HB334 (2009) Detail

(New Title) relative to consumer credit and amending the St. Mary’s Bank Charter.


CHAPTER 204

HB 334-FN – FINAL VERSION

26Mar2009… 0308h

05/13/09 1566s

05/13/09 1602s

24Jun2009… 2169cofc

2009 SESSION

09-0740

08/04

HOUSE BILL 334-FN

AN ACT relative to consumer credit and amending the St. Mary’s Bank Charter.

SPONSORS: Rep. Reardon, Merr 11

COMMITTEE: Commerce and Consumer Affairs

AMENDED ANALYSIS

This bill:

I. Allows the bank commissioner to bar certain persons from registering as being licensed as certain retail sellers, mortgage loan servicers, debt adjustment services personnel, and money transmitters.

II. Allows the bank commissioner to expand criminal record checks for certain retail sellers, mortgage loan servicers, debt adjustment services personnel, and money transmitters.

III. Allows for the collection of certain examination expenses, fines, and other penalties.

IV. Allows the banking department to examine business records in certain situations.

V. Amends the St. Mary’s Bank Charter to allow the union to pay certain committee members a reasonable fee.

VI. Clarifies that the reimbursement of members of credit union board of directors and credit union credit or supervisory committees for reasonable expenses in the execution of their duties shall not be considered compensation.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

26Mar2009… 0308h

05/13/09 1566s

05/13/09 1602s

24Jun2009… 2169cofc

09-0740

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to consumer credit and amending the St. Mary’s Bank Charter.

Be it Enacted by the Senate and House of Representatives in General Court convened:

204:1 Automotive Retail Sellers; Licenses. Amend the introductory paragraph of RSA 361-A:3, I-a to read as follows:

I-a. The commissioner may, by order, deny, suspend, or revoke any license or application and bar any person from licensure if the commissioner finds that the order is in the public interest and the applicant, respondent, or licensee, any partner, officer, member, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, respondent, or licensee:

204:2 Mortgage Loan Servicers; Registration. Amend the introductory paragraph of RSA 397-B:3, IX to read as follows:

IX. The commissioner may by order, after notice and opportunity for hearing, assess penalties [or] and deny, suspend, or revoke any registration or application, and bar any person from registration if the commissioner finds that the order is in the public interest and the applicant or registrant, any partner, officer, member, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, respondent, or registrant:

204:3 Debt Adjustment Services; Licenses. Amend the introductory paragraph of RSA 399-D:13, I to read as follows:

I. The commissioner may issue an order requiring a person to whom any license has been granted or any person under the commissioner’s jurisdiction to show cause why the license should not be revoked or penalties should not be imposed, or both, for violations of this chapter. The order shall give reasonable notice of the opportunity for a hearing and shall state the reasons for the issuance of the order. The commissioner may by order summarily postpone or suspend any license or application pending final determination of any order to show cause, or other order, or of any other proceeding under this section, provided the commissioner finds that the public interest would be irreparably harmed by delay in issuing such order. Upon the entry of the order, the commissioner shall promptly notify the respondent, applicant, or licensee that it has been entered and of the reasons for the order and that within 10 calendar days after receipt of a written request the matter will be scheduled for hearing. Valid delivery of such order shall be by hand or certified mail at the last known principal office of the licensee or respondent or to an officer, director, 5 percent or more owner, member, partner, or legal representative of the licensee or respondent. If the person to whom an order to show cause or other order fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, then such person shall be deemed in default, and the order shall, on the thirty-first day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown. A hearing, if requested, shall be scheduled not later than 10 calendar days after the written request for such hearing is received by the commissioner, after which and within 20 calendar days from the date of the hearing the commissioner shall enter an order making such disposition of the matter as the facts require. If the licensee or respondent fails to request a hearing within 30 calendar days of receipt or valid delivery of such order or fails to appear at a hearing after being duly notified, or cannot be located after a reasonable search, such person shall be deemed in default and the proceeding may be decided against the person upon consideration of the order to show cause or other order, the allegations of which may be deemed to be true. The commissioner may by order, upon due notice and opportunity for a hearing, assess penalties, deny, suspend, [or] and revoke a license or application, and bar any person from licensure if it is in the public interest, or any combination of the foregoing and the applicant, licensee or respondent, any partner, officer, member, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, licensee or respondent:

