MD
Maryland House Bill HB686

Maryland 2023 Regular Session

Maryland House Bill HB686 Compare Versions

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1- WES MOORE, Governor Ch. 567
2-
3-– 1 –
4-Chapter 567
5-(House Bill 686)
6-
7-AN ACT concerning
8-
9-Financial Regulation – Modernizing Licensing of Non–Depository Institutions
10-and Elimination of Branch License Requirements
11-
12-FOR the purpose of eliminating requirements for collection agencies and certain
13-non–depository financial institutions to maintain separate licenses for branch
14-locations and authorizing them to conduct business at multiple licensed locations
15-under a single license; altering certain other requirements and provisions governing
16-the licensing and regulation of collection agencies and certain non–depository
17-financial institutions, including applications, Nationwide Mortgage Licensing
18-System and Registry (NMLS) information, use of trade names, examination,
19-Commissioner of Financial Regulation assessments, and bond requirements; and
20-generally relating to the licensing of financial services providers.
21-
22-BY repealing and reenacting, with amendments,
23- Article – Business Regulation
24-Section 7–101, 7–206, 7–301(c), 7–302(b), (d), and (e), 7–302.1(b), 7–302.2(a),
25-7–304(c)(1), 7–305, 7–306.1(a) and (c), and 7–308(c)
26- Annotated Code of Maryland
27- (2015 Replacement Volume and 2022 Supplement)
28-
29-BY repealing
30- Article – Business Regulation
31-Section 7–302(c) and 7–308(b)
32- Annotated Code of Maryland
33- (2015 Replacement Volume and 2022 Supplement)
34-
35-BY adding to
36- Article – Business Regulation
37-Section 7–302.2(c) and 7–304(j)
38- Annotated Code of Maryland
39- (2015 Replacement Volume and 2022 Supplement)
40-
41-BY repealing and reenacting, with amendments,
42- Article – Commercial Law
43-Section 14–1216(d) and (e)
44- Annotated Code of Maryland
45- (2013 Replacement Volume and 2022 Supplement)
46-
47-BY adding to
48- Article – Financial Institutions
49-Section 2–120, 2–121, 11–203.1(b), 11–203.3(c), 11–206(d), 11–208, 11–211, Ch. 567 2023 LAWS OF MARYLAND
50-
51-– 2 –
52-11–402.1(c), 11–408, 11–411, 11–501(f–1) and (f–2), 11–503.2(c), 11–508(c),
53-12–104.1(c), 12–110, 12–113, 12–401(k) and (l), 12–404(c), 12–407(b)(1),
54-12–415(a), 12–905(c), and 12–914(f)
55- Annotated Code of Maryland
56- (2020 Replacement Volume and 2022 Supplement)
57-
58-BY repealing and reenacting, with amendments,
59- Article – Financial Institutions
60-Section 11–201, 11–203.3(a), 11–204(a) and (c)(2), 11–206(a)(2) and (c)(3)(i),
61-11–210(b)(1) and (c), 11 –401, 11–402.1(a), 11–403(b),
62-11–404(a)(2), 11–406(a), 11–410(b)(1) and (c), 11–414, 11–503.1(b),
63-11–503.2(a), 11–505, 11–506.1(b) through (e), 11–507, 11–508(a) and (e)
64-through (g), 11–511(a), (c), and (d), 11–512, 11–512.1(a) and (c), 11–513,
65-11–601(f), 11–602(c), 11–612.1, 12–101, 12–104.1(a), 12–105(b), 12–106,
66-12–108(a)(2), 12–112(b)(1) and (c), 12–114(c), 12–118, 12–401(c) and (k–1),
67-12–404(a), 12–406(a)(3), 12–407(b)(2), 12–410, 12–412(a) and (d),
68-12–424, 12–901, 12–904, 12–905(a), 12–906(b), 12–908(b)(1) and (2), 12–911,
69-12–914(b)(2)(i), 12–915, 12–923(b)(1), 12–924(a), (c), and (d), and 12–1007(a)
70- Annotated Code of Maryland
71- (2020 Replacement Volume and 2022 Supplement)
72-
73-BY repealing
74- Article – Financial Institutions
75-Section 11–203.1(b), 11–206(d), 11–208, 11–211, 11–404(c), 11–408, 11–411,
76-11–508(c) and (d), 11–610, 12–108(c), 12–110, 12–113, 12–401(e), 12–407(b)(1)
