SUBCHAPTER 03J ‑ REFUND ANTICIPATION LOAN
SECTION .0100 ‑ ADMINISTRATIVE
04 NCAC 03J .0101 DEFINITIONS; FILINGS
(a) As used in this Subchapter, unless the context clearly
requires otherwise:
(1) "Applicant" shall have the same
meaning as set forth in G.S. 53-246(1).
(2) "Commission" shall have the same
meaning as set forth in G.S. 53-246(2).
(3) "Commissioner" shall have the
same meaning as set forth in G.S. 53-246(3).
(4) "Controlling person" shall mean
any person as defined in G.S. 53-246(7) who owns or holds with the power to
vote 10% or more of the equity securities of the registrant, or who has the
power to direct the management and policy of the registrant.
(5) "Creditor" shall have the same
meaning as set forth in G.S. 53-246(4).
(6) "Creditor fee" shall mean the fee
imposed by the creditor which funds the refund anticipation loan in
consideration for funding the refund anticipation loan.
(7) "Debtor" shall have the same
meaning as set forth in G.S. 53-246(5).
(8) "Electronic filing fee" shall mean
the fee imposed by the facilitator in consideration for the electronic filing
of a tax return.
(9) "Executive officer" shall have
the same meaning as such term is defined in Regulation "O"
promulgated by the Board of Governors of the Federal Reserve System, and
codified in the Code of Federal Regulations at Title 12, Chapter II, Part 215.
(10) "Facilitator" shall have the same
meaning as set forth in G.S. 53-246(6).
(11) "Facilitator loan fee" shall mean
the fee imposed by the facilitator in consideration for assisting the debtor in
obtaining the refund anticipation loan.
(12) "Income tax return preparation
fee" shall mean the fee imposed by a person in consideration for
preparation of the debtor's tax returns.
(13) "Loan-related fee" shall mean any
fee other than a creditor fee, facilitator loan fee or electronic filing fee
paid by the debtor for transmittal to third persons who provide services in
connection with the refund anticipation loan.
(14) "Person" shall have the same
meaning as set forth in G.S. 53-246(7).
(15) "Refund anticipation loan" shall
have the same meaning as set forth in G.S. 53-246(8).
(16) "Refund Anticipation Loan Act"
shall mean the Refund Anticipation Loan Act codified at Chapter 53, Article 20
of the North Carolina General Statutes (G.S. 53-245, et seq.).
(17) "Refund anticipation loan fee"
shall have the same meaning as set forth in G.S. 53-246(9) and shall include a
creditor fee, facilitator loan fee, and loan-related fee as defined herein.
(18) "Registrant" shall have the same
meaning as set forth in G.S. 53-246(10).
(19) "Transmitter" shall mean any
person as defined herein who transmits electronic returns directly to the
Internal Revenue Service. This term shall include persons who receive
information to be reformatted and transmitted to the Internal Revenue Service,
i.e., third-party transmitters.
(b) An application for registration or any report, notice,
form or other document which is required by law or rule to be filed with the
Commissioner shall be addressed as follows:
Office of the
Commissioner of Banks
4309 Mail Service Center
Raleigh, North Carolina 27699-4309.
History Note: Authority G.S. 53-245; 53-246; 53-248;
53-253; 150B-21.2;
Eff. September 1, 1993;
Amended Eff. September 1, 2006.
SECTION .0200 - APPLICATION AND RENEWAL
04 NCAC 03J .0201 APPLICATION FOR REGISTRATION AS A
FACILITATOR
(a) Any person who would like to engage in business as a
facilitator pursuant to the Refund Anticipation Loan Act shall first be
registered with the Commissioner, unless such person is exempt from
registration pursuant to G.S. 53-247(c) or G.S. 53-254. An application for
registration shall be obtained from the Commissioner and shall be filed
pursuant to Rule .0101(b) of this Subchapter.
