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S1310.......................................by COMMERCE AND HUMAN RESOURCES PROPERTY LOSS - DEBT - Amends existing law to provide that an agreement to forgive or waive all or part of a debt or lease following a partial or total loss of the subject property is not the transaction of insurance. 01/26 Senate intro - 1st rdg - to printing 01/27 Rpt prt - to Com/HuRes 02/16 Rpt out - rec d/p - to 2nd rdg 02/17 2nd rdg - to 3rd rdg 02/24 3rd rdg - PASSED - 32-0-3 AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow, Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler, Whitworth, Williams NAYS--None Absent and excused--Danielson, Davis, Ipsen Floor Sponsor - Davis Title apvd - to House 02/25 House intro - 1st rdg - to Bus 03/16 Rpt out - rec d/p - to 2nd rdg 03/17 2nd rdg - to 3rd rdg 03/29 3rd rdg - PASSED - 67-0-3 AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann NAYS -- None Absent and excused -- Geddes, Pischner, Mr Speaker Floor Sponsor - Chase Title apvd - to Senate 03/30 To enrol - rpt enrol - Pres signed 03/31 Sp signed 04/03 To Governor 04/04 Governor signed Session Law Chapter 175 Effective: 07/01/00
S1310|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE SENATE SENATE BILL NO. 1310 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO CREDIT TRANSACTIONS; AMENDING SECTION 28-41-106, IDAHO CODE, TO 3 PROVIDE THAT AN AGREEMENT TO FORGIVE OR WAIVE ALL OR PART OF A DEBT OR 4 LEASE FOLLOWING A PARTIAL OR TOTAL LOSS OF THE SUBJECT PROPERTY IS NOT THE 5 TRANSACTION OF INSURANCE; AND PROVIDING AN EFFECTIVE DATE. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 28-41-106, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 28-41-106. WAIVER -- AGREEMENT TO FOREGO RIGHTS -- SETTLEMENT OF CLAIMS. 10 (1) Except as otherwise provided in this act, a debtor may not waive or agree 11 to forego rights or benefits under this act. 12 (2) A claim by a debtor against a creditor for an excess charge, other 13 violation of this act, or civil penalty, or a claim against a debtor for 14 default or breach of a duty imposed by this act, if disputed in good faith, 15 may be settled by agreement. 16 (3) A claim, whether or not disputed, against a debtor may be settled for 17 less value than the amount claimed. 18 (4) A settlement in which the debtor waives or agrees to forego rights or 19 benefits under this act is invalid if the court, as a matter of law, finds the 20 settlement to have been unconscionable at the time it was made. The competence 21 of the debtor, any deception or coercion practiced upon him, the nature and 22 extent of the legal advice received by him, and the value of the consideration 23 are relevant to the issue of unconscionability. 24 (5) Title 41, Idaho Code, shall not apply to an agreement by a creditor 25 or lessor, with or without consideration, to forgive or waive all or any part 26 of a debt or lease obligation following a partial or total loss of the prop- 27 erty that is the subject of a loan, credit sale or lease transaction and the 28 forgiveness shall not be considered the transaction of insurance for the pur- 29 poses of the Idaho credit code. 30 SECTION 2. This act shall be in full force and effect on and after July 31 1, 2000.
STATEMENT OF PURPOSE RS09660 Relating to credit transactions, this legislation provides that a creditor or lessor who agrees to waive all or a part of a debt or payments under a lease is not transacting insurance. Nationally, there are conflicting opinions as to whether such a waiver is an insurance transaction. This legislation clarifies the law in Idaho so that there is no confusion as to the characterization of awaiver when there is a partial or total loss of the property that is the subject of the transaction. FISCAL NOTE No fiscal impact. CONTACT: Mike Brassey Phone: 336-7930 Denise Brennan Idaho Automobile Dealers Association Phone: 853-4668 S 1310
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