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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Johnson
SENATE BILL NO. 2712
(As Sent to Governor)
AN ACT TO AMEND SECTION 75-67-121, MISSISSIPPI CODE OF 1972, 1
TO AUTHORIZE A LICENSEE UNDER THE SMALL LOAN REGULATORY LAW TO 2
CHARGE A FEE FOR THE PURCHASE OF NONFILING OR NONRECORDING 3
INSURANCE IN LIEU OF THE ACTUAL COST OF RECORDING AN INSTRUMENT 4
EXECUTED AS SECURITY FOR A LOAN; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 75-67-121, Mississippi Code of 1972, is 7
amended as follows: 8
75-67-121. (1) Any licensee under this article may charge 9
any borrower on loans of One Hundred Dollars ($100.00) or more the 10
actual cost of recording any instrument executed as security for a 11
loan; any reasonable fee paid to an attorney for investigating the 12
title to any property given as security for a loan; the actual 13
cost of any premium paid for insurance upon any property given as 14
security for a loan, such insurance to be placed with an insurance 15
company agent of the borrower's selection so long as it is 16
licensed to do business in the State of Mississippi; the actual 17
cost of any premium paid for credit life, health and/or accident 18
insurance and/or involuntary unemployment insurance on any 19
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borrower where the amount of insurance required is not in excess 20
of the amount of the loan; and the premium for the insurance is in 21
keeping with that usually and customarily paid for like insurance. 22
In lieu of the actual cost of recording an instrument 23
executed as security for a loan, a licensee may charge a fee for 24
the purchase of nonfiling or nonrecording insurance on the 25
instrument; however, the fee may not exceed the amount of the fee 26
charged by the Secretary of State to file an initial financing 27
statement commonly referred to as the Mississippi Financing 28
Statement Form UCC1 and Amendment UCC3. 29
(2) In addition, after the licensee has fully approved the 30
loan to the borrower, the licensee may offer the borrower the 31
opportunity to purchase an auto club membership. The licensee 32
shall inform the borrower in writing that the purchase of an auto 33
club membership is optional and is not required as a condition of 34
receiving the loan, and that failure to purchase an auto club 35
membership will not affect the licensee's approval of the loan or 36
the receipt of the loan by the borrower. The notification shall 37
be initialed by the borrower. If the borrower chooses to purchase 38
an auto club membership, the licensee shall allow the borrower to 39
pay the cost of the auto club membership using funds other than 40
the proceeds of a loan or have the cost deducted from the proceeds 41
of any loan obtained from the licensee. The borrower shall be 42
allowed to cancel the auto club membership for a full refund of 43
the purchase price at any time within thirty (30) days after the 44
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date of purchase from the licensee if the borrower has not used 45
any of the services provided through the auto club membership. 46
The commissioner shall monitor the number of loans made by 47
licensees with which the borrower chooses to purchase an auto club 48
membership, and shall report that information to the Chairmen of 49
the House Banking and Financial Services Committee and the Senate 50
Business and Financial Institutions Committee by January 1, 2009. 51
(3) On loans of One Hundred Dollars ($100.00) or more, any 52
licensee under this article may solicit and collect from any 53
purchasing borrower the actual cost of any insurance premium paid 54
for any one or more noncredit insurance policies, provided that 55
such insurance is optional, is filed with the Department of 56
Insurance, and is underwritten by an insurance company qualified 57
to do business in Mississippi, and provided that the following 58
conditions are met: 59
(a) The licensee shall not require the purchase of the 60
noncredit insurance as a condition of receiving any loan or other 61
extension of credit from the licensee; 62
(b) The licensee's employees offering the noncredit 63
insurance are: 64
(i) Properly licensed with the Department of 65
Insurance as an insurance producer for the type of insurance being 66
offered to the borrower by that employee; and 67
(ii) Appointed with the insurance company 68
providing the insurance policy to the purchasing borrower; 69
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ST: Small Loan Regulatory Law; authorize
licensee to charge fee for nonrecording
insurance in lieu of recording cost.
(c) The licensee shall not make the borrower's ability 70
to obtain any current or future loan or other extension of credit 71
from the licensee contingent upon the borrower's agreement to 72
purchase the noncredit insurance or otherwise transact business 73
with the licensee; and 74
(d) The licensee shall allow the borrower the option to 75
pay the cost of the noncredit insurance policy using funds other 76
than the proceeds of a loan obtained from the licensee, or to have 77
the cost of the noncredit insurance paid from the proceeds of any 78
loan obtained from the licensee. 79
The limitations on the amount of insurance contained in 80
subsection (1) of this section shall not apply to insurance sold 81
under this subsection (3). 82
(4) Whenever he finds it necessary, the Commissioner of 83
Banking and Consumer Finance shall have the power to adopt and 84
enforce reasonable rules and regulations to prevent the abuse of 85
this section and the making of excessive charges under this 86
section. 87
SECTION 2. This act shall take effect and be in force from 88
and after July 1, 2026. 89