§2204. Approval of application and issuance of license

Link to law: http://legislature.vermont.gov/statutes/section/08/073/02204
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

073

:
LICENSED LENDERS











 

§

2204. Approval of application and issuance of license

(a) Upon the

filing of the application, payment of the required fees, approval of the bond,

and satisfactory proof of liquid assets, the Commissioner shall issue and

deliver a license to the applicant upon findings by the Commissioner as

follows:

(1)(A) That the

financial responsibility, experience, character, and general fitness of the

applicant are such as to command the confidence of the community and to warrant

belief that the business will be operated honestly, fairly, and efficiently

within the purposes of this chapter. If the applicant is a partnership or

association, such findings are required with respect to each partner, member,

and control person. If the applicant is a corporation, such findings are

required with respect to each officer, director, and control person.

(B) For purposes

of this subsection, a person has shown that he or she is not financially

responsible when he or she has shown a disregard in the management of his or

her own financial condition. A determination that an individual has not shown

financial responsibility may include:

(i) Current

outstanding judgments, except judgments solely as a result of medical expenses;

(ii) Current

outstanding tax liens or other government liens and filings;

(iii)

Foreclosures within the past three years;

(iv) A pattern

of seriously delinquent accounts within the past three years.

(2) That

allowing the applicant to engage in business will promote the convenience and

advantage of the community in which the business of the applicant is to be

conducted.

(3) That the

applicant is licensed to engage in such business in its state of domicile and

is in good standing in its state of domicile with its banking regulator or

equivalent financial industry regulator.

(4) That the

applicant, and each officer, director, and control person of the applicant, has

never had a lender license, mortgage broker license, mortgage loan originator

license, or similar license revoked in any governmental jurisdiction, except

that a subsequent formal vacation of such revocation shall not be deemed a

revocation.

(5) The

applicant, and each officer, director, and control person of the applicant has

not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic,

foreign, or military court:

(A) During the

seven-year period preceding the date of the application for licensing and

registration;

(B) At any time

preceding such date of application, if such felony involved an act of fraud,

dishonesty, or a breach of trust, or money laundering;

(C) Provided

that any pardon or expungement of a conviction shall not be a conviction for

purposes of this subsection.

(6) That the

applicant has satisfied the surety bond and liquid asset requirement of section

2203 of this chapter.

(7) For an

application for a mortgage loan originator license, the applicant has satisfied

the prelicense education requirement of section 2204a of this chapter and the

prelicense testing requirement of section 2204b of this chapter.

(b) If the Commissioner

does not find as set forth in subsection (a) of this section, the Commissioner

shall not issue a license. Within 60 days of filing of the completed

application, the Commissioner shall notify the applicant of the denial, stating

the reason or reasons therefore. If after the allowable period, no request for

reconsideration under subsection 2205(a) of this title is received from the

applicant, the Commissioner shall return to the applicant the bond and the sum

paid by the applicant as a license fee, retaining the investigation fee to

cover the costs of investigating the application.

(c) If the

Commissioner makes findings as set forth in subsection (a) of this section, he

or she shall issue the license within 60 days of filing the completed

application. Except as provided in subsection 2209(c) of this chapter with

respect to a mortgage loan originator license, the license shall be in full

force and effect until surrendered by the licensee, or revocation, suspension,

or refusal to renew by the Commissioner.

(d) This section

does not apply to a lender making only commercial loans. (Amended 1979, No. 173

(Adj. Sess.), § 4, eff. April 30, 1980; 1987, No. 117, § 4; 1995, No. 162 (Adj.

Sess.), § 5, eff. Jan. 1, 1997; 2009, No. 29, § 1; 2009, No. 134 (Adj. Sess.), §

24e; 2011, No. 85 (Adj. Sess.), § 3, eff. April 20, 2012.)
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