77-and (h), 12–415(a), and 12–914(b)(8)
78- Annotated Code of Maryland
79- (2020 Replacement Volume and 2022 Supplement)
80-
81-BY repealing and reenacting, without amendments,
82- Article – Financial Institutions
83-Section 11–501(a), 11–601(a), and 12–401(a)
84- Annotated Code of Maryland
85- (2020 Replacement Volume and 2022 Supplement)
86-
87-BY repealing and reenacting, without amendments,
88- Article – State Finance and Procurement
89- Section 6–226(a)(2)(i)
90- Annotated Code of Maryland
91- (2021 Replacement Volume and 2022 Supplement)
92-
93-BY repealing and reenacting, with amendments,
94- Article – State Finance and Procurement
95- Section 6–226(a)(2)(ii)170. and 171.
96- Annotated Code of Maryland
97- (2021 Replacement Volume and 2022 Supplement) WES MOORE, Governor Ch. 567
98-
99-– 3 –
100-
101-BY adding to
102- Article – State Finance and Procurement
103- Section 6–226(a)(2)(ii)172.
104- Annotated Code of Maryland
105- (2021 Replacement Volume and 2022 Supplement)
106-
107-BY renumbering
108- Article – Financial Institutions
109- Section 12–401(f) through (k) and (l) through (v)
110- to be Section 12–401(e) through (j) and (n) through (x), respectively
111- Annotated Code of Maryland
112- (2020 Replacement Volume and 2022 Supplement)
113-
114- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
115-That the Laws of Maryland read as follows:
116-
117-Article – Business Regulation
118-
119-7–101.
120-
121- (a) In this title the following words have the meanings indicated.
122-
123- (b) “Board” means the State Collection Agency Licensing Board.
124-
125- (c) [“Branch location” means any location other than the principal executive office
126-of a licensee or license applicant at which a person does business as a collection agency or,
127-on licensure, will do business as a collection agency, in the State or with a person in the
128-State.
129-
130- (d)] “Collection agency” means a person who engages directly or indirectly in the
131-business of:
132-
133- (1) (i) collecting for, or soliciting from another, a consumer claim; or
134-
135- (ii) collecting a consumer claim the person owns, if the claim was in
136-default when the person acquired it;
137-
138- (2) collecting a consumer claim the person owns, using a name or other
139-artifice that indicates that another party is attempting to collect the consumer claim;
140-
141- (3) giving, selling, attempting to give or sell to another, or using, for
142-collection of a consumer claim, a series or system of forms or letters that indicates directly
143-or indirectly that a person other than the owner is asserting the consumer claim; or
144-
145- (4) employing the services of an individual or business to solicit or sell a Ch. 567 2023 LAWS OF MARYLAND
146-
147-– 4 –
148-collection system to be used for collection of a consumer claim.
149-
150- [(e)] (D) “Commissioner” means the Commissioner of Financial Regulation.
151-
152- [(f)] (E) “Consumer claim” means a claim that:
153-
154- (1) is for money owed or said to be owed by a resident of the State; and
155-
156- (2) arises from a transaction in which, for a family, household, or personal
157-purpose, the resident sought or got credit, money, personal property, real property, or
158-services.
159-
160- [(g)] (F) (1) “Control person” means a person who has the power, directly or
161-indirectly, to direct the management or policies of a collection agency, whether through
162-ownership of securities, by contract, or otherwise.
