§ 659.03 Notice to Customers of Home Improvement Loans

   (a)   No person or business entity that knowingly funds a home improvement loan under the circumstances described in this section shall fail to furnish the notice described in this section. At least three (3) business days prior to closing, every lender who knowingly funds a home improvement loan shall furnish a notice along with any home improvement loan for any work to be performed on owner-occupied residential real estate located within the City of Cleveland on which there is situated a dwelling for not more than four (4) families, a condominium unit, or a cooperative unit and which loan is secured by that real estate, shall furnish a notice to the borrower. That notice shall be furnished as a separate document, printed in sixteen (16) point font, with the signature line at the top of the page, and shall be in substantially the same form as the following, as may be amended from time to time by the Department of Consumer Affairs:

   IMPORTANT NOTICE TO CUSTOMERS OF

   HOME IMPROVEMENT CONTRACTORS

I received this notice on this date:

   ________________________________

      (date)

   ________________________________

       signature of home owner(s)

   If you need a loan to pay for home improvements:

   BE CAREFUL. A lender will probably want to take a mortgage on your house.

   You should not borrow more than you can afford or more than you need. The loan you are being offered may be a predatory loan. You may be eligible for a different loan which charges significantly less interest or fees. Be very cautious about consolidating your debt with a home mortgage. Beware that if you default on this loan you could lose your house! In certain cases, it is now the law in Cleveland that before you sign a home loan you must receive housing counseling assistance.

   For the name, address and phone number of a housing counseling or legal services agency in your neighborhood, turn this notice over to see the list of agencies printed on the reverse side.

   (b)   For purposes of division (a) of this section, a “home improvement loan” shall not include a loan commonly known as a “home equity line of credit”.

(Ord. No. 45-03. Passed 1-13-03, eff. 1-15-03)

   Note: Affected institutions and City departments shall have 60 days from the effective date of this ordinance to comply with Sections 659.03 and 659.04.