CHAPTER 107 SUBSTITUTE FOR SENATE BILL No. 301 (Amended by Chapter 166) An  Act relating to consumer credit; concerning the uniform consumer credit code; amend-
ing K.S.A. 16-207, 16a-1-108, 16a-1-201, 16a-2-103, 16a-2-302, 16a-2-303, 16a-2-307,
16a-2-401, 16a-2-402, 16a-2-403, 16a-2-404, 16a-2-510, 16a-3-301, 16a-3-304, 16a-4-
301, 16a-4-112, 16a-5-203, 16a-5-301, 16a-6-104, 16a-6-105, 16a-6-106, 16a-6-108, 16a-
6-117 and 16a-6-202 and K.S.A. 1998 Supp. 16a-1-301, 16a-2-201, 16a-2-202, 16a-2-501
and 16a-2-502 and repealing the existing sections; also repealing K.S.A. 16a-2-305, 16a-
2-306, 16a-5-302, 16a-6-107 and 16a-6-204 and K.S.A. 1998 Supp. 16a-2-401a.
Be it enacted by the Legislature of the State of Kansas:

      New Section  1. (1) The provisions of this section apply only to a
consumer loan which is secured by a first mortgage or a second mortgage
on the consumer's principal residence. The provisions of this section do
not apply to a lender who is a supervised financial organization.

      (2) Before making a loan subject to this section, a lender shall obtain
the appraised value of the real estate to be encumbered. The appraisal
evidencing the appraised value shall be retained by the lender and pre-
served in accordance with the record-keeping requirements set forth in
K.S.A. 16a-2-304, and amendments thereto.

      (3) If, based on the appraisal, the loan-to-value ratio of the loan ex-
ceeds 100%, then the lender shall deliver to the consumer:

      (a) A free copy of the appraisal; and

      (b) a written notice regarding high loan-to-value mortgages and the
availability of consumer credit counseling. The administrator may adopt
rules and regulations regarding the form of the notice to be delivered to
the consumer and the names, addresses and telephone numbers of se-
lected consumer credit counseling providers.

      (4) The notice referred to in subsection (3) shall be given to the con-
sumer not less than five days before the loan is made. The notice must
be retained by the lender and preserved in accordance with the record-
keeping requirements set forth in K.S.A. 16a-2-304, and amendments
thereto.

      (5) If, within five days after receiving the notice, the consumer elects
not to enter into the loan transaction, then the lender must promptly
refund to the consumer any application fees or other amounts paid by
the consumer to the lender. However, the lender is not required to refund
any bona fide out-of-pocket costs incurred by the lender before the con-
sumer elected not to enter into the loan transaction, provided that such
costs were paid or are payable to a person or persons not related to the
lender. Notwithstanding the provisions of this subsection, a bona fide
appraisal fee paid or payable to a person related to the lender need not
be refunded to the consumer.

      (6) This section shall be supplemental to and a part of the uniform
consumer credit code.

      New Sec.  2. (1) A supervised lender shall not, directly or indirectly,
make a false, misleading or deceptive advertisement regarding loans or
the availability of loans.

      (2) A supervised lender shall not advertise any size of loan, security
required for a loan, rate of charge or other conditions of lending except
with the full intent of making loans at those rates, or lower rates, and
under those conditions or conditions more favorable to the consumer, to
loan applicants who meet the standards or qualifications prescribed by
the supervised lender.

      (3) This section shall be supplemental to and a part of the uniform
consumer credit code.

      New Sec.  3. (1) A loan subject to this section may not provide for
the negative amortization of principal or a balloon payment. A loan pay-
ment is not a balloon payment if the amount of the payment is less than
twice the amount of any other payment.

      (2) Subsection (1) applies to a consumer loan which is secured by a
first mortgage or a second mortgage on the consumer's principal resi-
dence and with respect to which (a) the loan-to-value ratio exceeds 100%
at the time the loan is made or (b) the annual percentage rate exceeds
the code mortgage rate. Notwithstanding the foregoing, subsection (1)
does not apply to a loan pursuant to open end credit; a purchase-money
loan incurred to acquire or construct the consumer's principal residence;
or a reverse mortgage transaction.

      (3) The creditor must disburse the proceeds of a consumer loan se-
cured by a first mortgage or a second mortgage upon the satisfaction of
all conditions to the disbursement and the expiration of all applicable
rescission, cooling-off or other waiting periods required by law, unless
the parties otherwise agree in writing.

      (4) This section shall be supplemental to and a part of the uniform
consumer credit code.

      New Sec.  4. (1) A creditor shall credit a payment to the consumer's
account on the date of receipt, except when a delay in crediting does not
result in a finance charge or other charge.

      (2) Notwithstanding subsection (1), if a creditor specifies, in a writing
delivered to the consumer, reasonable requirements for the consumer to
follow in making payments, but accepts a payment that does not conform
to those requirements, then the creditor shall credit the payment within
five days after receipt.

      (3) This section shall be supplemental to and a part of the uniform
consumer credit code.

      Sec.  5. K.S.A. 16-207 is hereby amended to read as follows: 16-207.
(a) Subject to the following provision, the parties to any bond, bill, prom-
issory note or other instrument of writing for the payment or forbearance
of money may stipulate therein for interest receivable upon the amount
of such bond, bill, note or other instrument of writing, at a rate not to
exceed 15% per annum unless otherwise specifically authorized by law.

      (b) The maximum rate of interest per annum for notes secured by all
real estate mortgages and contracts for deed to real estate executed on
or after the effective date of this act shall be at an amount equal to 11/2
percentage points above the yield of thirty-year fixed rate conventional
home mortgages committed for delivery within 61 to 90 days accepted
under the federal home loan mortgage corporation's daily offerings for
sale on the last day on which commitments for such mortgages were
received in the preceding month unless otherwise specifically authorized
by law. Such interest rate shall be computed for each calendar month and
be effective on the first day thereof. The secretary of state shall publish
notice of such maximum interest rate not later than the second issue of
the Kansas register published each month. The initial rate of interest upon
any conventional loan evidenced by a note secured by a real estate mort-
gage shall not exceed the rate quoted in the application executed by the
borrower on the day on which application for such conventional loan is
made. The interest rate limitation set forth in this subsection applies to
all first mortgage loans and contracts for deed to real estate, unless the
parties agree in writing to make the transaction subject to the uniform
consumer credit code, K.S.A. 16a-1-101 to 16a-9-102, and amendments
thereto. The interest rate limitation set forth in this subsection does not
apply to a second mortgage loan governed by the uniform consumer credit
code, K.S.A. 16a-1-101 to 16a-9-102, and amendments thereto, unless the
lender and the borrower agree in writing that the interest rate for the
loan is to be governed by this subsection. The maximum rate of interest
per annum for notes secured by real estate mortgages and contracts for
deed to real estate governed by this subsection shall be at an amount equal
to 11/2 percentage points above the yield of thirty-year fixed rate conven-
tional home mortgages committed for delivery within 61 to 90 days ac-
cepted under the federal home loan mortgage corporation's daily offerings
for sale on the last day on which commitments for such mortgages were
received in the preceding month unless otherwise specifically authorized
by law. Such interest rate shall be computed for each calendar month and
be effective on the first day thereof. The secretary of state shall publish
notice of such maximum interest rate not later than the second issue of
the Kansas register published each month.

      (c) No penalty shall be assessed against any party for prepayment of
any home loan evidenced by a note secured by a real estate mortgage
where such prepayment is made more than six months after execution of
such note.

      (d) The lender may collect from the borrower: (1) The actual fees
paid a public official or agency of the state, or federal government, for
filing, recording or releasing any instrument relating to a loan subject to
the provisions of this section; and

      (2) reasonable expenses incurred by the lender in connection with
the making, closing, disbursing, extending, readjusting or renewing of
loans subject to the provisions of this section.

      (e) Any person so contracting for a greater rate of interest than that
authorized by this section shall forfeit all interest so contracted for in
excess of the amount authorized under this section; and in addition
thereto shall forfeit a sum of money, to be deducted from the amount
due for principal and lawful interest, equal to the amount of interest
contracted for in excess of the amount authorized by this section and such
amounts may be set up as a defense or counterclaim in any action to
enforce the collection of such obligation and the borrower shall also re-
cover a reasonable attorney fee.

      (f) The interest rates prescribed in subsections (a) and (b) of this
section shall not apply to a business or agricultural loan. For the purpose
of this section unless a loan is made primarily for personal, family or
household purposes, the loan shall be considered a business or agricul-
tural loan. For the purpose of this subsection, a business or agricultural
loan shall include credit sales and notes secured by contracts for deed to
real estate.

      (g) Loans made by a qualified plan, as defined in section 401 of the
internal revenue code, to an individual participant in such plan or to a
member of the family of such individual participant, are not subject to
the interest rates prescribed in subsections (a) and (b) of this section.

      (h) The interest rates prescribed in subsections (a) and (b) of this
section shall not apply to a note secured by a real estate mortgage or a
contract for deed to real estate where the note or contract for deed per-
mits adjustment of the interest rate, the term of the loan or the amorti-
zation schedule.

      (i) A first mortgage loan incurred for personal, family or household
purposes may be subject to certain provisions of the uniform consumer
credit code, K.S.A. 16a-1-101 to 16a-9-102, and amendments thereto, as
follows:

      (1)  Certain high loan-to-value first mortgage loans are subject to the
provisions of the uniform consumer credit code, other than its usury pro-
visions. Examples of provisions of the uniform consumer credit code ap-
plicable to high loan-to-value first mortgage loans include, but are not
limited to: Limitations on prepaid finance charges; mandatory appraisals;
required disclosures; restrictions on balloon payments and negative am-
ortization; limitations on late fees and collection costs; and mandatory
default notices and cure rights.

      (2) Certain high interest rate first mortgage loans are subject to cer-
tain provisions of the uniform consumer credit code, including, without
limitation, provisions which impose restrictions on balloon payments and
negative amortization.

      (3) If the parties to a first mortgage loan agree in writing to make the
transaction subject to the uniform consumer credit code, than all appli-
cable provisions of the uniform consumer credit code, including its usury
provisions, apply to the loan.

      This subsection is for informational purposes only and does not limit
or expand the scope of the uniform consumer credit code.

      (j) Subsections (c), (d) and (e) of this section do not apply to a first
mortgage loan if (1) the parties agree in writing to make the transaction
subject to the uniform consumer credit code, K.S.A. 16a-1-101 to 16a-9-
102, and amendments thereto, or (2) the loan is a high loan-to-value first
mortgage loan subject to any provision of the uniform consumer credit
code. In the case of a loan described in subparts (1) or (2) of the preceding
sentence, the applicable provisions of the uniform consumer credit code
shall govern the loan in lieu of subsections (c), (d) and (e) of this section.

      Sec.  6. K.S.A. 16a-1-108 is hereby amended to read as follows: 16a-
1-108. (1) K.S.A. 16a-1-101 through 16a-9-102, and amendments thereto,
prescribes maximum charges for all creditors, except lessors and those
excluded (section K.S.A. 16a-1-202, and amendments thereto), extending
consumer credit including consumer credit sales (subsection (10) of sec-
tion (14) of K.S.A. 16a-1-301, and amendments thereto) and consumer
loans (subsection (13) of section (17) of K.S.A. 16a-1-301, and amend-
ments thereto), and displaces existing limitations on the powers of those
creditors based on maximum charges.

      (2) With respect to sellers of goods or services, small loan companies,
licensed lenders, consumer and sales finance companies, industrial banks
and loan companies, and commercial banks and trust companies, this act
displaces existing limitations on their powers based solely on amount or
duration of credit.

      (3) Except as provided in subsection (1) and in the article on effective
date and repealer (article 9), K.S.A. 16a-1-101 through 16a-9-102, and
amendments thereto, does not displace limitations on powers of credit
unions, savings banks, savings and loan associations, or other thrift insti-
tutions whether organized for the profit of shareholders or as mutual
organizations.

      (4) Except as provided in subsections (1) and (2) and in the article
on effective date and repealer (article 9), K.S.A. 16a-1-101 through 16a-
9-102, and amendments thereto, does not displace:

      (a) Limitations on powers of supervised financial organizations (sub-
section (38) of section (44) of K.S.A. 16a-1-301, and amendments thereto)
with respect to the amount of a loan to a single borrower, the ratio of a
loan to the value of collateral, the duration of a loan secured by an interest
in land, or other similar restrictions designed to protect deposits, or

      (b) limitations on powers an organization is authorized to exercise
under the laws of this state or the United States.

      Sec.  7. K.S.A. 16a-1-201 is hereby amended to read as follows: 16a-
1-201. (1) Except as otherwise provided in this section, K.S.A. 16a-1-101
through 16a-9-102, and amendments thereto, apply to consumer credit
transactions made in this state. For purposes of such sections of this act,
a consumer credit transaction is made in this state if:

      (a) A signed writing evidencing the obligation or offer of the con-
sumer is received by the creditor in this state; or

      (b) the creditor induces the consumer who is a resident of this state
to enter into the transaction by face-to-face solicitation in this state by
any means, including but not limited to: Mail, telephone, radio, television
or any other electronic means.