204:4 Licensing of Money Transmitters. Amend the introductory paragraph of RSA 399-G:18, I to read as follows:

I. The commissioner may issue an order requiring a person to whom any license has been granted or any person under the commissioner’s jurisdiction to show cause why the license should not be revoked, suspended, or penalties imposed, or both, for violations of this chapter. The order shall give reasonable notice of the opportunity for a hearing and shall state the reasons for the issuance of the order. The commissioner may by order summarily postpone or suspend any license or application pending final determination of any order to show cause, or other order, or of any other proceeding under this section, provided the commissioner finds that the public interest would be irreparably harmed by delay in issuing such order. Upon the entry of the order, the commissioner shall promptly notify the respondent, applicant, or licensee that the order has been entered and of the reasons for the order and that within 10 calendar days after receipt of a written request the matter will be scheduled for hearing. Valid delivery of such order shall be by hand or certified mail at the last known principal office of the licensee, or respondent, to an officer, director, 5 percent or more owner, member, partner, or legal representative of the licensee or respondent. If the person to whom an order to show cause or other order is issued fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, then such person shall be deemed in default, and the order shall, on the thirty-first day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown. A hearing, if requested, shall be scheduled not later than 10 calendar days after the written request for such hearing is received by the commissioner, after which and within 20 calendar days from the date of the hearing the commissioner shall enter an order making such disposition of the matter as the facts require. If the licensee or respondent fails to request a hearing within 30 calendar days of receipt or valid delivery of such order or fails to appear at a hearing after being duly notified, or cannot be located after a reasonable search, such person shall be deemed in default and the proceeding may be decided against the person upon consideration of the order to show cause or other order, the allegations of which may be deemed to be true. The commissioner may by order, upon due notice and opportunity for hearing, assess penalties [or] and deny, suspend, or revoke a license, registration, or application, and bar any person from licensure if it is in the public interest and the applicant, respondent, authorized delegate, or licensee, any partner, officer, member, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, respondent, authorized delegate, or licensee:

204:5 New Subparagraph; Automotive Retail Sellers. Amend RSA 361-A:2, II(a) by inserting after subparagraph (4) the following new subparagraph:

(5) The department may rely on criminal records checks reported through a national licensing facility in lieu of (2) and (3) above.

204:6 New Subparagraph; Mortgage Loan Services. Amend RSA 397-B:4, I by inserting after subparagraph (f) the following new subparagraph:

(g) The department may rely on criminal records checks reported through a national licensing facility in lieu of (d) and (e) above.

204:7 New Subparagraph; Debt Adjustment Services. Amend RSA 399-D:5, II by inserting after subparagraph (i) the following new subparagraph:

(j) The department may rely on criminal records checks reported through a national licensing facility in lieu of (g) and (h) above.

204:8 New Subparagraph; Money Transmitters. Amend RSA 399-G:5, II by inserting after subparagraph (g) the following new subparagraph:

(h) The department may rely on criminal records checks reported through a national licensing facility in lieu of (e) and (f) above.

204:9 New Paragraph; Automotive Retail Sellers. Amend RSA 361-A:6 by inserting after paragraph II the following new paragraph:

III. The commissioner may share information with state and federal regulators, and may share information with law enforcement agencies for the purposes of criminal investigations.

204:10 New Paragraph; Mortgage Loan Services. Amend RSA 397-B:9 by inserting after paragraph V the following new paragraph:

VI. The commissioner may share information with state and federal regulators, and may share information with law enforcement agencies for the purposes of criminal investigations.

