ORDINANCE NO. 240638
title
Sponsor: Mayor Pro Tem Ryana Parks-Shaw
Amending Chapter 2, Code of Ordinances, by enacting a new Section 2-1621 for the purpose of prohibiting City deposits in institutions engaging in predatory lending or abusive financial practices.
body
WHEREAS, predatory lending and abusive financial practices have a detrimental impact on the economic well-being and quality of life of unsuspecting consumers; and
WHEREAS, the City Council believes it is in the best interest of Kansas Citians to ensure that the City has a procedure to divest from any financial institution that engages in predatory or abusive practices; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Chapter 2, Code of Ordinances is hereby amended by enacting a new Section 2-1621 to read as follows:
Sec. 2-1621. Deposits and investments in institutions practicing predatory lending
prohibited.
(a) The City shall not keep any funds on deposit in any bank, its affiliates, or other financial institution that engages in predatory lending, including predatory home loans, abusive payday loans, or other predatory or abusive non-home loans or financial products.
(1) As used in this section, predatory lending refers to any lending practice deemed unfair, deceptive, or abusive under state and federal law, including but not limited to the Missouri Merchandising Practices Act, the Dodd-Frank Act, the Consumer Credit Protection Act, the Equal Credit Opportunity Act, the Truth in Lending Act, or other relevant state or federal regulatory guidelines.
(b) In the event the City discovers funds on deposit in a financial institution or other entity engaging in predatory lending as described in Section 2-1621(a), the Director of Finance shall report such occurrence to the Community Reinvestment Panel and the City Council with a plan for divestiture.
end
______________________________________________________
Approved as to form:
______________________________
Samuel Miller
Assistant City Attorney