      (2) With respect to consumer credit transactions entered into pur-
suant to open end credit (subsection (26) (31) of K.S.A. 16a-1-301, and
amendments thereto), this act applies if the consumer's communication
or indication of intention to establish the arrangement is received by the
creditor in this state. If no communication or indication of intention is
given by the consumer before the first transaction, this act applies if the
creditor's communication notifying the consumer of the privilege of using
the arrangement is mailed or personally delivered in this state.

      (3) The part on limitations on creditors' remedies (part 1) of the ar-
ticle on remedies and penalties (article 5) applies to actions or other
proceedings brought in this state to enforce rights arising from consumer
credit sales, consumer leases, or consumer loans, or extortionate exten-
sions of credit, wherever made.

      (4) A consumer credit transaction made in another state to a person
who is a resident of this state at the time of the transaction is valid and
enforceable in this state to the extent that it is valid and enforceable under
the laws of the state applicable to the transaction, but the following pro-
visions apply as though the transaction occurred in this state:

      (a) A creditor may not collect charges through actions or other pro-
ceedings in excess of those permitted by the article on finance charges
and related provisions (article 2); and

      (b) a creditor may not enforce rights against the consumer with re-
spect to the provisions of agreements which violate the provisions on
limitations on agreements and practices (part 3) and limitations on con-
sumer's liability (part 4) of the article on regulation of agreements and
practices (article 3).

      (5) Except as provided in subsection (3), a consumer credit transac-
tion made in another state to a person who was not a resident of this state
when the sale, lease, loan, or modification was made is valid and enforce-
able in this state according to its terms to the extent that it is valid and
enforceable under the laws of the state applicable to the transaction.

      (6) For the purposes of K.S.A. 16a-1-101 through 16a-9-102, and
amendments thereto, the residence of a consumer is the address given
by the consumer as the consumer's residence in any writing signed by
the consumer in connection with a credit transaction. Until the consumer
notifies the creditor of a new or different address, the given address is
presumed to be unchanged.

      (7) Notwithstanding other provisions of this section:

      (a) Except as provided in subsection (3), K.S.A. 16a-1-101 through
16a-9-102, and amendments thereto, do not apply if the consumer is not
a resident of this state at the time of a credit transaction and the parties
have agreed that the law of the consumer's residence applies; and

      (b) K.S.A. 16a-1-101 through 16a-9-102, and amendments thereto,
apply if the consumer is a resident of this state at the time of a credit
transaction and the parties have agreed that the law of the consumer's
residence applies.

      (8) Except as provided in subsection (7) the following agreements by
a buyer, lessee, or debtor are invalid with respect to consumer credit
transaction to which K.S.A. 16a-1-101 through 16a-9-102, and amend-
ments thereto, apply:

      (a) That the law of another state shall apply;

      (b) that the consumer consents to the jurisdiction of another state;
and

      (c) that fixes venue.

      (9) The following provisions of this act specify the applicable law gov-
erning certain cases:

      (a) Applicability (K.S.A. 16a-6-102, and amendments thereto) of the
part on powers and functions of administrator (part 1) of the article on
administration (article 6); and

      (b) applicability (K.S.A. 16a-6-201, and amendments thereto) of the
part on notification and fees (part 2) of the article on administration (ar-
ticle 6).

      (10) With respect to a consumer credit sale or consumer loan to
which K.S.A. 16a-1-101 through 16a-9-102, and amendments thereto,
does not otherwise apply by reason of the foregoing provisions of this
section, if, pursuant to a solicitation relating to a consumer credit sale or
loan received in this state, a person who is a resident of this state sends
a signed writing evidencing the obligation or offer of the person to a
creditor in another state, and the person receives the goods or services
purchased or the cash proceeds of the loan in this state:

      (a) The creditor may not contract for or receive charges exceeding
those permitted by this code, and such charges as do exceed those per-
mitted are excess charges for purposes of subsections (3) and (4) of K.S.A.
16a-5-201(3) and (4) and 16a-6-113, and amendments thereto, and such
sections shall apply as though the consumer credit sale or consumer loan
were made in this state; and

      (b) the part on powers and functions of administrator (part 1) of the
article on administration (article 6) shall apply as though the consumer
credit sale or consumer loan were made in this state.

      Sec.  8. K.S.A. 1998 Supp. 16a-1-301 is hereby amended to read as
follows: 16a-1-301. In addition to definitions appearing in subsequent
articles, in K.S.A. 16a-1-101 through 16a-9-102, and amendments thereto:

      (1) ``Actuarial method'' means the method, defined by rules and reg-
ulations adopted by the administrator, of allocating payments made on a
debt between the amount financed principal and the finance charge pur-
suant to which a payment is applied, assuming no delinquency charges or
other additional charges are then due, first to the accumulated finance
charge and the balance is applied then to the unpaid amount financed
principal balance. When a finance charge is calculated in accordance with
the actuarial method, the contract rate is applied to the unpaid principal
balance for the number of days the principal balance is unpaid. At the
end of each computational period, or fractional computational period, the
unpaid principal balance is increased by the amount of the finance charge
earned during that period and is decreased by the total payment, if any,
made during the period after the deduction of any delinquency charges
or other additional charges due during the period.

      (2) ``Administrator'' means the consumer credit commissioner ap-
pointed pursuant to K.S.A. 16-403, and amendments thereto.

      (3) ``Agreement'' means the bargain of the parties in fact as found in
their language or by implication from other circumstances including
course of dealing or usage of trade or course of performance.

      (4) ``Amount financed'' means the total of the following items:

      (a) In the case of a sale, the cash price of the goods, services, or
interest in land, less the amount of any down payment whether made in
cash or in property traded in, and the amount actually paid or to be paid
by the seller pursuant to an agreement with the buyer to discharge a
security interest in, a lien on, or a debt with respect to property traded
in;

      (b) in the case of a loan, the net amount paid to, receivable by, or
paid or payable for the account of the debtor, plus the amount of any
discount excluded from the finance charge (paragraph (b) of subsection
(18) of K.S.A. 16a-1-301); and

      (c) in the case of a sale or loan, to the extent that payment is deferred
and the amount is not otherwise included and is authorized and disclosed
to the customer:

      (i) Amounts actually paid or to be paid by the creditor for registration,
certificate of title, or license fees, and

      (ii) permitted additional charges ( K.S.A. 16a-2-501). net amount of
credit provided to the consumer or on the consumer's behalf. The amount
financed shall be calculated as provided in rules and regulations adopted
by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (5) ``Annual percentage rate'' means the finance charge expressed as
a yearly rate, as calculated in accordance with the actuarial method. The
annual percentage rate shall be calculated as provided in rules and reg-
ulations adopted by the administrator pursuant to K.S.A. 16a-6-117, and
amendments thereto.

      (6) ``Appraised value'' means, with respect to any real estate at any
time, the greater of:

      (a) The total appraised value of the real estate, as reflected in the most
recent records of the tax assessor of the county in which the real estate is
located; or

      (b) the fair market value of the real estate, as reflected in a written
appraisal of the real estate performed by a Kansas licensed or certified
appraiser within the past 12 months.

      (5) (7) ``Billing cycle'' means the time interval between periodic bill-
ing statement dates.

      (6) (8) ``Cash price'' of goods, services, or an interest in land means
the price at which they are offered for sale by the seller to cash buyers
in the ordinary course of business and may include (a) the cash price of
accessories or services related to the sale, such as delivery, installation,
alterations, modifications, and improvements, and (b) taxes to the extent
imposed on a cash sale of the goods, services, or interest in land. The
cash price stated by the seller to the buyer in a disclosure statement is
presumed to be the cash price.

      (9) ``Closed end credit'' means a consumer loan or a consumer credit
sale which is not incurred pursuant to open end credit.

      (7) (10) ``Closing costs'' with respect to a debt secured by an interest
in land includes:

      (a) The actual fees paid a public official or agency of the state or
federal government, for filing, recording or releasing any instrument re-
lating to the debt; and

      (b) bona fide and reasonable expenses not included in the origination
fee or payable to an assignee incurred by the lender in connection with
the making, closing, disbursing, extending, readjusting or renewing the
debt which are payable to third parties not related to the lender, except
that reasonable fees for an appraisal made by the lender or related party
are permissible.

      (11) ``Code mortgage rate'' means the greater of:

      (a) 12%; or

      (b) the sum of:

      (i) The yield on 30-year fixed rate conventional home mortgage loans
committed for delivery within 31 to 90 days accepted under the federal
home loan mortgage corporation's or any successor's daily offerings for
sale on the last day on which commitments for such mortgages were re-
ceived in the previous month; and

      (ii) 5%.

      If the reference rate referred to in subparagraph (i) of paragraph (b)
is discontinued, becomes impractical to use, or is otherwise not readily
ascertainable for any reason, the administrator may designate a compa-
rable replacement reference rate and, upon publishing notice of the same,
such replacement reference rate shall become the reference rate referred
to in subparagraph (i) of paragraph (b). The secretary of state shall pub-
lish notice of the code mortgage rate not later than the second issue of the
Kansas register published each month.

      (8) (12) ``Conspicuous'': A means a term or clause is conspicuous
when it is so written that a reasonable person against whom it is to operate
ought to have noticed it. Whether a term or clause is conspicuous or not
is for decision by the trier of fact.

      (9) (13) ``Consumer'' means the buyer, lessee, or debtor to whom
credit is granted in a consumer credit transaction.

      (10) (14) ``Consumer credit sale'':

      (a) Except as provided in paragraph (b), a ``consumer credit sale'' is
a sale of goods, services, or an interest in land in which:

      (i) Credit is granted either by a seller who regularly engages as a seller
in credit transactions of the same kind or pursuant to a credit card other
than a lender credit card,

      (ii) the buyer is a person other than an organization,

      (iii) the goods, services, or interest in land are purchased primarily
for a personal, family or household purpose,

      (iv) either the debt is by written agreement payable in more than four
installments or a finance charge is made, and

      (v) with respect to a sale of goods or services, the amount financed
does not exceed $25,000.

      (b) A ``consumer credit sale'' does not include:

      (i) A sale in which the seller allows the buyer to purchase goods or
services pursuant to a lender credit card; or

      (ii) unless the sale is made subject to K.S.A. 16a-1-101 through 16a-9-
102, and amendments thereto, by agreement ( K.S.A. 16a-1-109), a sale
of an interest in land, other than sales governed by subsection (10)(b)(iii)
of this section, if the finance charge does not exceed 12% per year cal-
culated according to the actuarial method on the unpaid balances of the
amount financed on the assumption that the debt will be paid according
to the agreed terms and will not be paid before the end of the agreed
term; or

      (iii) a sale by contract for deed of real estate the interest rate of which
is governed by subsection (b) or (h) of K.S.A. 16-207, and amendments
thereto a sale of an interest in land, unless the parties agree in writing to
make the transaction subject to the uniform consumer credit code.

      (11) (15) ``Consumer credit transaction'' means a consumer credit
sale, consumer lease, or consumer loan or a modification thereof includ-
ing a refinancing, consolidation, or deferral.

      (12) (16) ``Consumer lease'' means a lease of goods:

      (a) Which a lessor regularly engaged in the business of leasing makes
to a person, other than an organization, who takes under the lease pri-
marily for a personal, family or household purpose;

      (b) in which the amount payable under the lease does not exceed
$25,000;

      (c) which is for a term exceeding four months; and

      (d) which is not made pursuant to a lender credit card.

      (13) (17) ``Consumer loan'':

      (a) Except as provided in paragraph (b), a ``consumer loan'' is a loan
made by a person regularly engaged in the business of making loans in
which:

      (i) The debtor is a person other than an organization;

      (ii) the debt is incurred primarily for a personal, family or household
purpose;

      (iii) either the debt is payable in by written agreement in more than
four installments or a finance charge is made; and

      (iv) either the amount financed does not exceed $25,000 or the debt
is secured by an interest in land.

      (b) Unless the loan is made subject to K.S.A. 16a-1-101 through 16a-
9-102, and amendments thereto, by agreement ( K.S.A. 16a-1-109) the
uniform consumer credit code by written agreement, a ``consumer loan''
does not include:

      (i) A loan secured by a first real estate mortgage unless:

      (A) The loan-to-value ratio of the loan at the time when made exceeds
100%; or

      (B) in the case of subsection (1) of section 3 of this act and amend-
ments thereto, the annual percentage rate of the loan exceeds the code
mortgage rate; or

      (ii) a loan secured by a second or other subordinate mortgage if the
second or other subordinate mortgage is granted to the same lender as
the first mortgage; or

      (iii) a loan made by a qualified plan, as defined in section 401 of the
internal revenue code, to an individual participant in such plan or to a
member of the family of such individual participant.

      (14) (18) ``Credit'' means the right granted by a creditor to a debtor
to defer payment of debt or to incur debt and defer its payment.

