SB 456

As Introduced
136th General Assembly
   Regular Session  S. B. No. 456
       2025-2026
  Senator Lang
  To amend sections 1321.02, 1321.62, 1321.63,  1
  1321.631, 1321.632, 1321.64, 1321.643, 1321.644,        2
  1321.65, 1321.651, 1321.66, 1321.663, 1321.665,  3
  1321.666, 1321.67, 1321.673, 1321.674, 1321.69,  4
  1321.691, 1321.70, and 1321.701; to amend, for  5
  the purpose of adopting a new section number as  6
  indicated in parentheses, section 1321.702  7
  (1321.703); and to enact new section 1321.702 of        8
  the Revised Code to make various changes to the  9
  consumer installment loan law.  10
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 1321.02, 1321.62, 1321.63,  11
1321.631, 1321.632, 1321.64, 1321.643, 1321.644, 1321.65,  12
1321.651, 1321.66, 1321.663, 1321.665, 1321.666, 1321.67,  13
1321.673, 1321.674, 1321.69, 1321.691, 1321.70, and 1321.701 be  14
amended; section 1321.702 (1321.703) be amended for the purpose  15
of adopting a new section number as indicated in parentheses;  16
and new section 1321.702 of the Revised Code be enacted to read  17
as follows:  18
     Sec. 1321.02. No person shall engage in the business of  19
lending money, credit, or choses in action in amounts of five  20
thousand dollars or less, or exact, contract for, or receive,  21
S. B. No. 456  Page 2
As Introduced
directly or indirectly, on or in connection with any such loan,  22
any interest and charges that in the aggregate are greater than  23
the interest and charges that the lender would be permitted to  24
charge for a loan of money if the lender were not a licensee,  25
without first having obtained a license from the division of  26
financial institutions under sections 1321.01 to 1321.19 of the  27
Revised Code.  28
       Sections 1321.01 to 1321.19 of the Revised Code do not  29
apply to any person doing business under and as permitted by any  30
law of this state, another state, or the United States relating  31
to banks, savings banks, savings societies, trust companies,  32
credit unions, savings and loan associations substantially all  33
the business of which is confined to loans on real estate  34
mortgages and evidences of their own indebtedness; to  35
registrants conducting business pursuant to sections 1321.51 to  36
1321.60 of the Revised Code; to licensees conducting business  37
pursuant to sections 1321.62 to 1321.702 1321.703 of the Revised  38
Code; to licensees conducting business pursuant to sections  39
1321.71 to 1321.83 of the Revised Code; to licensees doing  40
business pursuant to sections 1321.35 to 1321.48 of the Revised  41
Code; to registrants conducting business as mortgage lenders  42
under Chapter 1322. of the Revised Code; or to any entity who is  43
licensed pursuant to Title XXXIX of the Revised Code, who makes  44
advances or loans to any person who is licensed to sell  45
insurance pursuant to that Title, and who is authorized in  46
writing by that entity to sell insurance. No person engaged in  47
the business of selling tangible goods or services related  48
thereto may receive or retain a license under sections 1321.01  49
to 1321.19 of the Revised Code for such place of business.  50
       The first paragraph of this section applies to any person,  51
who by any device, subterfuge, or pretense, charges, contracts  52
S. B. No. 456  Page 3
As Introduced
for, or receives greater interest, consideration, or charges  53
than that authorized by this section for any such loan or use of  54
money or for any such loan, use, or sale of credit, or who for a  55
fee or any manner of compensation arranges or offers to find or  56
arrange for another person to make any such loan, use, or sale  57
of credit. This section does not preclude the acquiring,  58
directly or indirectly, by purchase or discount, of a bona fide  59
obligation for goods or services when such obligation is payable  60
directly to the person who provided the goods or services.  61
       Any contract of loan in the making or collection of which  62
an act is done by the lender that violates this section is void  63
and the lender has no right to collect, receive, or retain any  64
principal, interest, or charges.  65
       Sec. 1321.62. As used in sections 1321.62 to 1321.702  66
1321.703 of the Revised Code:  67
       (A) "Actuarial method" means the method of allocating  68
payments made on a loan between the principal amount and  69
interest whereby a payment is applied first to the accumulated  70
interest and the remainder to the unpaid principal amount.  71
       (B) "Advertisement" and "advertising" mean all material  72
printed, published, displayed, distributed, or broadcast, and  73
all material displayed or distributed over the internet,  74
telephone, facsimile, or other electronic transmission, for the  75
purposes of obtaining applications for loans.  76
       (C) "Affiliation" and "affiliated with" mean controlled by  77
or under common control with another person or enterprise either  78
directly or indirectly through one or more intermediaries.  79
       (D) "Annual percentage rate" means the ratio of the  80
interest on a loan to the unpaid principal balances on the loan  81
S. B. No. 456  Page 4
As Introduced
for any period of time, expressed on an annual basis.  82
        (E) "Applicable charge" means the amount of interest  83
attributable to each monthly installment period of the loan  84
contract, computed as if each installment period were one month  85
and any charge for extending the first installment period beyond  86
one month is ignored. In the case of loans originally scheduled  87
to be repaid in sixty-one months or less, "applicable charge"  88
for any installment period means that proportion of the total  89
interest contracted for, as the balance scheduled to be  90
outstanding during that period bears to the sum of all of the  91
periodic balances, all determined according to the payment  92
schedule originally contracted for. In all other cases,  93
"applicable charge" for any installment period is that which  94
would have been made for such period had the loan been made on  95
an interest-bearing basis, based upon the assumption that all  96
payments were made according to schedule.  97
        (F) "Assets" means properties of value that are owned by  98
the applicant or licensee, including cash on hand and in  99
depository institutions, readily marketable securities, accounts  100
receivable less allowances for uncollectible accounts, and real  101
estate less liens and depreciation. "Assets" does not mean  102
office premises, leasehold improvements, office furniture,  103
fixtures, and equipment, or intangible assets.  104
        (G) "Closed-end loan" means any extension of credit other  105
than an open-end loan.  106
        (H) "Collecting" and "collected" means the servicing of a  107
loan or receipt of payments from a borrower for a loan made  108
pursuant to sections 1321.62 to 1321.702 1321.703 of the Revised  109
Code.  110
S. B. No. 456  Page 5
As Introduced
       (I) "Consumer report" and "consumer reporting agency" have  111
the same meanings as in the "Fair Credit Reporting Act," 84  112
Stat. 1128, 15 U.S.C. 1681a, as amended.  113
       (J) "Control person" means a person that, in the  114
determination of the superintendent of financial institutions,  115
has the authority to direct and control the operations of the  116
applicant.  117
       (K) "Depository institution" has the same meaning as in  118
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873,  119
12 U.S.C. 1813, and includes any credit union.  120
       (L) "Direct mail" means a loan arranged via an application  121
through the mail or internet where the loan proceeds are  122
delivered through the mail or electronic transmission to the  123
benefit of a borrower. A loan is not made by "direct mail" if it  124
is facilitated by face-to-face, personal contact in this state  125
between the lender, lender's employee or agent, or lender's  126
attorney and the borrower or borrower's agent.  127
       (M) "Federal banking agency" means the board of governors  128
of the federal reserve system, the comptroller of the currency,  129
the national credit union administration, and the federal  130
deposit insurance corporation.  131
       (N) "Final entry on a loan" means, as to a particular  132
lender, the latter of the date the loan is paid in full, deemed  133
uncollectible, assigned to another licensee or exempt entity and  134
all records are transferred to the new lender, or discharged or  135
otherwise settled by an order terminating litigation governing  136
the loan transaction.  137
       (O) "Interest" means all charges payable directly or  138
indirectly by a borrower to a licensee as a condition to a loan  139
S. B. No. 456  Page 6
As Introduced
or an application for a loan, however denominated, but does not  140
include default charges, deferment charges, insurance charges or  141
premiums, court costs, loan origination charges, check  142
collection charges, credit investigation charges, credit line  143
