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Chapter 180, DEFINITION OF OFFICIAL FEES
The Office of Consumer Credit Regulation adopted its Rule Chapter 180 to prohibit creditors from including filing fees in a consumer credit transaction if the filing was not required to perfect the creditor’s security interest. Chapter 180 is now repealed due to recent changes in the Uniform Commercial Code ("UCC") on which the rule was based. Under the new UCC, filing may be appropriate even when a lender is automatically perfected by a purchase money security interest in consumer goods, a circumstance justifying a filing charge.
This rule was originally promulgated under the authority of 9-A M.R.S.A. §6-403 and 6-409. Those sections were repealed in 1986.
Title 9-A M.R.S.A. §6-104 permits the Administrator to adopt, amend, and repeal rules to carry out the specific provisions of the Consumer Credit Code.
Title 9-A M.R.S.A. §6-103 and 1-301(2) state that except in cases in which a supervised financial organization is the creditor, the Administrator is the Director of the Office of Consumer Credit Regulation. In cases in which the creditor is a supervised financial organization, the Administrator is the Superintendent of Financial Institutions.
Title 9-A M.R.S.A. §6-105 states that with respect to supervised financial organizations, all powers of the Administrator under Title 9-A must be exercised by the Superintendent of the Bureau of Financial Institutions.
Title 9-B M.R.S.A. §215 permits the Superintendent of the Bureau of Financial Institutions to implement rules relating to the supervision of financial institutions or their subsidiaries or financial institution holding companies or their subsidiaries.
This rule does not have a separate Bureau of Financial Institutions chapter number. The chapter is applicable to supervised financial organizations under 9-A M.R.S.A. § 6-104(6). The Bureau of Financial Institutions joins in this rulemaking, to make clear that the repeal of Chapter 180 applies to supervised financial organizations. Pursuant to § 6-104(6), "unless… modified by the Superintendent of Financial Institutions," a rule as adopted by the Office of Consumer Credit Regulation will remain applicable to supervised financial organizations.
Rule 180 prevents a creditor from charging a borrower for filing a financing statement if the creditor’s security interest in a consumer credit transaction is perfected without filing the financing statement. The rule was promulgated in response to changes to the UCC that provided automatic perfection for purchase money security interests in consumer goods when the amount financed was less than $1,000. The statute under which Rule 180 was promulgated, the former 11 M.R.S.A. § 9-302 was repealed with enactment of 11 M.R.S.A. § 9-1309(1).
Under 11 M.R.S.A. § 9-1309(1), a creditor need not file to perfect a purchase money security interest in a consumer good with a purchase price of $10,000 or less. However, even if the security interest is automatically perfected in this manner, 11 M.R.S.A. § 9-1320 now provides a means of defeating the creditor’s interest. Section 9-1320(2) indicates that certain buyers of goods may take free of a security interest, even if perfected, if the buyer buys: (a) without knowledge of the security interest; (b) for value; (c) primarily for the buyer’s personal, family or household purposes; and (d) before the filing of a financing statement covering the goods. Given § 9-1320’s language, perfection pursuant to § 9-1309(1) is automatic but conditional, so creditors may choose to file a financing statement to protect their interests. Therefore, it is appropriate to repeal the prohibitions on charging such fees presently set forth in Rule 180.
III. GENERAL PROVISIONS
Chapter 180 of the Rules of the Maine Office of Consumer Credit Regulation is repealed.
IV. EFFECTIVE DATE
Last Updated: June 5, 2013
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