Oklahoma § 59-3104 - Loan agreement - Disclosure of credit terms - Payment of

§ 59-3104. Loan agreement - Disclosure of credit terms - Payment of

proceeds - Notices.

A. Each deferred deposit loan shall be documented by a written

agreement executed by both the lender and the debtor. The written

agreement shall contain the name or trade name of the lender, the

license number of the lender, the toll-free telephone number of the

Department of Consumer Credit, the transaction date, the loan

amount, and a statement of the total amount of fees charged. The

written agreement must expressly authorize the lender to defer

presentment or deposit of the instrument until a specific date;

provided, unless the debtor has entered into an installment payment

plan pursuant to Section 3109 of this title, such date shall be not

later than forty-five (45) days from the date the instrument is

accepted by the lender.

B. The disclosure of the credit terms of a deferred deposit

loan shall be according to and governed by the requirements of

Regulation Z. The definitions and requirements of that act,

regulation and commentary shall apply to deferred deposit loans as

if those provisions are fully set out in this act.

C. A completed copy of the written agreement and “Notice of

Cancellation” form as prescribed by the Administrator shall be given

to and acknowledged in writing by the debtor when the written

agreement is signed.

D. A lender may pay the proceeds of a deferred deposit loan to

the debtor by a business instrument, money order or cash. A lender

may not charge the debtor an additional fee for cashing the lender’s

business instrument.

E. A lender shall provide the following notices in a prominent

place on each deferred deposit loan agreement in at least twelvepoint type:

Oklahoma Statutes - Title 59. Professions and Occupations

“A deferred deposit loan is not intended to meet long-term

financial needs. This loan should be used only to meet

short-term cash needs.”

“You have the right to rescind this deferred deposit loan no

later than 5 p.m. of the next business day following this

loan transaction.”

“If you enter into a deferred deposit loan and three

consecutive deferred deposit loans, you have the right to

pay off the fourth loan pursuant to an installment payment

plan, subject to certain conditions.”

F. A lender shall post at the licensed location a notice of the

charges, terms, and effective annual percentage rate for deferred

deposit loans made by the lender.

G. Prior to sale or assignment of instruments held by the

lender as a result of a deferred deposit loan, the lender shall

place a notice on the instrument in at least twelve-point type to

read:

“This is a deferred deposit loan instrument regulated by the

Oklahoma Department of Consumer Credit, Title 59, Sections 3101 et

seq. and any holder of this check takes it subject to all claims and

defenses of the originator.”

and shall include the address and toll-free telephone number of

the Department of Consumer Credit.

H. At the time a debtor enters into a deferred deposit loan

transaction, the lender shall provide the debtor with a pamphlet,

approved by the Administrator of Consumer Credit, describing the

availability of debt management and credit counseling services, the

debtor’s right to an installment payment plan and the debtor’s

rights and responsibilities in the transaction. The pamphlet shall

indicate a toll-free telephone number for the Administrator that the

debtor may contact to receive information relating to debt

management and credit counseling services.

Added by Laws 2003, c. 240, § 4, eff. Sept. 1, 2003. Amended by

Laws 2004, c. 557, § 3, emerg. eff. June 10, 2004.