      (15) (19) ``Credit card'' means any card, plate or other single credit
device that may be used from time to time to obtain credit. Since this
involves the possibility of repeated use of a single device, checks and
similar instruments that can be used only once to obtain a single credit
extension are not credit cards.

      (16) (20) ``Creditor'' means a person who regularly extends credit in
a consumer credit transaction which is payable by a written agreement in
more than four installments or for which the payment of a finance charge
is or may be required and is the person to whom the debt arising from
the consumer credit transaction is initially payable on the face of the
evidence of indebtedness or, if there is no such evidence of indebtedness,
by written agreement. In the case of credit extended pursuant to a credit
card, the creditor is the card issuer and not another person honoring the
credit card.

      (17) (21) ``Earnings'' means compensation paid or payable to an in-
dividual or for such individual's account for personal services rendered
or to be rendered by such individual, whether denominated as wages,
salary, commission, bonus, or otherwise, and includes periodic payments
pursuant to a pension, retirement, or disability program.

      (18) (22) ``Finance charge'':

      (a) ``Finance charge'' means the sum of:

      (i) All charges payable directly or indirectly by the consumer and
imposed directly or indirectly by the creditor as an incident to or as a
condition of the extension of credit, including any of the following types
of charges which are applicable; interest or any amount payable under a
point, discount or other system of charges, however denominated; time
price differential, service, carrying or other charge, however denomi-
nated; premium or other charge for any guarantee or insurance protecting
the creditor against the consumer's default or other credit loss; and

      (ii) charges incurred for investigating the collateral or credit-worthi-
ness of the consumer.

      (b) The term does not include:

      (i) Charges as a result of default, additional charges (K.S.A. 16a-2-
501) or delinquency charges (K.S.A. 16a-2-502), or

      (ii) if a lender makes a loan to a debtor by purchasing or satisfying
obligations of the debtor pursuant to a lender credit card and the purchase
or satisfaction is made at less than the face amount of the obligation, the
discount, or

      (iii) closing costs as defined in K.S.A. 16a-1-301(7), and amendments
thereto ``Finance charge'' means all charges payable directly or indirectly
by the consumer and imposed directly or indirectly by the creditor as an
incident to or as a condition of the extension of credit. The finance charge
shall be calculated as provided in rules and regulations adopted by the
administrator pursuant to K.S.A. 16a-6-117, and amendments thereto.

      (23) ``First mortgage'' means a first priority mortgage lien or similar
real property security interest.

      (19) (24) ``Goods'' includes goods not in existence at the time the
transaction is entered into and merchandise certificates, but excludes
money, chattel paper, documents of title, and instruments.

      (20) (25) Except as otherwise provided, ``lender'' includes an assignee
of the lender's right to payment but use of the term does not in itself
impose on an assignee any obligation of the lender with respect to events
occurring before the assignment.

      (21) ``Interest bearing'' means the finance charge on a consumer
credit transaction is computed on the unpaid principal balances by the
actuarial method.

      (22) (26) ``Lender credit card'' means a credit card issued by a su-
pervised lender.

      (23) (27) ``Loan'':

      (a) Except as provided in paragraph (b), a ``loan'' includes:

      (i) The creation of debt by the lender's payment of or agreement to
pay money to the debtor or to a third party for the account of the debtor;

      (ii) the creation of debt either pursuant to a lender credit card or by
a cash advance to a debtor pursuant to a credit card other than a lender
credit card;

      (iii) the creation of debt by a credit to an account with the lender
upon which the debtor is entitled to draw immediately; and

      (iv) the forbearance of debt arising from a loan.

      (b) A ``loan'' does not include the payment or agreement to pay
money to a third party for the account of a debtor if the debt of the
debtor arises from a sale or lease and results from use of either a credit
card issued by a person primarily in the business of selling or leasing
goods or services or any other credit card which may be used for the
purchase of goods or services and which is not a lender credit card.

      (28) ``Loan-to-value ratio'', at any time for any loan secured by an
interest in real estate, means a fraction expressed as a percentage:

      (a) The numerator of which is the aggregate unpaid principal balance
of all loans secured by a first mortgage or a second mortgage encumbering
the real estate at such time; and

      (b) the denominator of which is the appraised value of the real estate.

      (24) (29) ``Merchandise certificate'' means a writing issued by a seller
not redeemable in cash and usable in its face amount in lieu of cash in
exchange for goods or services.

      (25) (30) ``Official fees'' means:

      (a) Fees and charges prescribed by law which actually are or will be
paid to public officials for determining the existence of or for perfecting,
releasing, or satisfying a security interest related to a consumer credit
sale, consumer lease, or consumer loan; or

      (b) premiums payable for insurance in lieu of perfecting a security
interest otherwise required by the creditor in connection with the sale,
lease, or loan, if the premium does not exceed the fees and charges de-
scribed in paragraph (a) which would otherwise be payable.

      (26) (31) ``Open end credit'' means an arrangement pursuant to
which:

      (a) A creditor may permit a consumer, from time to time, to purchase
goods or services on credit from the creditor or pursuant to a credit card,
or to obtain loans from the creditor or pursuant to a credit card;

      (b) the unpaid balance of amounts financed and the finance and other
appropriate charges are debited to an account;

      (c) the finance charge, if made, is computed on the outstanding un-
paid balances of the consumer's account from time to time; and

      (d) the consumer has the privilege of paying the balances in install-
ments.

      (27) (32) ``Organization'' means a corporation, limited liability com-
pany, government or governmental subdivision or agency, trust, estate,
partnership, cooperative, or association.

      (28) ``Origination fee'' means a fee associated with the making, clos-
ing or disbursing of a consumer credit transaction by a lender or assignee
of the lender which is intended to compensate the lender or assignee of
the lender for all costs incurred in making, closing or disbursing a con-
sumer credit transaction, exclusive of: Closing costs defined in K.S.A. 16a-
1-301(7) and amendments thereto, interest rate reduction charges paid
by the consumer at closing and broker fees paid to third parties not re-
lated to the lender or assignee of the lender.

      (29) ``Payable in installments'' means that payment is required or per-
mitted by agreement to be made in (a) two or more periodic payments,
excluding a down payment, with respect to a debt arising from a consumer
credit sale pursuant to which a finance charge is made, (b) four or more
periodic payments, excluding a down payment, with respect to a debt
arising from a consumer credit sale pursuant to which no finance charge
is made, or (c) two or more periodic payments with respect to a debt
arising from a consumer loan. If any periodic payment other than the
down payment under an agreement requiring or permitting two or more
periodic payments is more than twice the amount of any other periodic
payment, excluding the down payment, the consumer credit transaction
is ``payable in installments.''

      (30) (33) ``Person'' includes a natural person or an individual, and an
organization.

      (31) (34) (a) ``Person related to'' with respect to an individual means
(a) (i) the spouse of the individual, (b) (ii) a brother, brother-in-law, sister,
sister-in-law of the individual, (c) (iii) an ancestor or lineal descendant of
the individual or the individual's spouse, and (d) (iv) any other relative,
by blood, adoption or marriage, of the individual or such individual's
spouse who shares the same home with the individual.

      (b) ``Person related to'' with respect to an organization means (a) (i)
a person directly or indirectly controlling, controlled by or under common
control with the organization, (b) (ii) an officer or director of the organ-
ization or a person performing similar functions with respect to the or-
ganization or to a person related to the organization, (c) (iii) the spouse
of a person related to the organization, and (d) (iv) a relative by blood,
adoption or marriage of a person related to the organization who shares
the same home with such person.

      (35) ``Prepaid finance charge'' means any finance charge paid sepa-
rately in cash or by check before or at consummation of a transaction, or
withheld from the proceeds of the credit at any time. Prepaid finance
charges shall be calculated as provided in rules and regulations adopted
by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (32) (36) ``Presumed'' or ``presumption'' means that the trier of fact
must find the existence of the fact presumed unless and until evidence is
introduced which would support a finding of its nonexistence.

      (33) (37) ``Principal'' means the total of the amount financed and the
prepaid finance charges as authorized by subsection (9) of K.S.A. 16a-2-
401, and amendments thereto, except that prepaid finance charges are
not added to the amount financed to the extent such prepaid finance
charges are paid separately in cash or by check by the consumer. The
administrator may adopt rules and regulations regarding the determi-
nation or calculation of the principal or the principal balance pursuant
to K.S.A. 16a-6-117, and amendments thereto.

      (34) (38) ``Sale of goods'' includes any agreement in the form of a
bailment or lease of goods if the bailee or lessee agrees to pay as com-
pensation for use a sum substantially equivalent to or in excess of the
aggregate value of the goods involved and it is agreed that the bailee or
lessee will become, or for no other or a nominal consideration has the
option to become, the owner of the goods upon full compliance with such
bailee's or lessee's obligations under the agreements.

      (35) (39) ``Sale of an interest in land'' includes a lease in which the
lessee has an option to purchase the interest and all or a substantial part
of the rental or other payments previously made by the lessee are applied
to the purchase price.

      (36) (40) ``Sale of services'' means furnishing or agreeing to furnish
services and includes making arrangements to have services furnished by
another.

      (41) ``Second mortgage'' means a second or other subordinate priority
mortgage lien or similar real property security interest.

      (37) (42) ``Seller'': Except as otherwise provided, ``seller'' includes an
assignee of the seller's right to payment but use of the term does not in
itself impose on an assignee any obligation of the seller with respect to
events occurring before the assignment.

      (38) (43) ``Services'' includes (a) work, labor, and other personal serv-
ices, (b) privileges with respect to transportation, hotel and restaurant
accommodations, education, entertainment, recreation, physical culture,
hospital accommodations, funerals, cemetery accommodations, and the
like, and (c) insurance.

      (39) (44) ``Supervised financial organization'' means a person, other
than an insurance company or other organization primarily engaged in an
insurance business:

      (a) Organized, chartered, or holding an authorization certificate un-
der the laws of this any state or of the United States which authorize the
person to make loans and to receive deposits, including a savings, share,
certificate or deposit account; and

      (b) subject to supervision by an official or agency of this such state
or of the United States.

      (40) (45) ``Supervised lender'' means a person authorized to make or
take assignments of supervised loans, either under a license issued by the
administrator (K.S.A. 16a-2-301 and amendments thereto) or as a super-
vised financial organization (subsection (44) of K.S.A. 16a-1-301(39) and
amendments thereto).

      (41) (46) ``Supervised loan'' means a consumer loan, including a loan
made pursuant to open end credit, in which the rate of the finance charge,
calculated according to the actuarial method, exceeds 12% per year with
respect to which the annual percentage rate exceeds 12%.

      (42) (47) ``Written agreement'' means an agreement such as a prom-
issory note, contract or lease that is evidence of or relates to the indebt-
edness. A letter that merely confirms an oral agreement does not consti-
tute a written agreement for purposes of this subsection unless signed by
the person against whom enforcement is sought.

      (43) (48) ``Written administrative interpretation'' means any written
communication from the consumer credit commissioner which is the of-
ficial interpretation as so stated in said written communication by the
consumer credit commissioner of the Kansas uniform consumer credit
code and rules and regulations pertaining thereto.

      Sec.  9. K.S.A. 16a-2-103 is hereby amended to read as follows: 16a-
2-103. On and after January 1, 1994, (a) The finance charges on consumer
loans and consumer credit sales originated on and after January 1, 1994,
shall be computed on the unpaid principal balances by the actuarial
method (1) This section applies to all consumer loans and all consumer
credit sales.

      (2) The finance charge on a consumer loan or consumer credit sale
shall be computed in accordance with the actuarial method using either
the 365/365 method or, if the consumer agrees in writing, the 360/360
method:

      (a) The 365/365 method means a method of calculating the finance
charge whereby the annual rate is divided by 365 and the resulting daily
rate is multiplied by the outstanding principal amount and the actual
number of days in the computational period.

      (b) The 360/360 method means a method of calculating the finance
charge whereby the annual rate is divided by 360 and the resulting daily
rate is multiplied by the outstanding principal amount and the number
of assumed days in the computational period. For the purposes of this
subsection, a creditor may assume that a month has 30 days, regardless
of the actual number of days in the month.

      If the documentation evidencing a consumer credit contract is silent
regarding whether the 365/365 method or the 360/360 method applies,
then the 365/365 method shall apply.

      (3) The finance charge on a consumer loan or consumer credit sale
may not be computed in accordance with the 365/360 method, whereby
the annual rate is divided by 360 and the resulting daily rate is multiplied
by the outstanding principal amount and the actual number of days in
the computational period.

      (4) Creditors may ignore the effect of a leap year in computing the
finance charge.

      (5) (a) Except for any portion of a loan made pursuant to a lender
credit card which does not represent a cash advance, interest or other
periodic finance charges on a consumer loan may accrue only on that
portion of the principal which has been disbursed to or for the benefit of
the consumer.

