Sec. 601. Treatment under other laws
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/bill/118/s/136/is/section-601A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An income share agreement shall not be treated as a contract for insurance, or as a betting or wagering contract, under any Federal or State law, except in the case of a State law that expressly states the law is intended to apply to income share agreements as defined in this Act. Any right that an ISA recipient may have to pay an amount greater than the amount financed under an income share agreement in order to extinguish the income share agreement earlier than the ISA duration or ISA maximum number of payments shall not be subject to any Federal or State law with respect to prepayment penalties, as long as— the prepayment complies with the limitations on income share agreements required under this Act and the amendments made by this Act; and in the case of a State law, the State law does not expressly state that the law is intended to apply to income share agreements as defined in this Act.
An income share agreement under this Act is not subject to the application of section 140(e) of the Truth in Lending Act ( 15 U.S.C. 1650(e) ), to the extent it would be applicable to an income share agreement. An educational ISA shall be a valid, binding, and enforceable contract, notwithstanding any State law limiting or otherwise regulating assignments of future wages or other income, except in the case of a State law that expressly states the law is intended to apply to income share agreements as defined in this Act.
An educational ISA shall not be subject to a State law with respect to usury, interest rates, fees, and charges for credit, loans, credit or installment sales, or a State law requiring that installment payments be substantially equal in amount, except in the case of a State law that expressly states the law is intended to apply to income share agreements as defined in this Act. An educational ISA shall not be subject to a State law with respect to ability-to-repay requirements, and neither an ISA provider issuing an educational ISA or its successor in interest, nor any entity servicing any educational ISA on behalf of an ISA provider or its successor in interest, shall be subject to any State law with respect to licensing or registration, except in the case of a State law that expressly states the law is intended to apply to income share agreements, as defined in this Act.
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Sec. 601
Treatment under other laws
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