§ 26-75. Transaction satisfaction and default.

(a)

When the title loan has been paid in full, the title loan lender must deliver to the borrower a certificate of title, clear of all encumbrances placed upon the title by the title loan lender, within 30 days of such payment in full.

(b)

A title loan lender who engages in title loan transactions may take possession of the motor vehicle upon the borrower's default under the title loan agreement if the title has not been redeemed from the title loan lender or there has been no payment on account within 40 days. Unless the borrower voluntarily surrenders the motor vehicle, the title loan lender may only take possession of a motor vehicle through an agent licensed by the State of Florida to repossess motor vehicles.

(c)

A title loan lender who takes possession of a motor vehicle pursuant to this section shall comply with the applicable requirements of F.S. ch. 679, pt. V.

(d)

Disposition of the motor vehicle may be by public or private proceedings and may be made by way of one or more contracts. Sale or other disposition may be as a unit or in parts and at any time and place and on any terms, but every aspect of the disposition including the method, manner, time, place and terms including surplus of the debt must be commercially reasonable and conducted in compliance with F.S. ch. 679, pt. V, which includes, among other requirements, borrower notification requirements as to manner, method of sale as well as an accounting to the borrower of any surplus from the sale. In addition, within 30 days after the sale of the motor vehicle after repossession, the title loan borrower is entitled to receive moneys from the sale of the motor vehicle in excess of the principal amount of the loan, interest on the loan up to the date of repossession and reasonable expenses for the repossession holding and sale of the motor vehicle.

(e)

Following repossession but prior to disposition of the motor vehicle by sale, the borrower shall have the right to redeem the motor vehicle by payment of the full amount due as of the date of tender of the redemption offer plus the reasonable costs of repossession. The title lender shall send a certified letter to the borrower after repossession allowing borrower 10 days to redeem their vehicle. The title loan lender shall return the motor vehicle immediately and release the certificate of title with all of the title loan lender's liens on the property released within 30 days of the payment of the full amount due.

(f)

Each title loan lender shall maintain all books, accounts, records, receipts for expenses, each contract signed by a borrower, and all other documents associated with each title loan transaction at the location at which the title loan was made for a period of two years following the origination date of the loan agreement. Any law enforcement officer shall have the right to inspect any title loan office's records to determine compliance with the requirements of this article. Such physical inspection shall be conducted during normal business hours and shall be for the purpose of determining compliance with the requirements of this article and investigating title loan transactions or inspecting title loan lender's books, accounts, records, receipts for expenses, each contract signed by a borrower and all other documents associated with title loan transactions.

(g)

Each title loan lender shall designate and maintain an agent in this state for service of process.

(h)

No part of this article shall be construed to impair or affect the obligation of any title loan agreement which was lawfully entered into prior to the effective date of this article.

(Ord. No. 99-21, § I, 7-1-99)