charges, points, or other fees and charges specifically  144
authorized by law.  145
       (P) "Interest-bearing loan" means a loan in which the debt  146
is expressed as the principal amount and interest is computed,  147
charged, and collected on unpaid principal balances outstanding  148
from time to time.  149
       (Q) "Instrument" means a personal check or authorization  150
to transfer or withdraw funds from an account that is signed by  151
the borrower and made payable to a person subject to sections  152
1321.62 to 1321.702 1321.703 of the Revised Code.  153
       (R) "License" means a license issued under sections  154
1321.62 to 1321.702 1321.703 of the Revised Code.  155
       (S) "Licensee" means any person that has been issued a  156
license.  157
       (T) "Loan agreement" means one or more promises,  158
promissory notes, agreements, undertakings, security agreements,  159
or other documents or commitments, or any combination of these  160
documents or commitments, pursuant to which a licensee loans or  161
delays, or agrees to loan or delay, repayment of money, goods,  162
or anything of value, or otherwise extends credit or makes a  163
financial accommodation.  164
       (U) "Net worth" means the excess of assets over  165
liabilities as determined by generally accepted accounting  166
principles.  167
       (V) "NMLSR" means a multistate licensing system developed  168
S. B. No. 456  Page 7
As Introduced
and maintained by the conference of state bank supervisors and  169
the American association of residential mortgage regulators, or  170
their successor entities, for the licensing and registration of  171
loan originators, or any system established by the secretary of  172
housing and urban development pursuant to the "Secure and Fair  173
Enforcement for Mortgage Licensing Act of 2008," 122 Stat. 2810,  174
12 U.S.C. 5101.  175
        (W) "Open-end loan" means consumer credit extended by a  176
creditor under a plan to which all of the following conditions  177
apply:  178
        (1) The creditor reasonably contemplates repeated  179
transactions.  180
        (2) The creditor may impose a finance charge from time to  181
time on an outstanding unpaid balance.  182
        (3) The amount of credit that may be extended to the  183
borrower during the term of the plan, up to any limit set by the  184
creditor, is generally made available to the extent that any  185
outstanding balance is repaid.  186
        (X) "Person" means an individual, partnership,  187
association, trust, corporation, or any other legal entity.  188
        (Y) "Precomputed loan" means a loan in which the debt is a  189
sum comprising the principal amount and the amount of interest  190
computed in advance on the assumption that all scheduled  191
payments will be made when due.  192
        (Z) "Principal amount" means the amount of cash paid to,  193
or paid or payable for the account of, the borrower, and  194
includes any charge, fee, or expense that is financed by the  195
borrower at origination of the loan or during the term of the  196
loan.  197
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As Introduced
       (AA) "Refinance" means a loan the proceeds of which are  198
used in whole or in part to pay the unpaid balance of a prior  199
loan made by the same licensee or any employee or affiliate of  200
the licensee to the same borrower under sections 1321.62 to  201
1321.702 1321.703 of the Revised Code.  202
       (BB) "Residential mortgage loan" means any loan primarily  203
for personal, family, or household use that is secured by a  204
mortgage, deed of trust, or other equivalent consensual security  205
interest on a dwelling or on residential real estate upon which  206
is constructed or intended to be constructed a dwelling. For  207
purposes of this division, "dwelling" has the same meaning as in  208
the "Truth in Lending Act," 82 Stat. 146, 15 U.S.C. 1602.  209
       (CC) "State" in the context of referring to states in  210
addition to Ohio means any state of the United States, the  211
district of Columbia, any territory of the United States, Puerto  212
Rico, Guam, American Samoa, the trust territory of the Pacific  213
islands, the virgin islands, and the northern Mariana islands.  214
       (DD) "Superintendent of financial institutions" includes  215
the deputy superintendent for consumer finance as provided in  216
section 1181.21 of the Revised Code.  217
       Sec. 1321.63. (A)(1) No person shall do either of the  218
following without first having obtained a license from the  219
superintendent of financial institutions under sections 1321.62  220
to 1321.702 1321.703 of the Revised Code:  221
       (a) Engage in the business of lending money under sections  222
1321.62 to 1321.702 1321.703 of the Revised Code;  223
       (b) Contract for, or receive, directly or indirectly, on  224
or in connection with any such loan, any interest and charges  225
that in the aggregate are greater than the interest and charges  226
S. B. No. 456  Page 9
As Introduced
that the lender would be permitted to charge for a loan of money  227
if the lender were not a licensee.  228
       (2) Division (A)(1) of this section applies to any person,  229
who by any device, subterfuge, or pretense, charges, contracts  230
for, or receives greater interest, consideration, or charges  231
than that authorized by this section for any such loan, or who  232
for a fee or any manner of compensation arranges or offers to  233
find or arrange for another person to make any such loan.  234
       (B) This section does not preclude the acquiring, directly  235
or indirectly, by purchase or discount, of a bona fide  236
obligation for goods or services when such obligation is payable  237
directly to the person who provided the goods or services.  238
       (C) Any contract of a loan in the making or collection of  239
which an act is done by the lender that violates this section is  240
void and the lender has no right to collect, receive, or retain  241
any principal, interest, or charges.  242
       Sec. 1321.631. Sections 1321.62 to 1321.702 1321.703 of  243
the Revised Code do not apply to any of the following:  244
       (A) Any credit transaction with a loan term of less than  245
six months from the loan transaction date;  246
       (B) Any credit transaction that does not require equal  247
monthly payments, unless either of the following applies:  248
       (1) The credit transaction contains an interest rate that  249
is tied to a published and verifiable index and the contractual  250
rate of interest is adjusted in accordance with changes in that  251
index.  252
       (2) The credit transaction provides for an extension of  253
the first monthly installment period pursuant to division (C)(2)  254
S. B. No. 456  Page 10
As Introduced
(a) or (D)(1)(a) of section 1321.68 of the Revised Code.  255
       (C) Any credit transaction with an interest rate in excess  256
of that provided for under section 1321.68 of the Revised Code;  257
       (D) Any credit transaction secured by an interest in the  258
covered borrower's residential mortgage loan, including a  259
transaction to finance the purchase or initial construction of a  260
dwelling, any refinance transaction, home equity loan or home  261
equity line of credit, or reverse mortgage;  262
       (E) Any credit transaction that originates as a result,  263
directly or indirectly, of a referral from a person registered  264
or acting as a credit services organization under sections  265
4712.01 to 4712.14 of the Revised Code;  266
       (F) Any credit transaction made by a person licensed as a  267
check-cashing business under sections 1315.21 to 1315.30 of the  268
Revised Code;  269
       (G) Any credit transaction made by a retail seller under  270
Chapter 1317. of the Revised Code;  271
       (H) Any credit transaction made by a person licensed or  272
acting as a pawnbroker under Chapter 4727. of the Revised Code;  273
       (I) Any credit transaction made by a person licensed under  274
sections 1321.35 to 1321.48 of the Revised Code;  275
       (J) Any credit transaction made by a collection agency  276
pursuant to section 1319.12 of the Revised Code;  277
       (K) Any credit transaction made by a premium finance  278
company licensed under sections 1321.71 to 1321.83 of the  279
Revised Code;  280
       (L) Any credit transaction made by a person chartered and  281
S. B. No. 456  Page 11
As Introduced
lawfully doing business under the authority of any law of this  282
state, another state, or the United States as a bank, savings  283
bank, trust company, savings and loan association, or credit  284
union, or a subsidiary of any such entity, which subsidiary is  285
regulated by a federal banking agency and is owned and  286
controlled by such a depository institution;  287
       (M) Any credit transaction made by a life, property, or  288
casualty insurance company licensed to do business in this state  289
or any entity licensed under Title XXXIX of the Revised Code  290
that makes advances or loans to any person who is licensed to  291
