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<br />ATTACHMENT A <br /> <br />ORDINANCE NO. __________ <br /> <br /> <br />AN ORDINANCE CONCERNING REGULATION OF PAYDAY LOANS <br />AND ADDING SECTIONS 3.550 THROUGH 3.560 TO THE EUGENE <br />CODE, 1971; AND PROVIDING AN EFFECTIVE DATE. <br /> <br /> <br /> The City of Eugene does ordain as follows: <br /> <br />Section 1. <br />Section 3.005 of the Eugene Code, 1971, is amended by adding a <br />section of definitions for “Payday Loans” in alphabetical order, to provide: <br />Payday Loans: <br />Borrower. A natural person who receives a payday loan. <br />Cancel. To annul the payday loan agreement and, with respect to the payday <br />loan agreement returning the borrower and the payday lender to their financial <br />condition prior to the origination date of the payday loan. <br /> City manager. The city manager or the manager’s designee. <br />Payday lender. A “lender” in the business of making payday loans as defined <br />in ORS 725.600. <br />Payday loan. A payday loan as defined by state law. <br />Principal. The original loan proceeds advanced for the benefit of the borrower <br />in a payday loan excluding any fee or interest charge. <br /> <br />Section 2 <br />. Sections 3.550 through 3.560 are added to the Eugene Code, 1971, to provide: <br />Payday Loans <br />3.550 Payday Loans - Purpose. The provisions of sections 3.550 to 3.560 of this code are <br />intended to minimize the detrimental effects that certain payday lending practices <br />have on individuals and families, by regulating payday lenders to require payment <br />of a portion of the original loan amount prior to the renewal of a payday loan, to <br />allow borrowers the ability to cancel a payday loan, and to allow borrowers the <br />ability to convert a payday loan into a payment plan. Except as specifically <br />provided to the contrary, the procedures and requirements of sections 3.015 to <br />3.080 of this code apply to the activities authorized by sections 3.550 through <br />3.560. <br />3.552 Payday Loans - License Required. <br />(1) No person shall operate a payday lending business or loan any funds as a <br />payday loan without a current payday lender license to do business issued by <br />the city. Licenses shall be required for each location a lender operates in the <br />city and shall be renewed annually. <br />Ordinance - 1 of 3 <br />L:\CMO\2006 Council Agendas\M060710\S0607103-attA.doc <br /> <br /> <br />