204:11 New Paragraph; Debt Adjustment Services. Amend RSA 399-D:22 by inserting after paragraph XI the following new paragraph:

XII. The commissioner may share information with state and federal regulators, and may share information with law enforcement agencies for the purposes of criminal investigations.

204:12 New Paragraph; Money Transmitters. Amend RSA 399-G:13 by inserting after paragraph X the following new paragraph:

XI. The commissioner may share information with state and federal regulators, and may share information with law enforcement agencies for the purposes of criminal investigations.

204:13 Examinations; Automotive Retail Sellers. Amend RSA 361-A:6-a, IV to read as follows:

IV. The expense of such examination shall be chargeable to and paid by the sales finance company licensee or person. The [procedure for such] payment shall be calculated by the same method as for payments by institutions for cost of examinations under RSA 383:11, except when the principal office of the licensee or person is located outside of this state and the department has determined that the examination must be conducted at that out-of-state location, the actual cost of travel, lodging, meals, and other expenses of examination personnel making the examination, shall be chargeable to and paid by such licensee or person in addition to the per diem charge for examination personnel set forth in RSA 383:11.

204:14 Records and Filings; Payment; Automotive Retail Sellers. Amend RSA 361-A:13, I to read as follows:

I. A document is filed when it is received by the commissioner. Examination expenses, fines, penalties, and other moneys obliged to be paid to the department shall be paid within 14 days of receipt of notice by the licensee or other person or at such later time determined by the commissioner. If any filing deadline date falls on a weekend or on a New Hampshire state or federal legal holiday, the due date shall be automatically extended to the next business day following such weekend or holiday.

204:15 Records and Filings; Payment; Mortgage Loan Services. Amend RSA 397-B:11, I to read as follows:

I. A document is filed when it is received by the commissioner. Examination expenses, fines, penalties, and other moneys obliged to be paid to the department shall be paid within 14 days of receipt of notice by the licensee or other person or at such later time determined by the commissioner. If any filing deadline date falls on a weekend or on a New Hampshire state or federal legal holiday, the due date shall be automatically extended to the next business day following such weekend or holiday.

204:16 Examinations and Investigations; Debt Adjustment Services. Amend RSA 399-D:22, VII to read as follows:

VII. The expense of such examination shall be chargeable to and paid by the licensee. The [procedure for such] payment shall be calculated by the same method as for payments by institutions for the cost of examinations under RSA 383:11, except when the principal office of the licensee or person is located outside of this state and the department has determined that the examination must be conducted at that out-of-state location, the actual cost of travel, lodging, meals, and other expenses of examination personnel making the examination, shall be chargeable to and paid by such licensee or person in addition to the per diem charge for examination personnel set forth in RSA 383:11.

204:17 Debt Adjustment Services; Records and Filings. Amend RSA 399-D:27, I to read as follows:

I. A document is filed when it is received by the commissioner. Examination expenses, fines, penalties, and other moneys obliged to be paid to the department shall be paid within 14 days of receipt of notice by the licensee or other person or at such later time determined by the commissioner. If any filing deadline date falls on a weekend or on a New Hampshire state or federal legal holiday, the due date shall be automatically extended to the next business day following such weekend or holiday.

204:18 Money Transmitters; Examinations. Amend RSA 399-G:13, V to read as follows:

V. The expense of examination shall be chargeable to and paid by the licensee. The [procedure for such] payment shall be calculated by the same method as for payments by institutions for cost of examinations under RSA 383:11, except when the principal office of the licensee or person is located outside of this state and the department has determined that the examination must be conducted at that out-of-state location, the actual cost of travel, lodging, meals, and other expenses of examination personnel employed in making examinations shall be chargeable to and paid by such licensee or person in addition to the per diem charge for examination personnel set forth in RSA 383:11.