sell insurance pursuant to that title and who is authorized in  292
writing by that entity to sell insurance;  293
       (N) Any licensee doing business under sections 1321.01 to  294
1321.19 of the Revised Code;  295
       (O) Any registrant doing business under sections 1321.51  296
to 1321.60 of the Revised Code;  297
       (P) Any person making a business loan described in  298
division (B)(6) of section 1343.01 of the Revised Code;  299
       (Q) Any political subdivision, or any governmental or  300
other public entity, corporation, instrumentality, or agency, in  301
or of the United States or any state of the United States, or  302
any entity mentioned in division (B)(3) of section 1343.01 of  303
the Revised Code;  304
       (R) Any college or university, or controlled entity of a  305
college or university, as those terms are defined in section  306
1713.05 of the Revised Code;  307
       (S) Any person doing business under and as permitted by  308
any law of this state, another state, or the United States  309
relating to banks, savings banks, savings societies, trust  310
S. B. No. 456  Page 12
As Introduced
companies, credit unions, or savings and loan associations  311
substantially all the business of which is confined to loans on  312
real estate mortgages and evidences of their own indebtedness.  313
        Sec. 1321.632. A licensee may engage in the business of  314
making loans provided the licensee does not do any of the  315
following:  316
        (A) Assess an origination fee pursuant to section 1321.68  317
of the Revised Code more than three times in any twelve-month  318
period;  319
        (B) Accept a dated instrument from the borrower as  320
security for a loan;  321
        (C) Hold an instrument for a period of time prior to  322
negotiation or deposit of the instrument;  323
        (D) Pay to a borrower, credit to a borrower's account, or  324
pay to another person on the borrower's behalf the amount of an  325
instrument, less interest, fees, or any other charges permitted  326
by section 1321.68 of the Revised Code;  327
        (E) Refinance the loan during the first one hundred twenty  328
days of the loan term;  329
        (F) Except for the deferment charge permitted by section  330
1321.68 of the Revised Code or in the case of a refinance,  331
charge or collect any fee, charge, or remuneration of any sort  332
for renewing, amending, or extending a loan beyond its original  333
term.  334
        Sec. 1321.64. (A) An application for a license shall  335
contain an undertaking by the applicant to abide by those  336
sections. The application shall be in writing, under oath, and  337
in the form prescribed by the superintendent of financial  338
S. B. No. 456  Page 13
As Introduced
institutions, and shall contain any information that the  339
superintendent may require. Applicants that are foreign  340
corporations shall obtain and maintain a license pursuant to  341
Chapter 1703. of the Revised Code before a license is issued or  342
renewed.  343
       (B) Upon the filing of the application and the payment by  344
the applicant of a nonrefundable investigation fee of two  345
hundred dollars, a nonrefundable annual registration fee of  346
three hundred dollars, and any additional fee required by the  347
NMLSR, the division of financial institutions shall investigate  348
the relevant facts. If the application involves investigation  349
outside this state, the applicant may be required by the  350
division to advance sufficient funds to pay any of the actual  351
expenses of the investigation when it appears that these  352
expenses will exceed two hundred dollars. An itemized statement  353
of any of these expenses which the applicant is required to pay  354
shall be furnished to the applicant by the division. A license  355
shall not be issued unless all the required fees have been  356
submitted to the division.  357
       (C)(1) The investigation undertaken upon receipt of an  358
application shall include both a civil and criminal records  359
check of any control person.  360
       (2)(a) Notwithstanding division (L) of section 121.08 of  361
the Revised Code, the superintendent shall obtain a criminal  362
records check on each control person and, as part of that  363
records check, request that criminal records information from  364
the federal bureau of investigation be obtained. To fulfill this  365
requirement, the superintendent shall do either of the  366
following:  367
       (i) Request the superintendent of the bureau of criminal  368
S. B. No. 456  Page 14
As Introduced
identification and investigation, or a vendor approved by the  369
bureau, to conduct a criminal records check based on the control  370
person's fingerprints or, if the fingerprints are unreadable,  371
based on the control person's social security number, in  372
accordance with section 109.572 of the Revised Code;  373
       (ii) Authorize the NMLSR to request a criminal records  374
check of the control person.  375
       (b) Any fee required under division (C)(3) of section  376
109.572 of the Revised Code or by the NMLSR shall be paid by the  377
applicant.  378
       (D) If an application for a license does not contain all  379
of the information required under division (A) of this section,  380
and if such information is not submitted to the division or to  381
the NMLSR within ninety days after the superintendent or the  382
NMLSR requests the information in writing, including by  383
electronic transmission or facsimile, the superintendent may  384
consider the application withdrawn.  385
       (E) If the superintendent of financial institutions finds  386
that the financial responsibility, experience, and general  387
fitness of the applicant command the confidence of the public  388
and warrant the belief that the business will be operated  389
honestly and fairly in compliance with the purposes of sections  390
1321.62 to 1321.702 1321.703 of the Revised Code and the rules  391
adopted thereunder, and that the applicant has the requisite net  392
worth and assets required under section 1321.65 of the Revised  393
Code, the superintendent shall issue a license to the applicant.  394
The license shall be valid until the thirty-first day of  395
December of the year in which it is issued. A person may be  396
licensed under both sections 1321.51 to 1321.60 and sections  397
1321.62 to 1321.702 1321.703 of the Revised Code.  398
S. B. No. 456  Page 15
As Introduced
        (F) If the superintendent finds that the applicant does  399
not meet the conditions set forth in this section, the  400
superintendent shall issue a notice of intent to deny the  401
application, and promptly notify the applicant of the denial,  402
the grounds for the denial, and the applicant's reasonable  403
opportunity to be heard on the action in accordance with Chapter  404
119. of the Revised Code.  405
        (G) Notwithstanding any provision of this section to the  406
contrary, the superintendent shall issue a license in accordance  407
with Chapter 4796. of the Revised Code to an applicant if either  408
of the following applies:  409
        (1) The applicant holds a license in another state.  410
        (2) The applicant has satisfactory work experience, a  411
government certification, or a private certification as  412
described in that chapter as a consumer installment loan lender  413
in a state that does not issue that license.  414
        Sec. 1321.643. (A)(1) Not more than one place of business  415
shall be maintained under the same license, but the  416
superintendent of financial institutions may issue additional  417
licenses to the same licensee upon compliance with sections  418
1321.62 to 1321.702 1321.703 of the Revised Code.  419
        (2) Each licensed place of business shall be located in a  420
state.  421
        (B)(1) When a licensee wishes to change its place of  422
business, it shall give at least fifteen days prior written  423
notice of the change to the division of financial institutions.  424
The division shall provide a license for the new address without  425
cost.  426
        (2) If a licensee changes its name, it shall give written  427
S. B. No. 456  Page 16
As Introduced
notice of the change to the division prior to making loans under  428
the new name. The division shall provide a license in the new  429
name without cost.  430
       (C) Each current license shall be kept conspicuously  431
posted in each place of business of the licensee and is not  432
transferable or assignable.  433
       Sec. 1321.644. No person engaged in the business of  434
selling tangible goods or services related to tangible goods may  435
receive or retain a license under sections 1321.62 to 1321.702  436
1321.703 of the Revised Code for such place of business.  437
       Sec. 1321.65. Each licensee that conducts business under  438
sections 1321.62 to 1321.702 1321.703 of the Revised Code shall  439
maintain both of the following:  440
       (A) A net worth of at least fifty thousand dollars;  441
       (B) For each license, assets of at least fifty thousand  442