      (b) On a consumer credit sale, interest or other periodic finance
charges may accrue only on that portion of the principal which relates to
goods, services or an interest in land, as the case may be, which has been
shipped, delivered, furnished or otherwise made available to or for the
benefit of the consumer or has been disbursed to or for the benefit of the
consumer.

      (6) Subsection (2) does not apply to a consumer credit sale the finance
charge for which is computed in accordance with subsection (5) of K.S.A.
16a-2-201, and amendments thereto.

      (b) (7) Notwithstanding any other provisions of this act, the finance
charges on consumer loans or consumer credit sales originating prior to
January 1, 1994, which computed such finance charges on a precomputed
basis, shall be subject to the conditions, limitations and restrictions con-
tained in the uniform consumer credit code as in effect on December 31,
1993, as such code relates to precomputed finance charges.

      (c) (8) This section shall be supplemental to and a part of the uniform
consumer credit code.

      Sec.  10. K.S.A. 1998 Supp. 16a-2-201 is hereby amended to read as
follows: 16a-2-201. (1) With respect to a This section applies only to a
closed end consumer credit sale, other than a sale pursuant to open end
credit, a seller may contract for and receive a finance charge not exceed-
ing that permitted by this section.

      (2) The finance charge, calculated according to the actuarial method,
may not exceed the equivalent of the following:

      The total of:

      (a) Twenty-one percent per year on that part of the unpaid balance
of the amount financed which is $1,000 or less;

      (b) fourteen and forty-five hundredths percent per year on that part
of the unpaid balance of the amount financed which is more than $1,000.

      (3) This section does not limit or restrict the manner of calculating
the finance charge whether by way of add-on, discount, or otherwise, so
long as the rate of the finance charge does not exceed that permitted by
this section. If the sale is precomputed:

      (a) The finance charge may be calculated on the assumption that all
scheduled payments will be made when due, and the fact that payments
are made either before or after the due date does not affect the amount
of finance charge which the creditor may charge or receive; and

      (b) the effect of prepayment is governed by the provision on rebate
upon prepayment.

      (4) For the purposes of this section, the term of a sale agreement
commences with the date the credit is granted or, if goods are delivered
or services performed 10 days or more after that date, with the date of
commencement of delivery or performance.

      (5) Subject to classifications and differentiations the seller may rea-
sonably establish, the seller may make the same finance charge on all
amounts financed within a specified range. A finance charge so made
does not violate subsection (2) if:

      (a) When applied to the median amount within each range, it does
not exceed the maximum permitted by subsection (2); and

      (b) when applied to the lowest amount within each range, it does not
produce a rate of finance charge exceeding the rate calculated according
to paragraph (a) by more than 8% of the rate calculated according to
paragraph (a).

      (6) Notwithstanding subsection (2), the seller may contract for and
receive a minimum finance charge of not more than $5 when the amount
financed does not exceed $75, or not more than $7.50 when the amount
financed exceeds $75.

      (7) Notwithstanding any other provision of this section, with respect
to a consumer credit sale other than open end credit, the seller may
contract for and receive a finance charge not exceeding that agreed to by
the consumer.

      (8) (2) A seller may charge a finance charge at any rate agreed to by
the parties, subject, however, to the limitations on prepaid finance charges
set forth in subsection (3).

      (3) A seller may charge a prepaid finance charge not to exceed the
lesser of:

      (a) Two percent of the amount financed; or

      (b) one hundred dollars. A prepaid finance charge permitted under
this subsection is fully earned when paid and is nonrefundable, unless the
parties agree otherwise in writing.

      (4) If the sale is precomputed:

      (a) The finance charge may be calculated on the assumption that all
scheduled payments will be made when due, and the fact that payments
are made either before or after the due date does not affect the amount
of finance charge which the creditor may charge or receive; and

      (b) the effect of prepayment is governed by subsection (5).

      (5) Rebate upon prepayment:

      (a) Except as provided for in this section, upon prepayment in full of
a precomputed consumer credit transaction, the creditor shall rebate to
the consumer an amount not less than the amount of rebate provided in
subsection (b), paragraph (1), or redetermine the earned finance charge
as provided in subsection (b), paragraph (2), and rebate any other un-
earned charges including charges for insurance. The rebate for charges
for insurance shall be as prescribed by statute, rules and regulations and
administrative interpretations by the administrator. If the rebate other-
wise required is less than $1, no rebate need be made.

      (b) The amount of rebate and redetermined earned finance charge
shall be as follows:

      (1) The amount of rebate shall be determined by applying, according
to the actuarial method, the rate of finance charge which was required to
be disclosed in the transaction:

      (i) Where no deferral charges have been made in a transaction, to
the unpaid balances for the actual time remaining as originally scheduled
for the period following prepayment; and

      (ii) where deferral charges have been made in a transaction, to the
unpaid balances for the actual time remaining as extended by deferral for
the period following prepayment.

      The time remaining for the period following prepayment shall be either
the full days following prepayment; or both the full days, counting the
date of prepayment, between the prepayment date and the end of the
computational period in which the prepayment occurs, and the full com-
putational periods following the date of prepayment to the scheduled due
date of the final installment of the transaction.

      (2) The redetermined earned finance charge shall be determined by
applying, according to the actuarial method, the rate of finance charge
which was required to be disclosed in the transaction to the actual unpaid
balances of the amount financed for the actual time the unpaid balances
were outstanding as of the date of prepayment. Any delinquency or de-
ferral charges collected before the date of prepayment do not become a
part of the total finance charge for purposes of rebating unearned charges.

      (c) Upon prepayment, but not otherwise, of a consumer credit trans-
action whether or not precomputed, other than a consumer lease, a con-
sumer rental purchase agreement, or a transaction pursuant to open end
credit:

      (1) If the prepayment is in full, the creditor may collect or retain a
minimum charge not exceeding $5 in a transaction which had an amount
financed of $75 or less, or not exceeding $7.50 and in a transaction which
had an amount financed of more than $75, if the finance charge earned
at the time of prepayment is less than the minimum allowed pursuant to
this subsection.

      (2) If the prepayment is in part, the creditor may not collect or retain
a minimum finance charge.

      (d) For the purposes of this section, the following defined terms ap-
ply:

      (1) ``Computational period'' means the interval between scheduled
due dates of installments under the transaction if the intervals are sub-
stantially equal or, if the intervals are not substantially equal, one month
if the smallest interval between the scheduled due dates of installments
under the transaction is one month or more, and otherwise one week.

      (2) The ``interval'' between specified dates means the interval be-
tween them including one or the other but not both of them. If the
interval between the date of the transaction and the due date of the first
scheduled installment does not exceed one month by more than fifteen
days when the computational period is one month, or eleven days when
the computational period is one week, the interval may be considered by
the creditor as one computational period.

      (e) This section does not preclude the collection or retention by the
creditor of delinquency charges.

      (f) If the maturity is accelerated by any reason and judgment is ob-
tained, the consumer is entitled to the same rebate as if payment had
been made on the date maturity is accelerated.

      (g) Upon prepayment in full of a precomputed consumer credit trans-
action by the proceeds of consumer credit insurance, the consumer or
the consumer's estate is entitled to the same rebate as though the con-
sumer had prepaid the agreement on the date the proceeds of the insur-
ance are paid to the creditor, but no later than ten business days after
satisfactory proof of loss is furnished to the creditor.

      (6) This section does not apply to a sale of an interest in land. Sub-
section (11) of K.S.A. 16a-2-401, and amendments thereto, governs the
limitations on finance charges for a contract for deed to real estate where
the parties agree in writing to make the transaction subject to the uniform
consumer credit code.

      Sec.  11. K.S.A. 1998 Supp. 16a-2-202 is hereby amended to read as
follows: 16a-2-202. (1) With respect to a consumer credit sale made pur-
suant to open end credit, the parties to the sale may contract for the
payment by the buyer of a finance charge not exceeding that permitted
in this section a seller may charge a finance charge at any rate agreed to
by the parties.

      (2) A charge may be made in each billing cycle which is a percentage
of an amount no greater than:

      (a) The average daily balance of the account, which is the sum of the
actual amounts outstanding each day during the billing cycle divided by
the number of days in the cycle;

      (b) the unpaid balance of the account on the last day of the billing
cycle; or

      (c) the median amount within a specified range within which the
average daily balance of the account or the unpaid balance of the account
on the last day of the billing cycle is included. A charge may be made
pursuant to this paragraph only if the seller, subject to classifications and
differentiations the seller may reasonably establish, makes the same
charge on all balances within the specified range and if the percentage
when applied to the median amount within the range does not produce
a charge exceeding the charge resulting from applying that percentage to
the lowest amount within the range by more than 8% of the charge on
the median amount.

      (3) With respect to a consumer credit sale made pursuant to open
end credit, the parties may contract for and the seller or holder may
receive a finance charge in an amount not exceeding the rate or rates
specified in the agreement governing the account.

      (4) Notwithstanding subsection (3), if there is an unpaid balance on
the date as of which the credit service charge is applied, the seller may
contract for and receive a charge not exceeding $.50 if the billing cycle
is monthly or longer, or the pro rata part of $.50 which bears the same
relation to $.50 as the number of days in the billing cycle bears to 30 if
the billing cycle is shorter than monthly.

      (3) If the billing cycle is monthly, the charges may not exceed 1/12 of
the annual rate agreed to by the consumer. If the billing cycle is not
monthly, the maximum charge is that percentage which bears the same
relation to the applicable monthly percentage as the number of days in
the billing cycle bears to 30. For purposes of this subsection, a variation
of not more than four days from month to month is ``the last day of the
billing cycle.''

      (4) For any period in which a finance charge is due, the parties may
agree on a minimum amount.

      (5) This section does not apply to a sale of an interest in land. Sub-
section (11) of K.S.A. 16a-2-401, and amendments thereto, governs the
limitations on finance charges for a contract for deed to real estate where
the parties agree in writing to make the transaction subject to the uniform
consumer credit code.

      Sec.  12. K.S.A. 16a-2-302 is hereby amended to read as follows: 16a-
2-302. (1)  (a) The administrator shall receive and act on all applications
for licenses to make supervised loans under this act. Applications shall be
filed in the manner prescribed by the administrator and shall contain the
information the administrator may require by rule and regulation to make
an evaluation of the financial responsibility, character and fitness of the
applicant. Each place of business operated under K.S.A. 16a-1-101 to 16a-
9-102, inclusive, and acts amendatory thereof, shall have and properly
display therein, a nontransferable and nonassignable license. Application
for a license shall be on a form prescribed and furnished by the commis-
sioner.

      (b) Submitted with each application shall be an investigation fee and
a license fee application fee. Investigation Application and license fees
shall be in such amounts as are established pursuant to subsection (6) (5)
of K.S.A. 16a-6-104, and amendments thereto. The license fee shall be
returned to the applicant if the application is denied. The license year
shall be the calendar year and the license fee for any period less than six
months shall be an amount as established pursuant to subsection (6) of
K.S.A. 16a-6-104. Each license shall remain in force until surrendered,
suspended or revoked.

      (c) The administrator shall remit all moneys received under K.S.A.
16a-1-101 to 16a-6-414, inclusive, and acts amendatory thereof and
amendments thereto, to the state treasurer at least monthly. Upon receipt
of any such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury. Of each deposit 20% shall be credited to the
state general fund and the balance shall be credited to the consumer
credit fee fund. All expenditures from such fund shall be made in ac-
cordance with appropriation acts upon warrants of the director of ac-
counts and reports issued pursuant to vouchers approved by the admin-
istrator or by a person or persons designated by the administrator.

      The 20% credit to the state general fund required by this subsection
(c) is to reimburse the state general fund for accounting, auditing, budg-
eting, legal, payroll, personnel and purchasing services, and any and all
other state governmental services, which are performed on behalf of the
administrator by other state agencies which receive appropriations from
the state general fund to provide such services. Nothing in this subsection
(c) shall be deemed to authorize remittances to be made less frequently
than is authorized under K.S.A. 75-4215, and amendments thereto.

      (d) Every licensee shall, on or before the first day of January, pay to
the administrator the license fee prescribed under this subsection (1) for
each license held for the succeeding license year. Failure to pay the li-
cense fee within the time prescribed shall automatically revoke the li-
cense.

      (2) No license shall be issued unless the administrator, upon inves-
tigation, finds that the financial responsibility, character and fitness of the
applicant, and of the members thereof if the applicant is a copartnership
or association and of the officers and directors thereof, if the applicant is
a corporation, are such as to warrant belief that the business will be op-
erated honestly and fairly within the purposes of this act. An applicant
meets the minimum standard of financial responsibility for engaging in
the business of making supervised loans, under subsection (1) of K.S.A.
16a-2-301, and amendments thereto, if the applicant has available for op-
eration of that business assets of at least $25,000 for each license issued
by this or any other state only if the applicant has filed with the admin-
istrator a proper surety bond of at least $100,000 which has been ap-
proved by the administrator. The required surety bond may not be can-
celed by the licensee without providing the administrator at least 30 days'
prior written notice and must provide within its terms that the bond shall
not expire for two years after the date of the surrender, revocation or
expiration of the subject license, whichever shall first occur.

