§ 26-74. Maximum interest rate.

(a)

A title loan lender may not charge an interest rate in excess of the following rates: .08219 percent per day or 2.5 percent per 30-day period or an annual percentage rate of 30 percent on any single title loan agreement. In determining compliance with the maximum interest and finance charges, the computation must be simple interest and not add-on interest or any other interest computation.

(b)

The annual percentage rate that may be charged in a motor vehicle title loan may equal, but not exceed, the annual percentage rate that must be computed and disclosed as required by the Federal Truth in Lending Act and Regulation Z of the Board of Governors of the Federal Reserve System. When the period for which the charge is computed is more or less than one month, the minimum rate for the period must be computed on a basis of 1/30 the applicable monthly interest rate, multiplied by the number of days of the period.

(c)

Any transaction involving a borrower's delivery of a motor vehicle certificate of title in exchange for the advancement of funds on the condition that the borrower shall or may redeem or repurchase the certificate of title upon the payment of a sum of money, whether the transaction be characterized as a "buy-sell agreement," "sale-leaseback agreement," or otherwise, shall be deemed a violation of this article if such sum exceeds the amount that a title loan lender may collect in a title loan agreement under this article or if the terms of the transaction otherwise conflict with the permitted terms and conditions of a title loan agreement under this article.

(d)

Any fees or taxes paid to a state agency and directly related to an individual title loan transaction may be collected from the borrower and shall be in addition to the permitted finance and interest charge.

(Ord. No. 99-21, § I, 7-1-99)