Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 84 - MOTOR VEHICLE INSTALLMENT SALES › Subchapter F - LICENSING › Section 84.604 - Transfer of License; New License Application on Transfer of Ownership

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This
				  section describes the license application requirements when a licensed entity
				  transfers its license or ownership of the entity. If a transfer of ownership
				  occurs, the transferee must submit either a license transfer application or a
				  new license application on transfer of ownership under this section.
(b) Definitions. The following words and
				  terms, when used in this section, will have the following meanings:
(1) Grandparent entity--A direct owner of a
				  parent entity.
(2) License
				  transfer--A sale, assignment, or transfer of a license under Texas Finance
				  Code, Chapter 348 or 353.
(3)
				  Parent entity--A direct owner of a licensee or applicant.
(4) Permission to operate--A temporary
				  authorization from the OCCC, allowing a transferee to operate under a
				  transferor's license while final approval is pending for a license transfer
				  application or a new license application on transfer of ownership.
(5) Transfer of ownership--Any purchase or
				  acquisition of control of a licensed entity (including acquisition by gift,
				  devise, or descent), or a substantial portion of a licensed entity's assets,
				  where a substantial change in management or control of the business occurs. The
				  term does not include a change in proportionate ownership as defined in §
											RSA
				  84.605 of this title (relating to Change in
				  Form or Proportionate Ownership). The term does not include a change in
				  ownership above the level of the grandparent entity. Transfer of ownership
				  includes the following:
(A) an existing owner
				  of a sole proprietorship relinquishes that owner's entire interest in a license
				  or an entirely new entity has obtained an ownership interest in a sole
				  proprietorship license;
(B) any
				  purchase or acquisition of control of a licensed general partnership, in which
				  a partner relinquishes that owner's entire interest or a new general partner
				  obtains an ownership interest;
(C)
				  any change in ownership of a licensed limited partnership interest in which:
(i) a limited partner owning 10% or more
				  relinquishes that owner's entire interest;
(ii) a new limited partner obtains an
				  ownership interest of 10% or more;
(iii) a general partner relinquishes that
				  owner's entire interest; or
(iv) a
				  new general partner obtains an ownership interest (transfer of ownership occurs
				  regardless of the percentage of ownership exchanged of the general
				  partner);
(D) any change
				  in ownership of a licensed corporation in which:
(i) a new stockholder obtains 10% or more of
				  the outstanding voting stock in a privately held corporation;
(ii) an existing stockholder owning 10% or
				  more relinquishes that owner's entire interest in a privately held
				  corporation;
(iii) any purchase or
				  acquisition of control of 51% or more of a company that is the parent entity or
				  controlling stockholder of a licensed privately held corporation occurs;
				  or
(iv) any stock ownership changes
				  that result in a change of control (i.e., 51% or more) for a licensed publicly
				  held corporation occur;
(E) any change in the membership interest of
				  a licensed limited liability company:
(i) in
				  which a new member obtains an ownership interest of 10% or more;
(ii) in which an existing member owning 10%
				  or more relinquishes that member's entire interest; or
(iii) in which a purchase or acquisition of
				  control of 51% or more of any company that is the parent entity or controlling
				  member of a licensed limited liability company occurs;
(F) any transfer of a substantial portion of
				  the assets of a licensed entity under which a new entity controls business at a
				  licensed location; and
(G) any
				  other purchase or acquisition of control of a licensed entity, or a substantial
				  portion of a licensed entity's assets, where a substantial change in management
				  or control of the business occurs.
(6) Transferee--The entity that controls
				  business at a licensed location after a transfer of ownership.
(7) Transferor--The licensed entity that
				  controls business at a licensed location before a transfer of
				  ownership.