Sec. 22-41. - Definitions.

(a)

Commercially reasonable means a sale or a disposal which occurs and can be construed as an arms-length transaction. Public sales or disposal of personal property between licensees and business affiliates or family members are sales and disposal which are presumed not to be commercially reasonable.

(b)

Motor vehicle shall mean an automobile, motorcycle, truck, trailer, semi-trailer, truck/tractor and semi-trailer combination, or any other vehicle operated on public highways and streets, used to transport persons or property.

(c)

Title loan agreement means a written agreement whereby a secondhand dealer agrees to make a loan of a specific sum of money to the owner of a motor vehicle, and the owner of motor vehicle agrees to give the secondhand dealer a security interest in an unencumbered motor vehicle certificate of title owned by the borrower.

(d)

Secondhand dealer shall mean any person, corporation, or other business entity who is engaged in the business of making title loans or engaging in title loan agreements with borrowers, as defined in chapter 538, Florida Statutes, as may be amended.

(Ord. No. 99-19, § 3, 9-28-99)

Sec. 22-42. - Title loan transactions.

A secondhand dealer registered under chapter 538, part 1, Florida Statutes, may engage in motor vehicle title loan transactions, as that term is used in Chapter 538, Part 1, Florida Statutes, if the following conditions are met:

(1)

The secondhand dealer maintains physical possession of the motor vehicle certificate of title throughout the term of the loan.

(2)

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

(3)

The borrower shall not be 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 the return of funds borrowed pursuant to the agreement.

(4)

The secondhand dealer delivers to the borrower, at the time the loan is made, a written title loan agreement that contains the following information:

a.

The make, model, and year of the motor vehicle to which the loan relates;

b.

The vehicle identification number or other comparable identification number, along with the license plate number, if applicable, of the motor vehicle to which the loan relates;

c.

The full name, home address, workplace, date of birth, physical description including height, weight, gender, hair color and eye color, of the borrower as verified by identification such as a driver's license or military identification;

d.

The identification number and the type of identification, including the issuing agency, accepted from the borrower;

e.

The date of the transaction;

f.

The amount of money advanced, designated as the "amount financed;"

g.

The maturity date of the title loan agreement;

h.

The total title loan charge payable on the maturity date, designated as the "finance charge;"

i.

The total number of payments required;

j.

The total amount, amount financed plus finance charge, which must be paid to redeem the loan property on the maturity date, designated as the "total amount of all payments;"

k.

The rate of interest expressed in terms of the annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-In-Lending Act;

l.

The name and address of the title loan business;

m.

A statement which provides the following:

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 WILL LOSE YOUR VEHICLE.

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 REPAY THIS LOAN AS SOON AS POSSIBLE.

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 PERCENT PER MONTH FOR THREE MONTHS, THEREAFTER 2 PERCENT PER MONTH OR 72 PERCENT APR.

n.

A statement that "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;

o.

Immediately above the signature of the borrower, the statement "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;"

p.

A blank line for the signature of the borrower.

(5)

A secondhand dealer must display in a prominent place on the title loan office premises, for customer viewing, a sign no smaller than three feet by five feet with the following message and in letters no less than four 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 WILL 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 72 PERCENT PER YEAR."

(6)

No part of this article shall be construed to impair or affect the obligation of any title loan agreement or contract that was lawfully entered into prior to the effective date of this article.

(Ord. No. 99-19, § 4, 9-28-99)

Sec. 22-43. - Title loan charges and maximum interest rate.

(a)

A secondhand dealer may charge an interest rate not to exceed 18 percent per 30-day period for a maximum of three months from the date of the loan agreement. Following such three-month period, if the title loan agreement remains outstanding and unsatisfied, the title loan lender may charge an interest rate not to exceed two percent per 30-day period. In determining compliance with the maximum interest and finance charges, the computation must be simple interest without add-on interest or any other interest computation.

(b)

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 maximum rate for the period must be computed on a basis of 1/30 of the applicable monthly interest rate, multiplied by the number of days of the period.

(c)

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-leaseback agreement," or otherwise, shall be deemed a violation of this article if such sum exceeds the amount that a secondhand dealer 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.

