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286.4-570 Wage purchases -- Assignment of compensation.
(1)
(2)
The payment of fifteen thousand dollars ($15,000) or less in money, credit,
goods, or things in action, as consideration for any sale, assignment, or order
for the payment of wages, salary, commissions, or other compensation for
services, whether earned or to be earned, shall be deemed for the purposes of
regulation under this subtitle, a loan secured by such assignment, and the
amount by which such assigned compensation exceeds the amount of such
consideration actually paid shall be deemed for the purposes of regulation
under this subtitle interest or charges upon such loans from the date of
payment to the date such compensation is payable. Such transaction shall be
governed by and subject to the provisions of this subtitle.
No assignment of or order for payment of any salary, wages, commissions, or
other compensation for services, earned or to be earned, when taken as
security for any loan made under this subtitle, shall be valid unless the amount
of the loan is paid to the borrower simultaneously with its execution. Under any
assignment of or order for the payment of future salary, wages, commissions,
or other compensation for services given as security for a loan made under this
subtitle, there shall not at any time be collectible from the employer of the
borrower more than ten percent (10%) of the amount then owing the borrower
for any such salary, wages, commissions or other compensation for services.
Effective:July 15, 1982
History: Amended 1982 Ky. Acts ch. 53, sec. 5, effective July 15, 1982. -Amended 1980 Ky. Acts ch. 107, sec. 3, effective July 15, 1980. -- Amended
1970 Ky. Acts ch. 48, sec. 5. -- Created 1960 Ky. Acts ch. 204, sec. 17, effective
June 16, 1960.
Formerly codified as KRS 288.570.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS
references within this statute have been adjusted to conform with the 2006
renumbering of that code.
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