2023 Connecticut General Statutes › Title 36a - The Banking Law of Connecticut › Chapter 669 - Regulated Activities › Section 36a-847. - Private student loan services license required. Application. Authority to conduct criminal history records check. Fees. Examination of records. Automatic suspension of license. Abandonment of application.

(a) Except as provided in section 36a-847b, no person shall act as a private student loan servicer, directly or indirectly, unless such person obtains from the commissioner pursuant to subsection (b) of this section a license for such person's main office and for each branch office where such business is conducted. Any activity subject to licensure pursuant to sections 36a-846 to 36a-854, inclusive, shall be conducted from an office located in a state, as defined in section 36a-2.
(b) (1) An application for a license as a private student loan servicer or for renewal of such license shall be made and processed on the system pursuant to section 36a-24b, in the form prescribed by the commissioner. Each such form shall contain content as set forth by instruction or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of sections 36a-846 to 36a-854, inclusive. The applicant shall, at a minimum, furnish to the system information concerning the identity of the applicant, any control person of the applicant, the qualified individual and any branch manager responsible for the actions of the licensee, including, but not limited to, information related to such person's personal history and experience, and any administrative, civil or criminal findings by any governmental jurisdiction. As part of the application the commissioner may (A) in accordance with section 29-17a, conduct a state or national criminal history records check of the applicant, any control person of the applicant, the qualified individual or any branch manager, and (B) in accordance with section 36a-24b, (i) require the submission of fingerprints of the applicant, any control person of the applicant, the qualified individual or any branch manager to the Federal Bureau of Investigation or other state, national or international criminal databases, and (ii) investigate the financial condition of any such person and require authorization from any such person for the system and the commissioner to obtain an independent credit report from a consumer reporting agency, as described in Section 603(p) of the Fair Credit Reporting Act, 15 USC 1681a, as amended from time to time. Such application shall be accompanied by a financial statement prepared by a certified public accountant, except that the commissioner may waive such requirement in connection with any renewal application, provided the system requires annual reports of condition that capture financial statement information and the applicant has filed such information in accordance with section 36a-848.
(2) Each applicant for a private student loan servicer license shall pay to the system any required fees or charges and a license fee of nine hundred dollars. Each such license shall expire at the close of business on December thirty-first of the year in which the license was approved, unless such license is renewed, except that any such license approved on or after November first shall expire at the close of business on December thirty-first of the year following the year in which it is approved. An application for renewal of a license shall be filed between November first and December thirty-first of the year in which the license expires. Each applicant for renewal of a license shall pay to the system any required fees or charges and a renewal fee of nine hundred dollars.
(3) Each license shall remain in force and effect until the license has been surrendered, revoked or suspended or has expired in accordance with the provisions of sections 36a-846 to 36a-854, inclusive. No abatement of the license fee shall be made if the application is denied or withdrawn prior to issuance of the license or if the license is surrendered, revoked or suspended prior to the expiration of the period for which it was issued. All fees required by this section shall be nonrefundable.
(c) Upon the filing of an application for an initial license and the payment of required fees, the commissioner shall investigate the financial condition and responsibility, financial and business experience, character and general fitness of the applicant. The commissioner may issue a license if the commissioner finds that:
(1) The applicant's financial condition is sound;
(2) The applicant's business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of sections 36a-846 to 36a-854, inclusive, and in a manner commanding the confidence and trust of the community;
(3) Each control person, qualified individual, branch manager and trustee of the applicant is in all respects properly qualified and of good character, including, but not limited to, assessment of such person's financial responsibility and any criminal convictions, provided any license denial based on a criminal conviction shall be subject to the provisions of section 46a-80;
(4) No control person, qualified individual, branch manager or other person on behalf of the applicant knowingly has made any incorrect statement of a material fact in the application, or in any report or statement made pursuant to sections 36a-846 to 36a-854, inclusive;
(5) No control person, qualified individual, branch manager or other person on behalf of the applicant knowingly has omitted to state any material fact necessary to give the commissioner any information lawfully required by the commissioner;
(6) The applicant has paid the fees required under subsection (b) of this section; and
(7) The applicant has met any other similar requirements as determined by the commissioner.
(d) Not later than fifteen days after the date a licensee ceases to engage in the business of servicing private student education loans in this state for any reason, including a business decision to terminate operations in this state, license revocation, bankruptcy or voluntary dissolution, such licensee shall surrender to the commissioner, in accordance with subsection (c) of section 36a-51, its license for each location in which such licensee has ceased to engage in such business. The licensee shall also identify to the commissioner, in writing, the location where the records of the licensee will be stored and the name, address and telephone number of an individual authorized to provide access to the records. The surrender of a license does not reduce or eliminate the licensee's civil or criminal liability arising from acts or omissions occurring prior to the surrender of the license, including any administrative actions undertaken by the commissioner to revoke or suspend a license, assess a civil penalty, order restitution or exercise any other authority provided to the commissioner.