163-
164- (2) “Control person” includes a person who:
165-
166- (i) is a general partner, an officer, a director, or a member of a
167-collection agency, or occupies a similar position or performs a similar function;
168-
169- (ii) directly or indirectly has the right to vote 10% or more of a class
170-of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
171-voting securities of a collection agency; or
172-
173- (iii) in the case of a partnership, a limited partnership, a limited
174-liability partnership, a limited liability company, or any other business entity:
175-
176- 1. has the right to receive on liquidation or dissolution of a
177-collection agency 10% or more of the capital of the collection agency; or
178-
179- 2. has contributed 10% or more of the capital of a collection
180-agency.
181-
182- [(h)] (G) “License” means a license issued in any form by the Board under this
183-title to do business as a collection agency, including as provided for through NMLS.
184-
185- [(h–1) “Licensee” means a person licensed under this title to do business as a
186-collection agency.]
187-
188- [(i)] (H) “Licensed collection agency” means a person who is required to be
189-licensed under this title, regardless of whether the person is actually licensed.
190-
191- (I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
192-IN NMLS IN ACCORDANCE WITH T HIS TITLE. WES MOORE, Governor Ch. 567
193-
194-– 5 –
195-
196- (J) “LICENSED NAME ” MEANS:
197-
198- (1) THE LICENSEE’S LEGAL NAME; AND
199-
200- (2) ANY TRADE NAME USED BY THE LICENSEE IN ACCORDANCE WITH
201-§ 2–121 OF THE FINANCIAL INSTITUTIONS ARTICLE.
202-
203- (K) “LICENSEE” MEANS A PERSON LICEN SED UNDER THIS TITLE TO DO
204-BUSINESS AS A COL LECTION AGENCY .
205-
206- [(j)] (L) “NMLS” [means a multistate uniform licensing system developed and
207-maintained by the Conference of State Bank Supervisors, or by a subsidiary or an affiliate
208-of the Conference of State Bank Supervisors, that may be used for the licensing of persons
209-required to be licensed by the Board] HAS THE MEANING STAT ED IN § 1–101 OF THE
210-FINANCIAL INSTITUTIONS ARTICLE.
211-
212- [(k)] (M) “Unique identifier” means a number or another identifier assigned by
213-NMLS.
214-
215-7–206.
216-
217- [The] EXCEPT AS PROVIDED IN § 7–302.2 OF THIS TITLE, THE Board shall pay
218-all money collected under this title into the General Fund of the State.
219-
220-7–301.
221-
222- (c) A [separate license is required for the principal executive office and each
223-branch location of a person who does business as a collection agency] LICENSEE MAY DO
224-BUSINESS AS A COLLEC TION AGENCY ONLY AT A LICENSED LOCATION OR AS
225-OTHERWISE AUTHORIZED BY REGULATION .
226-
227-7–302.
228-
229- (b) An application shall be made under oath and shall include:
230-
231- (1) the applicant’s LEGAL name, ANY TRADE NAME USED BY THE
232-APPLICANT IN ACCORDA NCE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS
233-ARTICLE, AND THE APPLICANT ’S principal executive office address, telephone number,
234-e–mail address, and Web site addresses, if any;
235-
236- (2) the address of each [branch] ADDITIONAL location, if any, THAT:
237-
238- (I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A Ch. 567 2023 LAWS OF MARYLAND
239-
240-– 6 –
241-LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY
242-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
243-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
244-
245- (II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR
246-TECHNOLOGY SYSTEMS ;
247-
248- (III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION
249-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
250-
251- (IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
252-REGULATION ADOPTED U NDER THIS TITLE ;
253-
254- (3) the federal employer identification number or Social Security number
255-of the applicant, as applicable;
256-
257- (4) the state of formation and the date of formation of the applicant if the
258-applicant is a business entity;
259-
260- (5) the name and residence address of each control person;
261-
262- (6) the name and address of the principal contact for consumer complaints;
263-
264- (7) the name, address, and telephone number of the applicant’s resident
265-agent; and
266-
267- (8) any other information that the Board requests.
