Chapter 1321: SMALL LOANS
1321.01 Tiny loan definitions.
(A) As found in parts 1321.01 to 1321.19 associated with Revised Code:
(1) «Person» includes individuals, partnerships, associations, trusts, corporations, and all sorts of other entities that are legal.
(2) «License» means a permit given under parts 1321.01 to 1321.19 associated with Revised Code in order to make loans at a solitary office.
(3) «Licensee» means an individual to whom more than one licenses have already been given.
(4) «Principal amount» means the total amount of money compensated to, or compensated or payable for the account of, the debtor.
(5) «Interest» means all costs payable directly or indirectly by a borrower to a licensee as a disorder to that loan or a credit card applicatoin for a financial loan, nevertheless denominated, but will not consist of standard charges, deferment costs, insurance coverage fees or premiums, court expenses, loan origination costs, always check collection fees, personal line of credit fees, credit file costs, or any other charges and costs especially authorized for legal reasons.
(6) «Interest-bearing loan» means that loan when the financial obligation is expressed since the principal amount and interest is computed, charged, and built-up on unpaid balances that are principal every so often.
(7) «Precomputed loan» means that loan in that the financial obligation is really a amount comprising the principal quantity and the actual quantity of interest computed ahead of time regarding the presumption that most planned payments is likely to be made whenever due.
(8) «Actuarial technique» means the strategy of allocating payments made on financing involving the principal amount and interest whereby a repayment is applied first into the accumulated interest while the rest towards the principal amount that is unpaid.
(9) «Applicable fee» means the total amount of interest due to each month-to-month installment amount of the loan agreement. The charge that is applicable computed as if each installment duration were 30 days and any fee for expanding the very first installment duration beyond a month is ignored. When it comes to loans originally planned to be paid back in sixty-one months or less, the relevant cost for almost any installment period is the fact that proportion of this total interest contracted for, since the stability planned to be outstanding throughout that duration bears towards the amount of most of the regular balances, all determined based on the repayment routine initially contracted for. In every other instances, the applicable cost for almost any installment period is that which may were made for such duration had the mortgage been made for an interest-bearing foundation in the solitary price supplied in division (A) of area 1321.13 associated with the Revised Code, based on the presumption that most repayments were made based on routine.
(10) «Annual portion rate» means the ratio of this interest on that loan into the unpaid principal balances regarding the loan for just about any amount of time, indicated on a yearly basis.
(11) «Refinancing» means that loan the profits of that are utilized in entire or in part to pay for the unpaid stability of the loan that is prior by the exact exact same licensee to your exact exact same debtor under parts 1321.01 to 1321.19 associated with Revised Code.
(12) «Superintendent of banking institutions» includes the deputy superintendent for customer finance as supplied in part 1181.21 associated with Revised Code.
(B) The unit of banking institutions accounts for the management of parts 1321.01 to 1321.19 associated with the Revised Code. Neither the superintendent of this unit, nor any deputy, associate, clerk, examiner, or any other individual utilized by the unit to help into the management of these parts will probably be interested, straight or indirectly, in the commercial certified beneath the parts and anybody therefore interested or whom becomes therefore interested shall never be qualified to put up or retain any stay at website such place.
Effective Date: 09-26-1996.
1321.02 Exceptions to license requirement.
No individual shall participate in the company of lending money, credit, or choses for action in levels of five thousand bucks or less, or precise, agreement for, or get, directly or indirectly, on or perhaps in experience of any loan that is such any interest and costs that within the aggregate are higher than the attention and fees that the financial institution will be allowed to charge for a financial loan of cash in the event that lender are not a licensee, without very very first having acquired a permit through the unit of finance institutions under parts 1321.01 to 1321.19 associated with the Revised Code.
Amended by 132nd General Assembly File No. TBD, HB 199, §1, eff. 3/23/2018.
Amended by 132nd General Assembly File No. TBD, SB 24, §1, eff. 7/1/2017.
Effective Date: 09-26-1996; 03-30-2006; 2008 HB545 09-01-2008.
1321.03 Application for permit — charge.
Application for a permit will be on paper, under oath, plus in the shape recommended because of the division of finance institutions, and shall support the title and target regarding the applicant, and, in the event that applicant is just a partnership or relationship, each and every user thereof, and, in case a company, of each and every officer and manager thereof; also the approximate location where in actuality the company is become conducted and such further appropriate information as the division calls for. The applicant shall pay to the division a license fee as determined by the superintendent of financial institutions pursuant to section 1321.20 of the Revised Code and a nonrefundable investigation fee of two hundred dollars at the time of making such application. No permit cost or any portion thereof shall be refunded following a permit is granted.
Effective Date: 09-26-1996.
1321.04 Research by unit — notice of filing of application — notice to licensees — license released — denial of application.
The division of financial institutions shall investigate the facts concerning the applicant and the requirements provided for in divisions (A) and (B) of this section upon the filing of an application under section 1321.03 of the Revised Code and payment of fees pursuant to section 1321.20 of the Revised Code.
The unit shall accept the application form and problem and deliver a permit to your applicant if the division finds both of the annotated following:
(A) That the economic duty, experience, reputation, and basic physical physical physical fitness for the applicant as well as the members thereof, in the event that applicant is just a partnership or a connection, and of the officers and directors thereof, in the event that applicant is really an organization, are such as for example to justify the fact that the company is likely to be operated lawfully, genuinely, and fairly under parts 1321.01 to 1321.19 associated with Revised Code and in the purposes of these sections, that the applicant has completely complied with those parts, and that the applicant is qualified to do something being a lender that is licensed
(B) That the applicant has readily available for the procedure of these company money or moneys deposited in a fund that is readily accessible account of no less than twenty-five thousand bucks.
In the event that unit will not therefore find, it shall enter an purchase denying such application and forthwith notify the applicant of this denial, the lands for the denial, as well as the applicant’s reasonable chance to be heard in the action according to Chapter 119. Associated with Revised Code. The division shall return the license fee but shall retain the investigation fee in the event of denial.
Effective Date: 09-26-1996.
1321.05 Articles of permit — annual cost and evaluation — present assets.
Each permit shall state the address of which the company is become carried out and shall state completely the title regarding the licensee. Each permit shall conspicuously be kept published instead of business of this licensee and is maybe perhaps not transferable or assignable.
Each license shall stay in effect until surrendered, revoked, or suspended under part 1321.08 or 3123.47 associated with the Revised Code. Every licensee shall each pay to the division of financial institutions a license fee and an assessment as determined by the superintendent pursuant to section 1321.20 of the Revised Code year. Re Payment of these renewal charge will be based on the conditions for this area while the renewal that is standard of parts 4745.01 to 4745.03 associated with Revised Code. Hardly any other or further permit cost or evaluation will be needed from such licensee by hawaii or any governmental subdivision into the state.
Every licensee shall keep for every license present assets of at the least ten thousand bucks, in a choice of usage or intended for used in the conduct associated with company.
Effective Date: 03-22-2001.