(e) If an application for a renewal license has been filed with the commissioner on or before the date the license expires, the license sought to be renewed shall continue in full force and effect until the issuance by the commissioner of the renewal license applied for or until the commissioner has notified the licensee in writing of the commissioner's refusal to issue such renewal license together with the grounds upon which such refusal is based. The commissioner may refuse to issue a renewal license (1) on any ground on which the commissioner might refuse to issue an initial license, or (2) if the applicant has not paid any required fee for renewal or has not paid any outstanding examination fees or other moneys due to the commissioner. The license of a private student loan servicer failing to satisfy the minimum standards for license renewal shall expire. The commissioner may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the system.
(f) The commissioner may automatically suspend a license if the licensee receives a deficiency on the system indicating that a required payment was Returned-ACH or returned pursuant to such other term as may be utilized by the system to indicate that the payment was not accepted. After a license has been automatically suspended pursuant to this section, the commissioner shall (1) give the licensee notice of the automatic suspension, pending proceedings for revocation or refusal to renew pursuant to section 36a-852 and an opportunity for a hearing on such action in accordance with section 36a-51, and (2) require such licensee to take or refrain from taking such action as the commissioner deems necessary to effectuate the purposes of this section.
(g) Except as specified in section 36a-848, the applicant or licensee, and each individual designated as a control person, qualified individual or branch manager, shall file on the system any change in the information such applicant, licensee, control person, qualified individual or branch manager most recently submitted to the system in connection with the application or license, or, if the information cannot be filed on the system, notify the commissioner of such change, in writing, not later than fifteen days after the date the applicant, licensee, control person, qualified individual or branch manager had reason to know of the change.
(h) The commissioner may deem an application for a license abandoned if the applicant fails to respond to any request for information required under sections 36a-846 to 36a-854, inclusive, or any regulations adopted pursuant to said sections. The commissioner shall notify the applicant on the system that if the applicant fails to submit such information not later than sixty days after the date on which such request for information was made, the application shall be deemed abandoned. An application filing fee paid prior to the date an application is deemed abandoned pursuant to this subsection shall not be refunded. Abandonment of an application pursuant to this subsection shall not preclude the applicant from submitting a new application for a license under the provisions of sections 36a-846 to 36a-854, inclusive.
(P.A. 15-162, S. 3; P.A. 18-173, S. 85; P.A. 21-130, S. 2.)
History: P.A. 15-162 effective July 1, 2016; P.A. 18-173 amended Subsec. (a)(1) by adding “for its main office and for each branch office where such business is conducted” re obtaining license, and adding provision re activity to be conducted from office located in a state, substantially amended Subsec. (b) including by deleting provisions re written application to commissioner, financial statement to be sworn to under oath, fees and commissioner's authority to conduct criminal history records check, and adding provisions re application to be made and processed on the system, commissioner's authority to conduct criminal history records check, require submission of fingerprints, and investigate financial condition of person, and commissioner's authority to waive requirement of financial statement prepared by certified public accountant in connection with renewal application in new Subdiv. (1), adding new Subdiv. (2) re applicant to pay to system fees and charges, expiration of license, and renewal, and adding new Subdiv. (3) re license to remain in force and effect until surrendered, revoked, suspended or expired, no abatement of licensee fee to be made if application is denied or withdrawn, and fees are nonrefundable, amended Subsec. (c) by replacing “payment of the fees for license and investigation,” with “payment of the required fees,”, replacing provisions re applicant properly qualified and of good character with provisions re same in Subdiv. (3), adding “control person, qualified individual, branch manager or other” in Subdivs. (4) and (5), and replacing “paid the investigation fee and the license fee” with “paid the fees” in Subdiv. (6), amended Subsec. (d) by deleting provisions re expiration of license at close of business September thirtieth of odd-numbered year, and written notice of surrender, adding reference to Sec. 36a-51(c), and adding reference to commissioner, substantially amended Subsec. (e) by deleting provisions re renewal of license, designating existing provision re ground on which commissioner might refuse initial license as Subdiv. (1), and adding Subdiv. (2) re applicant has not paid required fee, failure of student loan servicer to satisfy minimum standards, and commissioner's adoption of procedures for reinstatement of expired licenses, substantially amended Subsec. (f) by replacing provisions re check to pay fee dishonored and automatic suspension with provisions re automatic suspension of license if deficiency on system indicating returned payment, substantially amended Subsec. (g) by replacing provision re notice to commissioner in writing of change in information provided on application with provision re filing to system change in information, and amended Subsec. (h) by replacing provision re notice to applicant in writing with provision re notice to applicant on the system, and made technical and conforming changes; P.A. 21-130 amended Subsec. (a) by deleting Subdiv. (1) designator, adding provision re exception provided in Sec. 36a-847b, limiting applicability of license requirement to private student loan servicers, replacing “without first obtaining” with “unless such person obtains from the commissioner pursuant to subsection (b) of this section”, deleting provision re requirement to obtain license from the commissioner unless exempt from licensure and deleting former Subdiv. (2) re persons exempt from student loan servicer licensing requirements, amended Subsec. (b) by adding “private” in Subdivs. (1) and (2) and deleting “student loan servicer” in Subdiv. (2), amended Subsec. (d) by changing “the business of student loan servicing” to “the business of servicing private student education loans”, and amended Subsec. (e) by inserting “private”, and made technical changes, effective July 1, 2021.