(d)

No secondhand dealer shall be required to extend or renew any loan.

(e)

Any fees or taxes paid to a state agency and directly related to an individual title loan transaction may be collected from the borrower as part of the final installment or payment completing the contract for a title loan transaction at the end of the loan, upon presentation of a copy or copies of receipts showing payment of such fees or taxes by the title loan lender, and shall be in addition to the permitted finance and interest charge.

(f)

Any finance charge contracted for or received directly or indirectly, in excess of the amounts authorized under this section are prohibited, may not be collected, and render the title loan agreement voidable, in which case the secondhand dealer shall forfeit the right to collect any interest or finance charges.

(Ord. No. 99-19, § 5, 9-28-99)

Sec. 22-44. - Right to redeem lost title loan transaction form.

(a)

Any person presenting identification as the borrower and presenting the borrower's copy of the title loan transaction form to the secondhand dealer is presumed to be entitled to redeem the loan property described in the secondhand dealer transaction form. However, if the secondhand dealer determines that the person is not the borrower, the secondhand dealer is not required to allow the redemption of the loan property by such person. The person redeeming the loan property must sign the borrower's copy of the title loan transaction form, which the secondhand dealer may retain to evidence such person's receipt of the loan property. A person redeeming the loan property who is not the borrower must show identification to the secondhand dealer and written authorization from the borrower, and the secondhand dealer must record that person's name and address on the title loan transaction form retained by the secondhand dealer. In such case, the person redeeming the borrower's copy of the title loan transaction form must be given a copy of the signed form as evidence of the concerned transaction.

(b)

If the borrower's copy of the title loan agreement is lost, destroyed, or stolen, the borrower must notify the title loan lender, in writing by certified or registered mail, return receipt requested, or in person evidenced by a signed receipt, and receipt of such notice shall invalidate such title loan agreement if the certificate of title has not previously been redeemed. Before delivering the certificate of title or issuing a new title loan agreement, the second hand dealer shall require the borrower to make a written statement of loss, destruction, or theft of the borrower's copy of the title loan agreement. The second hand dealer shall record on the written statement the type of identification and the identification number accepted from the borrower, the date the statement is given, and the number or date of the title loan agreement lost, destroyed or stolen. The statement shall be signed by the second hand dealer or the title loan office employee who accepts the statement from the borrower.

(Ord. No. 99-19, § 7, 9-28-99)

Sec. 22-45. - Satisfaction and default.

(a)

When the title loan has been paid in full, the secondhand dealer must deliver to the borrower a certificate of title clear of all encumbrances placed upon the title by the secondhand dealer within 30 days of such payment in full.

(b)

A secondhand dealer who engages in title loan transactions may take possession of the motor vehicle upon the borrowers default under the title loan agreement. Unless the borrower voluntarily surrenders the motor vehicle, the secondhand dealer may only take possession of a motor vehicle through an agent licensed by the state to repossess motor vehicles. Any sale or disposal of a motor vehicle shall be made through a motor vehicle licensed dealer pursuant to section 320.27, Florida Statutes.

(c)

Except as provided by this section, a secondhand dealer who takes possession of a motor vehicle pursuant to this section shall comply with the applicable requirements of chapter 679, part V, Florida Statutes.

(1)

Disposition of the collateral or motor vehicle must be by public or private proceedings and may be made by way of one or more contracts, no earlier than 60 days from the date of the last payment by the borrower on a motor vehicle title loan agreement. No additional interest shall accrue on a borrower's remaining contractual obligations after 60 days from the date of the last payment. Sale or other disposition may be as a unit or in parts and at any time and place and on any terms, but every aspect of the disposition including the method, manner, time, place, and terms must be commercially reasonable.

(2)

The proceeds of disposition minus any fees or taxes paid to a state agency and directly related to the individual title loan, interest and principle shall be reimbursed to the borrower. This surplus together with an accounting shall be provided to the borrower within 30 days of the sale.

(e)

Borrowers shall have no personal liability on a title loan transaction except in the case of willful destruction, disassembly or sale of the vehicle which title secures the loan.

