(A) All small loan records required to be
maintained by this rule shall be kept current and shall be available at all
times during normal business hours for review by the division of financial
institutions. Records shall be legible and maintained in a type size that is
clearly readable without magnification, and in conformity with any specific
typeface or font size that may be required by state or federal law. Except
where otherwise provided by federal or state law, records shall be maintained
in English. When records are allowed to be in a language other than English,
the small loan licensee, at its expense, shall be responsible for providing the
division with a full and accurate translation. For purposes of recordkeeping,
"current" means within thirty business days from the date of the
occurrence of the event required to be recorded. Pursuant to section 1321.09 of
the Revised Code, each small loan licensee shall maintain the following paper
or electronic records for all loans made pursuant to sections 1321.01 to
1321.19 of the Revised Code for at least a period of two years after making the
final entry at either the licensed office or any other location approved in
writing in advance by the superintendent of financial
institutions.
(1) A ledger record shall
be kept for each outstanding loan paid in full within the last two years upon
which a chronological entry of all credits, debits, payments and charges
received, assessed or disbursed in connection with the loan shall be recorded
in an identifiable manner, in order to show the actual date of receipt,
assessment or disbursement and the balance due on the account after each
entry.
(2) A loan statement kept
in chronological order shall be maintained in one file for at least two years
after making the final entry for each loan made by the licensee. The loan
statement shall disclose the following information if applicable:
(a) Account number;
(b) Principal borrower's name and residence
address;
(c) Date of loan;
(d) Date finance charges begin to accrue;
(e) Contractual rate of loan interest;
(f) Federal annual percentage rate;
(g) Loan origination charge;
(h) Original principal amount;
(i) Scheduled or precomputed interest;
(j) Total of payments;
(k) Type of security;
(l) Terms of repayment;
(m) Names of all comakers, guarantors, or other
obligors;
(n) Types and amount of credit-related insurance;
(o) Unit default charge;
(p) Credit bureau fee;
(q) Where and to whom hypothecated;
(r) An indication as to whether or not the loan is a
"refinancing," as that term is defined in division (A)(11) of section
1321.01 of the Revised Code.
(3) All loan agreements,
notes, disclosure forms, closing statements, security agreements and other
documents signed by the obligors and taken in connection with loans made, shall
be identified by the loan number and maintained in a separate file for each
borrower.
(4) An alphabetical index
of all borrowers, comakers, guarantors, and other obligors identified by
account number shall be maintained with respect to all persons obligated for
interest in excess of the current usury rate.
(5) A record of all loans
in litigation shall be maintained in a litigation record. The litigation record
shall be maintained for at least two years after the final entry, be kept
current, and include the following information:
(a) Loan number and name of principal borrower;
(b) Date litigation proceedings were initiated, the date and
amount of the judgment and the judgment rate of interest;
(c) All original litigation records and documents, including
pleadings, court orders, judgments, and documentation of all court costs paid
by the borrower to or through the licensee, or copies thereof shall be
maintained in the file of original papers; and
(d) In cases of garnishment or attachment, all notices served on
employers or copies thereof and the amounts collected shall be maintained in
the file of original loan papers.
(6) A record of all loans
in repossession shall be maintained in a repossession record. The repossession
record shall be maintained for at least two years after the final entry has
been made on the loan, be kept current, and include the following
information:
(a) Loan number and name of principal borrower;
(b) Type of security attached, replevined, repossessed, or
surrendered;
(c) Date of repossession, date of sale of the security, the gross
amount received from the sale of the security, expenses deducted from the sale
of the security and the amount of money applied to the outstanding loan
balance;
(d) All original repossession legal documents and other records,
including bills for all expenses or copies thereof shall be maintained in the
file of original loan papers; and
(e) In instances where the security is offered for private sale,
there must be in the borrower's file not less than three bona fide written
bids or appraisals in order to establish that the terms of sale were fair to
the borrower. Where the security is offered for private or public sale, the
sale must be consummated in compliance with the provisions of sections
1309.610, 1309.611, 1309.615, 1309.617, and 1309.624 of the Revised
Code.
