367.525. Notice to borrower prior to acceptance of title loan application.
Notice to borrower prior to acceptance of title loan application.
367.525. 1. Before accepting a title loan application, the lendershall provide the borrower the following notice in at least ten-point boldtype and receipt thereof shall be acknowledged by signature of theborrower:(Name of Lender)NOTICE TO BORROWER(1.) Your automobile title will be pledged as security for the loan. Ifthe loan is not repaid in full, including all finance charges, you may loseyour automobile.(2.) This lender offers short-term loans. Please read and understand theterms of the loan agreement before signing.I have read the above "NOTICE TO BORROWER" and I understand that if I donot repay this loan that I may lose my automobile._____________Borrower_____________Date
2. If the loan is secured by titled personal property other than anautomobile, the lender shall either provide a form with the proper worddescribing the security or else shall strike the word "automobile" from thethree places it appears, write or print in the type of titled personalproperty serving as security and have the customer initial all threeplaces.
3. The title lender shall post in a conspicuous location in eachlicensed office, in at least fourteen-point bold type the maximum ratesthat such title lender is currently charging on any loans made and thestatement:
NOTICE:
Borrowing from this lender places your automobile at risk. If thisloan is not repaid in full, including all finance charges, you may loseyour automobile.
This lender offers short-term loans. Please read and understand theterms of the loan agreement before signing.
4. When making or negotiating loans, the title lender shall take intoconsideration in determining the size and duration of a loan contract thefinancial ability of the borrower to reasonably repay the loan in the timeand manner specified in the loan contract.
(L. 2001 H.B. 738 merged with S.B. 186)