Sub. H.B. 545

127th General Assembly

(S. Finance & Financial Institutions)

Short-Term Lender Law

Requires criminal records checks of applicants for a renewal license on a schedule determined by the Superintendent of Financial Institutions.

Requires that the location where the business of making loans is to be conducted, rather than the approximate location, be included on each application for a license.

Requires the development of the statewide common database of loans only if more than 400 persons are licensed under the Short-Term Lender Law at any point after September 1, 2009.

If the database is not developed, requires licensees to subscribe to, report to, and use an electronic database tracking service.

Adds record-keeping and annual reporting requirements for licensees.

States that the bill does not prevent the Division of Financial Institutions from releasing information relating to licensees to the Attorney General for purposes of that office's administration of the Consumer Sales Practices Act (R.C. Chapter 1345.).

Permits the Superintendent to impose monetary fines of not more than $1,000 per violation.

Removes the mandatory suspension or revocation of a short-term lender license if a licensee continues to violate the Law after receiving notice of the violation from the Superintendent.

Small Loan Law

If any person licensed under the Check-Cashing Lender Law on the bill's effective date applies for a license to operate under the Small Loan Law for the 2008 licensing period ending June 30, 2009, requires the payment of only one-half of the licensee fee.

Prohibits the making of more then one loan to a person at the same time "for the purpose or with the result of" obtaining greater charges than would otherwise be allowed on a single loan.

Credit Union Law

Removes from the bill the authority granted credit unions to make unsecured loans under the terms and conditions set forth in the Short-Term Lender Law.

Eliminates the authority provided under current law for credit unions to make certain high-cost, short-term loans.

Savings and Loan Association Law

Removes from the bill the authority granted savings and loan associations to make unsecured loans under the terms and conditions set forth in the Short-Term Lender Law.

Bank Law

Removes from the bill the specific authority granted to banks to make short-term installment loans in connection with the Short-Term Installment Loan Linked Deposit Program "notwithstanding the interest rate permitted under [the Bank Law]."

H0545-127.doc/ar 5/19/2008