268-
269- [(c) If an applicant wishes to do business as a collection agency at a branch
270-location, the applicant shall submit a separate application and pay a separate application
271-fee and investigation fee for each branch location.]
272-
273- [(d)] (C) In addition to any other requirement for licensure under this subtitle,
274-an applicant for a license shall file with the Board a surety bond as required under § 7–304
275-of this subtitle.
276-
277- [(e)] (D) The Board shall issue a license to each applicant who meets the
278-requirements of this subtitle.
279-
280-7–302.1.
281-
282- (b) The fees established by the Board under this section AND ANY ANNUAL
283-ASSESSMENTS IMPOSED BY THE COMMISSIONER UNDER § 2–120 OF THE FINANCIAL
284-INSTITUTIONS ARTICLE shall be reasonable and set in a manner that will WES MOORE, Governor Ch. 567
285-
286-– 7 –
287-COLLECTIVELY produce funds sufficient to cover the actual direct and indirect costs of
288-regulating collection agencies in accordance with [the provisions of] this title.
289-
290-7–302.2.
291-
292- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
293-title and any other fee or revenue received by THE COMMISSIONER OR the Board under
294-this title shall be:
295-
296- (1) credited to the [Nondepository] NON–DEPOSITORY Special Fund
297-established under [§ 11–610] § 2–120 of the Financial Institutions Article; and
298-
299- (2) used in accordance with [§ 11–610(c)] § 2–120(D) of the Financial
300-Institutions Article.
301-
302- (C) SUBJECT TO § 2–120(H) OF THE FINANCIAL INSTITUTIONS ARTICLE,
303-THE COMMISSIONER MAY IMPO SE AN ANNUAL ASSESSM ENT ON ANY LICENSEE
304-UNDER THIS TITLE .
305-
306-7–304.
307-
308- (c) The bond shall be:
309-
310- (1) in the amount [of $5,000] DETERMINED BY THE BOARD UNDER
311-SUBSECTION (J) OF THIS SECTION ;
312-
313- (J) (1) THE AMOUNT OF THE SUR ETY BOND REQUIRED UN DER
314-SUBSECTION (C) OF THIS SECTION SHAL L BE IN AN AMOUNT OF NOT LESS THAN
315-$50,000 AND NOT MORE THAN $1,000,000, AS DETERMINED BY THE BOARD FOR
316-EACH LICENSEE .
317-
318- (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE BOARD MAY
319-CONSIDER:
320-
321- (I) THE NATURE AND VOLUM E OF THE BUSINESS OR PROPOSED
322-BUSINESS OF THE LICENSEE OR APPL ICANT;
323-
324- (II) THE FINANCIAL CONDIT ION OF THE LICENSEE OR
325-APPLICANT, INCLUDING:
326-
327- 1. THE AMOUNT , NATURE, QUALITY, AND LIQUIDITY OF
328-THE ASSETS OF THE LI CENSEE OR APPLICANT ;
329-
330- 2. THE AMOUNT AND NATUR E OF THE LIABILITIES , Ch. 567 2023 LAWS OF MARYLAND
331-
332-– 8 –
333-INCLUDING CONTINGENT LIABILITI ES, OF THE LICENSEE OR A PPLICANT;
334-
335- 3. THE HISTORY OF AND P ROSPECTS FOR THE LIC ENSEE
336-OR APPLICANT TO EARN AND RETAIN INCOME ; AND
337-
338- 4. THE POTENTIAL HARM T O CONSUMERS IF THE
339-APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
340-
341- (III) THE QUALITY OF THE O PERATIONS OF THE LIC ENSEE OR
342-APPLICANT;
343-
344- (IV) THE QUALITY OF THE M ANAGEMENT OF THE LIC ENSEE OR
345-APPLICANT;
346-
347- (V) THE NATURE AND QUALI TY OF EACH CONTROL P ERSON;
348-AND
349-
350- (VI) ANY OTHER FACTOR THA T THE BOARD CONSIDERS
351-RELEVANT.
