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(a) The disclosures contained in this section shall be provided where applicable to the borrower in person or via fax at least three (3) business days before the date of closing, if delivered by overnight mail sent at least four (4) business days before the date of closing, or mailed five (5) business days before closing if delivered by regular mail.
(1) Mandatory Arbitration Warning. This loan contains a mandatory arbitration clause which means your right to seek relief in case of violation of law has occurred are limited. You may not be able to protect your rights by filing a court action against your lender.
(2) Prepayment Penalty Warning. This loan contains a prepayment penalty. If you pay your loan off within _______ you will owe your lender an additional amount of money up to $________.
(3) Finance of Prepaid Credit Insurance Warning. You are financing:
_____ credit life insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ credit disability insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ credit unemployment insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ other insurance
The total cost of the premium is $_____. This insurance term is _____ months.
The insurance premium will be prepaid out of the loan proceeds. This insurance premium is being financed at the same interest rate as your mortgage. You are not required to purchase credit life, credit disability or credit unemployment insurance as a condition of this loan and you may cancel such insurance within thirty (300) days of closing..
(4) Balloon Payment Warning. This loan will not be paid off by your regular periodic payments. On __________ you will still owe a balance of approximately $___________ (this amount may be effected by prepayment, escrow or various other factors and is therefore intended only as a good faith estimate of the balance owed on that date). If you do not have the amount of money due on that date you may have to get another loan. If you fail to make the final payment, your loan will be in default.
(5) Adjustable Rate Warning. Your loan includes an adjustable interest rate. This means that the interest rate on your loan may change as described in your note. Your payment may increase.
(6) Release of Lender Warning. The purpose of this loan is to pay for a home improvement contract. The lender shallnot be liable for any non-performance on the part of the home improvement contractor unless the lender has engaged in an act or practice prohibited by Section 795.21.
(7) Notice of Representation. Please be aware that the lender is not providing you with legal representation in this transaction. You are fully encouraged to seek legal representation in this transaction.
(8) Third Party Cost Warning. This loan contains fees payable to third parties which fees may still be payable by the borrower in the event this loan does not close provided that the lender has not engaged in an act or practice prohibited by Section 795.21.
(b) If you do not understand any part of this disclosure or any of the terms of your home loan, please seek mortgage counseling prior to your date of closing. Your lender can supply a current list of mortgage counseling agencies approved by the City of Toledo to be developed by the Department of Economic and Community Development.
(Ord. 765-03. Passed 10-14-03.)
(a) Whoever violated Section 795.21 of the Municipal Code shall be guilty of a minor misdemeanor.
(b) No person or business entity shall be awarded a contract with the City of Toledo if that person or business entity has ever been convicted of a violation of Section 795.21.
(c) Private Right of Action.
(1) Notwithstanding the provisions of Section 795.20 through 795.23, any individual who becomes obligated on a loan may bring an action for damages and/or equitable relief in a court of competent jurisdiction against any lender who violated Section 795.21. Judgment shall be entered for actual damages, but in no case less than the amount of home equity the individual has lost as a result of the loan, as determined by the court, rescission of the loan, in accordance with the rescission provisions of the federal Truth in Lending Act, reasonable attorneys fees and court costs.
(2) Nothing in Section 795.21 limits the rights of the injured person to recover damages or seek equitable relief under any other applicable laws or legal theory.
(Ord. 291-02. Passed 11-5-02.)
(Effective date: February 3, 2003.)
The provisions of Sections 795.20 to 795.23 are severable, and if any phrase, clause, sentence, or provision is declared to be invalid or is preempted by federal or state law or regulation, the validity of the remaining provisions of Sections 795.20 to 795.23 shall not be affected thereby. If any provision of Section 795.20 to 795.23 is declared inapplicable to any specific category, type, or kind of loan transaction, the provision shall nonetheless continue to apply with respect to all other loan transactions.
(Ord. 291-02. Passed 11-5-02.)
(Effective date: February 3, 2003.)
An Oversight Committee shall be established for the purpose of periodically reviewing the enforcement and effect of Sections 795.20 through 795.23. The Oversight Committee shall be appointed by the Mayor subject to confirmation by City Council within 30 days of the effective date of this ordinance. The Committee shall be composed of eleven members including one member of City Council, at least two representatives from housing advocacy organizations, at least two representatives from the home loan industry, and one representative from the City Administration. The Committee will meet from time to time to review the impact of this legislation and make recommendations to the Mayor and City Council.
(Ord. 291-02. Passed 11-5-02.)
(Effective date: February 3, 2003.)
(a) Whoever violated Section 795.11 (a) or (b) is guilty of a second degree misdemeanor.
(b) Whoever violated Section 795.11 (g), (h) or (m) is guilty of a minor misdemeanor for the first offense and for each subsequent offense for violation of the same subsection shall be guilty of a second degree misdemeanor.
(c) Whoever violated Section 795.11 (c), (e), (f), (i), (j), (k) or (l) is guilty of a minor misdemeanor.
(d) Any prosecution under this chapter shall be commenced, unless otherwise impracticable, by summons rather than by arrest.
(e) Section 795.11 creates duty of reasonable care in all debt collectors.
(f) Unless otherwise specifically provided, whoever violates any section of this chapter or any cease and desist order of the Chief Inspector is guilty of a misdemeanor of the first degree. Each day of violation of a cease and desist order of the Chief Inspector shall be a separate offense.
(g) Organizational penalties contained in Section 501.99 shall be applicable to all penalties imposed for a violation of this chapter.
(h) Judicial considerations contained in Section 501.16 shall be applicable to all penalties imposed for a violation of this chapter.
(1952 Code § 26-7-79, 26-7-90; Ord. 58-75)