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HomeMy WebLinkAboutOrdinance 1927 F � r ORDINANCE NO. 19Z 7 AN- ORDINANCE REGULATING THE BUSINESS OF MAKING PERSONAL LOANS IN THE CITY OF FORT WORTH, TEXAS; DEFINING THE TERM "PERSONAL LOAN BUSINESS"; PRO- VIDING THAT ANY PERSON, FIRM OR COR- PORATION SHALL FIRST SECURE A LICENSE AND FILE A SUFFICIENT BOND WITH THE CITY SECRETARY BEFORE ENGAGING IN THE PERSONAL LOAN BUSINESS; PROVIDING THAT THE INVALIDITY OF ONE SECTION SHALL IN NO NAY AFFECT THE VALIDITY OF THE RE- MAINING ONES; AND PROVIDING A PENALTY FOR THE VIOLATION OF ANY OF ITS PRO- VISIONS. WHEREAS, there are now operating in Fort Worth certain personal loan companies who are engaging in questionable prac- tices and are demanding and receiving exorbitant and unconscion- able rates of interest; and, WHEREAS, such companies, in an attempt to require pay- ment of such contracts, do wilfully and maliciously annoy the borrower and his employer by continually telephoning them, re- sulting in the employer being required to discharge the borrower, or having his phone so tied up by such calls that the same cannot be used in the ordinary course of his business; and, WHEREAS, many institutions engaged in lending money are subject to license and regulation by the State; and, WHEREAS, it is deemed wise by the City Council of the City of Fort Worth that personal loan companies, as that term is hereinafter defined, should be licensed and regulated, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT ',7ORTH, TEXAS: SECTION I. It shall hereafter be unlawful for any person, firm or corporation to pursue the business of making personal loans, as that term is hereinafter defined, without having first obtained from the City of Fort Worth a license to conduct such business. SECTION II. The term "personal loan business," as herein used, shall mean the business of lending money to individuals without securi- ty. The provisions of this ordinance shall not apply to banks, banks and trust companies, or other organizations which are now licensed or regulated by the State of Texas or under Acts of Con- gress of the United States. SECTION III. That all persons, firms or corporations conducting a personal loan business in the City of Fort Worth within thirty (30) days after this ordinance shall take effect, and such as may hereafter desire to engage in such business in the City of Fort Worth, shall file with the City Secretary of the City of Fort Worth an application upon forms provided by the City Secre- tary, fully setting out the name said business shall be conducted under, the location of such business, giving the true and correct name or names of the owner or owners of such business, with their residences and the names and addresses of any persons or corpora- tions interested in the management and control of such business, and shall file with the City Secretary the name of some person who is an actual bona fide resident of the City of Fort Worth who is duly authorized to accept service for the owners of such busi- ness, if such owners reside outside of the City of Fort Worth, and shall state the rates of interest that the applicant proposes to charge, either directly or indirectly. A separate application shall be required to be filed for each office conducting such busi- ness, regardless of the ownership thereof, and a separate license fee shall be paid for each office as here" provided. The li- censee shall further state that he will comply with all ordinances of the City of Fort Worth and all provisions of this ordinance. SECTION IV. Such licensee shall file with his application a good and sufficient bond in the sum of One Thousand Dollars ($1,000.00), payable to the City Secretary and his successors in office, con- ditioned that such licensee shall comply with this ordinance and that all persons doing business with such licensee, who may be injured or damaged thereby, may sue upon said bond and recover for such injury or damage, together with a reasonable attorneys fee to be allowed by the court, and further conditioned that such persons may also sue in their own names and recover from the li- censee upon any and all usurious interest collected as provided by law. When said bond may have been exhausted, said licensee shall be required by the City Secretary to execute a new bond as provided above. SECTION V. Upon the filing of such application, the payment of the license fee herein provided, and the filing of the bond herein provided, the City Secretary shall issue a license to such per- son, firm or corporation entitling him to conduct such business for a period of one (1) year from the date thereof, which license shall be annually renewed upon the filing of the application, bond, and the payment of the annual license fee. SECTION VI. There is hereby levied and shall be collected by the City Secretary an annual license fee in advance in the sum of Fifteen Dollars (415.00) from each licensee hereunder. SECTION VII. It shall be unlawful for any licensee hereunder to de- mand, ask or receive as a condition for the making of any loan that the borrower shall purchase any commodity, privilege or other thing from the lender or any agency under control of the lender for a price or value in excess of the reasonable cash mar- ket value thereof. SECTION VIII. It shall be unlawful for any licensee hereunder, its agents, servants or employees, to telephone, visit or otherwise communicate with any borrower or the employer of any borrower during the borrower's hours of employment, or at borrower's place of employment. SECTION IX. Each licensee hereunder shall at the request of the City Secretary of the City of Fort worth furnish to the City Secretary a list of the loans made during any specified time, giving the name and address of the borrower, the amount of cash actually lent and the amount of principal and interest the borrower agreed to pay, whether such transaction was an original lending or a renewal of an existing loan, the amount of money paid to the li- censee by the borrower, and how the same was credited. The li- censees hereunder shall keep a complete set of records showing the above information, which books and records shall at all times be subject to inspection by the City Secretary of the City of Fort worth and his duly authorized agents. SECTION X. Any license herein granted shall be subject to revocation by the City Council of the City of Fort worth after due notice to the holder of such license and hearing thereon, upon proof of the violation of any of the provisions of this ordinance. SECTION XI. Any person, firm or corporation who shall violate any of the provisions of this ordinance shall, upon conviction there- of, be fined in any sum not to exceed Two Hundred Dollars ($200.00) and each dsyts operation without a license as herein provided for shall be considered a separate offense. SECTION XII, If any section, portion or part of this ordinance shall be unconstitutional, then it is the express intention of the City Council of the City of Fort Worth that all sections, portions or parts of this ordinance would have been enacted without such un- constitutional provisions, and that such unconstitutional sec- tions, portions or parts of this ordinance shall not in anywise affect the validity of any of the remaining sections, portions or parts hereof. SECTION XIII. This ordinance shall be and become effective from and after its publication as required by law. APPROVED AS TO FORM AND LEGALITY: city Ittorney ORDINANCE No. Title_ Date— Filed — day of 19 City Secretary