House Bill No. 5429
               House Bill No. 5429

              PUBLIC ACT NO. 98-264


AN ACT CONCERNING SMALL LOAN LENDERS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  36a-555  of  the general statutes, as
amended by section  1  of  public  act  97-13,  is
repealed  and the following is substituted in lieu
thereof:
    No  person  shall  engage  in  the business of
making loans of money or credit in the  amount  or
to  the  value of fifteen thousand dollars or less
for loans made under section 36a-563,  as  amended
by  section  2  of [this act] PUBLIC ACT 97-13, or
section  36a-565,  and  charge,  contract  for  or
receive  a  greater  rate  of  interest, charge or
consideration  than  twelve  per  cent  per  annum
therefor,  except  (1) a bank, (2) an out-of-state
bank,  (3)  a  Connecticut  credit  union,  (4)  a
federal  credit  union, (5) an out-of-state credit
union, (6) a savings and loan  association  wholly
owned subsidiary service corporation, (7) a person
to the extent that such  person  makes  loans  for
agricultural,     commercial,     industrial    or
governmental use  or  extends  credit  through  an
open-end  credit  plan,  as defined in subdivision
(8) of section 36a-676, for the retail purchase of
consumer  goods  or  services, (8) A NONDEPOSITORY
FIRST  MORTGAGE  LENDER   LICENSED   PURSUANT   TO
SECTIONS  36a-485  TO  36a-498,  INCLUSIVE,  (9) A
SECONDARY MORTGAGE  LENDER  LICENSED  PURSUANT  TO
SECTIONS  36a-510 TO 36a-524, INCLUSIVE, or (10) a
licensed pawnbroker, unless licensed to do  so  by
the  commissioner  as provided in sections 36a-555
to 36a-573, inclusive, as amended  by  [this  act]
PUBLIC ACT 97-13.

Approved June 8, 1998