(b) The application for registration as a facilitator shall
include the following:
(1) A description of the applicant's
organizational structure, including the name, business and residence address
and business telephone number of the applicant, its partners, executive officers,
directors and controlling persons;
(2) Copies of the following documents, where
applicable:
(A) The applicant's Articles of Incorporation, or
general or limited partnership agreement;
(B) A Certificate of Existence or Certificate of Good
Standing not more than 90 days old from the applicant's state of incorporation;
(C) A Certificate of Authority to do business in this
State;
(D) A copy of the applicant's Certificate of Assumed
Name;
(3) A description of the applicant's
operations, including the names and addresses of the banks which will fund
refund anticipation loans to its customers, and the names and addresses of
transmitters and any other intermediary parties involved in the process of
facilitating refund anticipation loans;
(4) A description of the business(es) in which
the applicant is primarily engaged;
(5) The applicant's Electronic Filer
Identification Number (EFIN) as provided by the Internal Revenue Service;
(6) Proof that the applicant has been accepted
by the Internal Revenue Service to participate in its electronic filing program
for the present tax year;
(7) Disclosure of any civil judgments entered
against the applicant, its partners, executive officers, directors or
controlling persons during the past 10 years which have remained partially or
wholly unpaid;
(8) Disclosure of any civil proceedings pending
against or civil judgments entered against the applicant, its partners,
executive officers, directors or controlling persons which involve fraud or
dishonesty;
(9) Disclosure of any felony convictions
entered against the applicant, its partners, executive officers, directors or
controlling persons;
(10) Disclosure of any misdemeanor convictions
entered against the applicant, its partners, executive officers, directors or
controlling persons which involve theft, fraud, or dishonesty;
(11) Disclosure of any enforcement proceeding
brought against the applicant, its partners, executive officers, directors or
controlling persons by any agency or department of this State, the Federal
government or any other state which involves the revocation or suspension of
any business license;
(12) Disclosure of whether the applicant, any
partner, executive officer, director, or controlling person has been denied
acceptance in or suspended from the Electronic Filing Program of the Internal
Revenue Service;
(13) Disclosure of whether the applicant is, or
has ever been, the subject of the following proceedings: bankruptcy, assignment
for the benefit of creditors, receivership, conservatorship, or similar proceeding;
(14) Three business references, including one
bank reference;
(15) The address of each office in this State at
which the applicant intends to facilitate refund anticipation loans.
(c) The application for registration as a facilitator shall
be accompanied by a fee made payable to the Commissioner in the amount set
forth in G.S. 53-248(a).
(d) The application shall be in writing and verified.
(e) Incomplete application files shall be closed and deemed
denied without prejudice when the applicant has not submitted information
requested by the Commissioner within 30 days of request.
History Note: Authority G.S. 53-245(b); 53-247(a);
53-248(a); 53-253; 150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0202 ISSUANCE OF A CERTIFICATE OF
REGISTRATION
Upon receipt of a completed application and payment of the
fee required by G.S. 53-248(a), the Commissioner shall review the application
and conduct such investigation of the applicant as necessary to make the
findings required by G.S. 53-248(a). If the Commissioner finds that the
applicant has met the conditions of G.S. 53-248(a), the Commissioner shall
issue the applicant a renewable Certificate of Registration.
History Note: Authority G.S. 53-248(a), (b); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0203 EXPIRATION AND RENEWAL
(a) A Certificate of Registration shall be valid from the
date of issuance and, unless timely renewed, shall expire on December 31 of
each year.
(b) Thirty days prior to the date of expiration, each
registrant that would like to renew its Certificate of Registration shall
submit a renewal application to the Commissioner. The renewal application
shall be obtained from the Commissioner and shall be filed pursuant to Rule
.0101(b) of this Subchapter.
(c) Unless the registrant timely renews its Certificate of
Registration, the registrant shall not, after the date of expiration, engage in
business as a facilitator in this State.
(d) If the Certificate of Registration expires, the
registrant shall apply for a Certificate of Registration pursuant to Rule .0201
of this Section if it wishes to engage in business as a facilitator in this
State.
History Note: Authority G.S. 53-248(b); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0204 APPLICATION FOR RENEWAL OF
CERTIFICATE OF REGISTRATION
(a) The application for renewal of the Certificate of
Registration shall include the following:
(1) Where applicable, any amendments to the
application for registration filed pursuant to Rule .0201 of this Subchapter;
(2) A written verification of the accuracy of
the application for Certificate of Registration filed pursuant to Rule .0201 of
this Subchapter and any amendments filed pursuant to Rules .0204(a)(1) and
.0305 of this Subchapter.