      (3) The administrator may deny any application or renewal for a
supervised loan license if the administrator finds:

      (a) There is a refusal to furnish information required by the admin-
istrator within a reasonable time as fixed by the administrator; or

      (b) any of the factors stated in K.S.A. 16a-2-303, and amendments
thereto, as grounds for denial, revocation or suspension of a license.

      (3) (4) Upon written request the applicant is entitled to a hearing on
the question of license qualifications if (a) the: (a) The administrator has
notified the applicant in writing that the application has been denied,; or
(b) the administrator has not issued a license within 60 days after the
application for the license was filed. A request for a hearing may not be
made more than 15 days after the administrator has mailed a writing to
the applicant notifying the applicant that the application has been denied
and stating in substance the administrator's findings supporting denial of
the application.

      (4) The administrator shall issue additional licenses to the same li-
censee upon compliance with all the provisions of K.S.A. 16a-1-101 to
16a-9-102, inclusive, and acts amendatory thereof, governing issuance of
a single license. A separate license shall be required for each place of
business. Each license shall remain in full force and effect until surren-
dered, suspended or revoked.

      (5) The administrator shall adopt rules and regulations regarding
whether a licensee shall be required to obtain a single license for each
place of business or whether a licensee may obtain a master license for all
of its places of business, and in so doing the administrator may differen-
tiate between licensees located in this state and licensees located else-
where. Each license shall remain in full force and effect until surrendered,
suspended or revoked.

      (5) (6) No licensee shall change the location of any place of business
without giving the administrator at least 15 days prior written notice.

      (6) (7) A licensee may conduct the business of making supervised
loans only at or from any place of business for which the licensee holds
a license and not under any other name than that in the license. Loans
made pursuant to a lender credit card do not violate this subsection.

      Sec.  13. K.S.A. 16a-2-303 is hereby amended to read as follows: 16a-
2-303. (1) The administrator shall conduct a hearing before suspending
or revoking a license to make supervised loans. Suspension of a license
shall be for a period not in excess of six months. The administrator shall
may deny, revoke or suspend the license of a supervised lender if the
administrator finds that:

      (a) The applicant or licensee has repeatedly and or willfully violated
the provisions of K.S.A. 16a-1-101 through 16a-9-102 and amendments
thereto or any rule or order and regulation, order or administrative in-
terpretation lawfully made pursuant to such sections of this act; or

      (b) the applicant or licensee has failed to file and maintain the surety
bond required in K.S.A. 16a-6-104, and amendments thereto;

      (c) the applicant or licensee is insolvent;

      (d) the applicant or licensee has filed with the administrator any doc-
ument or statement containing any false representation of a material fact
or omitting to state a material fact;

      (e) the applicant, licensee, members thereof if a copartnership or as-
sociation, or officers and directors thereof if a corporation have been con-
victed of any crime involving fraud or deceit;

      (f) the applicant or licensee fails to keep and maintain sufficient re-
cords to permit an audit satisfactorily disclosing to the administrator the
applicant or licensee's compliance with the provision of this act;

      (g) the applicant or licensee has been the subject of any disciplinary
action by this or any other state or federal agency;

      (h) a final judgment has been entered against the applicant or licensee
in a civil action and the administrator finds the conduct on which the
judgment is based indicates that it would be contrary to the public interest
to permit such person to be licensed;

      (i) the applicant or licensee has engaged in deceptive business prac-
tices; or

      (j) facts or conditions exist which would clearly have justified the ad-
ministrator in refusing to grant a license had these facts or conditions
been known to exist at the time the application for the license was made.

      (2) No revocation or suspension of a license is lawful unless prior to
institution of proceedings by the administrator notice is given to the li-
censee of the facts or conduct which warrant the intended action, and
the licensee is given an opportunity to show compliance with all lawful
requirements for retention of the license.

      (3) If the administrator finds that probable cause for revocation of a
license exists and that enforcement of the provisions of K.S.A. 16a-1-101
through 16a-9-102, and amendments thereto, requires immediate sus-
pension of the license pending investigation, the administrator may, after
an emergency adjudicative proceeding in accordance with the provisions
of K.S.A. 77-536 and amendments thereto, enter an order suspending the
license for not more than 30 days.

      (4) Any person holding a license to make supervised loans may relin-
quish surrender the license by notifying the administrator in writing of
its relinquishment surrender, but this relinquishment surrender shall not
affect such person's liability for acts previously committed.

      (5) (3) No revocation, suspension, or relinquishment of a license shall
impair or affect the obligation of any preexisting lawful contract between
the licensee and any debtor.

      (6) (4) The administrator may reinstate a license, terminate a sus-
pension, or grant a new license to a person whose license has been re-
voked or suspended if no fact or condition then exists which clearly would
have justified the administrator in refusing to grant a license.

      Sec.  14. K.S.A. 16a-2-307 is hereby amended to read as follows: 16a-
2-307. With respect to a consumer loan in which the finance charge ex-
ceeds twelve percent (12%) 12% and the amount financed is one thou-
sand dollars ($1,000) $3,000 or less, a lender may not contract for an
interest in land as security. A security interest taken in violation of this
section is void.

      Sec.  15. K.S.A. 16a-2-401 is hereby amended to read as follows: 16a-
2-401. (1) With respect to a consumer loan, including a loan pursuant to
open end credit, a lender may contract for and receive a finance charge,
calculated according to the actuarial method, not exceeding 18% per year
on the unpaid balance of the amount financed not exceeding $1,000 and
14.45% per year on that portion of the unpaid balance in excess of $1,000.

      (2) As an alternative to the rates set forth in subsection (1), with
respect to a supervised loan made under a license issued by the admin-
istrator, including a loan pursuant to open end credit, a supervised lender
may contract for and receive a finance charge, calculated according to the
actuarial method, not exceeding the equivalent of the greater of either of
the following:

      The total of: (a) Thirty-six percent per year on that part of the unpaid
balance of the amount financed which is $300 or less; and

      (b) twenty-one percent per year on that part of the unpaid balance
of the amount financed which is more than $300, but does not exceed
$1,000; and

      (c) fourteen and forty-five hundredths percent per year on that por-
tion of the unpaid balance of the amount financed which is more than
$1,000; or

      (d) eighteen percent per year on the unpaid balance of the amount
financed.

      (3) This section does not limit or restrict the manner of calculating
the finance charge, whether by way of add-on, discount, or otherwise, so
long as the rate of the finance charge does not exceed that permitted by
this section. The finance charge may be contracted for and earned at the
single annual percentage rate that would earn the same finance charge
as the graduated rates when the debt is paid according to the agreed
terms and the calculations are made according to the actuarial method.

      (4) The term of a loan for the purposes of this section commences
on the date the loan is made.

      (5) Subject to classifications and differentiations the lender may rea-
sonably establish, the lender may make the same finance charge on all
amounts financed within a specified range. A finance charge so made
does not violate subsections (1) and (2) if:

      (a) When applied to the median amount within each range, it does
not exceed the maximum amount permitted in subsections (1) and (2);
and

      (b) when applied to the lowest amount within each range, it does not
produce a rate of finance charge exceeding the rate calculated according
to paragraph (a) by more than 8% of the rate calculated according to
paragraph (a).

      (6) Notwithstanding subsections (1) and (2), a lender may contract
for and receive a minimum finance charge of not more than $5 when the
amount financed does not exceed $75, or not more than $7.50 when the
amount financed exceeds $75.

      (7) This section shall not apply to a loan secured by an interest in
land the interest rate of which is governed by subsection (b) of K.S.A. 16-
207, and amendments thereto, unless made subject hereto by agreement.

      (8) Except for paragraph (a) of subsection 9, this section shall not
apply to a loan secured by an interest in land subordinate to a prior
mortgage and held by a lender other than the lender of the first mortgage,
the interest rate of which is governed by subsection (b) or (h) of K.S.A.
16-207, and amendments thereto, unless made subject hereto by agree-
ment.

      (9)  (a) In addition to the applicable finance charge or rate of interest
prescribed by law, a supervised lender may contract for and receive a
nonrefundable origination fee not to exceed 3% of the amount financed
on any consumer loan secured by an interest in land, which fee shall be
a nonrefundable, prepaid finance charge.

      (b) In addition to the applicable finance charge permitted for con-
sumer credit sales other than sales by way of open end credit or for
consumer loans not secured by an interest in land, a creditor may contract
for and receive, in connection with any such sale or loan, a nonrefundable
origination fee in an amount not to exceed the lesser of 2% of the amount
financed or $100, which fee shall be a nonrefundable, prepaid finance
charge. For any consumer loan incurred pursuant to open end credit,
including, without limitation, a loan pursuant to a lender credit card, a
lender may charge a finance charge at any rate agreed to by the parties,
subject, however, to the limitations on prepaid finance charges set forth
in subsection (6). This subsection does not apply to a consumer loan se-
cured by a first mortgage or a second mortgage.

      (2) For any consumer loan incurred pursuant to closed end credit, a
lender may charge a periodic finance charge, calculated accordingly to
the actuarial method, not to exceed: (a) 36% per annum on any such loan
in an amount of $860 or less, and (b) 21% per annum on any such loan
in an amount which exceeds $860, subject, however to the limitations on
prepaid finance charges set forth in subsection (6). This subsection does
not apply to a consumer loan secured by a first mortgage or a second
mortgage.

      (3) For any consumer loan secured by a second mortgage, a lender
may charge a periodic finance charge, calculated according to the actu-
arial method, not to exceed 18% per annum, subject, however to the lim-
itations on prepaid finance charges set forth in subsection (6). This sub-
section does not apply if the lender and the consumer agree in writing
that the finance charge for the loan is governed by K.S.A. 16-207(b), and
amendments thereto.

      (4) If the parties to a consumer loan secured by a first mortgage agree
in writing to make the transaction subject to the uniform consumer credit
code, then the periodic finance charge for the loan, calculated according
to the actuarial method, may not exceed 18% per annum, subject, however
to the limitations on prepaid finance charges set forth in subsection (6).

      (5) This section does not limit or restrict the manner of calculating
the finance charge, whether by way of add-on, discount or otherwise, so
long as the rate and the amount of the finance charge does not exceed
that permitted by this section.

      (6) Prepaid finance charges on consumer loans are limited as follows:

      (a) For a consumer loan secured by a first mortgage or a second mort-
gage, prepaid finance charges in an amount not to exceed 8% of the
amount financed may be charged, provided that the aggregate amount of
prepaid finance charges payable to the lender or any person related to
the lender do not exceed 5% of the amount financed; and

      (b) for any other consumer loan, prepaid finance charges in an
amount not to exceed the lesser of 2% of the amount financed or $100
may be charged.

      Prepaid finance charges permitted under this subsection are in addition
to finance charges permitted under subsection (1), (2), (3) and (4), as
applicable. Prepaid finance charges permitted under this subsection are
fully earned when paid and are non-refundable, unless the parties agree
otherwise in writing.

      (7) The finance charge limitations in subsections (3) and (4) do not
apply to a consumer loan the finance charge for which is governed by
subsection (h) of K.S.A. 16-207, and amendments thereto.

      (8) If a loan secured by a first mortgage constitutes a ``consumer loan''
under subsection (17) of K.S.A. 16a-1-301, and amendments thereto, by
virtue of the loan-to-value ratio exceeding 100% at the time the loan is
made, then the periodic finance charge for the loan shall not exceed that
authorized by subsection (b) of K.S.A. 16-207, and amendments thereto,
but the loan is subject to the limitations on prepaid finance charges set
forth in paragraph (a) of subsection (6), which prepaid finance charges
may be charged in addition to the finance charges permitted under sub-
section (b) of K.S.A. 16-207, and amendments thereto.

      (9) If, within 12 months after the date of the original loan, a lender
or a person related to the lender refinances a loan with respect to which
a prepaid finance charge was payable to the same lender pursuant to
subsection (6), then the following apply:

      (a) If a prepaid finance charge with respect to the original loan was
payable to the lender pursuant to paragraph (a) of subsection (6), then
the aggregate amount of prepaid finance charges payable to the lender or
any person related to the lender with respect to the new loan may not
exceed 5% of the additional amount financed.

      (b) If a prepaid finance charge with respect to the original loan was
payable to the lender pursuant to paragraph (b) of subsection (6), then
the aggregate amount of prepaid finance charges payable to the lender or
any person related to the lender with respect to the new loan may not
exceed the lesser of 2% of the additional amount financed or $100.

      (c) For purposes of this subsection, ``additional amount financed''
means the difference between: (i) The amount financed for the new loan,
less the amount of all closing costs incurred in connection with the new
loan which are not included in the prepaid finance charges for the new
loan; and (ii) the unpaid principal balance of the original loan.

      (10) For any period in which a finance charge is due on a consumer
loan pursuant to open end credit, the parties may agree on a minimum
amount.

      (11) If the parties to a contract for deed to real estate agree in writing
to make the transaction subject to the uniform consumer credit code, then
the transaction is subject to the same limitations as set forth in subsections
(4) and (6) for a consumer loan secured by a first mortgage.