352-
353-7–305.
354-
355- (a) A license authorizes the licensee to do business as a collection agency at [only
356-the] EACH licensed location AND UNDER EACH LICEN SED NAME, OR AS OTHERWISE
357-AUTHORIZED BY REGULA TION.
358-
359- [(b) Subject to § 7–301(c) of this subtitle, a licensee may hold more than 1 license
360-under this title.
361-
362- (c) (1) Each license provided for through NMLS shall include the following
363-information:
364-
365- (i) the name of the licensee;
366-
367- (ii) the address at which the business is to be conducted; and
368-
369- (iii) the unique identifier of the licensee.
370-
371- (2) The unique identifier of the licensee shall constitute the license number
372-for the license.]
373-
374- (B) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
375-THE BOARD UNDER THIS SUBT ITLE SHALL INCLUDE T HE FOLLOWING :
376- WES MOORE, Governor Ch. 567
377-
378-– 9 –
379- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY THE
380-LICENSEE IN ACCORDAN CE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS
381-ARTICLE;
382-
383- (2) THE ADDRESS OF THE L ICENSEE’S PRINCIPAL EXECUTIV E OFFICE;
384-AND
385-
386- (3) THE ADDRESS OF EACH ADDITIONAL LOCATION , IF ANY, WHERE
387-THE LICENSEE DOES BU SINESS AND THAT :
388-
389- (I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A
390-LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY
391-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
392-COMMUNICATES WITH CU STOMERS VERBALL Y, ELECTRONICALLY , OR IN WRITING;
393-
394- (II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR
395-TECHNOLOGY SYSTEMS ;
396-
397- (III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION
398-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
399-
400- (IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
401-REGULATION .
402-
403- (C) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
404-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
405-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (B) OF THIS SECTION.
406-
407- (D) THE UNIQUE IDENTIFIER OF THE LICENSEE SHALL C ONSTITUTE THE
408-LICENSE NUMBER FOR T HE LICENSE.
409-
410- (E) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
411-TO BE LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNLE SS:
412-
413- (1) THE LICENSEE PROVIDE S TO THE BOARD, THROUGH NMLS AND
414-IN ACCORDANCE WITH A NY APPLICABLE REGULA TIONS, NOTICE OF THE ADDITI ON,
415-DELETION, OR MODIFICATION ;
416-
417- (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
418-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
419-IN NMLS; AND
420-
421- (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION Ch. 567 2023 LAWS OF MARYLAND
422-
423-– 10 –
424-OTHERWISE COMPLIES W ITH THIS TITLE.
425-
426- (F) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
427-LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNTI L THE LOCATION
428-IS RECORDED WITH THE IN FORMATION ASSOCIATED WITH THE LICENSEE ’S LICENSE
429-IN NMLS.
430-
431-7–306.1.
432-
433- (a) Each licensee shall conspicuously post, in 48 point or larger type, at [the
434-licensee’s] EACH licensed location, the following information:
435-
436- (1) the licensee’s unique identifier; and
437-
438- (2) a statement advising consumers of the availability of the NMLS
439-Consumer Access website to verify the licensing status of the licensee.
440-
441- (c) A licensee is not required to post the information required under subsection
442-(a) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access
443-to [the] THAT licensed location to members of the general public.
444-
445-7–308.
446-
447- [(b) If the Board finds that a ground for suspension or revocation of a license
448-applies to more than 1 place of business that the licensee operates, the Board may act
449-against:
450-
451- (1) each license of the licensee; or
452-
453- (2) only the licenses to which the ground applies.]
454-
455- [(c)] (B) In determining whether to reprimand a licensee or to suspend or revoke
456-a license for a reason described in subsection (a)(2) of this section, the Board shall consider:
457-
458- (1) the nature of the crime;
459-
460- (2) the relationship of the crime to the activities authorized by the license;
461-
462- (3) with respect to a felony, the relevance of the conviction to the fitness
463-and qualification of the licensee to engage in the collection agency business;
464-
465- (4) the length of time since the conviction; and
466-
467- (5) the behavior and activities of the licensee since the conviction.
