§ 13-165. Conditions for engaging in motor vehicle title loan transactions.

(1)

A title loan lender may engage in a title loan transaction only if the following conditions are met:

(a)

If the title loan lender takes the title certificate to the motor vehicle, then the lender maintains physical possession of the motor vehicle certificate of title until the outstanding loan is satisfied;

(b)

The borrower maintains possession of, or control over, the motor vehicle throughout the term of the loan;

(c)

The borrower is not required to pay rent or any other charge for the use of the motor vehicle;

(d)

The borrower is eighteen (18) years of age or older;

(e)

The title loan lender delivers to the borrower, at the time the loan is made, a written title loan agreement that contains the following information:

1.

The make, model, and year of the motor vehicle to which the loan relates;

2.

The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the motor vehicle to which the loan relates;

3.

The borrower's name, address, date of birth, physical description to include height, weight, gender, hair color and eye color, and their social security number;

4.

The date of the transaction;

5.

The identification number and the type of identification, including the issuing agency, accepted from the borrower;

6.

The amount of money advanced, clearly designated as the "amount financed";

7.

The maturity date of the title loan agreement which shall be no fewer than thirty (30) days after the date the title loan agreement is executed by the title loan lender and the borrower;

8.

The title loan charge payable on the maturity date, designated as the "finance charge";

9.

The total amount financed plus finance charge, which must be paid to redeem the loan property on the maturity date, designated as the "total amount of all payments";

10.

The annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-in-Lending Act;

11.

The name and address of the title loan office;

12.

A statement printed in not less than fourteen (14) point, bold type that:

a.

"Your vehicle has been pledged as security for this loan and, if you do not repay this loan in full by (insert due date), including the interest accrued (finance charge), then YOU WILL LOSE YOUR VEHICLE."

b.

"The lender is not required to extend or renew your loan at the end of the 30-day period. If you do not repay the loan and the accrued interest at the end of the 30 day period, the lender may then repossess your vehicle."

c.

"THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE THIS LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW FROM ANOTHER SOURCE AT RATE LOWER THAN TWO AND ONE HALF PERCENT (2½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE LOWER THAN THIRTY PERCENT (30%)";

13.

A statement that "The borrower represents and warrants that the motor vehicle and the certificate of title is not stolen, it has no liens or encumbrances against it, the borrower has the right to enter into this transaction, and the borrower will not attempt to sell the motor vehicle or apply for a duplicate certificate of title while the title loan agreement is in effect";

14.

Immediately above the signature of the borrower, a statement that reads as follows: "I, (insert the name of borrower), declare that the information I have provided is true and correct and I have read and understand the foregoing document"; and

15.

A blank line for the signature of the borrower.

(f)

The title loan lender displays in a prominent place in the title loan premises, a sign no smaller than three (3) feet by five (5) feet with the following message written in letters no less than three (3) inches high:

"IF YOU RECEIVE A TITLE LOAN, YOUR VEHICLE WILL BE PLEDGED AS SECURITY FOR THE LOAN. IF YOU DO NOT REPAY THIS LOAN IN FULL, INCLUDING ALL FINANCE CHARGES, YOU WILL LOSE YOUR VEHICLE.

THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE A TITLE LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW MONEY FROM ANOTHER SOURCE AT AN INTEREST RATE LOWER THAN .08219 PERCENT PER DAY, 2.5 PERCENT PER MONTH, OR AN ANNUAL PERCENTAGE RATE OF 30 PERCENT."

(Ord. No. 99-28, § 1, 8-16-99)