Department of Commerce - Small Loan Act - Definitions.

Published: 2008-07-01

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(A) "Current assets," as used in section 1321.05 of the Revised Code, means cash on hand and in depository institutions, readily marketable securities, accounts receivable less allowances for uncollectible accounts, and real estate less liens and depreciation. "Current assets" shall not include office premises, leasehold improvements, office furniture, fixtures, equipment or intangible assets.

(B) "Direct mail," as used in this chapter, means a loan arranged via an application through the United States postal mail or internet and the loan proceeds delivered through the United States postal mail or electronic transmission to the benefit of a borrower. A loan is not made by "direct mail" if it is facilitated by face to face, personal contact in this state between the lender, lender's employee or agent, or lender's attorney and the borrower or borrower's agent. For purposes of this rule, a bona fide third party title agency, notary, insured depository, or attorney which is suggested as part of a list of three or more recommended but not required closing providers, shall not be considered an agent of the lender. Nothing in this rule shall prohibit a licensee from creating a list of disapproved vendors, nor shall persons selected by the borrower only to witness his or her signature in compliance with a list be considered an agent of the lender.

(C) "Condition of the loan," as used in this chapter, means that approval or denial of a borrower's loan is based on the borrower's acceptance of other transactions made in conjunction with the loan. This interpretation shall not restrict the rights of small loan licensees under division (F) of section 1321.13 of the Revised Code.

(D) "Affiliation" or "affiliated with" as used in sections 1321.01 to 1321.19 of the Revised Code and this chapter shall mean directly or indirectly through one or more intermediaries controlled by or under common control with another person or enterprise. "Control" shall mean the authority to direct or cause the direction of the management and policies through ownership, by contract, or otherwise.

(E) "Final entry on a loan," as used in this chapter, means, as to that lender, the latter of the date the loan is:

(1) Paid in full,

(2) Deemed uncollectible,

(3) Assigned to another registrant or exempt entity and all records are transferred to the new lender, or

(4) Discharged or otherwise settled by an order terminating litigation governing the loan transaction.