468- WES MOORE, Governor Ch. 567
469-
470-– 11 –
471-Article – Commercial Law
472-
473-14–1216.
474-
475- (d) Except as provided in § 14–1226 of this subtitle, all fees and other revenues
476-collected under this subtitle shall be deposited into the [Nondepository]
477-NON–DEPOSITORY Special Fund established under [§ 11–610] § 2–120 of the Financial
478-Institutions Article.
479-
480- (e) The Commissioner may require a consumer reporting agency to register
481-through [the Nationwide Mortgage Licensing System and Registry] NMLS or through
482-other means specified by the Commissioner by regulation.
483-
484-Article – Financial Institutions
485-
486-2–120.
487-
488- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
489-INDICATED.
490-
491- (2) “BOARD” MEANS THE STATE COLLECTION AGENCY LICENSING
492-BOARD ESTABLISHED UND ER TITLE 7 OF THE BUSINESS REGULATION ARTICLE.
493-
494- (3) “FUND” MEANS THE NON–DEPOSITORY SPECIAL FUND
495-ESTABLISHED UNDER TH IS SECTION.
496-
497- (4) “LICENSE” MEANS ANY LICENSE IS SUED BY THE COMMISSIONER
498-OR THE BOARD UNDER APPLICABL E LAW.
499-
500- (5) “LICENSE CATEGORY ” REFERS TO ALL LICENS ES ISSUED BY
501-EITHER THE COMMISSIONER OR TH E BOARD UNDER ANY OF TH E FOLLOWING
502-PROVISIONS:
503-
504- (I) TITLE 11, SUBTITLE 2 OF THIS ARTICLE;
505-
506- (II) TITLE 11, SUBTITLE 3 OF THIS ARTICLE;
507-
508- (III) TITLE 11, SUBTITLE 4 OF THIS ARTICLE;
509-
510- (IV) TITLE 11, SUBTITLE 5 OF THIS ARTICLE;
511-
512- (V) TITLE 11, SUBTITLE 6 OF THIS ARTICLE;
513-
514- (VI) TITLE 12, SUBTITLE 1 OF THIS ARTICLE; Ch. 567 2023 LAWS OF MARYLAND
515-
516-– 12 –
517-
518- (VII) TITLE 12, SUBTITLE 4 OF THIS ARTICLE;
519-
520- (VIII) TITLE 12, SUBTITLE 9 OF THIS ARTICLE; OR
521-
522- (IX) TITLE 7 OF THE BUSINESS REGULATION ARTICLE.
523-
524- (6) “LICENSED PERSON ” MEANS ANY PERSON REQUIRED BY LAW TO
525-BE LICENSED BY EITHE R THE COMMISSIONER OR THE BOARD, REGARDLESS OF
526-WHETHER THE PERSON M AINTAINS THE REQUIRE D LICENSE.
527-
528- (7) “REGISTERED PERSON ” MEANS ANY PERSON REQ UIRED BY LAW
529-TO BE REGISTERED BY THE COMMISSIONER OR THE BOARD, REGARDLESS OF
530-WHETHER THE PERSON M AINTAINS THE REQUIRE D REGISTRATION .
531-
532- (8) “REGULATED PERSON ” MEANS:
533-
534- (I) A LICENSED PERSON OR R EGISTERED PERSON ; OR
535-
536- (II) ANY PERSON OTHERWISE ENGAGING IN ACTIVITY SUBJECT
537-TO A PROVISION OF LA W, REGULATION , RULE, OR ORDER OVER WHICH THE
538-COMMISSIONER HAS JURI SDICTION, OTHER THAN ACTIVITY SUBJECT TO ANY OF
539-TITLES 3 THROUGH 9 OF THIS ARTICLE.
