4 Colo. Code Regs. § 902-1-9
Current through Register Vol. 47, No. 16, August 25, 2024
Rule 4 CCR 902-1-9 - Supervised Lender License Applications, Surety Bonds, and Changes of Ownership(a)Application. (1) An application for a supervised lender's license shall be considered "filed" for purposes of Uniform Consumer Credit Code § 5-2-302(3) once all information required by the Administrator from the applicant has been received.(2) If the applicant has not filed all material requested within two (2) months after being notified by the Administrator of incomplete or missing information, the application may be denied.(b)Financial Responsibility. (1) The references to financial responsibility in Uniform Consumer Credit Code ("UCCC") § 5-2-302(2) and 5-2-304(2), C.R.S. shall be satisfied by one or more of the forms permitted by this rule in an amount based on the volume of Colorado supervised loans made and taken by assignment in the prior calendar year as reflected in the table below. If no supervised loans were made or taken by assignment in the prior calendar year, and the supervised lender is required by law to maintain a supervised lender's license, the lender shall maintain the minimum amount of financial responsibility required by this rule. In lieu of filing and maintaining evidence of financial responsibility for each master and branch licensed location, the applicant/licensee may maintain one form of financial responsibility for all licensed locations but the aggregate dollar amount required for all licensed locations need not exceed $250,000. Volume of Supervised Loans Made and Taken by Assignment in Prior Calendar Year (excluding finance charges) | Amount per License |
0 to $500,000 (or initial application) | $15,000 |
$500,001 to $1,000,000 | $20,000 |
>$1,000,000 | $25,000 |
(A) Surety Bond (I) The bond shall be in the manner prescribed by the Administrator, shall be issued by a surety licensed by the Colorado Commissioner of Insurance to transact the business of fidelity and surety insurance, and shall contain original signatures. The bond shall be in favor of the Attorney General of the State of Colorado for use by the Administrator of the Uniform Consumer Credit Code on behalf of the People of the State of Colorado. The bond shall be conditioned upon the compliance by the licensee with all provisions of the UCCC and rules and regulations lawfully adopted thereunder and the payment to the UCCC Administrator or to any person(s) who may have a cause of action against the licensee under the UCCC, of any and all amounts of money that may become due or owing to the UCCC Administrator or to such person(s) from the licensee.(II) Should the surety cancel or reduce the penal sum of the bond, the surety must immediately provide written notification to the Administrator of the UCCC. The bond may be canceled or reduced no sooner than thirty (30) days after receipt of the cancellation or reduction notice by the Administrator. Upon receipt of a notice of cancellation or reduction of a bond, the Administrator must mail written notification to the licensee of its obligation to file with the administrator, on or before the effective date of cancellation or reduction, a new surety bond, rider or other document increasing the bond, or notice from the surety rescinding the cancellation or reduction.(III) The bond must provide that the liability of the surety upon the bond shall cease no sooner than two (2) years after the surrender, revocation, or expiration of the license.(B) Cash Surety- evidence of a savings account, deposit, or certificate of deposit in or issued by a state bank, national bank, or savings and loan association doing business in Colorado, containing original signatures, and assigned to the Administrator of the Colorado Uniform Consumer Credit Code for use by the People of the State of Colorado. Interest and dividends earned on the principal amount may be retained by the applicant/licensee. Cash surety assignments may not be released prior to two (2) years after the surrender, revocation, or expiration of the license. The cash surety must comply with section 11-35-101, C.R.S. (alternatives to surety bonds permitted- requirements).(C) Letter of credit- an irrevocable letter of credit containing original signatures and written in favor of the Administrator of the Colorado Uniform Consumer Credit Code for use by the People of the State of Colorado issued by a state bank, national bank, or savings and loan association doing business in Colorado. The letter of credit shall be for a term of two years and must provide that the liability of the issuer shall cease no sooner than two (2) years after the surrender, revocation, or expiration of the license. The letter of credit must comply with section 11-35-101.5, C.R.S. (irrevocable letter of credit permitted- requirements).(c)Change of Ownership. (1) Within thirty (30) days after a change of ownership of a licensed supervised lender consisting of 50% or more of the membership interests in a limited liability company or 50% or more of the voting stock of a corporation, in any one transaction or a cumulative change of ownership of fifty percent or more from the date of the issuance of the license or from the date of the last notification and payment of the annual license fee, the licensee shall provide written notification of the change. The Administrator may require the licensee to provide additional information or file a new license application. If the Administrator requests additional information or a new license application, the licensee may continue to operate as a supervised lender until notified that the change is approved. This requirement shall not apply to corporations or other entities filing registration statements and periodic current reports under the federal Securities Exchange Act of 1934 [15 U.S.C. § 78a et seq.].(2) At least fifteen (15) days prior to a change of ownership of a licensed supervised lender consisting of a change of partner or sole proprietor, the licensee shall reapply for a new license in the manner prescribed by the Administrator. The licensee may continue to operate as a licensed supervised lender until the Administrator has acted on the license application.Repealed effective November 1, 2000Rules 14 eff. 10/01/2008.Rule14 repealed eff. 07/30/2009.Rule 16 (1st un - numbered paragraph); eff.11/29/2010.