ARKANSASA OKLAHOMA

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THE ARKANSAS Supreme Court

I has ruled that consumer credit, in effect, is tied to the Federal Dscount Rate. Amendment 60 removed the constitutional interest rate limit of l09o and established a l79o limit on consumer credit. The court ruled, however, that, while the upper limit was 1790, it had to "float" no more than five points above the discount rate. This means that every time the discount rate changes, consumer interest rates must also change. Dealers with open-end charge accounts could charge up to 13.590 today, but ifthe discount rate changed tomorrow, the interest rate would also have to be changed.

We are concerned, not onlY about a dealer's capacity to handle the bookkeeping involved in a floating rate, but also about the legality ofinterest already changed on credit balances on the assumption that the full l79o rate was allowable. As far as we know, most dealers have generally kept their rates at the old l09o ceiling since Amendment @ was adopted, pending the lawsuit's outcome. Until this issue is settled, we suggest staying there a while longer. Retailers are required by law to give l5 days notice before raising their interest rates.

At the time of this writing, the issue was being bounced back to the courts via a petition for rehearing. If that fails, an amendment to Amendment 60 might b€ presented in a special legislative session and then put to voters at a special election or the na(t general election-if a constitutional amendment can be put to voters at a special election.

All this is for the legal experts to decide, but it appears that, until some decisions are made and the confusion in the language of Amendment 60 is clarified, consumer credit in Arkansas will be literally in a state of suspended animation.

The toughest ticket in Oklahoma this year is a ticket to see the Oklahoma Sooners play the University of Hawaii Rainbows in Honolulu on Saturday, Dec. 3, 1983 but we've got a block of lfi) tickets just for lumber dealers. That's only a part of it!

We've put it all together in an eight day-two island (December I to December 8) package which includes: round-trip air fare between choice of Oklahoma Gty, Tulsa or Kansas City and Honolulu; four nights superior first-class hotel in Waikiki at Queen Kapiolani; special tour briefing and coffee Frrst morning of tour; reserved ticket and transportation to and from the game; victory rally with appropriate native refreshments; airport transfers and baggage handling in Honolulu and Maui; three nights superior hotel on the beach in Maui at the Kaanapdi Beach Hotel; inter-island air to Maui via Hawaiian Airlines; and a sightsceing tour in Maui.

This is going to be a great trip, even if you're not a football fan. It is limited to l(tr people becausc of the shortage of available game tickets. The game will start at 7:30 p.m. and will not be on live TV. We will sell this package only to lumber dealers, but their families, frields, employees and cuslomers can go (excellent idea for a sales contest). Other optional activities and expanded lengths of stay are available. Cdl MLA for more details or to reserve your space.

OUNG Executives are conducting a joint YE-TBMA membership campagn.

Sam Henley, vice president, Henley Supply, Decherd, is serving as chairman. The following sub-committees have been appointed:

East: Gene McKinney, chairman, Tindell's Inc., Knoxville; Earl Geary, Greeter Building Center, Monteagle, and Charlie Sharp, Tindell Home Center, LaFollette.

Middle: Johnny Brown, chairman, Brown's Concrete & Block Co., Dckson;

Pat Welsh, Builders Supply Co., Tullahoma; Fred Stephens, Stephens Millwork, Nashville; and Terry Haynes, Haynes Brothers Lumber Co., Murfreesboro.

Wes: Scott Wright, chairman, City Lumber Co., Dyer; Don King, Camden Lumber C-o., Camden; and Randy Rinks, B & R Lumber Co., Savannah.

Although the membership campaigrr has just been "kicked off," two Young Executive membenhips and one TBMA membership have been obtained.

More than 75 people have sent in their registration for the 58th annual convention of the Association in Acapulco, Mexico, on Oct. 3l-Nov. 4.