      (12) This section does not apply to a payday loan governed by K.S.A.
16a-2-404, and amendments thereto.

      Sec.  16. K.S.A. 16a-2-402 is hereby amended to read as follows: 16a-
2-402. (1) With respect to loans made pursuant to a lender credit card,
the parties may contract for the payment by the consumer of a finance
charge not exceeding that permitted in this section This section applies
only to consumer loans pursuant to open end credit.

      (2) A charge may be made in each billing cycle which is a percentage
of an amount no greater than:

      (a) The average daily balance of the account, which is the sum of the
actual amounts outstanding each day during the billing cycle divided by
the number of days in the cycle;

      (b) the unpaid balance of the account on the last day of the billing
cycle; or

      (c) the median amount within a specified range within which the
unpaid balance of the account on the last day of the billing cycle is in-
cluded. A charge may be made pursuant to this paragraph only if the
lender, subject to classifications and differentiations he may reasonably
establish, makes the same charge on all balances within the specified
range and if the percentage when applied to the median amount within
the range does not produce a charge exceeding the charge resulting from
applying that percentage to the lowest amount within the range by more
than eight percent (8%) of the charge on the median amount.

      (3) If the billing cycle is monthly, the charge may not exceed one
twelfth (1/12) 1/12 of the maximum annual rates permitted by section 16a-
2-401 annual rate agreed to by the consumer. If the billing cycle is not
monthly, the maximum charge is that percentage which bears the same
relation to the applicable monthly percentage as the number of days in
the billing cycle bears to thirty (30) 30. For the purposes of this section,
a variation of not more than four (4) days from month to month is ``the
last day of the billing cycle.''

      (4) Notwithstanding the other provisions of this section, if there is an
unpaid balance on the date as of which the finance charge is applied, the
lender or issuer may contract for and receive a charge not exceeding fifty
cents (50) if the billing cycle is monthly or longer, or the pro rata part of
fifty cents as the number of days in the billing cycle bears to thirty (30)
days if the billing cycle is shorter than monthly.

      Sec.  17. K.S.A. 16a-2-403 is hereby amended to read as follows: 16a-
2-403. No seller or lessor in any sales or lease transaction or any company
issuing credit cards card issuer may impose a surcharge on a card holder
who elects to use a credit card in lieu of payment by cash, check or similar
means. A surcharge is any additional amount imposed at the time of the
sales or lease transaction by the merchant, seller or lessor that increases
the charge to the buyer or lessee for the privilege of using a credit card.

      Sec.  18. K.S.A. 1998 Supp. 16a-2-501 is hereby amended to read as
follows: 16a-2-501. (1) In addition to the finance charge permitted by the
parts of this article on maximum finance charges for consumer credit sales
and consumer loans (parts 2 and 4), a creditor may contract for and re-
ceive the following additional charges in connection with a consumer
credit transaction:

      (a) Official fees and taxes;

      (b) charges for insurance as described in subsection (2);

      (c) annual fees, not to exceed $50 annually, payable in advance or
monthly fees, delinquency charges, insufficient check charges as provided
in paragraph (e) of this subsection, over-limit fees and cash advance fees
for the privilege of using an open end credit account delinquency charges
permitted under K.S.A. 16a-2-502, and amendments thereto, and service
charges for insufficient checks permitted under paragraph (e);

      (d) charges for other benefits, including insurance, conferred on the
consumer, if the benefits are of value to the consumer and if the charges
are reasonable in relation to the benefits, are of a type which is not for
credit, and are excluded as permissible additional charges from the fi-
nance charge by rules and regulations adopted by the administrator;

      (e) a service charge for an insufficient check as defined and author-
ized by this subsection:

      (i) For the purposes of this subsection, ``insufficient check'' means
any check, order or draft drawn on any bank, credit union, savings and
loan association, or other financial institution for the payment of money
and delivered in payment, in whole or in part, of preexisting indebtedness
of the drawer or maker, which is refused payment by the drawee because
the drawer or maker does not have sufficient funds in or credits with the
drawee to pay the amount of the check, order or draft upon presentation,
provided that any check, order or draft which is postdated or delivered
to a payee who has knowledge at the time of delivery that the drawer or
maker did not have sufficient funds in or credits with the drawee to pay
the amount of the check, draft or order upon presentation shall not be
deemed an insufficient check.

      (ii) ``Written notice'' shall be presumed to have been given a drawer
or maker of an insufficient check when notice is sent by restricted mail
as defined by K.S.A. 60-103, and amendments thereto, addressed to the
person to be given notice of such person's address as it appears on the
insufficient check or to such person's last known address.

      (iii) When an insufficient check has been given to a payee, the payee
may charge and collect a $10 insufficient check service charge from the
drawer or maker, subject to limitations contained in this subsection or, if
a larger amount is posted conspicuously provided within the contract, the
larger amount, if the payee has given the drawer or maker oral or written
notice of demand that the amount of the insufficient check plus the in-
sufficient check service charge be paid to the payee within 14 days from
the giving of notice. In no event shall the amount of such insufficient
check service charge exceed $30.

      (iv) If the drawer or maker of an insufficient check does not pay the
amount of the insufficient check plus the insufficient check service charge
provided for in subsection (iii) to the payee within 14 days from the giving
of notice as provided in subsection (iii), the payee may add the insufficient
check service charge to the outstanding balance of the preexisting in-
debtedness of the drawer or maker to draw interest at the contract rate
applicable to the preexisting indebtedness.

      (v) Notwithstanding the provisions of subparagraph (iii), if an insuf-
ficient check has been given to a creditor under a lender credit card, the
creditor may charge a service charge for the insufficient check in an
amount not to exceed the amount agreed to by the drawer or maker.

      (2) An additional charge may be made for insurance written in con-
nection with the transaction, including vendor's single interest insurance
with respect to which the insurer has no right of subrogation against the
consumer but excluding other insurance protecting the creditor against
the consumer's default or other credit loss:

      (a) With respect to insurance against loss of or damage to property,
or against liability, if the creditor furnishes a clear and specific statement
in writing to the consumer setting forth the cost of the insurance if ob-
tained from or through the creditor and stating that the consumer may
choose the person through whom the insurance is to be obtained; and

      (b) with respect to consumer credit insurance providing life, accident
and health, or loss of employment coverage, if the insurance coverage is
not a factor in the approval by the creditor of the extension of credit, and
this fact is clearly disclosed in writing to the consumer, and if, in order
to obtain the insurance in connection with the extension of credit, the
consumer gives specific affirmative written indication of the consumer's
desire to do so after written disclosure to the consumer of the cost thereof.

      (3) With respect to a consumer loan or a consumer credit sale in either
case pursuant to open end credit, a creditor may charge the following fees
in an amount not to exceed that agreed to by the consumer:

      (a) Fees on a monthly or annual basis;

      (b) over-limit fees; and

      (c) cash advance fees. The fees permitted under this subsection are in
addition to any finance charges, additional charges or other charges per-
mitted by the uniform consumer credit code.

      Sec.  19. K.S.A. 1998 Supp. 16a-2-502 is hereby amended to read as
follows: 16a-2-502. (1) The parties to a consumer credit transaction may
contract for a delinquency charge on any installment not paid in full
within 10 days after its scheduled or deferred due date in an amount not
exceeding 5% of the unpaid amount of the installment or $25, whichever
is less.

      (2) As an alternative to the delinquency charge set forth in subsection
(1), the parties to a consumer credit transaction may contract for a delin-
quency charge not to exceed $10 on any installment not paid in full within
10 days after its scheduled or deferred due date, except that if the sched-
uled payment amount is $25 or less, the maximum delinquency charge
shall be $5.

      (3) A delinquency charge under subsection (2) may be collected only
once on an installment however long it remains in default. A delinquency
charge may be collected at the time it accrues or at any time thereafter.

      (4) No delinquency charge may be collected on an installment which
is paid in full within 10 days after its scheduled or deferred installment
due date even though an earlier maturing installment or a delinquency
charge on an earlier installment may not have been paid in full.

      (5) For delinquency charge purposes, a payment made prior to the
due date of the next installment payment shall be applied to the previous
installment. For all other purposes, payments are applied to installments
in the order in which they fall due.

      (6) Notwithstanding subsections (1), (2), (4) and (5), the parties to a
lender credit card agreement may contract for a delinquency charge in
an amount agreed to by the consumer and may impose such charge on
any installment not paid in full on the next business day following the
scheduled due date of the delinquent payment.

      (7) Notwithstanding subsections (1), (2), (4), (5) and (6), no delin-
quency charge may be collected on a lender credit card installment which
is paid in full on the next business day following the scheduled or deferred
due date even though an earlier maturing installment or a delinquency
charge on an earlier installment may not have been paid in full.

      Sec.  20. K.S.A. 16a-2-404 is hereby amended to read as follows: 16a-
2-404. (1) On consumer loan transactions in which cash is advanced:

      (a) With a short term,

      (b) a single payment repayment is anticipated, and

      (c) such cash advance is equal to or less than the maximum amount
of the first tier used in the blended alternative rate in paragraph (a) of
subsection (2) of K.S.A. 16a-2-401, and amendments thereto, and ad-
justed in K.S.A. 16a-2-401a, and amendments thereto $860, a licensed or
supervised lender may charge in lieu of the loan finance charges specified
in K.S.A. 16a-2-401, and amendments thereto, the following amounts:

      (i) On any amount up to and including $50, a charge of $5.50 may
be added;

      (ii) on amounts in excess of $50, but not more than $100, a charge
may be added equal to 10% of the loan proceeds plus a $5 administrative
fee;

      (iii) on amounts in excess of $100, but not more than $250 a charge
may be added equal to 7% of the loan proceeds with a minimum of $10
plus a $5 administrative fee;

      (iv) for amounts in excess of $250 and not greater than the maximum
defined in this section, a charge may be added equal to 6% of the loan
proceeds with a minimum of $17.50 plus a $5 administrative fee.

      (2) The maximum term of any loan made under this section shall be
30 days.

      (3) The contract rate of any loan made under this section shall not
be more than 3% per month of the loan proceeds after the maturity date.
No insurance charges or any other charges of any nature whatsoever shall
be permitted, except as stated in subsection (6) (5), including any charges
for cashing the loan proceeds if they are given in check form.

      (4) Any loan made under this section shall not be repaid by proceeds
of another loan made under this section by the same lender or related
interest. The proceeds from any loan made under this section shall not
be applied to any other loan from the same lender or related interest.

      (5) On a consumer loan transaction in which cash is advanced in
exchange for a personal check, a return check charge may be charged if
the check is deemed insufficient as defined in paragraph (e) of subsection
2 (1) of K.S.A. 16a-2-501, and amendments thereto.

      (6) In determining whether a consumer loan transaction made under
the provisions of this section is unconscionable conduct under K.S.A. 16a-
5-108, and amendments thereto, consideration shall be given, among
other factors, to:

      (a) The ability of the borrower to repay within the terms of the loan
made under this section; or

      (b) the original request of the borrower for amount and term of the
loan are within the limitations under this section.

      (7) This section shall be supplemental to and a part of the uniform
consumer credit code.

      Sec.  21. K.S.A. 16a-2-510 is hereby amended to read as follows: 16a-
2-510. (1) Upon prepayment in full, but not upon a refinancing (section
16a-2-504 K.S.A. 16a-2-504, and amendments thereto), of a consumer
credit transaction other than one pursuant to open end credit, the creditor
may collect or retain a minimum charge of $5 in a transaction which had
an amount financed of $75 or less, or $7.50 in a transaction which had an
amount financed of more than $75, if the minimum charge was contracted
for and the finance charge earned at the time of prepayment is less than
the minimum charge contracted for. In those instances where the
amounts financed are under or over $75 and the finance charge is less
than the minimum provided therefor, then the finance charge so con-
tracted may be retained as the minimum finance charge.

      (2) If the maturity is accelerated for any reason and judgment is ob-
tained, the judgment shall be taken in accordance with the provisions of
K.S.A. 16-205, and amendments thereto.

      (3) Upon prepayment in full of a consumer credit contract by pro-
ceeds of consumer credit insurance, K.S.A. 16a-4-103, and amendments
thereto, the consumer or the consumer's estate is entitled to the same
rebate as though the consumer had prepaid the agreement on the date
the proceeds of the insurance are paid to the creditor, but no later than
10 business days after satisfactory proof of loss is furnished to the creditor.

      Sec.  22. K.S.A. 16a-3-301 is hereby amended to read as follows: 16a-
3-301. (1) With respect to a consumer credit sale, a seller may take a
security interest in the property sold. In addition, a seller may take a
security interest in goods upon which services are performed or in which
goods sold are installed or to which they are annexed, or in land to which
the goods are affixed or which is maintained, repaired or improved as a
result of the sale of the goods or services, if in the case of a security
interest in land the debt secured is $1,000 $3,000 or more, or, in the case
of a security interest in goods the debt secured is $300 $900 or more.
Except as provided with respect to cross-collateral (section 16a-3-302
K.S.A. 16a-3-302, and amendments thereto) a seller may not otherwise
take a security interest in property of the buyer to secure the debt arising
from a consumer credit sale.

