§ 26-73. Motor vehicle title loan transactions.

(a)

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

(1)

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

(2)

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

(3)

The borrower shall not be 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 the following information:

a.

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

b.

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,

c.

The full name, home address, workplace, date of birth, physical description including height, weight, gender, hair color and eye color, of the borrower as verified by identification such as a driver's license or military identification,

d.

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

e.

The date of the transaction,

f.

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

g.

The maturity date of the title loan agreement,

h.

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

i.

The total number of payments required,

j.

The total amount, 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,"

k.

The rate of interest expressed in terms of the annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-In-Lending Act,

l.

The name and address of the title loan business,

m.

A statement printed in not less than 14-point, bold type that:

"1.

YOUR VEHICLE HAS BEEN PLEDGED AS SECURITY FOR THIS LOAN AND IF YOU DO NOT REPAY THIS LOAN IN FULL, INCLUDING THE FINANCE CHARGE, YOU WILL LOSE YOUR VEHICLE.

2.

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 AN ANNUAL PERCENTAGE RATE LOWER THAN 30 PERCENT PER YEAR OR 2½ PERCENT PER MONTH."

n.

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,"

o.

Immediately above the signature of the borrower, a statement that: "I, the borrower, declare that the information I have provided is true and correct and I have read and understand the foregoing document,"

p.

A blank line for the signature of the borrower.

(5)

A title loan lender must display in a prominent place on the title loan office premises, for customer viewing, a sign no smaller than three feet by five feet with the following message and in letters no less than four 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 OR 2.5 PERCENT PER 30-DAY PERIOD OR AN ANNUAL PERCENTAGE RATE OF 30 PERCENT."

(6)

The motor vehicle title loan agreement cannot be assigned or transferred by the title loan lender. Any assignment will render the motor vehicle title loan agreement void and unenforceable as against the borrower.

(7)

The initial term of any motor vehicle title loan may not be for less than 30 days. The title loan agreement may be renewed upon the consent of both the title loan lender and the borrower.

(8)

The title loan lender cannot give a motor vehicle title loan in which the title to a mobile home is pledged as security for the loan.

(b)

No part of this article shall be construed to impair or affect the obligation of any title loan agreement or contract that was lawfully entered into prior to the effective date of this article [Ord. No. 99-21].

(Ord. No. 99-21, § I, 7-1-99)