31-1-805. Qualifications for licensure. (1) To be eligible for licensure as a title lender, an applicant must be a natural person residing in this state, a business entity formed under the laws of this state, or a foreign business entity qualified to conduct business in this state.
(2) (a) The application for licensure must be in writing, under oath, and in the form prescribed by the department.
(b) The application must contain:
(i) the name of the applicant;
(ii) the date of formation if a business entity;
(iii) the physical address of each title loan office to be operated;
(iv) the name and resident address of the owner or partners or, if a corporation or association, of the directors, trustees, and principal officers; and
(v) any other pertinent information that the department may require.
(3) An applicant for licensure shall pay an application fee of $500, unless less than 6 months remain in the calendar year, in which case the fee is $250, and an annual license renewal fee of $500 for each title loan office that the applicant intends to operate or operates in this state.
(4) (a) Each license must specify the location of the specific title loan office to which it applies and must be conspicuously displayed in the title loan office.
(b) Before any title loan office location may be changed or moved by the title lender, the department shall approve the change of location by endorsing the license for that title loan office or mailing the licensee a new license for that title loan office without charge.
(5) (a) Upon the filing of the application and the payment of the fee by a person eligible to apply for a title lender's license, the department shall issue a license to the applicant to engage in the title loan business in accordance with the provisions of this part for a period that expires on the last day of December following the date of its issuance.
(b) Each license must be uniquely numbered and may not be transferred or assigned. Renewal licenses are effective for a period of 1 year.
(6) Each licensee shall post a bond in the amount of $10,000 for each location. The bond must continue in effect for 2 years after the licensee ceases operation in this state. The bond must be available to pay damages and penalties to consumers harmed by a violation of this part.
(7) More than one place of business may not be maintained under the same license, but the department may issue more than one license to the same licensee if the licensee is otherwise qualified.
History: En. Sec. 5, Ch. 455, L. 2001; amd. Sec. 1, Ch. 120, L. 2005; amd. Sec. 3, Ch. 134, L. 2009.