S.C. § 1601 and Regulation Z, 12 C.F.R. § 226; the real estate settlement procedures act, 12 U.S.C. § 2601 and Regulation X, 24 C.F.R. § 3500; and the bank secrecy act, 13 U.S.C. § 1501 and U.S. Department of Treasury Regulation, 31 C.F.R. Part 103, as now or hereafter amended.
(b) The commissioner may make such investigations and examinations to enforce the provisions of this subchapter as the commissioner deems necessary or appropriate and may take any appropriate actions against any person whom the commissioner has reason to believe has violated or is in violation of this subchapter.
§ 10603. PENALTY
The commissioner, in addition to using any other power exercisable by the commissioner under this title, may:
(1) impose an administrative penalty of not more than $1,000.00 for each violation upon any person who violates or participates in a violation of any law or regulation described in this subchapter;
(2) impose an administrative penalty in an amount greater than the amount prescribed in subdivision (1) of this section if a greater amount is prescribed in the federal law or regulation violated;
(3) order any person to make restitution to any person injured as a result of any violation of this subchapter; and
(4) order any person to cease violating this subchapter.
The Vermont General Assembly
115 State Street