SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 1275

with committee amendments

STATE OF NEW JERSEY

DATED: NOVEMBER 25, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably and with committee amendments Senate Bill No. 1275.

      This bill, as amended, permits open-end financing of home repairs under the "Home Repair Financing Act," P.L.1960, c.41 (C.17:16C-62 et seq.) and requires that: minimum monthly payments of principal and credit service charges in an open-end loan be in amounts that will result in positive amortization of the debt and will not result in an increase in the amount of the debt outstanding; and monthly payments for open-end loans be applied to the account on the date of receipt. In addition, it provides that a home repair contractor may be deemed to be in compliance with the disclosure requirements of the "Home Repair Financing Act" if the contractor provides the disclosures required under the federal "Truth in Lending Act" and the regulations implementing that act.

COMMITTEE AMENDMENTS

      The committee amended the bill to require that the minimum monthly payment of principal and credit service charge be in an amount that would result in positive amortization of the bill. The other amendment was technical to change the reference to the Commissioner of Banking to the Commissioner of Banking and Insurance.