204:19 Money Transmitters; Records and Filings. Amend RSA 399-G:22, I to read as follows:

I. A document is filed when it is received by the commissioner. Examination expenses, fines, penalties, and other moneys obliged to be paid to the department shall be paid within 14 days of receipt of notice by the licensee or other person or at such later time determined by the commissioner. If any filing deadline date falls on a weekend or on a New Hampshire state or federal legal holiday, the due date shall be automatically extended to the next business day following such weekend or holiday.

204:20 New Section; Examinations. Amend RSA 397-B by inserting after section 9 the following new section:

397-B:9-a Examinations.

I. The department may examine the business affairs and records of any registrant or any other person, whether registered or not, as it deems necessary to determine compliance with this chapter and the rules adopted pursuant to it. In determining compliance, the department may examine the books, accounts, records, files, and other documents or matters of any registrant or person. The department shall have the power to subpoena witnesses and administer oaths in any adjudicative proceedings, and to compel, by subpoena duces tecum, the production of all books, records, files, and other documents and materials relevant to its investigation.

II. For the purpose of discovering violations of this chapter, the banking department may examine, during business hours, the records of any registrant and of any person acting as a mortgage servicer on New Hampshire loans, whether such person shall be registered to act, or claim to act, as principal, agent, or other representative, or under, or without the authority of this chapter; and for that purpose, the banking department shall have access to the books, papers, records, files, and vaults of all such persons. The banking department shall also have authority to examine, under oath, all persons whose testimony it may require relative to such loans or business.

III. The affairs and records of every registrant shall be subject at any time to such periodic, special, regular, or other examination by the banking department with or without notice to the registrant. All books, papers, files, related material, and records of assets of the registrant shall be subject to the banking department’s examination.

IV. Any agent of the department may make a thorough examination into the business affairs of each registrant and shall report any violations of law, rule, or standard business practice to the department.

V. The expense of examination shall be chargeable to and paid by the registrant. The payment shall be calculated by the same method as for payments by institutions for cost of examinations under RSA 383:11, except when the principal office of the registrant or person is located outside of this state and the department has determined that the examination must be conducted at that out-of-state location, the actual cost of travel, lodging, meals, and other expenses of examination personnel employed in making examinations shall be chargeable to and paid by such registrant or person in addition to the per diem charge for examination personnel set forth in RSA 383:11.

VI. The commissioner may, in his or her discretion, accept all or a part of a report of examination of a mortgage servicer, certified to by the regulatory supervisory official of another state. To avoid unnecessary duplication of examinations, the commissioner, insofar as he or she deems it practicable in administering this section, may share information and cooperate with the regulators of other states, the Federal Trade Commission, other federal regulators, or their successors in conducting examinations and investigations.

VII. Every person being examined, and all of the officers, directors, employees, agents, and representatives of such person shall make freely available to the commissioner or his or her examiners, the accounts, records, documents, files, information, assets, and matters in their possession or control relating to the subject of the examination and shall facilitate the examination.

VIII. Upon receipt of a written report of examination, the registrant shall have 30 days or such additional period the commissioner for good cause may allow, to review the report, recommend any changes, and set forth in writing the remedial course of action the registrant will pursue to correct any reported deficiencies outlined in the report.

IX. If requested by the person examined, within the period allowed in paragraph VIII, or if deemed advisable by the commissioner without such request, the commissioner shall hold a closed hearing relative to the report and shall not file the report in the department until after such closed hearing and issuance of his or her order thereon. If no closed hearing has been requested or held, the examination report, with such modifications as the commissioner deems proper, shall be accepted by the commissioner and filed upon expiration of the review period provided for in paragraph VIII.

X. All reports pursuant to this section shall be privileged and exempt from the requirements of RSA 91-A. The comments and recommendations of the examiner shall also be exempt.

204:21 New Subparagraph; Definitions. Amend RSA 399-D:2, IV by inserting after subparagraph (d) the following new subparagraph:

(e) A person otherwise engaging in the debt adjustment business including but not limited to acting upon outstanding debt adjustment contracts is providing debt adjustment within the intent of this chapter.

