Chapter 1321: SMALL LOANS
1321.01 Little 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 granted under parts 1321.01 to 1321.19 associated with the Revised Code which will make loans at a solitary office.
(3) “Licensee” means someone to who more than one licenses were granted.
(4) “Principal quantity” 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 with a debtor to a licensee as an ailment to financing or an application for the loan, nevertheless denominated, but doesn’t consist of standard costs, deferment costs, insurance coverage fees or premiums, court expenses, loan origination fees, always check collection fees, personal line of credit fees, credit history costs, or other charges and fees 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 gathered on unpaid balances that are principal every once in awhile.
(7) “Precomputed loan” means that loan where the financial obligation is an amount comprising the major amount and the total amount of interest computed ahead of time from the presumption that every planned payments would be made whenever due.
(8) “Actuarial method” means the technique of allocating payments made on that loan between your principal amount and interest whereby a repayment is applied first towards the accumulated interest as well as the rest towards the unpaid principal amount.
(9) “Applicable cost” means the quantity of interest owing to each monthly installment amount of the mortgage contract. The applicable fee is computed just as if each installment duration had been a month and any fee for expanding the initial installment duration beyond a month is ignored. When it comes to loans initially planned become paid back in sixty-one months or less, the relevant cost for just about any installment period is the fact that proportion associated with the total interest contracted for, while the stability planned to be outstanding throughout that duration bears towards the amount of most of the regular balances, all determined in accordance with the repayment routine initially contracted for. In most other situations, the relevant cost for any installment period is the fact that which will happen made for such period had the mortgage been made for an interest-bearing foundation at the single price supplied in division (A) of part 1321.13 associated with Revised Code, in relation to the presumption that most repayments had been made based on routine.
(10) “Annual portion rate” means the ratio associated with the interest on that loan towards the unpaid principal balances in the loan for almost any amount of time, expressed on a basis that is annual.
(11) “Refinancing” means that loan the profits of that are found in entire or in component to cover the unpaid balance of a loan that is prior because of the exact same licensee to your same debtor under sections 1321.01 to 1321.19 associated with the Revised Code.
(12) “Superintendent of finance institutions” includes the deputy superintendent for customer finance as supplied in part 1181.21 associated with Revised Code.
(B) The division of banking institutions accounts for the management of parts 1321.01 to 1321.19 associated with the Revised Code. Neither the superintendent associated with unit, nor any deputy, associate, clerk, examiner, or other individual used by the unit to aid into the management of such parts will be interested, straight or indirectly, in the commercial certified beneath the parts and anyone therefore interested or who becomes therefore interested shall never be qualified to put on or retain any position that is such.
Effective Date: 09-26-1996.
1321.02 Exceptions to license requirement.
No individual shall participate in the company of lending cash, credit, or choses for action in quantities of five thousand bucks or less, or precise, agreement for, or get, straight or indirectly, on or in experience of any loan that is such any interest and fees that within the aggregate are more than the attention and costs that the financial institution could be allowed to charge for a financial loan of cash in the event that loan provider weren’t a licensee, without first installment loans south carolina online 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 the permit will probably be on paper, under oath, as well as in the shape recommended because of the division of banking institutions, and shall retain the title and address for the applicant, and, in the event that applicant is a partnership or relationship, of each and every member thereof, and, in cases where a business, of every officer and manager thereof; additionally the approximate location where in fact the company is become conducted and such further appropriate information as the unit requires. 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 charge or any portion thereof shall be refunded following a permit happens to be granted.
Effective Date: 09-26-1996.
1321.04 Research by unit – notice of filing of application – notice to licensees – permit 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 applying and problem and deliver a license to your applicant if the unit discovers each of the annotated following:
(A) That the economic obligation, experience, reputation, and basic physical physical physical fitness of this applicant as well as the people thereof, in the event that applicant is 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 business enterprise is likely to be operated lawfully, actually, and fairly under parts 1321.01 to 1321.19 for the Revised Code and in the purposes of the parts, that the applicant has completely complied with those parts, and that the applicant is qualified to behave being a lender that is licensed
(B) That the applicant has designed for the procedure of these company money or moneys deposited in a readily available fund or account of for around twenty-five thousand bucks.
The grounds for the denial, and the applicant’s reasonable opportunity to be heard on the action in accordance with Chapter 119. Of the Revised Code if the division does not so find, it shall enter an order denying such application and forthwith notify the applicant of the denial. In case of denial, the unit shall return the license cost but shall wthhold the research charge.
Effective Date: 09-26-1996.
1321.05 Articles of permit – annual cost and assessment – present assets.
Each permit shall state the target of which the company is become carried out and shall state completely the title associated with the licensee. Each permit shall conspicuously be kept published as opposed to company of this licensee and it is maybe maybe perhaps not transferable or assignable.
Each permit shall stay static in effect until surrendered, revoked, or suspended under part 1321.08 or 3123.47 associated with 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. Payment of these renewal cost will probably be in line with the conditions with this section and also the renewal that is standard of parts 4745.01 to 4745.03 associated with the Revised Code. Hardly any other or further permit charge or evaluation will probably be needed from any such licensee by hawaii or any governmental subdivision into the state.
Every licensee shall keep for every single permit present assets of at the very least ten thousand bucks, either in usage or designed for use within the conduct associated with the company.
Effective Date: 03-22-2001.