      (2) With respect to a consumer lease, a lessor may not take a security
interest in property of the lessee to secure the debt arising from the lease.

      (3) A security interest taken in violation of this section is void.

      Sec.  23. K.S.A. 16a-3-304 is hereby amended to read as follows: 16a-
3-304. (1) A creditor may not use multiple agreements with intent to
obtain a higher finance charge than would otherwise be permitted by the
provisions of the article on finance charges and related provisions (article
2).

      (2) With respect to a supervised loan, a lender uses multiple agree-
ments if, with intent to obtain a higher finance charge than would oth-
erwise be permitted, said lender allows any person to become obligated
in any way under more than one loan agreement with the lender or with
a person related to the lender.

      (3) The excess amount of finance charge provided for in this section
is an excess charge for the purposes of the provisions on rights of parties
(section 16a-5-201 K.S.A. 16a-5-201, and amendments thereto) and the
provisions on civil actions by administrator (section 16a-6-113 K.S.A. 16a-
6-113, and amendments thereto).

      Sec.  24. K.S.A. 16a-4-301 is hereby amended to read as follows: 16a-
4-301. (1) A creditor may not contract for or receive a separate charge
for insurance against loss of or damage to property unless

      (a) the insurance covers a substantial risk of loss of or damage to
property related to the credit transaction;

      (b) the amount, terms, and conditions of the insurance are reasonable
in relation to the character and value of the property insured or to be
insured; and

      (c) the term of the insurance is reasonable in relation to the terms of
credit.

      (2) The term of the insurance is reasonable if it is customary and does
not extend substantially beyond a scheduled maturity.

      (3) A creditor may not contract for or receive a separate charge for
insurance against loss of or damage to property unless property is pur-
chased pursuant to a credit card or in a transaction pursuant to open end
credit, or unless the amount financed exclusive of charges for the insur-
ance is three hundred dollars ($300) $900 or more, and the value of the
property is three hundred dollars ($300) $900 or more.

      Sec.  25. K.S.A. 16a-4-112 is hereby amended to read as follows: 16a-
4-112. (1) To the extent that his the commissioner's responsibility under
this article requires, the commissioner of insurance shall issue rules with
respect to insurers, and with respect to refunds (section 16a-4-108 K.S.A.
16a-4-108, and amendments thereto), forms, schedules of premium rates
and charges (section 16a-4-203 K.S.A. 16a-4-203, and amendments
thereto), and his the commissioner's approval or disapproval thereof and,
in case of violation, may make an order for compliance.

      (2) Each provision of the part on administrative procedures and ju-
dicial review (part 4) of the article on administration (article 6) which
applies to and governs administrative action taken by the administrator
also applies to and governs all administrative action taken by the com-
missioner of insurance pursuant to this section.

      Sec.  26. K.S.A. 16a-5-203 is hereby amended to read as follows: 16a-
5-203. (1) Except as otherwise provided in this section, a creditor who,
in violation of the provisions of the rules and regulations adopted by the
administrator pursuant to K.S.A. 16a-6-117, and amendments thereto,
fails to disclose information to a person entitled to the information under
the provisions of K.S.A. 16a-1-101 through 16a-9-102, and amendments
thereto, is liable to that person in an amount equal to the sum of:

      (a) Twice the amount of the finance charge in connection with the
transaction, but the liability pursuant to this paragraph shall be not less
than $100 $200 or more than $1,000 $2,000; and

      (b) in the case of a successful action to enforce the liability under
paragraph (a), the costs of the action together with reasonable attorney's
fees as determined by the court.

      (2) A creditor has no liability under this section if within 15 days after
discovering an error, and prior to the institution of an action under this
section or the receipt of written notice of the error, the creditor notifies
the person concerned of the error and makes whatever adjustments in
the appropriate account are necessary to assure that the person will not
be required to pay a credit service charge or loan finance charge in excess
of the amount or percentage rate actually disclosed.

      (3) A creditor may not be held liable in any action brought under this
section for a violation of the provisions of K.S.A. 16a-1-101 through 16a-
9-102, and amendments thereto, if the creditor shows by a preponderance
of evidence that the violation was not intentional and resulted from a
bona fide error notwithstanding the maintenance of procedures reason-
ably adapted to avoid the error.

      (4) Any action which may be brought under this section against the
original creditor in any credit transaction involving a security interest in
land may be maintained against any subsequent assignee of the original
creditor where the assignee, its subsidiaries, or affiliates were in a contin-
uing business relationship with the original creditor either at the time the
credit was extended or at the time of the assignment, unless the assign-
ment was involuntary, or the assignee shows by a preponderance of evi-
dence that it did not have reasonable grounds to believe that the original
creditor was engaged in violations of this act and that it maintained pro-
cedures reasonably adapted to apprise it of the existence of the violations.

      (5) No action pursuant to this section may be brought more than one
year after the date of the occurrence of the violation.

      (6) In this section, creditor includes a person who in the ordinary
course of business regularly extends credit.

      (7) The liability of the creditor under this section is in lieu of and not
in addition to the creditor's liability under the federal truth in lending
act; no action with respect to the same violation may be maintained pur-
suant to both this section and the federal truth in lending act.

      Sec.  27. K.S.A. 16a-5-301 is hereby amended to read as follows: 16a-
5-301. (1) A supervised lender who willfully makes charges in excess of
those permitted by the provisions of the article on finance charges and
related provisions (article 2) applying to supervised loans (part 4) is guilty
of a class A misdemeanor and upon conviction thereof shall be punished
in the manner provided by law It is unlawful for any person to violate
any of the provisions of this act, any rule and regulation adopted or order
issued under this act. A conviction for an intentional violation is a class
A nonperson misdemeanor. A second or subsequent conviction of this
subsection is severity level 7 nonperson felony. No person may be im-
prisoned for the violation of this section if such person proves that such
person had no knowledge of the rule and regulation or order.

      (2) A person, other than a supervised financial organization, who will-
fully engages in the business of making supervised loans without a license
in violation of the provisions of this act applying to authority to make
supervised loans (section 16a-2-301) is guilty of a class A misdemeanor
and upon conviction thereof shall be punished in the manner provided
by law The criminal liability of a person under this section is in lieu of
and not in addition to the creditor's criminal liability under the federal
truth in lending act. No prosecution of a person with respect to the same
violation may be maintained pursuant to both this section and the federal
truth in lending act.

      (3) A person, other than a supervised financial organization or an
attorney or collection agency who does not purchase the credit obligation,
who willfully engages in the business of entering into consumer credit
transactions, or of taking assignments of rights against consumers arising
therefrom and undertakes direct collection of payments or enforcement
of these rights, without complying with the provisions of this act con-
cerning notification (section 16a-6-202 K.S.A. 16a-6-202, and amend-
ments thereto) or payment of fees (section 16a-6-203 K.S.A. 16a-6-203,
and amendments thereto), is guilty of a class A misdemeanor and upon
conviction thereof shall be punished in the manner provided by law.

      Sec.  28. K.S.A. 16a-6-104 is hereby amended to read as follows: 16a-
6-104. This act shall be administered by the consumer credit commissioner
of Kansas who is also referred to as the administrator. (1) In addition to
other powers granted by this act, the administrator within the limitations
provided by law may:

      (a) Receive and act on complaints, take action designed to obtain
voluntary compliance with the provisions of K.S.A. 16a-1-101 to 16a-9-
102, inclusive, and amendments thereto, or commence proceedings on
the administrator's own initiative;

      (b) counsel persons and groups on their rights and duties under
K.S.A. 16a-1-101 to 16a-9-102, inclusive, and amendments thereto;

      (c) establish programs for the education of consumers with respect
to credit practices and problems and as a condition in settlements of
investigations or examinations, the administrator may receive a payment
designated for consumer education to be expended as directed by the
administrator for such purpose;

      (d) make studies appropriate to effectuate the purposes and policies
of K.S.A. 16a-1-101 to 16a-9-102, inclusive, and amendments thereto, and
make the results available to the public;

      (e) adopt, amend and revoke rules and regulations to carry out the
specific provisions of K.S.A. 16a-1-101 to 16a-9-102, inclusive, and
amendments thereto;

      (f) issue, amend and revoke written administrative interpretations.
Such written administrative interpretations shall be approved by the at-
torney general and published in the Kansas register within 15 days of
issuance. The administrator shall annually publish all written administra-
tive interpretations in effect;

      (g) maintain offices within this state; and

      (h) appoint any necessary attorneys, hearing examiners, clerks, and
other employees and agents and fix their compensation, and authorize
attorneys appointed under this section to appear for and represent the
administrator in court.;

      (i) examine periodically at intervals the administrator deems appro-
priate the loans, business and records of every licensee except licensees
which are supervised financial organizations. The official or agency re-
sponsible for the supervision of each supervised financial organization
shall examine the loans, business and records of each such organization
in the manner and periodically at intervals prescribed by the administra-
tor. In addition, for the purpose of discovering violations of K.S.A. 16a-
1-101 through 16a-9-102, and amendments thereto, or securing infor-
mation lawfully required, the administrator or the official or agency to
whose supervision the organization is subject to K.S.A. 16a-6-105, and
amendments thereto, may at any time investigate the loans, business and
records of any supervised lender. For examination purposes the admin-
istrator shall have free and reasonable access to the offices, places of busi-
ness and records of the lender; and

      (j) refer such evidence as may be available concerning violations of
this act or of any rule and regulation or order to the attorney general or
the proper county or district attorney, who may in the prosecutor's dis-
cretion, with or without such a reference, institute the appropriate crim-
inal proceedings under this act. Upon receipt of such reference, the at-
torney general or the county attorney or district attorney may request
that a duly employed attorney of the administrator prosecute or assist in
the prosecution of such violation on behalf of the state. Upon approval of
the administrator, such employee shall be appointed special prosecutor
for the attorney general or the county attorney or district attorney to serve
without compensation from the attorney general or the county attorney
or district attorney. Such special prosecutor shall have all the powers and
duties prescribed by law for assistant attorneys general or assistant county
or district attorneys, and such other powers and duties as are lawfully
delegated to such special prosecutors by the attorney general or the county
attorney or district attorney.

      (2) The administrator shall enforce the rules and regulations adopted
pursuant to K.S.A. 16a-6-117, and amendments thereto, with respect to
all creditors except those described below, whose compliance shall be
enforced by their appropriate supervisory authorities as follows:

      (a) In the case of national banks, by the comptroller of the currency;

      (b) in the case of state banks, by the Kansas banking commissioner;

      (c) in the case of federally chartered savings and loan associations, by
the federal home loan bank board, acting directly or through the federal
savings and loan insurance corporation;

      (d) in the case of state chartered savings and loan associations, by the
Kansas savings and loan commissioner;

      (e) in the case of federally chartered credit unions, by the adminis-
trator of the national credit union administration;

      (f) in the case of state chartered credit unions, by the Kansas credit
union administrator;

      (g) in the case of common carriers subject to the federal acts to reg-
ulate commerce, 49 USC §  1 et seq., by the interstate commerce com-
mission;

      (h) in the case of intrastate public utilities or common carriers, by the
Kansas corporation commission;

      (i) in the case of any air carrier or foreign air carrier subject to the
federal aviation act of 1958, by the civil aeronautics board; and

      (j) with respect to any activities subject to the packer and stockyards
act of 1921, by the secretary of agriculture provisions of this act and the
rules and regulations and interpretations adopted thereunder with respect
to a creditor, unless the creditor's compliance is regulated exclusively or
primarily by another state or federal agency.

      (3) To keep the administrator's rules and regulations in harmony with
the rules of administrators in other jurisdictions which enact the revised
uniform consumer credit code, the administrator, so far as is consistent
with the purposes, policies and provisions of K.S.A. 16a-1-101 to 16a-9-
102, inclusive, and amendments thereto, shall may:

      (a) Before adopting, amending and revoking rules and regulations,
advise and consult with administrators in other jurisdictions which enact
the uniform consumer credit code; and

      (b) in adopting, amending and revoking rules and regulations, take
into consideration the rules of administrators in other jurisdictions which
enact the revised uniform consumer credit code.

      (4) Except for refund of an excess charge, no liability is imposed un-
der K.S.A. 16a-1-101 to 16a-9-102, inclusive, and amendments thereto,
for an act done or omitted in conformity with a rule and regulation or
written administrative interpretation of the administrator in effect at the
time of the act or omission notwithstanding that after the act or omission
the rule and regulation or written administrative interpretation may be
amended or revoked or be determined by judicial or other authority to
be invalid for any reason.

