§ 22-41. Licenses.

(a)

No secondhand dealer may engage in business as a title loan lender six (6) months after the effective date of this article unless the secondhand dealer has a valid license issued by the city. A separate license will be required for each physical location to the title loan business. The city shall issue more than one (1) license to an applicant if the applicant complies with the requirements of this part for each license.

(b)

An application for a license pursuant to this part must be submitted to the city on such form as the city may prescribe. If the city determines that an application should be granted, it shall issue the license for a period not to exceed two (2) years. A nonrefundable application and license fee not exceeding one thousand two hundred fifty dollars ($1,250.00) shall accompany an initial application for each title loan location.

(c)

The city shall charge a biennial renewal fee of one thousand dollars ($1,000.00). A license that is not renewed at the end of each two-year period shall automatically become inactive. An inactive license may be reactivated within ninety (90) days after the date it became inactive upon the submission of a completed reactivation form and payment of a reactivation fee not exceeding two hundred dollars ($200.00) and a biennial license fee of one thousand dollars ($1,000.00). No inactive license may be reactivated after ninety (90) days.

(d)

Each license must specify the location for which it is issued and must be conspicuously displayed at that location. When a licensee wishes to move a title loan office to another location, the licensee shall give thirty (30) days prior written notice to the city by certified or registered mail, return receipt requested, and the city shall then amend the license accordingly. A license issued pursuant to this part is not transferable or assignable.

(e)

Books, accounts and records; maintenance and examinations by the city:

(1)

Each licensee shall maintain, at the principal place of business designated on the license, all books, accounts, records and documents necessary to determine the licensee's compliance with this part.

(2)

The city may authorize maintenance or records at a location other than a principal place of business. The city may require books and records to be produced and available at a reasonable and convenient location within the city.

(3)

All books, accounts, records, documents and receipts for expenses paid by the licensee on behalf of the borrower, including each contract signed by the borrower and expenses incurred by the licensee in the event of foreclosure and property recovery, will be preserved and kept available for examination by the city for two (2) years after the date of original entry.

(4)

The city may prescribe by rule the minimum information to be shown in the books, accounts, records and documents of licensee so that such records will enable the city to determine the licensee's compliance with this part.

(f)

Each licensee shall designate and maintain an agent in this state for service of process.

(g)

A licensee must apply to the city for a new license upon a change in ownership of twenty-five (25) percent or more by a natural person in any title loan location or office. No application for a license or an application for transfer of an existing license is required for any change, directly, or beneficially, in the ownership of a title loan location if one (1) or more of the holders of at least seventy-five (75) percent of the outstanding equity interest in the title loan location or office before the change in ownership continue to hold at least seventy-five (75) percent of the outstanding equity interest in the title loan location or office after the change in ownership.

(h)

To be eligible for title loan lending license, an applicant shall:

(1)

File with the city a bond in the amount of thirty-five thousand dollars ($35,000.00) for each license with a surety company qualified to do business in this state. In lieu of the bond the applicant may establish a certificate of deposit or an irrevocable letter of credit in Florida financial institution in the amount of the bond. The original bond, certificate of deposit, or letter of credit shall be filed with the city and the city shall be the beneficiary of such instrument. The bond, certificate of deposit, or letter of credit shall be in favor of the city for the use and benefit of any consumer who is injured in the context of a title loan transaction by the fraud, misrepresentation, breach of contract, financial failure, unfair or deceptive trade practice, disclosure violation or violation of any provision of this part by the licensee. Such liability shall be enforced by the filing of a suit in a court of competent jurisdiction.

(2)

Not have been convicted of a felony within the last ten (10) years or be acting on behalf of a beneficial owner who has been convicted of a felony within the last ten (10) years.

(3)

Not have been convicted, and not acting on behalf of a beneficial owner who has been convicted, of a crime that the city finds directly related to the duties and responsibilities of a title loan lender within the past ten (10) years.

(i)

The city shall determine the form of the license.

(j)

No part of this ordinance may be construed to impair or affect the obligation of any title loan agreement which was lawfully entered into prior to the effective date of this article.

(k)

Licensees shall report changes in address, location or records, and any change of an executive officer within thirty (30) days of the change.

(Ord. No. 1998-34, § 1, 2-1-99)