Ohio § 1321.57

§ 1321.57.

(A) Notwithstanding any other provisions of the Revised Code, a registrant may contract

for and receive interest, calculated according to the actuarial method, at a rate

or rates not exceeding twenty-one per cent per year on the unpaid principal balances

of the loan.  Loans may be interest-bearing or precomputed. (B) For purposes of computation of time on interest-bearing and precomputed loans, including,

but not limited to, the calculation of interest, a month is considered one-twelfth

of a year, and a day is considered one three hundred sixty-fifth of a year when calculation

is made for a fraction of a month.  A year is as defined in section 1.44 of the Revised Code .  A month is that period described in section 1.45 of the Revised Code .  Alternatively, a registrant may consider a day as one three hundred sixtieth of

a year and each month as having thirty days. (C) With respect to interest-bearing loans: (1)(a) Interest shall be computed on unpaid principal balances outstanding from time to

time, for the time outstanding. (b) As an alternative to the method of computing interest set forth in division (C)(1)(a)

of this section, a registrant may charge and collect interest for the first installment

period based on elapsed time from the date of the loan to the first scheduled payment

due date, and for each succeeding installment period from the scheduled payment due

date to the next scheduled payment due date, regardless of the date or dates the payments

are actually made. (c) Whether a registrant computes interest pursuant to division (C)(1)(a) or (b) of this

section, each payment shall be applied first to unpaid charges, then to interest,

and the remainder to the unpaid principal balance.  However, if the amount of the payment is insufficient to pay the accumulated interest,

the unpaid interest continues to accumulate to be paid from the proceeds of subsequent

payments and is not added to the principal balance. (2) Interest shall not be compounded, collected, or paid in advance.  However, both of the following apply: (a) Interest may be charged to extend the first monthly installment period by not more

than fifteen days, and the interest charged for the extension may be added to the

principal amount of the loan. (b) If part or all of the consideration for a new loan contract is the unpaid principal

balance of a prior loan, the principal amount payable under the new loan contract

may include any unpaid interest that has accrued.  The resulting loan contract shall be deemed a new and separate loan transaction

for purposes of this section.  The unpaid principal balance of a precomputed loan is the balance due after refund

or credit of unearned interest as provided in division (D)(3) of this section. (D) With respect to precomputed loans: (1) Loans shall be repayable in monthly installments of principal and interest combined,

except that the first installment period may exceed one month by not more than fifteen

days, and the first installment payment amount may be larger than the remaining payments

by the amount of interest charged for the extra days;  and provided further that monthly

installment payment dates may be omitted to accommodate borrowers with seasonal income. (2) Payments may be applied to the combined total of principal and precomputed interest

until maturity of the loan.  A registrant may charge interest after the original or deferred maturity of a precomputed

loan at the rate specified in division (A) of this section on all unpaid principal

balances for the time outstanding. (3) When any loan contract is paid in full by cash, renewal, refinancing, or a new loan,

one month or more before the final installment due date, the registrant shall refund,

or credit the borrower with, the total of the applicable charges for all fully unexpired

installment periods, as originally scheduled or as deferred, that follow the day of

prepayment.  If the prepayment is made other than on a scheduled installment due date, the nearest

scheduled installment due date shall be used in such computation.  If the prepayment occurs prior to the first installment due date, the registrant

may retain one-thirtieth of the applicable charge for a first installment period of

one month for each day from date of loan to date of prepayment, and shall refund,

or credit the borrower with, the balance of the total interest contracted for.  If the maturity of the loan is accelerated for any reason and judgment is entered,

the registrant shall credit the borrower with the same refund as if prepayment in

full had been made on the date the judgment is entered. (4) If the parties agree in writing, either in the loan contract or in a subsequent agreement,

to a deferment of wholly unpaid installments, a registrant may grant a deferment and

may collect a deferment charge as provided in this section.  A deferment postpones the scheduled due date of the earliest unpaid installment

and all subsequent installments as originally scheduled, or as previously deferred,

for a period equal to the deferment period.  The deferment period is that period during which no installment is scheduled to

be paid by reason of the deferment.  The deferment charge for a one-month period may not exceed the applicable charge

for the installment period immediately following the due date of the last undeferred

installment.  A proportionate charge may be made for deferment for periods of more or less than

one month.  A deferment charge is earned pro rata during the deferment period and is fully earned

on the last day of the deferment period.  If a loan is prepaid in full during a deferment period, the registrant shall make,

or credit to the borrower, a refund of the unearned deferment charge in addition to

any other refund or credit made for prepayment of the loan in full. (E) A registrant, at the request of the borrower, may obtain, on one or more borrowers,

credit life insurance, credit accident and health insurance, and unemployment insurance.  The premium or identifiable charge for the insurance may be included in the principal

amount of the loan and may not exceed the premium rate filed by the insurer with the

superintendent of insurance and not disapproved by the superintendent.  If a registrant obtains the insurance at the request of the borrower, the borrower

shall have the right to cancel the insurance for a period of twenty-five days after

