HB2472

THE CONTEXT: A bank may lend up to 20% of its capital to a single borrow. A bank may lend an additional 10% of its capital if the additional amounts are fully secured by readily marketable collateral that has a market value at least equal to the amount of the loan ( A.

WHAT THE BILL DID: The final vetoed version would prohibit this State from requiring a bank or financial institution to use a social credit score when evaluating whether to lend money to a customer.

WHY IT MATTERED: The practical reason for this bill was to set a clear legal boundary for social credit instead of leaving the conduct unaddressed. It would prohibit this State from requiring a bank or financial institution to use a social credit score when evaluating whether to lend money to a customer, rather than leave the current rule unchanged.