An application for issuance of a new motor vehicle sales finance
license issued under Texas Finance Code, Chapter 348 or 353 must be
submitted in a format prescribed by the commissioner at the date of
filing and in accordance with the commissioner's instructions. The
commissioner may accept the use of prescribed alternative formats
in order to accept approved electronic submissions. Appropriate fees
must be filed with the application, and the application must include
the following:
(1) Required application information. All questions
must be answered.
(A) Application for license.
(i) Location. A physical street address must be listed
for the applicant's proposed licensed location. A post office box
or a mail box location at a private mail-receiving service generally
may not be used. If the address has not yet been determined or if
the application is for an inactive license, then the application must
so indicate.
(ii) Responsible person. The person responsible for
the day-to-day operations of the applicant's proposed offices must
be named.
(iii) Registered agent. The registered agent must be
designated by each applicant. The registered agent is the person or
entity to whom any legal notice may be delivered. The agent must be
a Texas resident and list an address for legal service. If the registered
agent is a natural person, the address must be a different address
than the licensed location address. If the applicant is a corporation
or a limited liability company, the registered agent should be the
one on file with the Office of the Texas Secretary of State. If the
registered agent is not the same as the agent filed with the Office
of the Texas Secretary of State, then the applicant must submit a
certification from the secretary of the company identifying the registered
agent.
(iv) List of registered offices. Each additional location,
other than the licensed location shown on the application, must be
listed. The applicant should provide the assumed name (DBA), physical
address, telephone number, and the person responsible for day-to-day
operations for each registered office. A registered office is required
for any additional assumed name that the licensee uses at a single
location to engage in a Texas Finance Code, Chapter 348 or 353 transaction.
(v) Owners and principal parties.
(I) Proprietorships. The applicant must disclose the
name of the individual holding a 100% ownership interest in the business
and the name of any individual responsible for operating the business.
If requested, the applicant must also disclose the names of the spouses
of these individuals.
(II) General partnerships. Each partner must be listed
and the percentage of ownership stated. If a general partner is wholly
or partially owned by a legal entity and not a natural person, a narrative
or diagram must be included that lists the names and titles of all
meeting the definition of "managerial official," as contained in Texas
Business Organizations Code, §1.002, and a description of the
ownership of each legal entity must be provided. General partnerships
that register as limited liability partnerships should provide the
same information as that required for general partnerships.
(III) Limited partnerships. Each partner, general and
limited, fulfilling the requirements of items (-a-) - (-c-) of this
subclause must be listed and the percentage of ownership stated.
(-a-) General partners. The applicant should provide
the complete ownership, regardless of percentage owned, for all general
partners. If a general partner is wholly or partially owned by a legal
entity and not a natural person, a narrative or diagram must be included
that lists the names and titles of all meeting the definition of "managerial
official," as contained in Texas Business Organizations Code, §1.002,
and a description of the ownership of each legal entity must be provided.
(-b-) Limited partners. The applicant should provide
a complete list of all limited partners owning 10% or more of the
partnership.
(-c-) Limited partnerships that register as limited
liability partnerships. The applicant should provide the same information
as that required for limited partnerships.
(IV) Corporations. Each officer and director must be
named. Each shareholder holding 10% or more of the voting stock must
be named if the corporation is privately held. If a parent corporation
is the sole or part owner of the proposed business, a narrative or
diagram must be included that describes each level of ownership of
10% or greater.
(V) Limited liability companies. Each "manager," "officer,"
and "member" owning 10% or more of the company, as those terms are
defined in Texas Business Organizations Code, §1.002, and each
agent owning 10% or more of the company must be listed. If a member
is a legal entity and not a natural person, a narrative or diagram
must be included that describes each level of ownership of 10% or
greater.
(VI) Trusts or estates. Each trustee or executor, as
appropriate, must be listed.
(VII) Nonprofit organizations. Each officer must be
listed.
(VIII) All entity types. If a parent entity is a different
type of legal business entity than the applicant, the parent entity's
owners and principal parties should be disclosed according to the
parent's entity type.
(IX) Alternative filings for all entity types. The
commissioner may also accept other filings submitted to a governmental
authority that the commissioner deems to have information substantially
equivalent in coverage and reliability to a filing under subclauses
(I) - (VIII) of this clause.
(B) Disclosure questions. All applicable questions
must be answered. Questions requiring a "yes" answer must be accompanied
by an explanatory statement and any appropriate documentation requested.
(C) Personal information.
(i) Personal affidavit. Each individual meeting the
definition of "principal party" as defined in §84.601 of this
title (relating to Definitions) must provide a personal affidavit.
All requested information must be provided.
(ii) Personal questionnaire. Each individual meeting
the definition of "principal party" as defined in §84.601 of
this title must provide a personal questionnaire. Each question must
be answered. If any question, except question 1, is answered "yes,"
an explanation must be provided.
(iii) Employment history. Each individual meeting the
definition of "principal party" as defined in §84.601 of this
title must provide an employment history. Each principal party should
provide a continuous 10-year history, accounting for time spent as
a student, unemployed, or retired. The employment history must also
include the individual's association with the entity applying for
the license.
(D) Additional requirements.
(i) Statement of experience. Each applicant should
provide information that relates to the applicant's prior experience
in the motor vehicle sales finance business. If the applicant or its
principal parties do not have significant experience in the same type
of business as planned for the prospective licensee, the applicant
must provide a written statement explaining the applicant's relevant
business experience or education, why the commissioner should find
that the applicant has the requisite experience, and how the applicant
plans to obtain the necessary knowledge to operate lawfully and fairly.
(ii) Business operating plan. An applicant must attach
a brief narrative to the application explaining:
(I) an estimate of how many motor vehicles will be
financed by the applicant each year;
(II) whether the applicant will hold the retail installment
sales contracts or whether the applicant will assign its retail installment
sales contracts;
(III) whether the applicant will only be accepting
contracts from another entity (assignor), and, if so, list the types
of entities; and
(IV) whether the collections will occur at the licensed
location.
(iii) Statement of records. Each applicant must provide
a statement of where records of Texas transactions will be maintained.
If these records will be maintained at a location outside of Texas,
the applicant must acknowledge responsibility for the travel cost
associated with examinations in addition to the assessment fees or
agree to make all records available for examination in Texas.
(E) Consent form. Each applicant must submit a consent
form signed by an authorized individual. Electronic signatures will
be accepted in a manner approved by the commissioner. The following
are authorized individuals:
(i) If the applicant is a proprietor, the owner must
sign.
(ii) If the applicant is a partnership, one general
partner must sign.
(iii) If the applicant is a corporation, an authorized
officer must sign.
(iv) If the applicant is a limited liability company,
an authorized member or manager must sign.
Cont'd... |
