| (g) Transferee's authority to engage in business. If
a transferee has filed a complete application including a request
for permission to operate as described by subsection (e) of this section,
by the deadline described by subsection (d) of this section, then
the transferee may engage in business under Texas Finance Code, Chapter
348 or 353, as applicable. However, the transferee must immediately
cease doing business if the OCCC denies the request for permission
to operate or denies the application. If the OCCC denies the application,
then the transferee has a right to a hearing on the denial, as provided
by §84.608(d) of this title (relating to Processing of Application).
(h) Responsibility.
(1) Responsibility of transferor. Before the transferee
begins performing motor vehicle sales finance activity under a license,
the transferor is responsible to any consumer and to the OCCC for
all motor vehicle sales finance activity performed under the license.
(2) Responsibility of transferor and transferee. If
a transferee begins performing motor vehicle sales finance activity
under a license before the OCCC's final approval of an application
described by subsection (e) of this section, then the transferor and
transferee are each responsible to any consumer and to the OCCC for
activity performed under the license during this period.
(3) Responsibility of transferee. After the OCCC's
final approval of an application described by subsection (e) of this
section, the transferee is responsible to any consumer and to the
OCCC for all motor vehicle sales finance activity performed under
the license. The transferee is responsible for any transactions that
it purchases from the transferor. In addition, if the transferee receives
a license transfer, then the transferee's responsibility includes
all activity performed under the license before the license transfer.
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