(a) Definitions. The words "made," "negotiated," and
"collected" as used in Texas Finance Code, §351.052(b) are to
be construed as follows.
(1) Made or make--Loans are "made" by the office or
offices where either the credit decision is made or the cash advance
is disbursed.
(2) Negotiated or arranged; negotiate or arrange--Loans
are "negotiated" or "arranged" in the office or offices that received
any information preliminary to a credit decision on a prospective
borrower or received the executed application, agreement, or other
necessary loan documentation.
(3) Collected or collect--Loans are "collected" in
the office or offices from which attempts are made to collect past-due
payments from the borrowers under a loan. The mere receipt and accounting
of payments does not constitute "collection."
(b) Application. Any office making, negotiating, arranging,
servicing, holding, or collecting loans must be licensed. For example,
if a lender receives and reviews loan applications at one office,
makes the loan decision at another office, funds the loan at a third,
and collects past-due payments from another, all of these offices
must be licensed. On the other hand, an office that merely receives,
records, accounts for, and processes payments need not be licensed.
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