Current through Register Vol. 41, No. 3, September 23, 2024
A. A licensee shall
maintain in its own name unencumbered liquid assets per approved place of
business of at least $75,000 at all times.
1.
The minimum liquid assets required to be maintained pursuant to this subsection
shall be separate and apart from, and in addition to, any minimum liquid assets
that the licensee is required to maintain in connection with any other business
conducted in the same office.
2. A
licensee shall upon request by the bureau submit proof that it is complying
with the provisions of this subsection.
B. After receiving its license from the
commission, a licensee shall give written notice to the bureau within 10 days
after it commences business.
C.
Within 15 days following the occurrence of any of the following events, a
licensee shall file a written report with the commissioner describing the event
and its expected impact, if any, on the activities of the licensee:
1. Bankruptcy, reorganization, or
receivership proceedings are filed by or against the licensee.
2. The Attorney General or any other Virginia
governmental authority institutes an action against the licensee under the
Virginia Consumer Protection Act (§
59.1-196 et seq. of the
Code of Virginia).
3. Any local,
state, or federal governmental authority institutes revocation, suspension, or
other formal administrative, regulatory, or enforcement proceedings against the
licensee.
4. Any local, state, or
federal governmental authority (i) revokes or suspends the licensee's motor
vehicle title lender license, title pawn license, or similar license; (ii)
takes formal administrative, regulatory, or enforcement action against the
licensee relating to its motor vehicle title lending, title pawn, or similar
business; or (iii) takes any other action against the licensee relating to its
motor vehicle title lending, title pawn, or similar business where the total
amount of restitution or other payment from the licensee exceeds $20,000. A
licensee shall not be required to provide the commissioner with information
about such event to the extent that such disclosure is prohibited by the laws
of another state.
5. Based on
allegations by any local, state, or federal governmental authority that the
licensee violated any law or regulation applicable to the conduct of its
licensed motor vehicle title lending, title pawn, or similar business, the
licensee enters into, or otherwise agrees to the entry of, a settlement or
consent order, decree, or agreement with or by such governmental
authority.
6. The licensee
surrenders its license to engage in motor vehicle title lending, title pawn, or
similar business in another state in lieu of threatened or pending license
revocation, license suspension, or other administrative, regulatory, or
enforcement action.
7. The licensee
is denied a license to engage in motor vehicle title lending, title pawn, or
similar business in another state.
8. The licensee or any of its members,
partners, directors, officers, principals, or employees is indicted or
convicted of a felony.
D. Any person submitting an application to
acquire, directly or indirectly, 25% or more of the voting shares of a
corporation or 25% or more of the ownership of any other person licensed to
conduct business under the Act shall pay a nonrefundable application fee of
$500.
E. If a person has filed a
bond with the bureau, as required by §
6.2-2204 of the
Code of Virginia, such bond shall be retained by the bureau notwithstanding the
occurrence of any of the following events:
1.
The person's license is surrendered, suspended, or revoked;
2. The person ceases making motor vehicle
title loans; or
3. The person's
application for a license is withdrawn or denied.
F. A licensee or former licensee shall
provide the following information to the bureau within 10 days after such
person's license is surrendered or revoked or the licensed business is
otherwise closed:
(i) the names, addresses,
email addresses, and telephone numbers of a designated contact person and the
person who consumers may contact to make payment arrangements for outstanding
motor vehicle title loans;
(ii) the
location of the licensee's or former licensee's motor vehicle title loan
records; and
(iii) any additional
information that the bureau may reasonably require. A licensee or former
licensee shall maintain current information with the bureau until the licensee
or former licensee has no outstanding motor vehicle title loans.
G. A person shall remain subject
to the provisions of the Act and this chapter applicable to licensees in
connection with all motor vehicle title loans that the person made while
licensed as a motor vehicle title lender notwithstanding the occurrence of any
of the following events:
1. The person's
license is surrendered, suspended, or revoked; or
2. The person ceases making motor vehicle
title loans.
H. Loans
made pursuant to the Act prior to January 1, 2021, that remain outstanding on
or after January 1, 2021, may be collected in accordance with the preexisting
terms of the loan contracts provided that such terms were permitted by law when
the loans were made.
I. A licensee
shall continuously maintain the requirements and standards for licensure
prescribed in §
6.2-2206 of the
Code of Virginia.
Statutory Authority: §§
6.2-2214 and
12.1-13
of the Code of Virginia.
