Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 83 - REGULATED LENDERS AND CREDIT ACCESS BUSINESSES › Subchapter B - RULES FOR CREDIT ACCESS BUSINESSES › Division 3 - APPLICATION PROCEDURES › Section 83.3003 - 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) License transfer--A sale, assignment, or
					 transfer of a credit access business license.
(2) 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.
(3) 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
					 83.3004 of this title (relating to Change in
					 Form or Proportionate Ownership). 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 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 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.
(4) Transferee--The entity that controls
					 business at a licensed location after a transfer of ownership.
(5) Transferor--The licensed entity that
					 controls business at a licensed location before a transfer of
					 ownership.