§ 18-142. Motor vehicle title loan transactions.

A secondhand dealer registered under chapter 538, part I, Florida Statutes, may engage in motor vehicle title loan transactions, as that term is used in chapter 538, part I, Florida Statutes, if the following conditions are met:

(a)

The secondhand dealer maintains physical possession of the motor vehicle certificate of title; and

(b)

The borrower maintains possession of, or control over, the motor vehicle throughout the term of the loan; and

(c)

The borrower is not required to pay rent or any other charge for the use of the motor vehicle and shall have the right to cancel the motor vehicle title loan agreement within ten days of its execution upon verbal or written notice of cancellation to the lender and return of all funds borrowed pursuant to the agreement; and

(d)

The secondhand dealer delivers to the borrower, at the time a loan is made, a statement showing the loan amount, origination date, maturity date, finance charges, a description of the security, the name and address of the borrower and the secondhand dealer, the rate of interest expressed in terms of annual Percentage rate, the total number of Payments required, and the total amount required to be paid over the life of the loan. In the event the borrower has a right to renew the loan, the secondhand dealer must deliver a statement with the information required herein for each renewal; and

(e)

The title loan agreement contains the following statements printed in not less than 14 point type and with the indicated language in upper case:

(1)

Your vehicle has been pledged as security for this loan and if you do not repay this loan in full, including the finance charge, YOU MAY LOSE YOUR VEHICLE.

(2)

You are encouraged to repay this loan at the end of the 30 day period. The lender is not required to extend or renew your loan. It is important that you plan your finances so that you can re-pay this loan as soon as possible.

(3)

THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE THIS LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW FROM ANOTHER SOURCE AT A RATE LOWER THAN 18% PER MONTH OR AN ANNUAL PERCENTAGE RATE OF 72%.

(4)

The borrower represents and warrants that the motor vehicle and the certificate of title is not stolen, it has no liens or encumbrances against it, the borrower has the right to enter into this transaction, and the borrower will not attempt to sell the motor vehicle or apply for a duplicate certificate of title while the title loan agreement is in effect, and that doing so will be a violation of law.

(5)

Immediately above the signature of the borrower the statement that "I, the borrower declare that the information I have provided is true and correct and I have read and understand the foregoing document. I also understand that I may cancel this contract within ten days of today's date if I return all money I am borrowing under this contract to the lender within the same ten days."

(6)

A blank line for the signature of the borrower.

(f)

The secondhand dealer must display, in a prominent place in the title loan premises, for customer viewing, a sign no smaller than three feet by five feet (3' × 5') with the following message written in upper case letters no less than two (2) inches high:

"IF YOU RECEIVE A TITLE LOAN, YOUR VEHICLE WILL BE PLEDGED AS SECURITY FOR THE LOAN. IF YOU DO NOT REPAY THIS LOAN IN FULL, INCLUDING ALL FINANCE CHARGES, YOU MAY LOSE YOUR VEHICLE. THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE A TITLE LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW MONEY FROM ANOTHER SOURCE AT AN INTEREST RATE LOWER THAN 18% PER MONTH OR AN ANNUAL PERCENTAGE RATE OF 72%."

(Ord. No. 99-15, § 2, 7-13-99)