204:22 New Paragraph; License Required. Amend RSA 399-D:3 by inserting after paragraph II the following new paragraph:

III. If a person, or a person’s members, officers, directors, agents, and employees, violates paragraph I of this section, the debt adjustment contract shall be void and the person shall have no right to collect, receive, or retain any interest or charges whatsoever whether paid or received directly or indirectly. Any such direct or indirect compensation received by the person shall be refunded to the consumer.

204:23 License Application; Requirements; Investigation. Amend RSA 399-D:5, II(a) to read as follows:

(a) Each application shall be accompanied by a current financial statement, certified by a certified public accountant or a public accountant, a nonrefundable license fee of [$100 for each office, and an investigation fee of $50] $500.

204:24 License Term; Renewal. Amend RSA 399-D:9, III to read as follows:

III. A renewal fee of [$100] $500 for the principal office license and for each branch office license shall be submitted with the application for license renewal.

204:25 New Paragraph; Fees of Licensee. Amend RSA 399-D:14 by inserting after paragraph IV the following new paragraph:

V. The dollar amount of any direct or indirect remuneration that is or will be received for debt adjustment services from parties other than the consumer shall be disclosed and agreed to in writing by the consumer prior to execution of a debt adjustment contract or agreement by the consumer.

204:26 Definitions; Control. RSA 361-A:1, III-b-III-c are repealed and reenacted to read as follows:

III-b. “Control” means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person:

(a) Is a director, general partner, or executive officer;

(b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;

(c) In the case of a limited liability company, is a managing member; or

(d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.

III-c. “Department” means the banking department.

III-d. “Direct owner” means any person, including individuals, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee.

204:27 Definitions; Control. RSA 397-B:1, I-a and I-b are repealed and reenacted to read as follows:

I-a. “Control” means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person:

(a) Is a director, general partner, or executive officer;

(b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;

(c) In the case of a limited liability company, is a managing member; or

(d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.

I-b. “Department” means the banking department.

I-c. “Direct owner” means any person, including individuals, that owns, beneficially owns, has the right to vote, or has the power to sell or direct the sale of 10 percent or more of the applicant or licensee.

204:28 New Paragraph; Definitions; Control. Amend RSA 399-D:2 by inserting after paragraph II the following new paragraph:

II-a. “Control” means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person:

(a) Is a director, general partner, or executive officer;

(b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;

(c) In the case of a limited liability company, is a managing member; or

(d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.

204:29 New Paragraph; Definitions; Control. Amend RSA 399-G:1 by inserting after paragraph II the following new paragraph:

II-a. “Control” means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Any person is presumed to control a company if such person:

(a) Is a director, general partner, or executive officer;

(b) Directly or indirectly has the right to vote 10 percent or more of a class of a voting security or membership interest, or has the power to sell or direct the sale of 10 percent or more of a class of voting securities or membership interest;

(c) In the case of a limited liability company, is a managing member; or

(d) In the case of a partnership, has the right to receive upon dissolution, or has contributed, 10 percent or more of the capital.

204:30 New Paragraph; Definitions; Financial Advisor. Amend RSA 361-A:1 by inserting after paragraph V the following new paragraph:

V-a. “Financial services” or “financial services-related” means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent.

204:31 New Paragraph; Definitions; Financial Services. Amend RSA 397-B:1 by inserting after paragraph I-c the following new paragraph:

I-d. “Financial services” or “financial services-related” means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent.

204:32 Definitions; Financial Services. RSA 399-D:2, V-c is repealed and reenacted to read as follows:

V-c. “Financial services” or “financial services-related” means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent.

V-d. “Indirect owner” means, with respect to direct owners and other indirect owners in a multilayered organization:

(a) In the case of an owner that is a corporation, each of its shareholders that beneficially owns, has the right to vote, or has the power to sell or direct the sale of, 25 percent or more of that corporation.