dollars either in use or readily available for use in the  443
conduct of the business.  444
       Sec. 1321.651. All of the following apply to advertising  445
for loans made under sections 1321.62 to 1321.702 1321.703 of  446
the Revised Code:  447
       (A) Every advertisement shall state and clearly indicate  448
the identity of the licensee and shall do so in such a manner  449
that prevents confusion with the name of any other unrelated  450
licensee. Licensees shall be identified by means of trade names,  451
service marks, or business names that are filed with the  452
division of financial institutions and the secretary of state.  453
       (B) Advertising shall not be false, misleading, or  454
deceptive. False, misleading, or deceptive advertising includes,  455
S. B. No. 456  Page 17
As Introduced
but is not limited to, the following:  456
       (1) Placing, or causing to be placed, any advertisement  457
indicating that special terms, reduced rates, guaranteed rates,  458
particular rates, or any other special feature of loans is  459
available unless the advertisement clearly states any  460
limitations that apply;  461
       (2) Placing, or causing to be placed, any advertisement  462
containing a rate or special fee offer that is not a bona fide  463
available rate or fee.  464
       (C) A licensee shall comply with 12 C.F.R. 1026.16, as  465
amended, for open-end loans, or 12 C.F.R. 1026.24, as amended,  466
for closed-end loans.  467
       (D) A licensee shall not use loan advertisements that  468
provide only telephone or facsimile numbers or newspaper box  469
addresses and that do not clearly indicate the identity of the  470
licensee.  471
       (E) A licensee shall not advertise that loans will be made  472
within a specified time after the loan application is received,  473
unless it is the general practice of the licensee to make loans  474
within the specified time.  475
       (F) A licensee shall not advertise special terms, reduced  476
rates, reduced payments, or any other special feature of a loan  477
within a specified limited time, unless the advertisement  478
clearly states any limitations that apply to the offer.  479
       (G) A licensee shall not advertise by the use of  480
unqualified superlatives, including, but not limited to, "lowest  481
rates," "lowest costs," "lowest payment plan," or "cheapest  482
loans," or by making offers that cannot be reasonably fulfilled.  483
S. B. No. 456  Page 18
As Introduced
       (H) A licensee shall not advertise the words "new" or  484
"reduced," or words of similar import, in connection with rates,  485
costs, payments, or plans, for more than ninety days after the  486
rates, costs, payments, or plans have become effective.  487
       (I) Any licensee specifying in any advertisement charges  488
on loans in dollars shall also state the length of time required  489
to repay the loans as well as the method of repayment, and  490
shall, when the rate of interest is stated, do so in a manner to  491
prevent misunderstanding.  492
       (J) Any licensee advertising flat or average payments on  493
loans that include principal and interest shall specify the  494
number and frequency of payments required to repay the loans.  495
Whenever the amounts of periodic payments are advertised, the  496
amounts shall include all interest to the borrower, as well as  497
principal. The principal payments alone may be shown separately  498
provided the interest charges are also clearly stated with equal  499
prominence.  500
       (K) A licensee shall not advertise rebates, rates, or  501
charges below the maximum lawful rate of interest that are  502
conditioned upon prompt payment unless the condition is clearly  503
indicated.  504
       (L) A licensee shall not advertise either of the  505
following:  506
       (1) Waiver of payments in the event of sickness or  507
disability or other contingency, without advertising that the  508
interest and other charges, if assessed, continue during the  509
waiver period;  510
       (2) That the first payment on any loan may be made more  511
than thirty days after the date of loan closing, without  512
S. B. No. 456  Page 19
As Introduced
advertising that the interest and other charges, if assessed,  513
will accrue from the date of disbursement of the loan funds  514
until the first payment is due.  515
       (M) A licensee shall not advertise for loans for illegal  516
purposes.  517
       (N) A licensee shall not advertise the availability of  518
credit-related insurance without disclosing the charge, if any,  519
for the insurance.  520
       (O) Each licensee shall maintain in each licensed office  521
or in a central location a file of all advertising for a period  522
of two years from the date disseminated. This requirement  523
includes newspaper, magazine, direct mailing, and facsimile  524
advertising and solicitations, roadside advertising, internet  525
advertising, and scripts of radio and television commercials.  526
The file shall be readily available for inspection by the  527
division at all times. Each licensee shall notify the division  528
in writing of the location of the file. Each licensee shall,  529
upon the request of the superintendent of financial  530
institutions, provide to the division any printed or electronic  531
advertising it has used regarding any business conducted under  532
sections 1321.62 to 1321.702 1321.703 of the Revised Code.  533
       Sec. 1321.66. (A) Records a licensee is required to  534
maintain shall be kept current and be available at a licensed  535
location at all times during normal business hours for review by  536
the superintendent. Records must be legible and maintained in a  537
type size that is clearly readable without magnification and in  538
conformity with any specific typeface or font size that may be  539
required by state or federal law. Except when otherwise provided  540
by federal or state law, records shall be maintained in English.  541
When records are allowed to be in a language other than English,  542
S. B. No. 456  Page 20
As Introduced
the licensee, at its expense, shall be responsible for providing  543
the superintendent with a full and accurate translation. For  544
purposes of this section, "current" means within thirty days  545
from the date of the occurrence of the event required to be  546
recorded. A licensee shall keep and preserve the following  547
records:  548
       (1) A sortable electronic spreadsheet that discloses the  549
following fields of information:  550
       (a) Principal borrower's name;  551
       (b) Principal borrower's address or property address;  552
       (c) Loan or account number;  553
       (d) Type of the security for the loan;  554
       (e) Date of loan;  555
       (f) Amount financed;  556
       (g) Date finance charges begin to accrue;  557
       (h) Loan origination charge;  558
       (i) Itemization of all additional fees or charges;  559
       (j) Principal amount of the loan;  560
       (k) Scheduled or precomputed interest;  561
       (l) Number of payments;  562
       (m) Contractual rate of interest;  563
       (n) Federal annual percentage rate;  564
       (o) Payment amount;  565
       (p) Types and amounts of credit-related insurance;  566
S. B. No. 456  Page 21
As Introduced
       (q) Default charge;  567
       (r) Check collection charge;  568
       (s) Any points charged to the borrower;  569
       (t) Any charges for prepayment of the loan.  570
       (2) Payment histories for each outstanding loan and each  571
loan paid in full that shall disclose all of the following:  572
       (a) Principal borrower's name;  573
       (b) Loan or account number;  574
       (c) A chronological entry of all debits, credits,  575
payments, and charges received, assessed, or disbursed in  576
connection with the loan, recorded thereon in an identifiable  577
manner in order to show the actual date of receipt, assessment,  578
or disbursement and the balance due on the loan or account.  579
       (3) A file for each principal borrower. If there are  580
multiple loan transactions with the same borrower, each loan  581
transaction in the file shall have a unique loan or account  582
number. The file shall contain copies of all of the following:  583
       (a) All documents related to the loan transaction from  584
origination through the final entry on the record;  585
       (b) Copies of the complaints, court orders, settlements,  586
and judgments relating to collection litigation;  587
       (c) In cases of garnishment or attachment in collection  588
litigation, copies of all notices served on employers and  589
amounts collected;  590
       (d) Copies of all repossession and foreclosure legal  591
documents and other records, including bills for all expenses;  592
S. B. No. 456  Page 22
As Introduced
       (e) In instances where the security foreclosed upon or  593
repossessed is offered for private sale, not less than three  594
bona fide written bids or appraisals in order to establish that  595