the loan is made.  If the borrower chooses to cancel the insurance, the borrower shall give the registrant

written notice of this choice and shall return all of the policies or certificates

of insurance or notices of proposed insurance to the registrant during such period,

and the full premium or identifiable charge for the insurance shall be refunded to

the borrower by the registrant.  If the borrower requests, in the notice to cancel the insurance, that this refund

be applied to reduce the balance of a precomputed loan, the registrant shall credit

the amount of the refund plus the amount of interest applicable to the refund to the

loan balance. If the registrant obtains the insurance at the request of the borrower, the registrant

shall not charge or collect interest on any insured amount that remains unpaid after

the insured borrower's date of death. (F) A registrant may require the borrower to provide insurance or a loss payable endorsement

covering reasonable risks of loss, damage, and destruction of property used as security

for the loan and with the consent of the borrower such insurance may cover property

other than that which is security for the loan.  The amount and term of required property insurance shall be reasonable in relation

to the amount and term of the loan contract and the type and value of the security,

and the insurance shall be procured in accordance with the insurance laws of this

state.  The purchase of this insurance through the registrant or an agent or broker designated

by the registrant shall not be a condition precedent to the granting of the loan.  If the borrower purchases the insurance from or through the registrant or from another

source, the premium may be included in the principal amount of the loan. (G)(1) In addition to the interest and charges provided for by this section, no further

or other amount, whether in the form of broker fees, placement fees, or any other

fees whatsoever, shall be charged or received by the registrant, except costs and

disbursements in connection with any suit to collect a loan or any lawful activity

to realize on a security interest after default, including reasonable attorney fees

incurred by the registrant as a result of the suit or activity and to which the registrant

becomes entitled by law, and except the following additional charges which may be

included in the principal amount of the loan or collected at any time after the loan

is made: (a) The amounts of fees authorized by law to record, file, or release security interests

on a loan; (b) Fees for credit investigations not exceeding ten dollars. (2) Division (G)(1) of this section does not limit the rights of registrants to engage

in other transactions with borrowers, provided the transactions are not a condition

of the loan. (H) If the loan contract or security instrument contains covenants by the borrower to

perform certain duties pertaining to insuring or preserving security and the registrant

pursuant to the loan contract or security instrument pays for performance of the duties

on behalf of the borrower, the registrant may add the amounts paid to the unpaid principal

balance of the loan or collect them separately.  A charge for interest may be made for sums advanced not exceeding the rate of interest

permitted by division (A) of this section.  Within a reasonable time after advancing a sum, the registrant shall notify the

borrower in writing of the amount advanced, any interest charged with respect to the

amount advanced, any revised payment schedule, and shall include a brief description

of the reason for the advance. (I)(1) A registrant may charge and receive the following: (a) With respect to secured loans:  if the principal amount of the loan is five hundred

dollars or less, loan origination charges not exceeding fifteen dollars;  if the principal

amount of the loan is more than five hundred dollars but less than one thousand dollars,

loan origination charges not exceeding thirty dollars;  if the principal amount of

the loan is at least one thousand dollars but less than two thousand dollars, loan

origination charges not exceeding one hundred dollars;  if the principal amount of

the loan is at least two thousand dollars but less than five thousand dollars, loan

origination charges not exceeding two hundred dollars;  and if the principal amount

of the loan is at least five thousand dollars, loan origination charges not exceeding

the greater of two hundred fifty dollars or one per cent of the principal amount of

the loan. (b) With respect to loans that are not secured:  if the principal amount of the loan

is five hundred dollars or less, loan origination charges not exceeding fifteen dollars;

 if the principal amount of the loan is more than five hundred dollars but less than

one thousand dollars, loan origination charges not exceeding thirty dollars;  if the

principal amount of the loan is at least one thousand dollars but less than five thousand

dollars, loan origination charges not exceeding one hundred dollars;  and if the principal

amount of the loan is at least five thousand dollars, loan origination charges not

exceeding the greater of two hundred fifty dollars or one per cent of the principal

amount of the loan. (2) If a refinancing occurs within ninety days after the date of the refinanced loan,

a registrant may not impose loan origination charges on the portion of the principal

amount that is applied to the unpaid principal amount of the refinanced loan. (3) Loan origination charges may be paid by the borrower at the time of the loan or may

be included in the principal amount of the loan. (J) A registrant may charge and receive check collection charges not greater than twenty

dollars plus any amount passed on from other depository institutions for each check,

negotiable order of withdrawal, share draft, or other negotiable instrument returned

or dishonored for any reason. (K) If the loan contract so provides, a registrant may collect a default charge on any

installment not paid in full within ten days after its due date.  For this purpose, all installments are considered paid in the order in which they

become due.  Any amounts applied to an outstanding loan balance as a result of voluntary release

of a security interest, sale of security on the loan, or cancellation of insurance

shall be considered payments on the loan, unless the parties otherwise agree in writing

at the time the amounts are applied.  The amount of the default charge shall not exceed the greater of five per cent of

the scheduled installment or fifteen dollars.