(b) The application for renewal of the Certificate of
Registration shall be accompanied by a fee made payable to the Commissioner in
the amount set forth in G.S. 53-248(b) for each office at which the registrant
intends to facilitate refund anticipation loans during the succeeding year.
(c) Incomplete applications for renewal of the Certificate
of Registration shall be closed and the application for renewal deemed denied
without prejudice when the registrant has not submitted information requested
by the Commissioner within 30 days of such request.
History Note: Authority G.S. 53-248(a),(b); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0205 NONTRANSFERABILITY OF CERTIFICATE OF
REGISTRATION
(a) A Certificate of Registration shall be neither
transferable nor assignable.
(b) The circumstances under which the Commissioner shall
deem a change in the registrant's organizational structure to constitute a
transfer or assignment of the Certificate of Registration shall include, but
not be limited to, the following:
(1) If the registrant is a corporation:
(A) A change in ownership of 50% or more of the
registrant's stock;
(B) The conversion of the corporation into a general or
limited partnership or proprietorship;
(2) If the registrant is a general or limited
partnership:
(A) A change in one of the registrant's general
partners;
(B) The conversion of the general partnership into a limited
partnership, corporation or proprietorship;
(C) The conversion of the limited partnership into a
general partnership, corporation or proprietorship;
(3) If the registrant is a proprietor:
(A) The conversion of the proprietorship into a general
or limited partnership or corporation;
(B) The sale of all of the assets of the registrant's
business to another person.
(c) Upon a change in organization as set forth in Paragraph
(b) of this Rule, the Certificate of Registration shall become void and the registrant
shall surrender its Certificate of Registration to the Commissioner within 30
days of such change. If the entity which results from the change in the
registrant's organization would like to engage in business as a facilitator in
this State, it shall apply for a Certificate of Registration pursuant to Rule
.0201 of this Section.
History Note: Authority G.S. 53-253; 150B-21.2;
Eff. September 1, 1993.
SECTION .0300 - OPERATIONS, REPORTING REQUIREMENTS,
NOTIFICATIONS
04 NCAC 03J .0301 CHECK CASHING SERVICES
A registrant which offers check cashing services shall not
require a debtor to use such services for cashing a check which represents the
proceeds of a refund anticipation loan.
History Note: Authority G.S. 53-250(5); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0302 RECORD AND BOOKKEEPING REQUIREMENTS
(a) A registrant shall maintain the following records with
respect to each application for a refund anticipation loan in this State.
These records shall be kept in an office or offices of the registrant in this
State. This Rule shall not be interpreted to require a registrant to maintain
one central office at which all records required herein are located:
(1) Name of applicant for a refund anticipation
loan;
(2) Social security number of applicant for a
refund anticipation loan;
(3) Date of application;
(4) Disposition of application, e.g., whether
loan was funded, denied, etc.;
(5) The gross amount of the refund anticipation
loan;
(6) The amount of the creditor fee;
(7) The amount of the facilitator loan fee, if
any;
(8) The amount of the loan-related fees, if
any;
(9) The amount of the electronic filing fee;
(10) The amount of refund anticipation loan
proceeds disbursed by the registrant to the debtor;
(11) The date on which refund anticipation loan
proceeds were disbursed by the registrant to the debtor;
(12) The identity of the registrant's executive
officer, partner or employee originating the application for the refund
anticipation loan;
(13) The number, identity of drawer and amount of
the check delivered to the debtor in payment of the proceeds of the refund
anticipation loan;
(14) A copy of Internal Revenue Service Form No.
8453 or any successor Form.
(b) An original (where the drawer is the registrant) or a
copy of all checks delivered by the registrant to each debtor in payment of the
proceeds of the refund anticipation loan shall be available upon request by the
Commissioner.
(c) All records required by Paragraph (a) of this Rule may
be maintained in any reasonable manner that the registrant selects. Where
applicable, the information required by Paragraph (a) of this Rule may be
maintained by the retention of copies of forms used to comply with state or
federal statutes, rules and regulations.