(b) In the case of an owner that is a partnership, all general partners and those limited and special partners that have the right to receive upon dissolution, or have contributed, 25 percent or more of the partnership’s capital.

(c) In the case of an owner that is a trust, the trust, each trustee, and each beneficiary of 25 percent or more of the trust.

(d) In the case of an owner that is a limited liability company (“LLC”):

(1) Those members that have the right to receive upon dissolution, or have contributed, 25 percent or more of the LLC’s capital; and

(2) If managed by elected managers, all elected managers.

(e) In the case of an indirect owner, the parent owners of 25 percent or more of their subsidiary.

204:33 New Paragraph; Definitions; Financial Services. Amend RSA 399-G:1 by inserting after paragraph IV the following new paragraph:

IV-a. “Financial services” or “financial services-related” means securities, commodities, banking, insurance, consumer lending, money transmission, debt adjustment, or real estate, including, but not limited to, acting as or being associated with a bank or savings association, credit union, mortgage lender, mortgage broker, mortgage servicer, real estate salesperson or agent, closing agent, title company, or escrow agent.

204:34 Licensing of Sales Finance Companies and Retail Sellers Required. Amend the introductory paragraph of RSA 361-A:2, II(a) to read as follows:

(a) The application for such license shall be in writing and verified on a form prescribed by the commissioner. The application shall contain the name of the applicant; the tax applicant’s identification number; date of incorporation, if incorporated; the address where the business is or is to be conducted and similar information as to any branch office of the applicant; the trade name, if any, under which the applicant proposes to conduct such business; and such other pertinent information as the commissioner may require. The application shall include a list of the names and resident addresses of principals and the name of any person occupying a similar status or performing similar functions. Each principal shall provide his or her social security numbers and shall authorize the commissioner to conduct a background check. The applicant shall submit any other information that the commissioner may require including, but not limited to, the applicant’s form and place of organization, the applicant’s proposed method of doing business, the qualifications and business history of the applicant and those persons listed in the application, and in the case of sales finance companies, the applicant’s financial condition and history. The applicant shall disclose if any injunction or administrative order has been issued against the applicant or any of its principals listed in the application and whether the applicant or any of its principals have been convicted of a misdemeanor involving [the lending industry or any aspect of the lending business] financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or convicted of any felony, prior to the commissioner’s approval of such change.

204:35 Licensing of Sales Finance Companies and Retail Sellers Required. Amend RSA 361-A:2, XII to read as follows:

XII. Retail sellers and sales finance companies licensed under this chapter are under a continuing obligation to update information on file with the commissioner. If any information filed with the commissioner becomes materially inaccurate, the retail seller and sales finance company licensee shall promptly submit an amendment to its application records to correct the information on file with the commissioner. An amendment shall be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment. Certain significant events as defined by rule shall be reported to the department in writing within 10 calendar days. A licensee shall submit written notification to the department of the addition or deletion of a person required to be listed in the application, and shall provide the name and address of each new person required to be listed no later than 30 days after such change. Each new person required to be listed shall provide his or her social security number and authorize the commissioner to conduct a background check. The commissioner shall investigate management and ownership changes including, but not limited to, the qualifications and business history of each person required to be listed. The licensee shall investigate and disclose any injunction or administrative order that has been issued against the person required to be listed and whether the person required to be listed has been convicted of a misdemeanor involving [the lending industry or any aspect of the lending business] financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or convicted of any felony, prior to the commissioner’s approval of such change.

204:36 Registration; Fees; Term; Renewal. Amend RSA 397-B:4, I(b) to read as follows:

(b) The applicant shall submit any other information that the commissioner may require including, but not limited to, the applicant’s form and place of organization, the applicant’s tax identification number, and the applicant’s proposed method of doing business. The applicant shall disclose whether the applicant or any of its principals has ever been issued or been the subject of an injunction or administrative order, has ever been convicted of a misdemeanor involving [the lending industry or any aspect of the lending business,] financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or has ever been convicted of any felony. Each principal shall provide his or her social security number and authorize the commissioner to conduct a background check.

