Words and terms used in this chapter that are defined in Texas
Finance Code, Chapter 351 have the same meanings as defined in Chapter
351. The following words and terms, when used in this chapter, will
have the following meanings, unless the context clearly indicates
otherwise.
(1) Net assets--The total value of acceptable assets
used or designated as readily available for use in the business, less
liabilities, other than those liabilities secured by unacceptable
assets. Unacceptable assets include, but are not limited to, goodwill,
unpaid stock subscriptions, lines of credit, notes receivable from
an owner, property subject to the claim of homestead or other property
exemption, and encumbered real or personal property to the extent
of the encumbrance. Generally, assets are available for use if they
are readily convertible to cash within 10 business days.
(2) Parent entity--A direct owner of a licensee or
applicant.
(3) Principal party--An adult individual with a substantial
relationship to the proposed lending business of the applicant. The
following individuals are principal parties:
(A) a proprietor;
(B) general partners;
(C) officers of privately held corporations, to include
the chief executive officer or president, the chief operating officer
or vice president of operations, the chief financial officer or treasurer,
and those with substantial responsibility for lending operations or
compliance with Texas Finance Code, Chapter 351;
(D) directors of privately held corporations;
(E) individuals associated with publicly held corporations
designated by the applicant as follows:
(i) officers as provided by subparagraph (C) of this
paragraph (as if the corporation was privately held); or
(ii) three officers or similar employees with significant
involvement in the corporation's activities governed by Texas Finance
Code, Chapter 351. One of the persons designated must be responsible
for assembling and providing the information required on behalf of
the applicant and must sign the application for the applicant;
(F) voting members of a limited liability company;
(G) trustees and executors; and
(H) individuals designated as principal parties where
necessary to fairly assess the applicant's financial responsibility,
experience, character, general fitness, and sufficiency to command
the confidence of the public and warrant the belief that the business
will be operated lawfully and fairly as required by the commissioner.
|
| Source Note: The provisions of this §89.301 adopted to be effective November 8, 2007, 32 TexReg 7919; amended to be effective July 5, 2012, 37 TexReg 4874; amended to be effective November 9, 2017, 42 TexReg 6131 |
