Ohio Administrative Code › Title 1301:8 - Division of Financial Institutions: Consumer Finance › Chapter 1301:8-3 - Second Mortgage Loan Act › Section 1301:8-3-07 - General provisions for registrants

Current through all regulations passed and filed through July 1, 2024
(A) Except in the cases of loans made by
			 direct mail as defined in this chapter, loans where the additional signature of
			 a spouse, co-signor or guarantor is necessary or loans where one or more of the
			 obligors is ill or disabled, no loan agreements, security agreements or other
			 documents or papers involved with the making or renewing of a loan shall be
			 signed by any obligor anywhere other than on the registrant's registered
			 premises. In the instances when the additional signature of a spouse, co-signor
			 or guarantor is necessary or when one or more of the obligors is ill or
			 disabled, the signature may be obtained at an address other than that
			 registered, but in no case may the signature be obtained by any person other
			 than an obligor, an employee of the registrant, or authorized agent of the
			 registrant.
(B) For purposes of
			 sections 1321.51 to
			 1321.60 of the Revised Code, a
			 loan is considered closed upon the signature of the obligor or obligors unless
			 the loan contract is not executed by signature, in which case the loan is
			 considered closed upon disbursement of loan funds.
(C) All loans made pursuant to sections
			 1321.51 to
			 1321.60 of the Revised Code, if
			 made by direct mail as defined in this chapter, shall be made from a place of
			 business for which the registrant holds a valid certificate of registration
			 pursuant to section 1321.52 of the Revised
			 Code.
(D) Registrants have an
			 ongoing duty to notify the division of financial institutions of material
			 changes in the information contained in the application and exhibits, schedules
			 and other documentation submitted in conjunction with the application, and to
			 report all changes or additions to information in the application within thirty
			 days of the change. Material changes in the information include changes in
			 affiliations, controlling interest, officers, directors, criminal record, and
			 any change in net worth below the requirements in section
			 1321.53 of the Revised Code and
			 
								Chapter 1301:8-3 of the Administrative Code.
(E) The registrant shall obtain written
			 consent of the borrower for any purchase of insurance on property other than
			 that which is used as security for the loan.
(F) A registrant under sections
			 1321.51 to
			 1321.60 of the Revised Code
			 shall permit payment to be made in advance in any amount on any contract at any
			 time, but the registrant may apply the payment first to interest and charges
			 due up to the date of payment.
(G)
			 The registrant shall notify the 
								borrower in the instance of a non-amortized or
			 partially amortized interest-bearing loan, the registrant shall provide the
			 borrower with written notice of maturity at least ninety but not more than one
			 hundred twenty days prior to the expected maturity date.
(H)
			 Registrants shall clearly indicate by prominently disclosing on, or in, the
			 loan documents, the federal or state statutory authority pursuant to which a
			 loan is made. For purposes of this chapter, registrants shall be required to
			 provide this prominent disclosure on loans made:
(1) Solely in reliance on the provisions of
			 sections 1321.51 to
			 1321.60 of the Revised
			 Code;
(2) Partially in reliance on
			 the provisions of sections
			 1321.51 to
			 1321.60 of the Revised Code;
			 or
(3) In reliance on any
			 combination of federal or state provisions that do not include sections
			 1321.51 to
			 1321.60 of the Revised
			 Code.