Ohio Administrative Code › Title 1301:8 - Division of Financial Institutions: Consumer Finance › Chapter 1301:8-2 - Small Loan Act › Section 1301:8-2-04 - Recordkeeping requirements

Current through all regulations passed and filed through July 1, 2024
(A) All small loan records required to be
			 maintained by this rule shall be kept current and shall be available at all
			 times during normal business hours for review by the division of financial
			 institutions. Records shall be legible and maintained in a type size that is
			 clearly readable without magnification, and in conformity with any specific
			 typeface or font size that may be required by state or federal law. Except
			 where otherwise provided by federal or state law, records shall be maintained
			 in English. When records are allowed to be in a language other than English,
			 the small loan licensee, at its expense, shall be responsible for providing the
			 division with a full and accurate translation. For purposes of recordkeeping,
			 "current" means within thirty business days from the date of the occurrence of
			 the event required to be recorded. Pursuant to section
			 1321.09
			 of the Revised Code, each small loan licensee shall maintain the following
			 paper or electronic records for all loans made
			 pursuant to sections
			 1321.01 to
			 1321.19
			 of the Revised Code for at least a period of two years after making the final
			 entry  at either the licensed
			 office or any other location approved in writing in advance by the
			 superintendent of financial institutions.
(1)
			 A ledger record shall be kept for each outstanding loan paid in full within the
			 last two years upon which a chronological entry of all credits, debits,
			 payments and charges received, assessed or disbursed in connection with the
			 loan shall be recorded in an identifiable manner, in order to show the actual
			 date of receipt, assessment or disbursement and the balance due on the account
			 after each entry.
(2) A loan
			 statement kept in chronological order shall be maintained in one file for at
			 least two years after making the final entry for each loan made by the
			 licensee. The loan statement shall disclose the following information if
			 applicable:
(a) Account number;
(b) Principal borrower's name and residence
			 address;
(c) Date of
			 loan;
(d) Date finance charges
			 begin to accrue;
(e) Contractual
			 rate of loan interest;
(f) Federal
			 annual percentage rate;
(g) Loan
			 origination charge;
(h) Original
			 principal amount;
(i) Scheduled or
			 precomputed interest;
(j) Total of
			 payments;
(k) Type of
			 security;
(l) Terms of
			 repayment;
(m) Names of all
			 comakers, guarantors, or other obligors;
(n) Types and amount of credit-related
			 insurance;
(o) Unit default
			 charge;
(p) Credit bureau
			 fee;
(q) Where and to whom
			 hypothecated;
(r) An indication as
			 to whether or not the loan is a "refinancing," as that term is defined in
			 division (A)(11) of section
			 1321.01 of
			 the Revised Code.
(3)
			 All loan agreements, notes, disclosure forms, closing statements, security
			 agreements and other documents signed by the obligors and taken in connection
			 with loans made, shall be identified by the loan number and maintained in a
			 separate file for each borrower.
(4) An alphabetical index of all borrowers,
			 comakers, guarantors, and other obligors identified by account number shall be
			 maintained with respect to all persons obligated for interest in excess of the
			 current usury rate.
(5) A record of
			 all loans in litigation shall be maintained in a litigation record. The
			 litigation record shall be maintained for at least two years after the final
			 entry,
									 be kept current, and include the following information:
(a) Loan number and name of principal
			 borrower;
(b) Date litigation
			 proceedings were initiated, the date and amount of the judgment and the
			 judgment rate of interest;
(c) All
			 original litigation records and documents, including pleadings, court orders,
			 judgments, and documentation of all court costs paid by the borrower to or
			 through the licensee, or copies thereof shall be maintained in the file of
			 original papers; and
(d) In cases
			 of garnishment or attachment, all notices served on employers or copies thereof
			 and the amounts collected shall be maintained in the file of original loan
			 papers.
(6) A record of
			 all loans in repossession shall be maintained in a repossession record. The
			 repossession record shall be maintained for at least two years after the final
			 entry has been made on the loan, be kept current, and include the following
			 information:
(a) Loan number and name of
			 principal borrower;
(b) Type of
			 security attached, replevined, repossessed, or surrendered;
(c) Date of repossession, date of sale of the
			 security, the gross amount received from the sale of the security, expenses
			 deducted from the sale of the security and the amount of money applied to the
			 outstanding loan balance;
(d) All
			 original repossession legal documents and other records, including bills for
			 all expenses or copies thereof shall be maintained in the file of original loan
			 papers; and
(e) In instances where
			 the security is offered for private sale, there must be in the borrower's file
			 not less than three bona fide written bids or appraisals in order to establish
			 that the terms of sale were fair to the borrower. Where the security is offered
			 for private or public sale, the sale must be consummated in compliance with the
			 provisions of sections
			 1309.610,
			 1309.611,
			 1309.615,
			 1309.617,
			 and
			 1309.624 of
			 the Revised Code.
(7) A
			 credit life claim record shall be maintained for all loans upon which a credit
			 life claim has been paid by the insurer. The credit life claims record shall be
			 maintained for at least two years after the final entry has been made on the
			 loan, be kept current, and include the following information:
(a) Loan number and name of principal
			 borrower;
(b) Date of death and a
			 certified copy of the death certificate or a copy thereof;
(c) Name and address of second beneficiary,
			 if any; and
(d) Copies of all
			 checks received or paid pertaining to a credit life claim.
(8) Histories of nonpublished indices used to
			 establish interest rates for variable rate loans shall be maintained for two
			 years from date of usage, and shall be available for review by the division of
			 financial institutions.
(9) A log
			 for business conducted with brokers that is maintained in chronological order
			 and contains the following information:
(a)
			 Amounts of fees paid to brokers;
(b) Names and addresses of brokers;
			 and
(c) Dates of transactions with
			 brokers.