Section 110-580; Ord. 20466; Establishing a moratorium on the establishment of new payday loan businesses and the opening of new payday loan business offices


Ordinance No. 20466                            Council Bill No. B 320-09

     AN ORDINANCE

establishing a moratorium on the establishment of new payday loan businesses and the opening of new payday loan business offices; and fixing the time when this ordinance shall become effective.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    SECTION 1.    As used in the ordinance: “payday loan business” means any lender that is in the business of making unsecured loans of $500.00 or less and that is required to be licensed by the Director of the Missouri Division of Finance under Sec. 408.500 RSMo; “new payday loan business” means a payday loan business that was not operating in the City of Columbia on the day this ordinance was passed.

    SECTION 2.    The City Council finds that the unregulated growth of payday loan businesses is detrimental to the welfare of the citizens of Columbia.  The City Council intends to study this issue and consider passage of an ordinance regulating payday loan businesses.  The purpose of this ordinance is to prevent the establishment of new payday loan businesses and the opening of new payday loan business offices while the City Council is considering legislation.

    SECTION 3.    The business services administrator shall not issue a business license to any new payday loan business or for any new office or branch establishment of an existing payday loan business.  

    SECTION 4.    No payday loan business shall establish a new office in the City of Columbia.

SECTION 5.    This ordinance shall be in full force and effect from and after its passage and shall remain in effect until May 4, 2010.

    PASSED this 2nd day of November, 2009.