Bill > SB269

This bill revises the Small Loan Act by making several key changes to Ohio's financial regulations. The bill modifies Section 1321.02 to clarify licensing requirements for small loans, expanding the language to specify that no person can engage in lending money of $5,000 or less without first obtaining a license from the division of financial institutions. The bill adds new subsections that explicitly list exemptions to the licensing requirements, including various financial institutions like banks, credit unions, and other specialized lenders. It also strengthens provisions against circumventing licensing rules, stating that any loan contract made in violation of these regulations is void, and the lender loses the right to collect principal, interest, or charges. Additionally, the bill updates Section 1321.07 to provide more detailed guidelines for how the division of financial institutions can investigate and examine businesses potentially operating without proper licensing, including the ability to subpoena records and compel testimony. Section 1321.141 is also modified to prohibit licensees from making very small loans (under $1,000) or loans with durations of one year or less, and from assisting borrowers in obtaining loans that would otherwise be prohibited. The bill effectively tightens regulatory oversight of small lending practices in Ohio.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/sb269