§ 1-10-333. Conditions for engaging in title loan transactions.

(a)

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

(1)

The title loan lender maintains physical possession of the motor vehicle certificate of title.

(2)

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

(3)

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

(4)

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

a.

The make, model and year of the motor vehicle pledged as collateral for the loan;

b.

The vehicle identification number (VIN) and license plate number of the motor vehicle pledged as collateral for the loan;

c.

The name, address, date of birth, physical description and Social Security number of the borrower;

d.

The date of the transaction;

e.

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

f.

The amount of money loaned or advanced to the borrower, designated on the title loan agreement as the "amount financed";

g.

The maturity date of the title loan agreement which shall be thirty (30) days after the date the title loan agreement is executed by the title loan lender and the borrower, designated on the title loan agreement as the "maturity date";

h.

The total amount of all interest charged by the title loan lender and payable on the maturity date, designated on the title loan agreement as the "finance charge";

i.

The total amount, including the amount financed and the finance charge, which must be paid to redeem the motor vehicle pledged as collateral for the loan on the maturity date and designated on the title loan agreement as the "total amount due";

j.

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

k.

The name and address of the title loan office and the address of the location for accepting loan payments from the borrower, if different from the title loan office;

l.

A statement, printed in not less than fourteen (14) point bold type, in both English and Spanish stating the following:

I. YOUR MOTOR VEHICLE HAS BEEN PLEDGED AS SECURITY FOR THIS LOAN. IF YOU DO NOT REPAY THIS LOAN IN FULL BY (INSERT DUE DATE) INCLUDING THE FINANCE CHARGES (INTEREST ACCRUED), THEN YOU WILL LOSE YOUR VEHICLE.

II. YOU ARE ENCOURAGED TO REPAY THIS LOAN AT THE END OF THE THIRTY (30) DAY PERIOD. THE LENDER IS NOT REQUIRED TO EXTEND OR RENEW YOUR LOAN AND MAY REPOSSESS YOUR VEHICLE IF YOU DO NOT REPAY THE LOAN AND THE FINANCE CHARGE (INTEREST ACCRUED). IT IS IMPORTANT THAT YOU PLAN YOUR FINANCES SO THAT YOU CAN REPAY THIS LOAN AS SOON AS POSSIBLE.

III. 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 A RATE LOWER THAN .2O PERCENT PER DAY, SIX PERCENT (6%) PER THIRTY (30) DAY PERIOD OR AN ANNUAL PERCENTAGE RATE OF LOWER THAN SEVENTY TWO PERCENT (72%).

m.

The following statement shall be placed immediately above the signature line of the borrower on the title loan agreement in English and Spanish:

"I, the undersigned borrower, represent and warrant that the motor vehicle and certificate of title pledged as collateral for this loan is not stolen, that said motor vehicle has no liens and encumbrances against it, that I have the right to enter into this transaction and I will not attempt to sell the motor vehicle or apply for a duplicate certificate of title while this title loan agreement is in effect. Borrower further declares that the information I have provided is true and correct and I have read and understand the foregoing title loan agreement."

n.

A blank line for the signature of the borrower.

(Ord. No. 2000-002, § 3, 1-25-00)