the terms of the sale were commercially reasonable to the  596
borrower;  597
       (f) A copy of the death certificate and documentation of  598
all funds received or paid pursuant to a credit life claim.  599
       (4) A sortable electronic spreadsheet of all loans in  600
collection litigation that shall include all of the following:  601
       (a) Principal borrower's name;  602
       (b) Loan or account number;  603
       (c) Date litigation proceedings were initiated;  604
       (d) Name of the court in which proceedings were initiated;  605
       (e) Indication of whether a final judgment has been  606
entered, and if so, all of the following:  607
       (i) Date of judgment;  608
       (ii) Amount of judgment;  609
       (iii) The judgment rate of interest.  610
       (5) A sortable electronic spreadsheet of all loans in  611
repossession and foreclosure that shall include all of the  612
following:  613
       (a) Principal borrower's name;  614
       (b) Loan or account number;  615
       (c) Type of security foreclosed, attached, replevied,  616
repossessed, or surrendered;  617
S. B. No. 456  Page 23
As Introduced
       (d) Date of repossession or foreclosure;  618
       (e) Date of sale of the security;  619
       (f) Gross amount received from the sale of the security;  620
       (g) The amount of money applied to the outstanding loan  621
balance;  622
       (h) Where the security is offered for private or public  623
sale, evidence that the sale was consummated in compliance with  624
the provisions of sections 1309.610, 1309.611, 1309.615,  625
1309.617, and 1309.624 of the Revised Code.  626
       (6) A sortable electronic spreadsheet of all loans upon  627
which a credit life claim has been paid by the insurer that  628
shall include all of the following:  629
       (a) Principal borrower's name;  630
       (b) Loan or account number;  631
       (c) Date of death;  632
       (d) Total amount paid by the insurance claim;  633
       (e) Amount applied to the principal borrower's account.  634
       (7) General business records including, but not limited  635
to, financial statements, check registers, bank statements,  636
contracts with third-party vendors relating to lending services,  637
policy and procedures manual, and training materials.  638
       (8) All contracts or agreements relating to business  639
relationships with businesses or individuals licensed by the  640
division of financial institutions;  641
       (9) A file of all advertisements;  642
       (10) Histories of nonpublished indices used to establish  643
S. B. No. 456  Page 24
As Introduced
interest rates for variable rate loans, which shall be  644
maintained for two years from date of usage;  645
       (11) Any other records the superintendent may from time to  646
time specify in writing.  647
       (B) Where electronic records are required, a licensee may  648
retain paper records as well. Where electronic records are  649
required, the superintendent may, for good cause, allow a  650
licensee to retain paper records in lieu of the electronic  651
records required by this section.  652
       (C)(1) A licensee shall keep and preserve records  653
pertaining to loans made under sections 1321.62 to 1321.702  654
1321.703 of the Revised Code for at least two years after the  655
final entry on the record. The final entry on the record occurs  656
when the loan is paid in full, charged off as uncollectible,  657
sold, transferred or assigned to another, or discharged or  658
otherwise settled by a final order issued in litigation  659
governing the loan transaction.  660
       (2) Notwithstanding division (C)(1) of this section, a  661
licensee shall keep and preserve records pertaining to  662
residential mortgage loans in accordance with 12 C.F.R.  663
1026.25(b)(3) as in effect on November 30, 2016.  664
       (3) A licensee shall keep and preserve records pertaining  665
to an advertisement for at least two years after the date the  666
advertisement is published, broadcast, or disseminated.  667
       (D) A licensee shall segregate the records pertaining to  668
business conducted pursuant to sections 1321.62 to 1321.702  669
1321.703 of the Revised Code from all other business records.  670
       (E) A licensee shall notify the superintendent via the  671
NMLSR of a change of location of its records pertaining to  672
S. B. No. 456  Page 25
As Introduced
business conducted pursuant to sections 1321.62 to 1321.702  673
1321.703 of the Revised Code not later than five business days  674
after the change.  675
       (F) Where a licensee maintains electronic records in  676
compliance with this section and those records are located  677
outside of this state, the licensee shall make the electronic  678
records available to the division of financial institutions upon  679
request, within the time frame provided by the division. The  680
electronic records may be uploaded to a secure server for the  681
purpose of the division conducting an examination of the  682
licensee.  683
       (G) In the event electronic records, books, records, data,  684
and documents of a licensee are located outside of this state  685
and the superintendent determines that an in-person examination  686
is necessary, the licensee shall, upon the request of the  687
superintendent, pay in advance the estimated costs of the  688
examination of the licensee outside this state, including the  689
proportionate cost of the salaries of division of financial  690
institutions employees who conduct the examination. The  691
estimated costs of an out-of-state examination, as determined by  692
the superintendent, shall be deposited with the division of  693
financial institutions upon demand. After the actual costs of  694
the out-of-state examination have been determined, any funds in  695
the deposit account in excess of costs as itemized by the  696
division of financial institutions shall be returned to the  697
licensee.  698
       (H) A licensee shall make copies of records kept pursuant  699
to divisions (A)(3)(b) and (c) of this section available upon  700
request within three business days.  701
       (I) Any records maintained on an electronic storage media  702
S. B. No. 456  Page 26
As Introduced
or system shall meet all of the following requirements:  703
       (1) The electronic storage media or system must preserve  704
the records in a nonrewritable, nonerasable format.  705
       (2) The electronic storage media or system must verify  706
automatically the quality and accuracy of the storage media  707
recording process.  708
       (3) The electronic storage media or system must serialize  709
the original and the duplicate units of storage media, and affix  710
a date and time for the required period of retention on both the  711
original and duplicate.  712
       (4) The electronic storage media or system must have the  713
capacity to readily download indices and records preserved on  714
the electronic storage media or system to any medium acceptable  715
to the superintendent.  716
       (5) Acceptable facilities and appropriate equipment must,  717
at all times during normal business hours, be available to the  718
superintendent for immediate, easily readable projection or  719
production of electronic storage media or system images and for  720
producing easily readable images.  721
       (6) Immediate facsimile enlargement must be available upon  722
the superintendent's request.  723
       (7) A duplicate copy of the electronic record stored on  724
any electronic media or system for the time required must be  725
stored separately from the "original" electronic record.  726
       (8) The electronic storage media or system must organize  727
and index accurately all information maintained on both the  728
original and duplicate storage media or system.  729
       (9) At all times, a licensee must be able to have indices  730
S. B. No. 456  Page 27
As Introduced
of the electronic records being stored available for examination  731
by the superintendent.  732
       (10) Each index must also be duplicated and the duplicate  733
copies must be stored separately from the original copy of each  734
index.  735
       (11) Original and duplicate indices must be preserved for  736
the time required for the indexed records.  737
       (12) An audit system must be in place that does all of the  738
following:  739
       (a) Provides for accountability regarding inputting of  740
records and inputting any changes made to every original and  741
duplicate record maintained and preserved;  742
       (b) Requires the licensee, at all times, to have the  743
results of the audit system available for examination by the  744
superintendent;  745
       (c) Preserves the results of the audit for the time  746
required for the audited records.  747
       (13) All information necessary to access records and  748
indices stored on the electronic storage media or system, a copy  749
of the physical and logical file format of the electronic  750
storage media or system, the field format of all different  751
