| (a) Definitions. The words "made," "negotiated," and "collected" as used in Texas Finance Code, §342.052(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, 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. |
