ORS Chapter 725a — Short-Term Loans and

ORS 725a.530. (b) Submit to the director a corporate surety bond or irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, that runs to the State of Oregon in an amount the director specifies by rule. If the applicant seeks to renew a license and previously submitted a corporate surety bond or irrevocable letter of credit, the applicant shall show that the corporate surety bond or irrevocable letter of credit remains effective in the amount the director specifies. (4)(a) Except as provided in paragraph (c) of this subsection, the director may not issue or renew a license under this section unless the director finds that: (A) The applicant submitted a complete application that does not contain a material misstatement; (B) The application identifies a registered agent in this state; (C) The application names a manager for each of the applicants branch offices in this state; (D) The applicant and the applicants controllers, registered agents and managers have not pleaded guilty or no contest in, or been convicted by, a state, federal, foreign or military court: (i) In the seven years before the date of the application, if the plea or conviction was for a felony, or for a misdemeanor an essential element of which involved a false statement or dishonesty; or (ii) At any time before the date of the application if the plea or conviction was for a felony an element of which was fraud, dishonesty, a breach of trust or laundering a monetary instrument; (E) The applicant and the applicants controllers, registered agents and managers have demonstrated adequate financial responsibility, character and general fitness to command the confidence of the community and warrant a determination that the applicant will operate honestly, fairly and efficiently under the provisions of ORS 725A.500 to 725A.530; (F) The applicant has paid the fee and submitted the corporate surety bond or irrevocable letter of credit required under subsection (3) of this section; and (G) The applicant has passed the directors background checks and has satisfied any other criteria for evaluating the applicants financial responsibility and fitness that the director specifies by rule. (b) An applicant need not report a conviction on an application under this section if the conviction was later pardoned or expunged. (c)(A) The director shall: (i) Find that an applicant that services a student loan under a contract with the United States Secretary of Education under 20 U.S.C. 1087f meets the criteria set forth in paragraph (a) of this subsection without the need to comply with the procedures set forth in subsections (2) and (3) of this section, except that the applicant must pay the fee required under subsection (3) of this section and identify a registered agent in this state or appoint the director as the applicants registered agent; and (ii) Issue and renew a license for an applicant that is described in and complies with the provisions of sub-subparagraph (i) of this subparagraph. (B) Except as otherwise provided in this paragraph, a licensee that obtains a license under this paragraph is subject to all of the requirements and conditions set forth in ORS 725A.500 to 725A.530. (d) A licensee that obtained a license under paragraph (c) of this subsection shall notify the director in writing within seven days after the date on which the contract described in paragraph (c)(A) of this subsection expires or terminates. At the expiration or termination of the contract, the licensee becomes subject to the criteria set forth in this subsection and subsections (2) and (3) of this section and, to continue to service a student loan in this state, must meet the criteria within 30 days after the date on which the contract expires or terminates. The director shall suspend the license of a licensee described in this paragraph that fails to meet the criteria. (5)(a) Except as provided in paragraph (c) of this subsection, the director may deny, revoke or decline to renew a license if an applicant, a licensee or a person that services a student loan: (A) Does not meet the criteria set forth in subsection (4) of this section that the director has not waived or modified under subsection (2)(b) of this section; (B) Engages in a course of conduct that violates state or federal law or that constitutes fraudulent, deceptive or dishonest dealing; (C) Has had a license to service a student loan denied or revoked in another jurisdiction; (D) Fails or refuses to comply with the directors written request under ORS