Sec. 3. 9-B MRSA §439-A, sub-§2, ķA, as enacted by PL 1999, c. 205, §1, is amended to read:

A. The superintendent may grant a partial or full waiver of the voting requirement for loans or other extensions of credit in excess of 10% of total capital for good cause shown. In granting this waiver, the superintendent shall consider capital, management and resources of the financial institution or other relevant factors as determined by the superintendent.

SUMMARY

This bill is intended to update Maine's lending laws in order to make Maine chartered institutions more competitive with nationally chartered institutions.

The bill gives Maine lenders the same ability as out-of- state or national bank lenders to assess reasonable prepayment charges on adjustable-rate mortgages.

The bill allows state-chartered banks and credit unions to adjust interest rates on escrow accounts as they are permitted to do on savings or share accounts, while maintaining a fair rate for consumers.

The bill expands the authority of the Superintendent of Financial Institutions within the Department of Professional and Financial Regulation to waive an aspect of the loans-to- one-borrower rules for well-capitalized institutions.