An application for issuance of a new license must be submitted
in a format prescribed by the commissioner at the date of filing and
in accordance with the commissioner's instructions. The commissioner
may accept the use of prescribed alternative formats in order to accept
approved electronic submissions. Appropriate fees must be filed with
the application, and the application must include the following:
(1) Required application information. All questions
must be answered.
(A) Application for license.
(i) Location information. A physical street address
must be listed for the applicant's proposed lending address, or if
the applicant will have no such location, a statement to that effect
must be provided. For applicants with a proposed location in Texas,
a post office box or a mail box location at a private mail-receiving
service generally may not be used. If the address has not yet been
determined or if the application is for an inactive license, then
the application must so indicate.
(ii) Responsible person. The person responsible for
the day-to-day operations of the applicant's proposed offices must
(iii) Registered agent. The registered agent must be
provided by each applicant. The registered agent is the person or
entity to whom any legal notice may be delivered. The agent must be
a Texas resident and list an address for legal service. If the registered
agent is a natural person, the address must be a different address
than the licensed location address. If the applicant is a corporation
or a limited liability company, the registered agent should be the
one on file with the Office of the Texas Secretary of State. If the
registered agent is not the same as the agent filed with the Office
of the Texas Secretary of State, then the applicant must submit a
certification from the secretary of the company identifying the registered
(iv) Owners and principal parties.
(I) Proprietorships. The applicant must disclose who
owns and who is responsible for operating the business. All community
property interests must also be disclosed. If the business interest
is owned by a married individual as separate property, documentation
establishing or confirming separate property status must be provided.
(II) General partnerships. Each partner must be listed
and the percentage of ownership stated. If a general partner is wholly
or partially owned by a legal entity and not a natural person, a narrative
or diagram must be included that lists the names and titles of all
meeting the definition of "managerial official," as contained in Texas
Business Organizations Code, §1.002, and a description of the
ownership of each legal entity must be provided. General partnerships
that register as limited liability partnerships should provide the
same information as that required for general partnerships.
(III) Limited partnerships. Each partner, general and
limited, fulfilling the requirements of items (-a-) - (-c-) of this
subclause must be listed and the percentage of ownership stated.
(-a-) General partners. The applicant should provide
the complete ownership, regardless of percentage owned, for all general
partners. If a general partner is wholly or partially owned by a legal
entity and not a natural person, a narrative or diagram must be included
that lists the names and titles of all meeting the definition of "managerial
official," as contained in Texas Business Organizations Code, §1.002,
and a description of the ownership of each legal entity must be provided.
(-b-) Limited partners. The applicant should provide
a complete list of all limited partners owning 10% or more of the
(-c-) Limited partnerships that register as limited
liability partnerships. The applicant should provide the same information
as that required for limited partnerships.
(IV) Corporations. Each officer and director must be
named. Each shareholder holding 10% or more of the voting stock must
be named if the corporation is privately held. If a parent corporation
is the sole or part owner of the proposed business, a narrative or
diagram must be included that describes each level of ownership of
10% or greater.
(V) Limited liability companies. Each "manager," "officer,"
and "member" owning 10% or more of the company, as those terms are
defined in Texas Business Organizations Code, §1.002, and each
agent owning 10% or more of the company must be listed. If a member
is a legal entity and not a natural person, a narrative or diagram
must be included that describes each level of ownership of 10% or
(VI) Trusts or estates. Each trustee or executor, as
appropriate, must be listed.
(VII) All entity types. If a parent entity is a different
type of legal business entity than the applicant, the parent entity's
owners and principal parties should be disclosed according to the
parent's entity type.
(B) Disclosure questions. All applicable questions
must be answered. Questions requiring a "yes" answer must be accompanied
by an explanatory statement and any appropriate documentation requested.
(C) Personal information.
(i) Personal affidavit. Each individual meeting the
definition of "principal party" as defined in §89.301 of this
title (relating to Definitions) or who is a person responsible for
day-to-day operations must provide a personal affidavit. All requested
information must be provided.
(ii) Personal questionnaire. Each individual meeting
the definition of "principal party" as defined in §89.301 of
this title or who is a person responsible for day-to-day operations
must provide a personal questionnaire. Each question must be answered.
If any question, except question 1, is answered "yes," an explanation
must be provided.
(iii) Employment history. Each individual meeting the
definition of "principal party" as defined in §89.301 of this
title or who is a person responsible for day-to-day operations must
provide an employment history. Each principal party should provide
a continuous 10-year history, accounting for time spent as a student,
unemployed, or retired. The employment history must also include the
individual's association with the entity applying for the license.
(D) Additional requirements.
