Chapter 1321: SMALL LOANS
1321.01 Tiny loan definitions.
(A) As utilized in parts 1321.01 to 1321.19 for the Revised Code:
(1) “Person” includes individuals, partnerships, associations, trusts, corporations, and all sorts of other entities that are legal.
(2) “License” means a permit released under parts 1321.01 to 1321.19 associated with the Revised Code which will make loans at a place that is single of.
(3) “Licensee” means an individual to who more than one licenses have already been given.
(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 fees payable straight or indirectly by way of a debtor up to a licensee as a disorder to financing or a credit card applicatoin for a financial loan, nevertheless denominated, but will not add default fees, deferment fees, insurance coverage fees or premiums, court expenses, loan origination fees, check always collection fees, line of credit fees, credit history fees, or any other charges and costs particularly 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 major balances outstanding every so often.
(7) “Precomputed loan” means that loan where the financial obligation is just a amount comprising the major quantity and the quantity of interest computed ahead of time in the presumption that every planned re re payments will soon be made whenever due.
(8) “Actuarial technique” means the strategy of allocating payments made on that loan between your principal amount and interest whereby a repayment is applied first to your accumulated interest together with rest towards the unpaid principal amount.
(9) “Applicable cost” means the total amount of interest due to each month-to-month installment amount of the loan agreement. The charge that is applicable computed just as if each installment duration were a month and any cost for expanding the very first installment duration beyond a month is ignored. When it comes to loans initially planned become paid back in sixty-one months or less, the applicable fee for just about any installment period is proportion associated with the total interest contracted for, since the stability planned to be outstanding through that duration bears to your amount of all the regular balances, all determined in line with the repayment routine originally contracted for. The applicable charge for any installment period is that which would have been made for such period had the loan been made on an interest-bearing basis at the single rate provided in division (A) of section 1321.13 of the Revised Code, based upon the assumption that all payments were made according to schedule in all other cases.
(10) “Annual portion rate” means the ratio of this interest on that loan into the unpaid principal balances from the loan for just about any amount of time, indicated on a basis that is annual.
(11) “Refinancing” means that loan the profits of that are utilized in entire or perhaps in component to cover the unpaid balance of the loan that is prior by the same licensee into the exact exact exact same debtor under parts 1321.01 to 1321.19 associated with the Revised Code.
(12) “Superintendent of banking institutions” includes the deputy superintendent for customer finance as supplied in area 1181.21 regarding the Revised Code.
(B) The unit of banking institutions accounts for the management of parts 1321.01 to 1321.19 regarding the Revised Code. Neither the superintendent associated with unit, nor any deputy, associate, clerk, examiner, or any other individual used by the division to help when you look at the management of these parts will be interested, straight or indirectly, in the commercial certified beneath the parts and anyone therefore interested or whom becomes therefore interested shall never be qualified to hold or retain any such place.
Effective Date: 09-26-1996.
1321.02 Exceptions to license requirement.
No individual shall take part in the company of lending cash, credit, or choses for action in levels of five thousand bucks or less, or precise, agreement for, or receive, straight or indirectly, on or in reference to any loan that is such any interest and costs that into the aggregate are higher than the attention and costs that the lending company is allowed to charge for the loan of income in the event that loan provider weren’t a licensee, without very first having acquired a permit through the unit of banking institutions under parts 1321.01 to 1321.19 for 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 – cost.
Application for a permit will be written installment loans in north dakota down, under oath, as well as in the proper execution recommended by the division of finance institutions, and shall retain the title and address for the applicant, and, in the event that applicant is just a partnership or relationship, of each and every user thereof, and, if your organization, of each and every officer and manager thereof; additionally the approximate location where in actuality the company is become conducted and such further appropriate information as the unit 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 charge or any portion thereof shall be refunded following a permit is released.
Effective Date: 09-26-1996.
1321.04 Research by unit – notice of filing of application – notice to licensees – license given – 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 and problem and deliver a permit into the applicant if the unit finds each of the annotated following:
(A) That the monetary duty, experience, reputation, and basic physical fitness regarding the applicant and of the users thereof, in the event that applicant is a partnership or a link, as well as the officers and directors thereof, in the event that applicant is just an organization, are such as for instance to justify the fact that the company will undoubtedly be operated lawfully, really, and fairly under parts 1321.01 to 1321.19 associated with Revised Code and inside the purposes of these parts, that the applicant has completely complied with those parts, and that the applicant is qualified to do something being a licensed loan provider;
(B) That the applicant has designed for the procedure of these company money or moneys deposited in a fund that is readily accessible 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. 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 license – yearly charge and assessment – present assets.
Each permit shall state the target of which the continuing company is become carried out and shall state completely the title associated with licensee. Each permit shall be held conspicuously published in place of company for the licensee and it is perhaps maybe 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 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 in line with the conditions with this area together with standard renewal procedure of parts 4745.01 to 4745.03 associated with Revised Code. No other or license that is further or evaluation will probably be needed from such licensee because of their state or any governmental subdivision when you look at the state.
Every licensee shall keep for every single permit present assets with a minimum of ten thousand dollars, in a choice of usage or designed for used in the conduct regarding the business.
Effective Date: 03-22-2001.