(a) Every title pledge lender shall keep a consecutively numbered record of each and every title pledge agreement or property pledge agreement executed by the title pledge lender and pledgor. The record, as well as the title pledge agreement or property pledge agreement itself, shall include the following information:
Terms Used In Tennessee Code 45-15-110
Contract: A legal written agreement that becomes binding when signed.
Property pledge agreement: means any written bailment or similar agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to the title pledge lender's taking physical possession of unencumbered titled personal property owned by the pledgor, and taking possession of the personal property certificate of title. See Tennessee Code 45-15-103
Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
Right of rescission: Right to cancel, within three business days, a contract that uses the home of a person as collateral, except in the case of a first mortgage loan. There is no fee to the borrower, who receives a full refund of all fees paid. The right of rescission is guaranteed by the Truth in Lending Act (TILA). Source: OCC
signed: includes a mark, the name being written near the mark and witnessed, or any other symbol or methodology executed or adopted by a party with intention to authenticate a writing or record, regardless of being witnessed. See Tennessee Code 1-3-105
Title pledge agreement: means a thirty-day written agreement whereby a title pledge lender agrees to make a loan of money to a pledgor, and the pledgor agrees to give the title pledge lender a security interest in unencumbered titled personal property owned by the pledgor. See Tennessee Code 45-15-103
Title pledge lender: means any person engaged in the business of making title pledge agreements or property pledge agreements with pledgors. See Tennessee Code 45-15-103
Title pledge office: means the location at which, or premises in which, a title pledge lender regularly conducts business. See Tennessee Code 45-15-103
Titled personal property: means any personal property, the ownership of which is evidenced and delineated by a state-issued certificate of title. See Tennessee Code 45-15-103
(1) The make, model, and year of the titled personal property;(2) The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the titled personal property;(3) The name, residential address, date of birth, and physical description of the pledgor;(4) The date the title pledge agreement or the property pledge agreement is executed by the title pledge lender and the pledgor;(5) The identification number of the photo identification and the type of identification, including the issuing agency, accepted from the pledgor; and(6) The maturity date of the title pledge agreement or property pledge agreement, which shall be thirty (30) days after the title pledge agreement or property pledge agreement is executed by the title pledge lender and the pledgor.(b) The following information shall also be printed on the title pledge agreement or property pledge agreement:
(1) The name and physical address of the title pledge office;(2) In not less than 14-point bold type, the name and address of the department of financial institutions, as well as a telephone number to which consumers may address complaints;(3) The following statement in not less than 14-point bold type:
(A) THIS LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS.(B) YOU SHOULD USE THIS LOAN ONLY TO MEET SHORT-TERM CASH NEEDS.(C) YOU WILL BE REQUIRED TO PAY ADDITIONAL INTEREST AND FEES IF YOU RENEW THIS LOAN RATHER THAN PAY THE DEBT IN FULL WHEN DUE.(D) THIS LOAN IS A HIGHER INTEREST LOAN. YOU SHOULD CONSIDER WHAT OTHER LOWER COST LOANS MAY BE AVAILABLE TO YOU.(E) YOU ARE PLACING AT RISK YOUR CONTINUED OWNERSHIP OF THE PERSONAL PROPERTY THAT YOU ARE PLEDGING FOR THIS LOAN, INCLUDING YOUR MOTOR VEHICLE, IF THAT IS THE PROPERTY PLEDGED.(F) IF YOU FAIL TO REPAY THE FULL AMOUNT OF THIS LOAN ON OR BEFORE THE END OF THE MATURITY DATE OR RENEWAL OF THE LOAN, THE TITLE PLEDGE LENDER MAY TAKE POSSESSION OF THE PROPERTY PLEDGED AND SELL THE PROPERTY IN THE MANNER PROVIDED BY LAW.(G) IF YOU ENTER INTO A TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT, YOU HAVE A LEGAL RIGHT OF RESCISSION. THIS MEANS YOU MAY CANCEL YOUR CONTRACT AT NO COST TO YOU BY RETURNING THE MONEY YOU BORROWED BY THE NEXT BUSINESS DAY AFTER THE DATE OF YOUR LOAN.(H) IF THE TITLE PLEDGE AGREEMENT OR PROPERTY PLEDGE AGREEMENT IS LOST, DESTROYED OR STOLEN, YOU SHOULD IMMEDIATELY SO ADVISE THE TITLE PLEDGE LENDER IN WRITING; and(4) The statement that “The pledgor represents and warrants, to the best of the pledgor’s knowledge, that the titled personal property is not stolen and has no liens or encumbrances against it, the pledgor has the right to enter into this transaction and the pledgor will not apply for a duplicate certificate of title while the title pledge agreement or property pledge agreement is in effect.”(c) The pledgor shall sign the title pledge agreement or property pledge agreement and shall be provided with a copy of the agreement. The title pledge agreement or property pledge agreement shall also be signed by the title pledge lender, or the lender’s employee or agent. If the pledgor has been issued a social security number, the title pledge lender shall keep on file the social security number of the pledgor. The social security number shall not be printed on the title pledge agreement or property pledge agreement, in order to protect the privacy of the pledgor.(d) The title pledge lender shall be required to record the lender’s security interest in the titled personal property by noting a lien on the certificate of title for all title pledge transactions, but shall not be required to note liens for property pledge transactions in which the title pledge lender retains possession of both the titled personal property and the certificate of title during the entire term of the transaction.
