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The municipal court adopted the magistrates decision. Neighborhood Finance appealed, but the Ninth District affirmed the lower courts ruling. The company filed an appeal with the Ohio Supreme Court, which agreed to hear the case. In todays opinion, Justice French explained that the MLA provides for either interest-bearing or precomputed loans. Scotts loan was interest-bearing.
The relevant statute in the Cash advance muncie in defines an interest-bearing loan as a loan in which the debt is expressed as the principal amount and interest is computed, charged, and collected on unpaid principal balances outstanding from time to time.