SB 269

As Introduced
136th General Assembly
   Regular Session  S. B. No. 269
       2025-2026
  Senator Lang
  To amend sections 1321.02, 1321.07, and 1321.141 of        1
  the Revised Code for the purpose of revising the        2
  Small Loan Act.  3
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 1321.02, 1321.07, and 1321.141 of        4
the Revised Code be amended to read as follows:  5
     Sec. 1321.02. (A) No person shall engage in the business  6
of lending money, credit, or choses in action in amounts of five       7
thousand dollars or less, or and exact, contract for, or  8
receive, directly or indirectly, on or in connection with any  9
such loan, any interest and charges that in the aggregate are  10
greater than the interest and charges that the lender would be  11
permitted to charge for a loan of money if the lender were not a       12
licensee, without first having obtained a license from the  13
division of financial institutions under sections 1321.01 to  14
1321.19 of the Revised Code.  15
     (B) Sections 1321.01 to 1321.19 of the Revised Code do not        16
apply to any person doing business under and as permitted by any       17
law of this state, another state, or the United States relating        18
to banks, savings banks, savings societies, trust companies,  19
credit unions, savings and loan associations substantially all  20
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As Introduced
the business of which is confined to loans on real estate  21
mortgages and evidences of their own indebtedness; to  22
registrants conducting business pursuant to sections 1321.51 to  23
1321.60 of the Revised Code; to licensees conducting business  24
pursuant to sections 1321.62 to 1321.702 of the Revised Code; to  25
licensees conducting business pursuant to sections 1321.71 to  26
1321.83 of the Revised Code; to licensees doing business  27
pursuant to sections 1321.35 to 1321.48 of the Revised Code; to  28
registrants conducting business as mortgage lenders under  29
Chapter 1322. of the Revised Code; or to any entity who is  30
licensed pursuant to Title XXXIX of the Revised Code, who makes  31
advances or loans to any person who is licensed to sell  32
insurance pursuant to that Title, and who is authorized in  33
writing by that entity to sell insurance.  34
       (C) Sections 1321.01 to 1321.19 of the Revised Code do not  35
apply to loans made or credit extended by entities exempt under  36
division (B) of this section or to a person that solicits,  37
arranges, finds, or brokers loans made or credit extended by  38
such exempt entities.  39
       (D) No person engaged in the business of selling tangible  40
goods or services related thereto may receive or retain a  41
license under sections 1321.01 to 1321.19 of the Revised Code  42
for such place of business.  43
       The first paragraph (E)(1) Division (A) of this section  44
applies to any person, who by any device, subterfuge, or  45
pretense, charges, contracts for, or receives greater interest,  46
consideration, or charges than that authorized by this section  47
without a license   for any such loan or use of money or for any  48
such loan, use, or sale of credit, in the amount of five  49
thousand dollars or less, or who for a fee or any manner of  50
S. B. No. 269  Page 3
As Introduced
compensation arranges or offers to find or arrange for another a  51
licensee or a person that is required to be licensed under this  52
section to make any such loan, use, or sale of credit described  53
in division (A) of this section.  54
       (2) This section does not preclude the acquiring, directly  55
or indirectly, by purchase or discount, of a bona fide  56
obligation for goods or services when such obligation is payable  57
directly to the person who provided the goods or services.  58
       (F) Any contract of loan in the making or collection of  59
which an act is done by the lender that violates this section is  60
void and the lender has no right to collect, receive, or retain  61
any principal, interest, or charges.  62
       Sec. 1321.07. (A) At least once each year the division of  63
financial institutions shall make an examination of the  64
business, loans, books, papers, and records of each licensee so  65
far as they pertain to the licensed business, and it may make  66
such an examination more frequently if it is necessary for the  67
proper administration of sections 1321.01 to 1321.19 of the  68
Revised Code.  69
       For the purpose of discovering violations, the division  70
may at any time investigate the business and examine the books,  71
accounts, papers, and records used therein, of:  72
       (A)(1) Licensees;  73
       (B)(2) Other persons engaged in the business described in  74
division (A) of   section 1321.02 of the Revised Code or  75
participating in such business as principal, agent, broker, or  76
otherwise;  77
       (C)(3) Any person whom the division has reasonable cause  78
to believe has violated, is violating, or is about to violate  79
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As Introduced
sections 1321.01 to 1321.19 of the Revised Code, whether or not  80
the person claims to act under such sections. For the purpose of  81
this section, any person who advertises, solicits, or holds self  82
out as willing to make, find, or arrange for another a licensee  83
or for a person that is required to be licensed under section  84
1321.02 of the Revised Code to make loan transactions in the  85
amount or of the value of five thousand dollars or less, is  86
