8682-13 Extend Moratorium on Small Loan Businesses

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RESOLUTIONNO. 8682 -13 BY: Anderson, Bullock, Juris, Madigan, Nowlin, Powers, Smith. A RESOLUTION to take effect immediately provided it receives the affirmative vote of at least five members of Council, or otherwise to take effect and be in force at the earliest period allowed by law, to renew a moratorium on the granting of permits to oper- ate businesses licensed under Ohio's Mortgage Loan Law or Small Loan Law for a peri- od not to exceed six months from the effective date of this resolution in order to allow Council and the Lakewood Planning Commission to review applicable litigation, case law, Ohio statute, criminal codes and the Lakewood Zoning Code relative to these estab- lishments. WHEREAS, the law in Ohio involving businesses licensed tinder Ohio's Mort- gage Loan Law, Rev. Code §§ 1321.51 to 1321.60, and Small Loan Law, Rev. Code §§ 1321.01 to 1321.19, is in a state of uncertainty, as the Ninth District Court of Appeals has recently held that such businesses tun afoul of the Ohio's Short -Term Loan Law, Rev. Code §§ 1321.35 to 1321.48, when they make short -term loans but are not properly li- censed under the Short -Term Loan Law; and WHEREAS, pursuant to Rev. Code § 1321.99(G), it is a crime to violate the pro- visions of the Short-Term Loan Law; and WHEREAS, the Ohio Supreme Court has accepted jurisdiction to hear an appeal of the Ninth District Court of Appeals' ruling, lending greater uncertainty to the state of the law in this area until the matter is resolved; and WHEREAS, as such, Council and the Planning Commission require additional time to undertake a review of all applicable litigation, case law and codes statewide to ensure any business operating under the Mortgage Loan Law and Small Loan Law is not operating a criminal enterprise; and WHEREAS, this Council adopted Resolution No. 8648 -13 and imposed a six - month moratorium on the granting of permits to operate businesses licensed under Ohio's Mortgage Loan Law or Small Loan Law for a period not to exceed six months from the resolution's effective date; and WHEREAS, the effective date of Resolution No. 8648 -13 is nearing its six -month anniversary, and thus the moratorium will soon expire; and WHEREAS, the Ohio Supreme Court has not yet ruled on the appeal fi-om the Ninth District Court of Appeals, necessitating an extension of the moratorium; and