(Ord. No. 99-19, § 8, 9-28-99)

Sec. 22-46. - Violations, penalties and enforcement.

The following acts shall constitute violations of this article:

(1)

Failure to comply with any provision of this article;

(2)

Committing any act of fraud, misrepresentation, deceit or gross negligence in any title loan transaction under this article regardless of reliance by or damage to the borrower;

(3)

Fraudulently misrepresenting, circumventing, or concealing any matter required to be stated or furnished to a borrower pursuant to this article;

(4)

Willful imposition of illegal charges on any title loan transaction;

(5)

Aiding, abetting, or conspiring with an individual to circumvent or violate any of the requirements of this article or state or federal law regulating secondhand dealers;

(6)

Engaging in criminal conduct in the course of business as a secondhand dealer;

(7)

Knowingly entering into a title loan agreement with a person under the age of 18 years;

(8)

Making any agreement that allows for the waiver of any of the provisions of this article;

(9)

Knowingly entering into a title loan agreement with any person who is under the influence of drugs or alcohol when such condition is visible or apparent, or with any person using a name other than his own name or the registered name of his business;

(10)

Entering into a title loan agreement in which the amount of money advanced in consideration for the loan secured by any single certificate of title exceeds one third of the wholesale value of the motor vehicle;

(11)

Failing to exercise reasonable care in the safekeeping of a certificate of title or motor vehicle repossessed pursuant to this article;

(12)

Failing to return a certificate of title or repossessed motor vehicle to a borrower with any and all of the secondhand dealer's liens on the property released, within 30 days of the payment of the full amount due, unless the loan property has been seized or impounded by an authorized law enforcement agency, taken into custody by a court, or otherwise disposed of by court order;

(13)

Refusing to accept partial repayment of the principal amount financed when all accrued charges have been paid;

(14)

Charging a prepayment penalty;

(15)

Capitalizing any unpaid finance charge as part of the amount financed in the renewal of a title loan agreement;

(16)

Charging or receiving any finance charge, interest, cost, or fee, which is not permitted by this article;

(17)

In any practice or transaction or course of business relating to the making of a title loan, negotiation, promotion, or advertisement of a title loan transaction, directly or indirectly;

a.

To knowingly or willingly employ any device, scheme or article to defraud;

b.

To engage in any transaction, practice or course of business which operates as a fraud upon any person in connection with the purchase or a sale of any title loan; or

c.

To obtain property by fraud, willful misrepresentation of a future act or false promise;

(18)

In any manner within the jurisdiction of the county, to knowingly and willfully falsify, conceal or cover up by a trick, scheme, or device a material fact, make any false, fraudulent statement or representation, or make or use any false writing or document, knowing the same to contain any false or fraudulent statement or entry.

(19)

Engaging in false, deceptive, or misleading collection practices by a secondhand dealer.

a.

In addition to any civil remedy available to the county under this article, the violation of any part of this article shall be enforced by any authorized code enforcement officer or law enforcement officer. Violations may be prosecuted as misdemeanors are prosecuted, upon complaint to the prosecuting attorney by a law enforcement officer or a citizen, in addition to any other remedy provided by this Code or applicable law, including but not limited to notice of violation and citation by a code enforcement officer. Upon conviction, violators shall pay a class VI fine of $500.00 for each violation of this article, or shall be imprisoned for not more than 60 days, or both fined and imprisoned as authorized herein or by any other applicable law. Alternatively, a code enforcement board or special master may impose a fine of up to $250.00 per day for a violation pursuant to chapter 162, Florida Statutes.

b.

Any borrower injured by a violation of this article may bring a civil action against a secondhand dealer violating the provisions of this article in a court of competent jurisdiction in the county. Upon adverse adjudication, the secondhand dealer shall forfeit the entire interest so charged or contracted to be charged and shall be liable to the borrower for two times the original loan amount, together with court costs and attorney's fees incurred by the borrower. If the court finds that the suit fails to raise a justifiable issue of law or fact, the defendant shall be entitled to an award of court costs and reasonable attorney's fees incurred by the defendant.

(Ord. No. 99-19, § 9, 9-28-99)

Secs. 22-47—22-60. - Reserved.