presumed to be engaged in the business described in the first  87
paragraph division (A) of section 1321.02 of the Revised Code.  88
       (B)(1) For the purpose of this section, the division shall  89
have and be given free access to the offices and places of  90
business, files, safes, and vaults of all such persons, and may  91
require the attendance of, and examine under oath, any person  92
relative to such loans or such business or to the subject matter  93
of any examination, investigation, or hearing. The division may  94
require the attendance of such witnesses and the production of  95
such books, records, and papers, as may be required either by  96
the division or by any party to a hearing before the division,  97
and for that purpose may issue a subpoena for any witness or a  98
subpoena duces tecum, to compel the production of any books,  99
records, or papers, directed to the sheriff of the county where  100
such witness resides or is found, which shall be served and  101
returned in the same manner as a subpoena in criminal cases is  102
served and returned.  103
       (2) The fees of the sheriff shall be the same as that  104
allowed in the court of common pleas in criminal cases.  105
Witnesses shall be paid the fees and mileage provided for under  106
section 119.094 of the Revised Code. Fees and mileage shall be  107
paid from the funds of the division. No witness subpoenaed at  108
the instance of parties other than the division is entitled to  109
compensation from the state for attendance or travel unless the  110
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As Introduced
division certifies that the witness' testimony was material to  111
the subject matter of the hearing.  112
       (C) If any person fails to file any statement or report,  113
or fails to obey any subpoena, or to give testimony, or to  114
answer questions, or to produce any books, records, documents,  115
accounts, or papers as required by the division under sections  116
1321.01 to 1321.19 of the Revised Code, any court of common  117
pleas, upon application made to it and upon proof being made of  118
such failure, may make an order awarding process of subpoena or  119
subpoena duces tecum out of the court for such witness to appear  120
and testify before the division, and may make an order that any  121
person give testimony and answer questions as required, and  122
produce books, records, documents, accounts, or papers as  123
required. Upon filing such order with the clerk of the court of  124
common pleas, the clerk shall, under the seal of the court,  125
issue process of subpoena to appear before the division at a  126
time and place named therein, and so from day to day until the  127
examination of such person is completed. The subpoena may  128
contain a direction that such witness bring to such examination  129
any books, records, documents, accounts, or papers therein  130
mentioned, and the clerk shall issue, under the seal of the  131
court, such other or further orders in reference to the  132
examination, appearance, and production of books, records,  133
documents, accounts, or papers as the court directs. If any  134
person so summoned by subpoena issued by the clerk fails to obey  135
the subpoena or to answer any directions therein, or to give  136
testimony, or to answer questions as required, or to produce any  137
books, records, documents, accounts, or papers as required, or  138
if any such person fails to obey any order, the court, on motion  139
supported by proof, may order an attachment for contempt to be  140
issued against any person charged with disobeying any order or  141
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As Introduced
injunction issued out of the court of common pleas under  142
sections 1321.01 to 1321.19 of the Revised Code. If the person  143
so offending is brought before the court by virtue of such  144
attachment, and if upon a hearing such disobedience appears, the  145
court may order the offender to be committed and kept in close  146
custody until the further order of the court.  147
        Sec. 1321.141. (A) A licensee shall not make a loan under  148
sections 1321.01 to 1321.19 of the Revised Code that meets  149
either of the following conditions:  150
        (1) The amount of the loan is one thousand dollars or  151
less.  152
        (2) The loan has a duration of one year or less.  153
        (B) A licensee shall not engage in any act or practice to  154
evade the requirement of division (A) of this section, including  155
by assisting a borrower to obtain a loan from a licensee or a  156
person that is required to be licensed under section 1321.02 of  157
the Revised Code on terms that would be prohibited by that  158
division division (A) of this section.  159
        (C) No licensee shall fail to comply with this section.  160
        Section 2. That existing sections 1321.02, 1321.07, and  161
1321.141 of the Revised Code are hereby repealed.  162
        Section 3. Section 1321.02 of the Revised Code is  163
presented in this act as a composite of the section as amended  164
by both H.B. 199 and S.B. 24 of the 132nd General Assembly. The  165
General Assembly, applying the principle stated in division (B)  166
of section 1.52 of the Revised Code that amendments are to be  167
harmonized if reasonably capable of simultaneous operation,  168
finds that the composite is the resulting version of the section  169
in effect prior to the effective date of the section as  170
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As Introduced
presented in this act.  171