(d) All records required to be kept pursuant to Paragraph
(a) of this Rule may be maintained in the form of magnetic tape, magnetic disk
or other form of computer, electronic or microfilm media. However, records
kept in this manner shall be convertible into clearly legible, tangible
documents within 24 hours of request. This time period shall be extended for
an additional reasonable time by the Commissioner if the registrant
demonstrates to the satisfaction of the Commissioner that it cannot provide the
records requested within 24 hours of request.
(e) All records required to be kept pursuant to Paragraph
(a) of this Rule shall be kept for a period of at least three years.
History Note: Authority G.S. 53-249; 53-250; 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0303 FILING AND POSTING OF FEE SCHEDULE
(a) The fee schedule required by G.S. 53-249(a) shall be
obtained from the Commissioner and shall be filed pursuant to Rule .0101(b) of
this Subchapter.
(b) The fee schedule referenced in Paragraph (a) of this
Rule shall include the following fees:
(1) The creditor fee;
(2) The facilitator loan fee;
(3) Any loan-related fee;
(4) The electronic filing fee.
(c) Pursuant to G.S. 53-249(c), the registrant shall
display the following fees:
(1) The creditor fee;
(2) The facilitator loan fee;
(3) All loan-related fees;
(4) The electronic filing fee.
History Note: Authority G.S. 53-249(a), (c); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0304 DISCLOSURES
(a) For the purposes of G.S. 53-249(d)(1), (2), the
registrant shall disclose to the debtor the following fees:
(1) The creditor fee;
(2) The facilitator loan fee;
(3) All loan-related fees;
(4) The electronic filing fee;
(5) The total dollar amount of the fees
disclosed pursuant to Subparagraphs (a)(1)-(3) of this Rule.
(b) For the purposes of G.S. 53-249(d)(5), the term
"appropriate taxing authority" shall mean the Internal Revenue
Service.
(c) All disclosures made pursuant to G.S. 53-249(d) shall
be made on a form or forms detached from the application. The registrant shall
provide an applicant for a refund anticipation loan with a copy of all such
disclosure forms. In the case of an application for a refund anticipation loan
by a married couple who are filing a joint tax return, the registrant may
satisfy this provision by providing one copy of all such disclosure forms to
the couple.
History Note: Authority G.S. 53-249(d); 53-253;
150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0305 AMENDMENTS TO APPLICATION
(a) A registrant shall maintain a current application with
the Commissioner. If there is a change in the information contained in the
application, the registrant shall notify the Commissioner within 30 days of the
effective date of such change. Notification to the Commissioner shall be
accomplished either by letter or by revision of the applicable pages of the
application filed pursuant to Rule .0201 of this Subchapter. If the registrant
elects to comply with this Rule by revising its application, it shall obtain
the applicable pages of the application from the Commissioner.
(b) If a registrant decides to open a new office in this
State at which it intends to facilitate refund anticipation loans, it shall notify
the Commissioner of the opening of the new office at least 30 days before it
begins business as a facilitator in the new office. The notification shall
comply with Paragraph (a) of this Rule and shall be accompanied by a fee made
payable to the Commissioner in the amount set forth in G.S. 53‑248(a) for
each new office in this State at which the registrant facilitates refund
anticipation loans.
History Note: Authority G.S. 53-253; 150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0306 CESSATION OF OPERATIONS
(a) A registrant shall notify the Commissioner in writing
of its decision to cease operations as a facilitator in this State.
(b) A registrant shall surrender its Certificate of
Registration to the Commissioner no later than 30 days after it has ceased
operations in this State.
History Note: Authority G.S. 53-253; 150B-21.2;
Eff. September 1, 1993.
SECTION .0400 - ENFORCEMENT
04 NCAC 03J .0401 HEARINGS
Any hearing conducted pursuant to G.S. 53-251 shall proceed
in accordance with 4 NCAC 3B .0200, et seq., and G.S. 150B.
History Note: Authority G.S. 53-251; 53-253; 150B-21.2;
Eff. September 1, 1993.
04 NCAC 03J .0402 EXAMINATIONS, AUDITS
The Commissioner may conduct or cause to be conducted an
examination or audit of the books and records of any registrant at any time
when considered proper.
History Note: Authority G.S. 53-253; 150B-21.2;
Eff. September 1, 1993.