§ 314.07. Licenses.

(a)

No person may engage in business as a title loan lender ninety (90) days after the effective date of this chapter unless the title loan lender has a valid license issued by the department. A separate license will be required for each physical location of title loan business. The department shall issue more than one license to an applicant if that applicant complies with the requirements of this section for each license.

(b)

An application for a license pursuant to this section must be submitted to the department on such form as the department may prescribe. If the department determines that a license should be granted, it shall issue the license for a period not to exceed two (2) years. A non-refundable application and license fee shall accompany an initial application for each title loan application.

(c)

A title loan lender shall pay a biennial license renewal fee. A license that is not renewed at the end of each two (2) year period shall automatically become inactive. An inactive license may be reactivated within ninety (90) days after the date it became inactive upon the submission of a completed reactivation form and payment of a reactivation fee. No inactive license may be reactivated after ninety (90) days.

(d)

All fees required pursuant to this section, including the initial application and license fee, license renewal fee and reactivation fee shall be established by resolution of the commission.

(e)

Each license must specify the location for which it is issued and shall be conspicuously displayed at that location. When a title loan lender wishes to move a title loan office to another location the title loan lender shall give thirty (30) days prior written notice to the department by certified or registered mail, return receipt requested, and the department shall then amend the license accordingly. A license issued pursuant to this section is not transferable or assignable.

(f)

A title loan lender licensed pursuant to this section shall designate and maintain an agent in this state for service of process.

(g)

A title loan lender licensed pursuant to this section shall apply to the department for a new license upon a change in ownership of twenty-five (25) percent or more by a natural person in any title loan location or office. No application for a license or an application for transfer of an existing license is required for any change, directly, or beneficially, in the ownership of a title loan location if one or more of the holders of at least seventy-five (75) percent of the outstanding equity interest in the title loan location or office before the change in ownership continue to hold at least seventy-five (75) percent of the outstanding equity interest in the title loan location or office after the change in ownership.

(h)

To be eligible for a license to engage in title loan transactions, an applicant must:

(1)

File with the department a bond in the amount of one hundred thousand dollars ($100,000.00) for each license with a surety company qualified to do business in this state. The bond shall be to the department and in favor of any consumer who is injured in the context of a title loan transaction by the fraud, misrepresentation, breach of contract, financial failure or other failure of the business, unfair or deceptive trade practice, disclosure violation, or violation of any provision of this chapter by the title loan lender. The term of the bond shall be for at least the term of the license. An injured consumer may bring an action in a court of competent jurisdiction against the surety bond. The court shall award to a prevailing consumer reasonable attorney's fees and costs, including appellate attorney's fees and costs. The surety bond shall require that any surety company canceling a bond provided to a title loan lender pursuant to this section shall notify the department of such cancellation in writing at least ten (10) days before cancellation.

(2)

Not have been convicted of a felony within the last ten (10) years or be acting as an ultimate equitable owner for someone who has been convicted of a felony within the preceding ten (10) years.

(3)

Not have been convicted, and not acting as an ultimate equitable owner for someone who has been convicted, of a crime directly related to the duties and responsibilities of a title loan lender within the preceding ten (10) years.

(i)

If an applicant for a title loan lending license is other than a corporation, the eligibility requirements of subsections (h)(2) and (h)(3) shall apply to each direct or ultimate equitable owner.

(j)

If an applicant for a title loan lending license is a corporation, the eligibility requirements of subsections (h)(2) and (h)(3) apply to each direct or ultimate equitable owner of at least twenty-five (25) percent of the outstanding equity interest of such corporation and to each department and executive officer.

(k)

The department shall determine the form of the license and may perform criminal background checks as appropriate to this section.

(l)

Licensees shall report changes in address, location of records, and any change of an executive officer within thirty (30) days of the change.

(Ord. No. 99-27, § 7, 9-29-99)