204:37 License Application; Requirements; Investigation. Amend the introductory paragraph RSA 399-D:5,II to read as follows:

II. To be considered for licensing, each person, firm, or corporation shall file with the department one verified application on a form prescribed by the commissioner. At a minimum, the application shall be in writing, setting forth the primary business address of the applicant, the applicant’s tax identification number, the address of its principal office and all branch offices located or to be located within the state, and a list of the principals and the name of any person occupying a similar status or performing similar functions. Each principal shall provide his or her social security number and shall authorize the commissioner to conduct a background check. The applicant shall submit any other information that the commissioner may require including, but not limited to, the applicant’s form and place of organization, the applicant’s proposed method of doing business, qualifications, and business history of the applicant and those persons listed in the application, and the applicant’s financial condition and history. The applicant shall disclose if any injunction or administrative order has been issued against the applicant or any of its principals and whether the applicant or any of its principals have been convicted of a misdemeanor involving [the lending industry or any aspect of the lending business] financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or convicted of any felony. Each application shall designate the name and address of the manager or person in charge at each licensed location and shall contain other information required by rules adopted under this chapter. The applicant shall submit any other information that the commissioner may require. In addition:

204:38 Change in Name; Ownership; Location. Amend RSA 399-G:10, II to read as follows:

II. A licensee shall submit written notification to the department of the addition or deletion of a principal and shall provide the name and address of each new principal no later than 30 days after such change. Each new principal shall authorize the commissioner to conduct a background check. The commissioner shall investigate management and ownership changes including, but not limited to, each principal’s qualifications and business history. The licensee shall disclose any injunction or administrative order that has been issued against the principal and whether the principal has been convicted of a misdemeanor involving [the money transmission industry or any aspect of the money transmission business] financial services or a financial services-related business, or any fraud, false statements or omissions, theft or any wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses, or convicted of any felony, prior to the commissioner’s approval of such change.

204:39 New Paragraph; St. Mary’s Bank Charter. Amend paragraph V of section 8 of 1909, 303 as amended by 1933, 305:2, 1943, 261:1, 1945, 261:3, 1961, 342:5, and 1967, 524:7 to read as follows:

V. Compensation. [Members of the board of directors or of either the credit or supervisory committee shall not receive any compensation for their services as a member of said board or of such committee, but may receive a reasonable per diem allowance for attendance at meetings thereof.] The union may pay members of the board of directors, credit committee, and supervisory committee, a reasonable fee for attendance at their respective meetings. Any fee increase shall be submitted in writing to the commissioner for his or her approval at least 30 days prior to its implementation. The officers elected by the board of directors may receive such compensation as the board shall authorize. However, if at any time the union shall have enlarged its business to such extent that this section may create an impediment to its proper functioning, the commissioner, upon petition of the board of directors, may permit said board of directors to pay such credit committee such compensation as he shall consider proper.

204:40 Credit Unions; Compensation. Amend RSA 394-B:45, I to read as follows:

I. No member of the board of directors or of either the credit or supervisory committee shall receive any compensation for his or her services as a member of said board or of such committee; provided, however, that if at any time any credit union organized under the provisions of this chapter shall have enlarged its business to such extent that this section may create an impediment to its proper functioning, the bank commissioner, upon petition of the board of directors, may permit said board of directors to pay such credit committee such compensation as he or she shall consider proper. The reimbursement of reasonable expenses in the execution of the duties of the position shall not be considered compensation.

204:41 Effective Date.

I. Section 39 of this act shall take effect upon its passage.

II. The remainder of this act shall take effect 60 days after its passage.

Approved: July 15, 2009

Effective Date: I. Section 39 shall take effect July 15, 2009.

II. Remainder shall take effect September 13, 2009.