An application for issuance of a new regulated loan license
must be submitted in a format prescribed by the OCCC at the date of
filing and in accordance with the OCCC's instructions. The OCCC may
accept the use of prescribed alternative formats to facilitate multistate
uniformity of applications or 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 lending address. 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. The responsible person is also known as the location contact.
(iii) Signature. Electronic signatures will be accepted
in a manner approved by the commissioner. Each applicant must have
the application signed by an authorized individual.
(B) Owners and principal parties.
(i) Proprietorships. The applicant must disclose the
name of any individual holding an 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, must be listed and the percentage of ownership stated.
(I) 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.
(II) Limited partners. The applicant should provide
a complete list of all limited partners owning 10% or more of the
partnership.
(III) 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.
(C) 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.
(D) Registered agent. The registered agent must be
provided 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
registered agent on file with the Office of the Texas Secretary of
State. If the registered agent is not the same as the registered agent
filed with the Office of the Texas Secretary of State, then the applicant
must submit certification from the secretary of the company identifying
the registered agent.
(E) Personal affidavit. Each individual meeting the
definition of "principal party" as defined in §83.301 of this
title (relating to Definitions) must provide a personal affidavit.
All requested information must be provided.
(F) Personal questionnaire. Each individual meeting
the definition of "principal party" as defined in §83.301 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.
(G) Employment history. Each individual meeting the
definition of "principal party" as defined in §83.301 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.
(H) Statement of experience. Each applicant should
provide a statement setting forth the details of the applicant's prior
experience in the lending or credit granting business. If the applicant
or its principal parties do not have significant experience in the
same type of credit 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.
(I) Business operation plan. Each applicant must provide
a brief narrative to the application explaining the type of lending
operation that is planned. This narrative should discuss each of the
following topics:
(i) the source of customers;
(ii) the purpose(s) of loans;
(iii) the size of loans;
(iv) the source of working capital for planned operations;
(v) whether the applicant will only be arranging or
negotiating loans for another lender or financing entity;
(vi) if the applicant will only be arranging or negotiating
loans for another lender or financing entity, the lender must also
provide:
(I) a list of the lenders for whom the applicant will
be arranging or negotiating loans;
(II) whether the loans will be collected at the location
where the loans are made; and
(III) if the loans will not be collected at the location
where the loans are made, the identification of the person or firm
that will be servicing the loans, including the location at which
the loans will be serviced, and a detailed description of the process
to be utilized in collections.
(J) Financial statement and supporting financial information.
(i) All entity types. The financial statement must
be dated no earlier than 60 days prior to the date of application.
Applicants may also submit audited financial statements dated within
one year prior to the application date in lieu of completing the supporting
financial information. All financial statements must be certified
as true, correct, and complete. If requested, a bank confirmation
to confirm account balance information with financial institutions
must be submitted.
(ii) Sole proprietorships. Sole proprietors must complete
all sections of the financial statement and supporting financial information,
or provide a personal financial statement that contains all of the
same information requested by the financial statement and supporting
financial information. The financial statement and supporting financial
information must be as of the same date.
(iii) Partnerships. A balance sheet for the partnership
itself as well as each general partner must be submitted. In addition,
the information requested in the supporting financial information
must be submitted for the partnership itself and each general partner.
All of the balance sheets and supporting financial information documents
for the partnership and all general partners must be as of the same
date.
Cont'd... |