44-282. Licensing of sales finance companies required; penalty

(L16, Ch. 263, sec. 52 & Ch. 277, sec. 4. Eff. until 7/1/20)

A. No person shall engage in the business of a sales finance company in this state without a license therefor as provided in this article. A motor vehicle dealer shall not sell or transfer any contract to a person in Arizona not licensed under the terms of this chapter.

B. The application for a license shall be in writing, under oath and in the form prescribed by the administrator. The application shall contain the name of the applicant, the 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 name and resident address of the owners or partners or, if a corporation or association, of the directors, trustees and principal officers, and such other pertinent information the administrator may require.

C. The license fee for a sales finance company is the fee prescribed in section 6-126.

D. To coincide with the licensing of motor vehicle dealers pursuant to title 28, chapter 10, the administrator may issue a sales finance company license pursuant to this article with staggered continuation dates to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year. In order to initiate a staggered license continuation system, the administrator may issue a license for more or less than a twelve month period, but not more than eighteen months, and may prorate the license fee.

E. A licensee shall submit its renewal application and applicable renewal fees to the department of financial institutions on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:

1. If the licensee is also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the initial licensing department, either the department of transportation or the department of financial institutions.

2. If the licensee is not also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the department of financial institutions.

F. A penalty of twenty-five dollars per day shall be assessed against any licensee for each day after the license continuation date that the licensee's renewal application and fee are not received by the department of financial institutions. Licenses not renewed within thirty days after their license continuation date expire.

G. A license shall be obtained for each separate place of business at or from which a licensee transacts business. Each license shall specify the location of the office or branch and must be conspicuously displayed there. In case such location is changed, the administrator shall endorse the change of location on the license on the payment of the fee prescribed in section 6-126, subsection A.

H. On the filing of the application and the payment of the required fee the administrator shall issue a license to the applicant to engage in the business of a sales finance company under and in accordance with this article. All licenses issued under this article shall remain in full force and effect until surrendered, revoked, suspended or canceled by failure to renew under this article. No licensee shall transact any business provided for by this article under any other name.

I. A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or any other device without the prior written consent of the administrator. Written consent shall not be given if the administrator finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 44-283 are applicable to the acquiring person. For the purposes of this subsection, " control" means the power to vote more than twenty percent of the outstanding voting shares of a licensed corporation, partnership, association or trust.

J. A person doing business under the laws of this state or the United States as a bank, savings bank, savings and loan association or credit union is exempt from the licensing requirements of this section but shall comply with all other requirements of this chapter, except that affiliates of banks, savings banks, savings and loan associations or credit unions shall comply with this section. For the purposes of this subsection, " affiliate" means an entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified.