§ 10-84. Maximum interest rate, prepayment, amount of loan.

(a)

A title loan lender may not charge an interest rate in excess of .08219 percent per day, or two and one-half (2½%) percent per thirty-day period that the title loan agreement remains outstanding and unsatisfied. In determining compliance with the minimum interest and finance charges, the computation must be simple interest and not add-on interest or any other interest computation.

(b)

If the title loan agreement has not been satisfied within three hundred sixty (360) days, a title loan lender may not charge an interest rate in excess of eighteen (18) percent per annum for the time the title loan agreement remains outstanding and unsatisfied beyond three hundred sixty (360) days regardless of whether the loan is in default.

(c)

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 one-thirtieth ( 1/30 ) the applicable monthly interest rate, multiplied by the number of days of the period.

(d)

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-lease back 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.

(e)

No charges, including interest, in excess of the combined total of all charges permitted by this article shall be allowed.

(f)

Prepayment or advance payment (partial or total) of principal shall be allowed without penalty after all accrued finance charges have been paid.

(g)

The maximum amount of any motor vehicle title loan secured by a single certificate of title may not exceed one-third ( 1/3 ) the wholesale value of the pledged automobile as determined by the most current edition of the N.A.D.A Official Used Car Guide.

(Ord. No. 99-33, § 2, 10-5-99)