information types written on the electronic storage media or  752
system, together with the appropriate documentation and  753
information necessary to access records and indices must be  754
maintained, kept current, and provided promptly to the  755
superintendent upon request.  756
       (14) No paper documents produced or reproduced by means of  757
an electronic storage media or system may be destroyed until the  758
S. B. No. 456  Page 28
As Introduced
conditions of division (H)(I) of this section have been met with  759
regard to each paper document that is to be destroyed.  760
       (15) At the request of the division:  761
       (a) Records must be printed on paper for inspection or  762
examination without cost to the division within forty-eight  763
hours of the request. The superintendent may grant additional  764
time for good cause shown upon receipt of a request for  765
additional time from the licensee.  766
       (b) The licensee shall provide any court documents in  767
addition to those described in division (A)(3) of this section.  768
       (I)(J) In order to reduce the risk of consumer fraud and  769
related harms, including identity theft, licensees shall be  770
required to comply with section 216 of the "Fair and Accurate  771
Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010),  772
15 U.S.C. 1681w as in effect on November 30, 2016, section 501  773
of the "Gramm Leach Bliley Act," 113 Stat. 1338 (1999) (amended  774
2010), 15 U.S.C. 6801 as in effect on November 30, 2016, and the  775
rules promulgated pursuant to those federal acts, including 16  776
C.F.R. Part 313 and 16 C.F.R. Part 682, as in effect November  777
30, 2016, pertaining to the maintenance, security, and disposal  778
of consumer information and records.  779
       (J)(K) The division shall make or cause to be made an  780
examination of records pertaining to loans made under sections  781
1321.62 to 1321.702 1321.703 of the Revised Code at least once  782
every twenty-four months for the purpose of determining whether  783
the licensee is complying with those sections and verifying the  784
licensee's annual report.  785
       Sec. 1321.663. No person, in connection with any  786
examination or investigation conducted by the superintendent of  787
S. B. No. 456  Page 29
As Introduced
financial institutions under sections 1321.62 to 1321.702  788
1321.703 of the Revised Code shall knowingly do any of the  789
following:  790
       (A) Circumvent, interfere with, obstruct, or fail to  791
cooperate with the superintendent, including making a false or  792
misleading statement, failing to produce records, or  793
intimidating or suborning any witness;  794
       (B) Withhold, abstract, remove, mutilate, destroy, or  795
secrete any books, records, computer records, or other  796
information;  797
       (C) Tamper with, alter, or manufacture any evidence.  798
       Sec. 1321.665. Before ceasing to conduct or discontinuing  799
business as a licensee, the licensee shall arrange for and be  800
responsible for the preservation of the books and records  801
required to be maintained and preserved under sections 1321.62  802
to 1321.702 1321.703 of the Revised Code and shall notify the  803
division of financial institutions in writing of the exact  804
address where the books and records will be maintained during  805
the required period.  806
       Sec. 1321.666. The superintendent of financial  807
institutions may suspend, revoke, or refuse to renew any license  808
issued by the superintendent under sections 1321.62 to 1321.702  809
1321.703 of the Revised Code, or bring any other authorized  810
administrative enforcement action in accordance with section  811
1321.70 of the Revised Code, against any person for failure to  812
maintain records in accordance with section 1321.66 of the  813
Revised Code.  814
       Sec. 1321.67. (A) For purposes of sections 1321.62 to  815
1321.702 1321.703 of the Revised Code, a loan shall be  816
S. B. No. 456  Page 30
As Introduced
considered closed upon the signature of the obligor or obligors,  817
unless the loan contract is not executed by signature, in which  818
case the loan is considered closed upon disbursement of loan  819
funds.  820
       (B) All loans made under sections 1321.62 to 1321.702  821
1321.703 of the Revised Code by direct mail shall be made from a  822
place of business for which the licensee holds a valid license.  823
       (C) Licensees have an ongoing duty to notify the division  824
of financial institutions of material changes in the information  825
contained in the application and exhibits, schedules, and other  826
documentation submitted in conjunction with the application, and  827
to report all changes or additions to information in the  828
application within thirty days of the change. Material changes  829
in the information include changes in affiliations, controlling  830
interest, officers, directors, criminal record, and any change  831
in net worth below the requirements set forth in section 1321.65  832
of the Revised Code.  833
       (D) Each licensee shall do all of the following:  834
       (1) Obtain the written consent of the borrower for any  835
purchase of insurance on property of the borrower other than  836
that which is used as security for the loan;  837
       (2) Permit payment to be made in advance in any amount on  838
any contract at any time, but the licensee may apply the payment  839
first to interest and charges due up to the date of payment;  840
       (3) Notify the borrower in writing of any interest rate  841
change at least thirty but not more than one hundred twenty days  842
prior to the effective date of the changes, provided that if the  843
interest rate is tied to a published and verifiable index and  844
the contractual rate of interest is adjusted within forty-five  845
S. B. No. 456  Page 31
As Introduced
days of change in the published index rate, the licensee shall  846
notify the borrower in writing of any interest rate change at  847
least thirty days prior to the effective date of the change. The  848
notice required under division (D)(3) of this section shall  849
include all of the following:  850
       (a) A statement of the borrower's current interest rate  851
and corresponding monthly payment prior to the reset date;  852
       (b) A good faith statement of the borrower's anticipated  853
future interest rate and corresponding monthly payment following  854
the reset date;  855
       (c) A statement that notifies the borrower to contact the  856
licensee for workout options in the event that there is a  857
possible problem of repayment at the new interest rate and  858
monthly payment following the reset;  859
       (d) A toll-free telephone number, based in the United  860
States, by which borrowers can discuss possible payment problems  861
and workout options;  862
       (e) An explanation of the index or formula that is being  863
used to reset the interest rate and the source of that index or  864
formula.  865
       (4) In the instance of a non-amortized or partially  866
amortized interest-bearing loan, provide the borrower with  867
written notice of maturity at least ninety but not more than one  868
hundred twenty days prior to the expected maturity date;  869
       (5) Clearly indicate by prominently disclosing on, or in,  870
the loan documents, the federal or state statutory authority  871
pursuant to which the loan is made. This prominent disclosure  872
shall be provided on loans made:  873
S. B. No. 456  Page 32
As Introduced
       (a) Solely in reliance on the provisions of sections  874
1321.62 to 1321.702 1321.703 of the Revised Code;  875
       (b) Partially in reliance on the provisions of sections  876
1321.62 to 1321.702 1321.703 of the Revised Code; or  877
       (c) In reliance on any combination of federal or state  878
provisions that do not include sections 1321.62 to 1321.702  879
1321.703 of the Revised Code.  880
       (6) In providing any payment history requested by the  881
borrower or by the division, provide a clear and accurate  882
payment statement in a manner a reasonable borrower should  883
understand that sets forth the dates and amounts due and owing  884
and the dates and amounts received and paid.  885
       (E) A licensee shall not be prohibited from holding other  886
licenses or registrations issued by the division as long as the  887
licensee is in compliance with section 1321.63 of the Revised  888
Code and other applicable provisions of state and federal laws.  889
       (F) A licensee is liable for payment of the annual  890
assessment described in division (B) of section 1321.641 of the  891
Revised Code on any loan made by the licensee that has been  892
sold, transferred, or assigned to another person if servicing  893
rights have been retained by the licensee.  894
       Sec. 1321.673. No licensee shall conduct the business of  895
making loans under sections 1321.62 to 1321.702 1321.703 of the  896
Revised Code in any office, room, or place of business in which  897
