§ 14-250. Definitions.
The following words, when used in this article, shall have the meanings ascribed to them in this section:
Car title loan business means:
(1)
An establishment, entity, or person registered with the Texas Secretary of State as a Credit Services Organization (CSO) under V.T.C.A., Finance Code § 393 that engages in any of the following activities:
a.
Acts or operates as a loan broker between consumers and lending companies;
b.
Issues a "letter of credit" or similar document on behalf of a consumer to a lender;
c.
Collects any or all of the following fees:
1.
A referral fee for referring a consumer to a lending company;
2.
An application fee for filling out the CSO documents; or
3.
Interest on the funds distributed to the consumer, or payments based on the amount of money distributed to the consumer.
(2)
The CSO or lending company uses a consumer's vehicle title as collateral for a loan.
Check cashing business means an establishment, entity, or person registered with the Texas Secretary of State as a Credit Services Organization (CSO) under V.T.C.A., Finance Code § 393 that provides one or more of the following:
(1)
An amount of money that is equal to the face of the check or the amount specified in the written authorization for an electronic transfer of money, less any fee charged for the transaction;
(2)
An agreement not to cash a check or execute an electronic transfer of money for a specified period of time; or
(3)
The cashing of checks, warrants, drafts, money orders, or other commercial paper for compensation by any person or entity for a fee.
Director means the director of community development or person he may designate to act as the official primarily responsible for the administration of this article or that official's designee.
Manager means the person designated by the owner to be responsible for the daily operation of a nondepository financial institution.
Nondepository financial institution means any check cashing business, payday advance/loan business, or car title loan business, as defined in this section. This definition excludes:
(1)
A state or federally chartered bank, savings and loan association or credit union, or a pawnshop;
(2)
Any business that grants or brokers "tax refund advance" loans or other such loans whose value is based on the value of a federal income tax refund due to a consumer; and
(3)
A convenience store, supermarket, or other retail establishment where consumer retail sales constitute at least 75 percent of the total gross revenue generated on site.
Payday/advance loan business means an establishment, entity or person registered with the Texas Secretary of State as a Credit Services Organization (CSO) under V.T.C.A., Finance Code § 393 that engages in any of the following activities:
(1)
Acts or operates as a loan broker between consumers and lending companies;
(2)
Issues a "letter of credit" or similar document on behalf of a consumer to a lender;
(3)
Collects any or all of the following fees:
a.
A referral fee for referring a consumer to a lending company;
b.
An application fee for filling out the CSO documents; or
c.
Interest on the funds distributed to the consumer, or payments based on the amount of money distributed to the consumer; or
(4)
Requires the consumer to provide the CSO or lending company with a postdated check or authorization to make an electronic debit against an existing financial account.
(Ord. No. 2011-03, § 1, 3-15-11; Ord. No. 2011-10, § 1, 6-7-11)