Texas Amends Regulated Lenders and Credit Access Provisions
The Texas Finance Commission, Office of Consumer Credit Commissioner, amended provisions under its chapter regarding Regulated Lenders and Credit Access Businesses. These provisions are effective on September 8, 2016.
The purpose of the rule changes is to update rules regarding the licensing of regulated lenders and to make technical corrections. The adopted rule changes relate to contact information, transfers, criminal history review, definitions, and record keeping.
§83.303. Transfer of License; New License Application on Transfer of Ownership
Purpose
This section describes the license application requirements when a licensed entity transfers its license or ownership of the entity. If a transfer of ownership occurs, the transferee must submit either a license transfer application or a new license application on transfer of ownership under this section.
Definitions
The following words and terms, when used in this section, will have the following meanings:
- License transfer – A sale, assignment, or transfer of a regulated loan license.
- Permission to operate–A temporary authorization from the OCCC, allowing a transferee to operate under a transferor’s license while final approval is pending for a license transfer application or a new license application on transfer of ownership.
- Transfer of ownership–Any purchase or acquisition of control of a licensed entity (including acquisition by gift, devise, or de-scent), or a substantial portion of a licensed entity’s assets, where a substantial change in management or control of the business occurs. The term does not include a change in proportionate ownership as defined in §83.304 of this title (relating to Change in Form or Proportionate Ownership) or a relocation of regulated transactions from one licensed location to another licensed location, as described by §83.308(c) of this title (relating to Relocation).
Approval
License transfer approval. No regulated loan license may be sold, transferred, or assigned without the written approval of the OCCC, as provided by Texas Finance Code, §342.163. A license transfer is approved when the OCCC issues its final written approval of a license transfer application.
Timing
No later than 30 days after the event of a transfer of ownership, the transferee must file a complete license transfer application or new license application on transfer of ownership in accordance with subsection (e). A transferee may file an application before this date.
Requirements
Application requirements.
- Generally. This subsection describes the application requirements for a license transfer application or a new license application on transfer of ownership. A transferee must submit the application in a format prescribed by the OCCC. The OCCC may accept prescribed alternative formats to facilitate multistate uniformity of applications or in order to accept approved electronic submissions. The transferee must pay appropriate fees in connection with the application.
Comments are closed.