      (5) The administrator shall report annually on or before January 1 to
the governor and legislature on the operation of the administrator's office,
on the use of consumer credit in the state, and on the problems of persons
of small means obtaining credit from persons regularly engaged in ex-
tending sales or loan credit. For the purpose of making the report, the
administrator is authorized to conduct research and make appropriate
studies. The report shall include a description of the examination and
investigation procedures and policies of the administrator's office, a state-
ment of policies followed in deciding whether to investigate or examine
the offices of credit suppliers subject to the Provisions of K.S.A. 16a-1-
101 to 16a-9-102, inclusive, and amendments thereto, a statement of the
number and percentages of offices which are periodically investigated or
examined, a statement of the types of consumer credit problems of both
creditors and consumers which have come to the attention of the admin-
istrator through the administrator's examinations and investigations and
the disposition of them under existing law, a statement of the extent to
which the rules and regulations of the administrator pursuant to K.S.A.
16a-1-101 to 16a-9-102, inclusive, and amendments thereto, are not in
harmony with the rules of administrators in other jurisdictions which en-
act the revised uniform consumer credit code and the reasons for such
variations, and a general statement of the activities of the administrator's
office and of others to promote the purposes of such sections of this act.
The report shall not identify the creditors against whom action is taken
by the administrator.

      (6) The administrator prior to December 1 of each year shall establish
such fees as are authorized under the provisions of K.S.A. 16a-1-101 to
16a-9-102, inclusive, and amendments thereto, for the ensuing calendar
year in such amounts as the administrator may determine to be sufficient
to meet the budget requirements of the administrator for each fiscal year.

      Sec.  29. K.S.A. 16a-6-105 is hereby amended to read as follows: 16a-
6-105. (1) With respect to supervised financial organizations, the powers
of examination and investigation (sections 16a-2-305 and 16a-6-106 K.S.A.
16a-2-305 and K.S.A. 16a-6-106, and amendments thereto) and admin-
istrative enforcement (section 16a-6-108 K.S.A. 16a-6-108, and amend-
ments thereto) shall be exercised by the official or agency to whose su-
pervision the organization is subject. Should a supervised financial
organization become licensed hereunder, a report of that portion of each
examination made by the supervisory official or agency of such organi-
zation relating to compliance with the provisions of chapter 16a of the
Kansas Statutes Annotated shall be filed with the administrator. All other
powers of the administrator under this act may be exercised by the ad-
ministrator with respect to a supervised financial organization except that
compliance with truth in lending shall be governed as set forth in sub-
section (2) of K.S.A. 16a-6-104, and amendments thereto.

      (2) If the administrator receives a complaint or other information
concerning noncompliance with this act by a supervised financial organ-
ization, the administrator shall inform the official or agency having su-
pervisory authority over the organization concerned. The administrator
may request information about supervised financial organizations from
the officials or agencies supervising them. If such officials or agencies
have cause to believe the licensee of any supervised financial organization
subject to their supervision is subject to suspension or revocation for any
reason stated in K.S.A. 16a-2-302 16a-2-303, and amendments thereto,
such official or agency shall notify the administrator and assist the ad-
ministrator in the enforcement of this act.

      (3) The administrator and any official or agency of this state having
supervisory authority over a supervised financial organization are author-
ized and directed to consult and assist one another in maintaining com-
pliance with the provisions of K.S.A. 16a-1-101 through 16a-9-102, and
amendments thereto. They may jointly pursue investigations, prosecute
suits, and take other official action, as they deem appropriate, if either of
them otherwise is empowered to take the action.

      Sec.  30. K.S.A. 16a-6-106 is hereby amended to read as follows: 16a-
6-106. (1) If the administrator has cause to believe that a person has
engaged in an act which is subject to action by the administrator, he may
make an investigation to determine if the act has been committed, and,
to the extent necessary for this purpose, may administer oaths or affir-
mations, and, upon his own motion or upon request of any party, may
subpoena witnesses, compel their attendance, adduce evidence, and re-
quire the production of any matter which is relevant to the investigation,
including the existence, description, nature, custody, condition, and lo-
cation of any books, documents, or other tangible things and the identity
and location of persons having knowledge of relevant facts, or any other
matter reasonably calculated to lead to the discovery of admissible evi-
dence.

      (2) If the person's records are located outside this state, the person
at his option shall either make them available to the administrator at a
convenient location within this state or pay the reasonable and necessary
expenses for the administrator or his representative to examine them at
the place where they are maintained. The administrator may designate
representatives, including comparable officials of the state in which the
records are located, to inspect them on his behalf.

      (3) Upon failure without lawful excuse to obey a subpoena or to give
testimony and upon reasonable notice to all persons affected thereby, the
administrator may apply to the district court for an order compelling
compliance.

      (4) The administrator shall not make public the name or identity of
a person whose acts or conduct he investigates pursuant to this section
or the facts disclosed in the investigation, but this subsection does not
apply to disclosures in actions or enforcement proceedings pursuant to
K.S.A. 16a-1-101 through 16a-9-102.

      (5) If an investigation or examination by the administrator shall dis-
close that any person has violated the provisions of this act other than as
a result of a bona fide error, the cost of such investigation or examination
shall be borne by the person investigated or examined and the adminis-
trator may maintain an action in any court to recover such cost. The
administrator may:

      (a) Conduct public or private examinations or investigations within
or outside of this state as necessary to determine whether any license
should be granted, denied or revoked or whether any person has violated
or is about to violate any provision of this act or any rule and regulation,
administrative interpretation, or order hereunder, or to aid in the en-
forcement of this act or in the prescribing of forms or adoption of rules
and regulations;

      (b) require or permit any person to file a statement in writing, under
oath or otherwise as the administrator determines, of all the facts and
circumstances concerning any violation of this act or any rule and regu-
lation, administrative interpretation or order hereunder.

      (2) For the purpose of any examination, investigation or proceeding
under this act, the administrator or any officer designated by the admin-
istrator may administer oaths and affirmations, subpoena witnesses, com-
pel such witnesses' attendance, adduce evidence and require the produc-
tion of any matter which is relevant to the examination or investigation,
including the existence, description, nature, custody, condition and loca-
tion of any books, documents or other tangible things and the identity
and location of persons having knowledge of relevant facts, or any other
matter reasonably calculated to lead to the discovery of relevant infor-
mation or items.

      (3) In case of contumacy by, or refusal to obey a subpoena issued to
any person, any court of competent jurisdiction, upon application by the
administrator, may issue to that person an order requiring the person to
appear before the administrator, or the officer designated by the admin-
istrator, there, to produce documentary evidence if so ordered or to give
evidence touching the matter under investigation or in question. Any fail-
ure to obey the order of the court may be punished by the court as a
contempt of court.

      (4) No person is excused from attending and testifying or from pro-
ducing any document or record before the administrator or in obedience
to the subpoena of the administrator or any officer designated by the the
administrator or in any proceeding instituted by the administrator, on
the ground that the testimony or evidence (documentary or otherwise)
required of the person may tend to incriminate the person or subject the
person to a penalty or forfeiture. No individual may be prosecuted or
subjected to any penalty or forfeiture for or on account of any transaction,
matter or thing concerning which such person is compelled, after claiming
privilege against self-incrimination, to testify or produce evidence (doc-
umentary or otherwise), except that the individual so testifying shall not
be exempt from prosecution and punishment for perjury committed in so
testifying.

      (5) The administrator may issue and apply to enforce subpoenas in
this state at the request of a consumer code administrator of another state
if the activities constituting an alleged violation for which the information
is sought would be a violation of the Kansas consumer credit code if the
activities had occurred in this state.

      (6) If the person's records are located outside this state, the person
shall either make them available to the administrator at a convenient
location within this state or, at the administrator's discretion, pay the
reasonable and necessary expenses for the administrator or such admin-
istrator's representative to examine them at the place where they are
maintained. The administrator may designate representatives, including
comparable officials of the state in which the records are located, to in-
spect the records on the administrator's behalf.

      (7) The administrator may charge as costs of investigation or exami-
nation all reasonable expenses, including a per diem and actual travel and
lodging expenses to be paid by the party or parties under investigation or
examination. The administrator may maintain an action in any court to
recover such costs.

      Sec.  31. K.S.A. 16a-6-108 is hereby amended to read as follows: 16a-
6-108. (a) After notice and hearing the administrator may order a creditor
or a person acting in a creditor's behalf to cease and desist from engaging
in violations of this act.

      (b) With respect to unconscionable agreements or fraudulent or un-
conscionable conduct by the respondent, the administrator may not issue
an order pursuant to this section but may bring a civil action for an in-
junction (K.S.A. 16a-6-111 and amendments thereto).

      (1) If the administrator determines after notice and opportunity for
a hearing that any person has engaged, is engaging or is about to engage
in any act or practice constituting a violation of any provision of this act
or any rule and regulation, order or administrative interpretation here-
under, the administrator by order may require that such person cease and
desist from the unlawful act or practice and take such affirmative action
as in the judgment of the administrator will carry out the purposes of this
act.

      (2) If the administrator makes written findings of fact that the public
interest will be irreparably harmed by delay in issuing an order under
subsection (1), the administrator may issue an emergency cease and desist
order. Such order shall be subject to the same procedures as an emergency
order issued under K.S.A. 77-536, and amendments thereto. Upon the
entry of such an order the administrator shall promptly notify the person
subject to the order that it has been entered, of the reasons and that upon
written request the matter will be set for a hearing which shall be con-
ducted in accordance with the provisions of the Kansas administrative
procedure act. If no hearing is requested and none is ordered by the
administrator, the order will remain in effect until it is modified or vacated
by the administrator. If a hearing is requested or ordered, the adminis-
trator, after notice of and opportunity for hearing to the person subject
to the order, shall by written findings of fact and conclusion of law vacate,
modify or make permanent the order.

      (3) If the administrator reasonably believes that a person has violated
this act or a rule and regulation, order or administrative interpretation
of the administrator under this act, the administrator, in addition to any
specific power granted under this act, after notice and hearing in an ad-
ministrative proceeding, unless the right to notice and hearing is waived
by the person against whom the sanction is imposed, may:

      (a) Censure the person if the person is licensed under this act;

      (b) issue an order against an applicant, licensed person or other per-
son who knowingly violates this act or a rule and regulation, order or
administrative interpretation of the administrator under this act, impos-
ing a civil penalty up to a maximum of $5,000 for each violation; or

      (c) revoke or suspend the person's license or bar the person from
subsequently applying for a license under this act.

      (4) Any person aggrieved by a final order of the administrator may
obtain a review of the order in accordance with the provisions of the act
for judicial review and civil enforcement of agency actions.

      Sec.  32. K.S.A. 16a-6-117 is hereby amended to read as follows: 16a-
6-117. The administrator shall adopt rules and regulations necessary to
carry out the provisions of K.S.A. 16a-3-201, 16a-3-206, 16a-5-203 and
16a-5-302, and amendments thereto, which are not less restrictive than
title I of the consumer protection act (public law 90-321; 82 stat. 146), as
amended, and any regulations issued pursuant to such act and terms of
the uniform consumer credit code which are consistent with or no less
restrictive than the truth-in-lending act, which is contained in title I of
the consumer protection act, 15 U.S.C. § 1601 et seq. and regulation Z,
12 C.F.R. § 226 et seq., as amended.

      Sec.  33. K.S.A. 16a-6-202 is hereby amended to read as follows: 16a-
6-202. (1) Persons subject to this part shall file notification with the ad-
ministrator within 30 days after commencing business in this state, and,
thereafter, on or before January 31 of each year. The notification shall
state:

      (a) Name of the person;

      (b) name in which business is transacted if different from (a);

      (c) address of principal office, which may be outside this state;

      (d) address of all offices or retail stores, if any, in this state at which
consumer credit transactions are entered into, or in the case of a person
taking assignments of obligations, the offices or places of business within
this state at which business is transacted;

      (e) if consumer credit transactions are entered into otherwise than at
an office or retail store in this state, a brief description of the manner in
which they are entered into;

      (f) address of designated agent upon whom service of process may
be made in this state; and

      (g) whether supervised loans are made in accordance with rules and
regulations adopted by the administrator.

      (2) If information in a notification becomes inaccurate after filing, no
further notification is required until the following January 31 the person
filing the notification shall file a corrected or amended notification in such
form and at such time as prescribed by rules and regulations adopted by
the administrator.

      Sec.  34. K.S.A. 16-207, 16a-1-108, 16a-1-201, 16a-2-103, 16a-2-302,
16a-2-303, 16a-2-305, 16a-2-306, 16a-2-307, 16a-2-401, 16a-2-402, 16a-
2-403, 16a-2-404, 16a-2-510, 16a-3-301, 16a-3-304, 16a-4-301, 16a-4-112,
16a-5-203, 16a-5-301, 16a-5-302, 16a-6-104, 16a-6-105, 16a-6-106, 16a-
6-107, 16a-6-108, 16a-6-117, 16a-6-202 and 16a-6-204 and K.S.A. 1998
Supp. 16a-1-301, 16a-2-201, 16a-2-202, 16a-2-401a, 16a-2-501 and 16a-
2-502 are hereby repealed.

      Sec.  35. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 14, 1999.
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