Effective - 28 Aug 2001
367.512. Title loan requirements — liability of borrower. — 1. Every title loan, and each extension or renewal of such title loan, shall be in writing, signed by the borrower and shall provide that:
(1) The title lender agrees to make a loan to the borrower, and the borrower agrees to give the title lender a security interest in unencumbered titled personal property;
(2) Whether the borrower consents to the title lender keeping possession of the certificate of title;
(3) The borrower shall have the right to redeem the certificate of title by repaying the loan in full and by complying with the title loan agreement which may be for any agreed period of time not less than thirty days;
(4) The title lender shall renew the title loan agreement upon the borrower's written request and the payment by the borrower of any interest due at the time of such renewal. However, upon the third renewal of any title loan agreement, and any subsequent renewal, the borrower shall reduce the principal by ten percent until such loan is paid in full;
(5) When the loan is satisfied, the title lender shall release its lien and return the title to the borrower;
(6) If the borrower defaults, the title lender shall be allowed to take possession of the titled personal property after compliance with chapter 400, sections 408.551 to 408.557, and sections 408.560 to 408.562;
(7) Upon obtaining possession of the titled personal property in accordance with chapter 400, sections 408.551 to 408.557, and sections 408.560 to 408.562, the title lender shall be authorized to sell the titled personal property in accordance with chapter 400, sections 408.551 to 408.557, and sections 408.560 to 408.562, and to convey to the buyer thereof good title thereto.
2. Any borrower who obtains a title loan under false pretenses by hiding or not disclosing the existence of a valid prior lien or security interest affecting the titled personal property shall be personally liable to the title lender for the full amount stated in the title loan agreement.
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(L. 1998 H.B. 1526 § 5, A.L. 2001 H.B. 738 merged with S.B. 186)
Structure Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 367 - Pawnbrokers and Small Loans
Section 367.011 - Definitions.
Section 367.021 - Secured personal credit loans — who may make — interest rate.
Section 367.040 - Loans due, when — return of collateral, when — restrictions.
Section 367.046 - Procedure to reclaim purchase price of misappropriated goods.
Section 367.049 - No criminal or civil liability for pawnbroker exercising due care and good faith.
Section 367.050 - Violation, penalties.
Section 367.060 - Sections 367.011 to 367.060 not to repeal or amend small loan laws.
Section 367.100 - Definitions.
Section 367.110 - Certificate of registration required, when.
Section 367.120 - Certificate of registration — application for.
Section 367.130 - Bond — amount — conditions — additional bond, when.
Section 367.140 - Annual registration — fee, amount — certificates, issuance, display.
Section 367.160 - Examination of lenders — authority of director — lender to pay costs, when.
Section 367.180 - Lender to keep records.
Section 367.185 - Loan solicitation, disclosures.
Section 367.190 - Certificates of registration — suspension, revocation, when — hearing — review.
Section 367.200 - Violations — penalty.
Section 367.205 - Annual audit by certified public accountant required.
Section 367.210 - Audit report to director of finance, when.
Section 367.215 - Failure to file audit report, effect of — surety bond posted, when.
Section 367.300 - Definitions.
Section 367.305 - Advance fee prohibited, penalty.
Section 367.307 - Principal liable.
Section 367.500 - Definitions.
Section 367.503 - Allows division of finance to regulate lending on titled property.
Section 367.506 - Licensure of title lenders, penalty.
Section 367.509 - Qualifications of applicants, fee, license issued, when.
Section 367.512 - Title loan requirements — liability of borrower.
Section 367.515 - Interest and fees.
Section 367.518 - Title loan agreements, contents, form.
Section 367.524 - Records of loan agreements.
Section 367.525 - Notice to borrower prior to acceptance of title loan application.
Section 367.527 - Limitations of title lenders.
Section 367.531 - Applicability to certain transactions.