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League testifies against child support bill in Maine (02/21/2011)
PORTLAND, Maine. (2/22/11)--Quincy Hentzel, the Maine Credit Union League’s director of governmental affairs, testified Feb. 15 before the Maine Legislature’s judiciary committee in opposition to a proposed child support law. The bill would exempt a debtor’s interest in funds or assets that are necessary for the debtor to pay child support. The bill also stipulates that child support orders have priority over previously filed orders that are not made for the purpose of enforcing or paying child support, said the Maine Credit Union League (Weekly Standard Feb. 18). “The issue we see is that the creation of a new category of exempt property will undermine the ability of creditors to collect on their claims while doing nothing to assure that support orders are fulfilled, “ Hentzel testified. “As a practical matter, a debtor could avoid paying a creditor by declaring that he is in arrears of his support order and needs the cash to fulfill that obligation.” Hentzel also voiced the league’s opposition to another provision of the bill that would give a new priority lien to trump consensual liens given by borrowers to secure their obligations to a credit union. “Should we allow other liens to take priority over our established first priority lien, the potential now exists to erode our first mortgage and increase credit risk to the lending institution,” she said.


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