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Title II — Treatment of a Qualified ISA Under State Law

S. 2114 · 116th Congress · Jul 15, 2019 · Lineage

II Treatment of a Qualified ISA Under State Law

Sec. 201 Lawfulness of contracts; preemption of State law

(a)
In general— A Qualified ISA shall be a valid, binding, and enforceable contract notwithstanding any State law limiting or otherwise regulating assignments of future wages or other income.
(b)
Good faith reliance— An ISA funder may rely in good faith on a statement from the individual obligated by a Qualified ISA with respect to such individual’s aggregate obligation on the Qualified ISA.

Sec. 202 Preemption of State law with respect to usury

A Qualified ISA shall not be subject to State law with respect to usury, credit, loans, or credit or installment sales, unless such State law expressly states that it is intended to apply to Qualified ISAs.

Sec. 203 Preemption of pre-existing State laws with respect to ability-to-repay and licensing laws

A Qualified ISA shall not be subject to a State law with respect to “ability-to-repay” requirements, and neither an ISA funder issuing a Qualified ISA, its successor in interest, nor any entity servicing any Qualified ISA on behalf of an ISA funder or its successor interest, shall be subject to any State law with respect to ISA licensing or registration, unless such State law was issued after the date of the enactment of this Act and such State law expressly states that it is intended to apply to Qualified ISAs.