An application for issuance of a new credit access business
license 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
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 information. A physical street address
must be listed for the applicant's proposed address, or if the applicant
will have no such location, a statement to that effect must be provided.
For applicants with a proposed location in Texas, 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) Compliance officer. The application must list
a compliance officer. The compliance officer must be an individual
responsible for overseeing compliance, and must be authorized to receive
and respond to communications from the OCCC.
(iii) 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
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) 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, 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.
(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 §83.3001 of this
title (relating to Definitions) or who is a person responsible for
day-to-day operations 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 §83.3001 of
this title or who is a person responsible for day-to-day operations
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 §83.3001 of this
title or who is a person responsible for day-to-day operations 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 a statement setting forth the details of the applicant's prior
experience in the credit access business. If the applicant or its
principal parties do not have significant experience in the same type
of credit access 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. Each applicant must provide
a brief narrative to the application explaining the type of operation
that is planned. This narrative should discuss each of the following
topics:
(I) the source of customers;
(II) the purpose(s) of the extensions of consumer credit;
(III) the size of the extensions of consumer credit;
(IV) the source of working capital for planned operations;
(V) the types of consumer credit products to be extended
to consumers, as advertised by the business; and
(VI) the contractual loan term, in days, of each consumer
credit product to be offered to consumers.
(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.
(v) If the applicant is a trust or estate, the trustee
or executor, as appropriate, must sign.
(2) Other required filings.
(A) Fingerprints.
(i) For all persons meeting the definition of "principal
party" as defined in §83.3001 of this title, a complete set of
legible fingerprints must be provided. All fingerprints should be
submitted in a format prescribed by the OCCC and approved by the Texas
Department of Public Safety and the Federal Bureau of Investigation.
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