any other business is solicited or engaged in, or in association  898
or conjunction with any other such business, if the  899
superintendent of financial institutions finds, pursuant to a  900
hearing conducted in accordance with Chapter 119. of the Revised  901
Code, that the other business is of such a nature that the  902
S. B. No. 456  Page 33
As Introduced
conduct tends to conceal evasion of sections 1321.62 to 1321.702  903
1321.703 of the Revised Code, and orders the licensee in writing  904
to desist from the conduct.  905
       Sec. 1321.674. (A) Any person that willfully violates  906
section 1321.68 of the Revised Code shall forfeit to the  907
borrower the amount of interest paid by the borrower. The  908
maximum rate of interest applicable to any loan transaction that  909
does not comply with section 1321.68 of the Revised Code shall  910
be the rate that would be applicable in the absence of sections  911
1321.62 to 1321.702 1321.703 of the Revised Code.  912
       (B) Any extension of credit under sections 1321.62 to  913
1321.702 1321.703 of the Revised Code shall include a notice in  914
at least ten point type at the bottom of the first page of any  915
loan agreement to read: "This loan is governed by, and made  916
pursuant to, the provisions of the Ohio Consumer Installment  917
Loan Act under R.C. 1321.62 – 1321.7021321.703."  918
       Sec. 1321.69. (A) A licensee shall not permit any borrower  919
to be indebted for a loan made under sections 1321.62 to  920
1321.702 1321.703 of the Revised Code at any time while the  921
borrower is also indebted to an affiliate or agent of the  922
licensee for a loan made under sections 1321.01 to 1321.19 or  923
sections 1321.51 to 1321.60 of the Revised Code for the purpose  924
or with the result of obtaining greater charges than otherwise  925
would be permitted by sections 1321.62 to 1321.702 1321.703 of  926
the Revised Code.  927
       (B) A licensee shall not induce or permit any person to  928
become obligated to the licensee under sections 1321.62 to  929
1321.702 1321.703 of the Revised Code, directly or contingently,  930
or both, under more than one contract of loan at the same time  931
for the purpose or with the result of obtaining greater charges  932
S. B. No. 456  Page 34
As Introduced
than would otherwise be permitted by sections 1321.62 to  933
1321.702 1321.703 of the Revised Code.  934
       (C) A licensee shall not fail to provide information  935
regarding the amount required to pay in full a loan made under  936
sections 1321.62 to 1321.702 1321.703 of the Revised Code within  937
five business days after the receipt of a written request from a  938
borrower or by another person designated in writing by the  939
borrower.  940
       (D) A licensee shall not obtain a license through any  941
false or fraudulent representation of a material fact or any  942
omission of a material fact required by state or federal law, or  943
make any substantial misrepresentation in the application to  944
engage in lending under sections 1321.62 to 1321.702 1321.703 of  945
the Revised Code.  946
       (E) A licensee, in connection with the business of making  947
or offering to make a loan, shall not knowingly make false or  948
misleading statements of a material fact, omissions of  949
statements required by state or federal law, or false promises  950
regarding a material fact, through advertising or other means,  951
or knowingly engage in a continued course of misrepresentations.  952
       (F) A licensee, or person making loans without a license  953
in violation of section 1321.63 of the Revised Code, shall not  954
knowingly engage in conduct, in connection with the business of  955
making or offering to make loans under sections 1321.62 to  956
1321.702 1321.703 of the Revised Code, that constitutes  957
improper, fraudulent, or dishonest dealings.  958
       (G) A licensee or applicant for a license shall not fail  959
to notify the division of financial institutions within thirty  960
days after having a license, or comparable authority, revoked in  961
S. B. No. 456  Page 35
As Introduced
any governmental jurisdiction.  962
       (H) A licensee shall not knowingly make, propose, or  963
solicit fraudulent, false, or misleading statements on any loan  964
document or on any document related to a loan. For purposes of  965
this division, "fraudulent, false, or misleading statements"  966
does not include mathematical errors, inadvertent transposition  967
of numbers, typographical errors, or any other bona fide error.  968
       (I) A licensee shall not knowingly instruct, solicit,  969
propose, or otherwise cause a borrower to sign in blank a loan-  970
related document in connection with a loan.  971
       (J) A licensee shall not take any note or other promise to  972
pay that does not set forth the entire agreement made with the  973
borrower.  974
       (K) A licensee shall not take any note or promise to pay  975
in which blanks are left to be filled in after execution.  976
       (L) A licensee shall not charge or collect interest prior  977
to the date of disbursement of the loan funds to the borrower.  978
       (M) A licensee shall not make a new loan for the purpose  979
of paying any part of the interest or principal due on an  980
existing loan with the same licensee unless the interest and  981
principal balance of the existing loan is paid in full from the  982
proceeds of the new loan.  983
       (N) Notwithstanding any provision of sections 1321.62 to  984
1321.702 1321.703 of the Revised Code to the contrary, no  985
licensee shall give, or advertise an offer to give, any article,  986
merchandise, reward-program benefit, or any other thing of  987
value, as inducement to a borrower or prospective borrower to  988
obtain a loan, unless the cost of the thing of value is absorbed  989
by the licensee as general overhead, rather than directly  990
S. B. No. 456  Page 36
As Introduced
charged to the borrower who received the thing of value.  991
       Sec. 1321.691. (A) As used in this section, "remote  992
location" means the home of an employee or other location  993
selected by the employee that is not a licensed place of  994
business.  995
       (B) Notwithstanding any provision of the Revised Code to  996
the contrary, nothing in sections 1321.62 to 1321.702 1321.703  997
of the Revised Code shall be construed to interfere with the  998
ability of a licensee's employee to work from a remote location,  999
provided the licensee does all of the following:  1000
       (1) Ensures that in-person customer interactions are  1001
conducted only at a licensed place of business;  1002
       (2) Maintains appropriate safeguards for licensee and  1003
consumer data, information, and records, including the use of  1004
secure virtual private networks where appropriate;  1005
       (3) Employs appropriate risk-based monitoring and  1006
oversight processes of work performed from a remote location and  1007
maintains records of such work;  1008
       (4) Ensures consumer information and records are not  1009
maintained at a remote location;  1010
       (5) Ensures consumer and licensee information and records  1011
remain accessible and available for regulatory oversight and  1012
exams;  1013
       (6) Provides appropriate employee training to keep all  1014
conversations about, and with, consumers conducted from a remote  1015
location confidential, as if conducted from a commercial  1016
location, and to ensure remote employees work in an environment  1017
conducive and appropriate to that confidentiality;  1018
S. B. No. 456  Page 37
As Introduced
       (7) Keeps a record of all remote locations that are being  1019
used, in the form of city, state, and type of location, and  1020
makes a list of those locations available to the superintendent  1021
upon request.  1022
       Sec. 1321.70. (A) The division of financial institutions  1023
may, upon written notice to the licensee stating the  1024
contemplated action, the grounds for the action, and the  1025
licensee's reasonable opportunity to be heard on the action in  1026
accordance with Chapter 119. of the Revised Code, revoke,  1027
suspend, or refuse to renew any license issued under sections  1028
1321.62 to 1321.702 1321.703 of the Revised Code if it finds a  1029
violation of or failure to comply with any provision of sections  1030
1321.62 to 1321.702 1321.703 of the Revised Code or the rules  1031
adopted thereunder, any federal lending law, or any other law  1032
applicable to the business conducted under a license.  1033
       (B) In addition to, or in lieu of, any revocation,  1034
suspension, or denial, the division may impose a monetary fine  1035
after administrative hearing or in settlement of matters subject  1036
to claims under division (A) of this section.  1037
       (C) The revocation, suspension, or refusal to renew shall  1038
not impair the obligation of any pre-existing lawful contract  1039
made under sections 1321.62 to 1321.702 1321.703 of the Revised  1040
Code; provided, however, that a prior licensee shall make good  1041