(7) A credit life claim
record shall be maintained for all loans upon which a credit life claim has
been paid by the insurer. The credit life claims record shall be maintained for
at least two years after the final entry has been made on the loan, be kept
current, and include the following information:
(a) Loan number and name of principal borrower;
(b) Date of death and a certified copy of the death certificate
or a copy thereof;
(c) Name and address of second beneficiary, if any;
and
(d) Copies of all checks received or paid pertaining to a credit
life claim.
(8) Histories of
nonpublished indices used to establish interest rates for variable rate loans
shall be maintained for two years from date of usage, and shall be available
for review by the division of financial institutions.
(9) A log for business
conducted with brokers that is maintained in chronological order and contains
the following information:
(a) Amounts of fees paid to brokers;
(b) Names and addresses of brokers; and
(c) Dates of transactions with brokers.
(B) Due bills, receipts, invoices or
other evidence shall be maintained in the file of original loan papers for any
amount in excess of twenty dollars paid by the borrower to or through the small
loan licensee for any dishonored check, negotiable order of withdrawal, share
draft or any other negotiable instrument.
(C) A small loan licensee may, for any
business purpose, retain a document, paper, or other instrument or record by
use of a process to record, copy, photograph, or store a representation of the
original document, paper, or other instrument or record, if all of the
following apply:
(1) The process correctly
and accurately copies or reproduces, or provides a means for correctly and
accurately copying or reproducing, the original document, paper, or other
instrument or record with regard to both its substance and appearance, except
the copy or reproduction need not reflect the original paper or other medium,
size, or color unless the medium, size or color is necessary to establish the
authenticity of the original.
(2) The process does not
permit the recording, copy, photographic image, or stored representation of the
original document, paper, or other instrument or record to be altered or
manipulated.
(3) Any medium the
process uses to record, copy, photograph, or store a representation of the
original document, paper, or other instrument or record is a durable medium for
retaining and reproducing records.
(4) The process is used
in the small loan licensee's regular course of business.
(5) Written printouts or
hard copies of the required data are readily available.
(6) The superintendent
has given written authorization in advance to the small loan licensee to use
the process.
(D) Other methods of recording data,
keeping records and keeping books, such as electronic or computerized methods,
may be used in lieu of the methods described in this rule, provided written
printouts or hard copies of the required data are readily available at each
licensed location in a form approved, in advance, by the
superintendent.
(E) In order to reduce the risk of consumer fraud and related
harms, including identity theft, small loan licensees shall be required to
comply with section 216 of the "Fair and Accurate Credit Transactions Act
of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on
January 1, 2022, the "Gramm Leach Bliley Act," 113 Stat. 1338
(1999)(amended 2010), 15 U.S.C. 6801 as in effect on January 1, 2022, and the
rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 314
and 16 C.F.R. Part 682, as in effect on January 1, 2022, pertaining to the
maintenance, security, and disposal of consumer information and
records.
(F) Before ceasing to conduct or discontinuing business as a
small loan licensee, the small loan licensee shall arrange for and be
responsible for the preservation of the books and records required to be
maintained and preserved under this rule for the remainder of the period
specified in this rule, and shall notify the division in writing by paper mail
or electronically of the exact address where the books and records will be
maintained and made available to the division during the required
period.
(G) In the event electronic records,
books, records, data, and documents of a licensee are located outside of this
state and the superintendent determines that an in-person examination is
necessary, the licensee shall, upon the request of the superintendent, pay in
advance the estimated costs of the examination of the licensee outside this
state, including the proportionate cost of the salaries of division of
financial institutions employees who conduct the examination. The estimated
costs of an out-of-state examination, as determined by the superintendent,
shall be deposited with the division of financial institutions upon demand.
After the actual costs of the out-of-state examination have been determined,
any funds in the deposit account in excess of costs as itemized by the division
of financial institutions shall be returned to the licensee. In the
alternative, the superintendent may choose to bill the licensee after the exam
has been completed. In this situation, the cost shall be calculated as above,
however all billing will be done post exam through NMLS.