(i) Statement of experience. Each applicant should
provide a statement setting forth the details of the applicant's prior
experience in the lending or credit granting business. If the applicant
or its principal parties do not have significant experience in the
same type of credit business as planned for the prospective licensee,
the applicant must provide a written statement explaining the applicant's
relevant business experience or education, why the commissioner should
find that the applicant has the requisite experience, and how the
applicant plans to obtain the necessary knowledge to operate lawfully
(ii) Business operating plan. Each applicant must provide
a brief narrative explaining the type of lending operation that is
planned. This narrative should discuss each of the following topics:
(I) the source of customers;
(II) the purpose(s) of loans;
(III) the size of loans;
(IV) the source of working capital for planned operations;
(V) whether the applicant will only be arranging or
negotiating loans for another lender or financing entity;
(VI) if the applicant will only be arranging or negotiating
loans for another lender or financing entity, the licensee must also
(-a-) a list of the lenders for whom the applicant
will be arranging or negotiating loans;
(-b-) whether the loans will be collected at the location
where the loans are made; and
(-c-) if the loans will not be collected at the location
where the loans are made, the identification of the person or firm
that will be servicing the loans, including the location at which
the loans will be serviced, and a detailed description of the process
to be utilized in collections.
(iii) Statement of records. Each applicant must provide
a statement of where records of Texas transactions will be maintained.
If these records will be maintained at a location outside of Texas,
the applicant must acknowledge responsibility for the travel cost
associated with examinations in addition to the assessment fees or
agree to make all records available for examination in Texas.
(E) Consent form. Each applicant must submit a consent
form signed by an authorized individual. Electronic signatures will
be accepted in a manner approved by the commissioner. The following
are authorized individuals:
(i) If the applicant is a proprietor, each owner must
(ii) If the applicant is a partnership, each general
partner must sign.
(iii) If the applicant is a corporation, an authorized
officer must sign.
(iv) If the applicant is a limited liability company,
an authorized member or manager must sign.
(v) If the applicant is a trust or estate, the trustee
or executor, as appropriate, must sign.
(2) Other required filings.
(i) For all persons meeting the definition of "principal
party" as defined in §89.301 of this title, a complete set of
legible fingerprints must be provided. All fingerprints should be
submitted in a format prescribed by the OCCC and approved by the Texas
Department of Public Safety and the Federal Bureau of Investigation.
(ii) For limited partnerships, if the owners and principal
parties under paragraph (1)(A)(iv)(III)(-a-) of this section does
not produce a natural person, the applicant must provide a complete
set of legible fingerprints for individuals who are associated with
the general partner as principal parties.
(iii) For entities with complex ownership structures
that result in the identification of individuals to be fingerprinted
who do not have a substantial relationship to the proposed applicant,
the applicant may submit a request to fingerprint three officers or
similar employees with significant involvement in the proposed business.
The request should describe the relationship and significant involvement
of the individuals in the proposed business. The agency may approve
the request, seek alternative appropriate individuals, or deny the
(iv) For individuals who have previously been licensed
by the OCCC and principal parties of entities currently licensed,
fingerprints are generally not required if the fingerprints are on
record with the OCCC, are less than 10 years old, and have been processed
by both the Texas Department of Public Safety and the Federal Bureau
of Investigation. Upon request, individuals and principal parties
previously licensed by the OCCC may be required to submit a new set
of fingerprints in order to complete the OCCC's records.
(v) For individuals who have previously submitted fingerprints
to another state agency (e.g., Texas Department of Savings and Mortgage
Lending), fingerprints are still required to be submitted to the OCCC,
as per Texas Finance Code, §14.152. Fingerprints cannot be disclosed
to others, except as authorized by Texas Government Code, §560.002.
(B) Loan forms. The applicant must provide information
regarding all loan forms it intends to use.
(i) Custom forms. If a custom loan form is to be prepared,
a preliminary draft or proof that is complete as to format and content
and which indicates the number and distribution of copies to be prepared
for each transaction must be submitted.
(ii) Stock forms. If an applicant purchases or plans
to purchase stock forms from a supplier, the applicant must include
a statement that includes the supplier's name and address and a list
identifying the forms to be used, including the revision date of the
form, if any.
(C) Entity documents.
(i) Partnerships. A partnership applicant must submit
a complete and executed copy of the partnership agreement. This copy
must be signed and dated by all partners. If the applicant is a limited
partnership or a limited liability partnership, provide evidence of
filing with the Office of the Texas Secretary of State.
(ii) Corporations. A corporate applicant, domestic
or foreign, must provide the following documents:
(I) a complete copy of the certificate of formation
or articles of incorporation, with any amendments;
(II) a certification from the secretary of the corporation
identifying the current officers and directors as listed in the owners
and principal parties section of the application for license form;
(III) if the registered agent is not the same as the
one on file with the Office of the Texas Secretary of State, a certification
from the secretary of the corporation identifying the registered agent;
(IV) if requested, a copy of the relevant portions
of the bylaws addressing the required number of directors and the
required officer positions for the corporation;
(V) if requested, a copy of the minutes of corporate
meetings that record the election of all current officers and directors
as listed in the owners and principal parties section of the application
for license form;