faith efforts to promptly transfer the licensee's collection  1042
rights to another licensee or person exempt from licensing, or  1043
be subject to additional monetary fines and legal or  1044
administrative action by the division. Nothing in this division  1045
shall limit a court's ability to impose a cease-and-desist order  1046
preventing any further business or servicing activity.  1047
       (D)(1) The superintendent of financial institutions may  1048
S. B. No. 456  Page 38
As Introduced
impose a fine for a violation of sections 1321.62 to 1321.702  1049
1321.703 of the Revised Code committed by a licensee. All fines  1050
collected pursuant to this section shall be paid to the  1051
treasurer of state to the credit of the consumer finance fund  1052
created in section 1321.21 of the Revised Code. In determining  1053
the amount of a fine to be imposed pursuant to this division,  1054
the superintendent may consider all of the following to the  1055
extent it is known to the division:  1056
       (a) The seriousness of the violation;  1057
       (b) The licensee's good faith efforts to prevent the  1058
violation;  1059
       (c) The licensee's history regarding violations and  1060
compliance with division orders;  1061
       (d) The licensee's financial resources;  1062
       (e) Any other matters the superintendent considers  1063
appropriate in enforcing sections 1321.62 to 1321.702 1321.703  1064
of the Revised Code.  1065
       (2) Monetary fines imposed under division (D)(1) of this  1066
section shall not exceed twenty-five thousand dollars.  1067
       (E) The superintendent may investigate alleged violations  1068
of sections 1321.62 to 1321.702 1321.703 of the Revised Code, or  1069
the rules adopted thereunder, or complaints concerning any such  1070
violation. The superintendent may make application to the court  1071
of common pleas for an order enjoining any violation and, upon a  1072
showing by the superintendent that a person has committed, or is  1073
about to commit, a violation, the court shall grant an  1074
injunction, restraining order, or other appropriate relief. The  1075
superintendent, in making application to the court of common  1076
pleas for an order enjoining a person from acting as a licensee  1077
S. B. No. 456  Page 39
As Introduced
in violation of section 1321.63 of the Revised Code, may also  1078
seek and obtain civil penalties for that unlicensed conduct in  1079
an amount not to exceed five thousand dollars per violation.  1080
       (F) In conducting an investigation pursuant to this  1081
section, the superintendent may compel, by subpoena, witnesses  1082
to testify in relation to any matter over which the  1083
superintendent has jurisdiction, and may require the production  1084
or photocopying of any book, record, or other document  1085
pertaining to such matter. If a person fails to file any  1086
statement or report, obey any subpoena, give testimony, produce  1087
any book, record, or other document as required by such a  1088
subpoena, or permit photocopying of any book, record, or other  1089
document subpoenaed, the court of common pleas of any county in  1090
this state, upon application made to it by the superintendent,  1091
shall compel obedience by attachment proceedings for contempt,  1092
as in the case of disobedience of the requirements of a subpoena  1093
issued from the court, or a refusal to testify therein.  1094
       (G) If the superintendent determines that a person is  1095
engaged in, or is believed to be engaged in, activities that may  1096
constitute a violation of sections 1321.62 to 1321.702 1321.703  1097
of the Revised Code, the superintendent may, after notice and a  1098
hearing conducted in accordance with Chapter 119. of the Revised  1099
Code, issue a cease-and-desist order. The superintendent, in  1100
taking administrative action to enjoin a person from acting as a  1101
licensee in violation of section 1321.63 of the Revised Code,  1102
may also seek and impose fines for those violations in an amount  1103
not to exceed five thousand dollars per violation. Such an order  1104
shall be enforceable in the court of common pleas.  1105
       (H) The superintendent shall regularly report violations  1106
of sections 1321.62 to 1321.702 1321.703 of the Revised Code, as  1107
S. B. No. 456  Page 40
As Introduced
well as enforcement actions and other relevant information, to  1108
the NMLSR.  1109
       (I)(1) To protect the public interest, the superintendent  1110
may, without a prior hearing, do any of the following:  1111
       (a) Suspend the license of a person who is convicted of or  1112
pleads guilty or nolo contendere to a criminal violation of  1113
sections 1321.62 to 1321.702 1321.703 of the Revised Code;  1114
       (b) Suspend any licensee who violates section 1321.65 of  1115
the Revised Code;  1116
       (c) Suspend any licensee who fails to comply with a  1117
request made by the superintendent under this section.  1118
       (2) The superintendent may, in accordance with Chapter  1119
119. of the Revised Code, subsequently revoke any license  1120
suspended under division (I)(1) of this section.  1121
       Sec. 1321.701. (A) The attorney general may directly bring  1122
an action to enjoin a violation of sections 1321.62 to 1321.702  1123
1321.703 of the Revised Code with the same rights, privileges,  1124
and powers as those described in section 1345.06 of the Revised  1125
Code. The prosecuting attorney of the county in which the action  1126
may be brought may bring an action to enjoin a violation of  1127
sections 1321.62 to 1321.702 1321.703 of the Revised Code only  1128
if the prosecuting attorney first presents any evidence of the  1129
violation to the attorney general and, within a reasonable  1130
period of time, the attorney general has not agreed to bring the  1131
action.  1132
       (B) These powers of the attorney general shall be in  1133
addition to any other applicable powers of the attorney general.  1134
       Sec. 1321.702. (A) As used in this section, "bona fide  1135
S. B. No. 456  Page 41
As Introduced
error" means an unintentional clerical, calculation, computer  1136
malfunction or programming, or printing error.  1137
       (B) A licensee shall not be held civilly liable in any  1138
action brought under this chapter or Chapter 1309., 1317., or  1139
1345. of the Revised Code, and shall not be subject to any  1140
sanction by the superintendent of financial institutions, if all  1141
of the following conditions are met:  1142
       (1) The licensee shows by a preponderance of evidence that  1143
the compliance failure was not intentional and resulted from a  1144
bona fide error notwithstanding the maintenance of procedures  1145
reasonably adapted to avoid any such error.  1146
       (2) Within sixty days after discovering the error, and  1147
prior to the initiation of any action by the superintendent or  1148
the receipt of written notice of the error from the borrower,  1149
the licensee notifies the superintendent and the borrower of the  1150
error and the manner in which the licensee intends to make full  1151
restitution to the borrower.  1152
       (3) The licensee promptly makes reasonable restitution to  1153
the borrower.  1154
       (C) In the event of a compliance failure, if the licensee  1155
does not meet the conditions set forth in division (B) of this  1156
section, a borrower injured by the error has a cause of action  1157
to recover damages. Such an action may not be maintained as a  1158
class action.  1159
       Sec. 1321.702 1321.703. The superintendent of financial  1160
institutions may adopt, in accordance with Chapter 119. of the  1161
Revised Code, rules that are necessary for the enforcement of  1162
sections 1321.62 to 1321.702 1321.703 of the Revised Code and  1163
that are consistent with those sections. Each rule shall contain  1164
S. B. No. 456  Page 42
As Introduced
a reference to the section, division, or paragraph of the  1165
Revised Code to which it applies. The superintendent shall send  1166
by regular mail to each licensee a copy of each rule that is  1167
adopted pursuant to this section.  1168
       Section 2. That existing sections 1321.02, 1321.62,  1169
1321.63, 1321.631, 1321.632, 1321.64, 1321.643, 1321.644,  1170
1321.65, 1321.651, 1321.66, 1321.663, 1321.665, 1321.666,  1171
1321.67, 1321.673, 1321.674, 1321.69, 1321.691, 1321.70,  1172
1321.701, and 1321.702 of the Revised Code are hereby repealed.  1173
       Section 3. Section 1321.02 of the Revised Code is  1174
presented in this act as a composite of the section as amended  1175
by both H.B. 199 and S.B. 24 of the 132nd General Assembly. The  1176
General Assembly, applying the principle stated in division (B)  1177
of section 1.52 of the Revised Code that amendments are to be  1178
harmonized if reasonably capable of simultaneous operation,  1179
finds that the composite is the resulting version of the section  1180
in effect prior to the effective date of the section as  1181
presented in this act.  1182