540-
541- (B) THERE IS A NON–DEPOSITORY SPECIAL FUND THAT CONSISTS OF :
542-
543- (1) ALL REVENUES RECEIVED FROM LICENSING FEES FROM EACH
544-LICENSED PERSON ;
545-
546- (2) ALL REVENUES RECEIVED FROM REGISTRATION FE ES FROM
547-EACH REGISTERED PERS ON;
548-
549- (3) ALL REVENUES RECEIVED FROM ANNUAL ASSESSME NTS UNDER
550-SUBSECTION (H) OF THIS SECTION;
551-
552- (4) INCOME FROM THE INVES TMENTS THAT THE STATE TREASURER
553-MAKES FOR THE FUND; AND
554-
555- (5) ANY OTHER FEE , EXAMINATION OR INVES TIGATION FEE OR
556-ASSESSMENT , OR REVENUE RECEIVED BY THE COMMISSIONER OR THE BOARD WITH
557-RESPECT TO ANY REGUL ATED PERSON .
558- WES MOORE, Governor Ch. 567
559-
560-– 13 –
561- (C) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION:
562-
563- (1) THE COMMISSIONER AND THE BOARD SHALL PAY ALL F INES AND
564-PENALTIES COLLECTED FROM ANY REGULATED P ERSON INTO THE GENERAL FUND
565-OF THE STATE; AND
566-
567- (2) REVENUE RECEIVED BY T HE COMMISSIONER FOR USE OF THE
568-FORECLOSED PROPERTY REGISTRY ESTABLISHED UNDER TITLE 7 OF THE REAL
569-PROPERTY ARTICLE SHALL BE PAID BY THE COMMISSIONER TO THE FORECLOSED
570-PROPERTY REGISTRY FUND ESTABLISHED UNDE R § 7–105.14 OF THE REAL
571-PROPERTY ARTICLE.
572-
573- (D) THE PURPOSE OF THE FUND IS TO COV ER THE DIRECT AND IN DIRECT
574-COSTS OF FULFILLING THE STATUTORY AND RE GULATORY DUTIES OF T HE
575-COMMISSIONER AND THE BOARD RELATED TO REGU LATED PERSONS .
576-
577- (E) (1) THE ANNUAL STATE BUDGET SHALL IN CLUDE THE COSTS AND
578-EXPENSES OF THE COMMISSIONER AND THE BOARD RELA TING TO SUBSECTION (D)
579-OF THIS SECTION.
580-
581- (2) ANY EXPENDITURES FROM THE FUND TO COVER COSTS A ND
582-EXPENSES OF THE COMMISSIONER AND THE BOARD RELATING TO SUB SECTION (D)
583-OF THIS SECTION MAY BE MADE ONLY :
584-
585- (I) WITH AN APPROPRIATION FROM THE FUND APPROVED BY
586-THE GENERAL ASSEMBLY IN THE ANNUA L STATE BUDGET ; OR
587-
588- (II) BY THE BUDGET AMENDME NT PROCEDURE UNDER § 7–209
589-OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
590-
591- (3) IF, IN ANY FISCAL YEAR , THE AMOUNT OF THE RE VENUE
592-COLLECTED BY THE COMMISSIONER AND THE BOARD AND DEPOSITED INTO T HE
593-FUND EXCEEDS THE ACTU AL APPROPRIATION FOR THE COMMISSIONER AND THE
594-BOARD UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION , THE EXCESS AMOUNT
595-SHALL BE CARRIED FOR WARD WITHIN THE FUND.
596-
597- (F) (1) THE STATE TREASURER IS THE CUST ODIAN OF THE FUND.
598-
599- (2) THE STATE TREASURER SHALL DEPOS IT PAYMENTS RECEIVED
600-FROM THE COMMISSIONER AND THE BOARD INTO THE FUND.
601-
602- (G) (1) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
603-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. Ch. 567 2023 LAWS OF MARYLAND
604-
605-– 14 –
606-
607- (II) THE FUND MAY NOT BE DEEME D A PART OF THE GENERAL
608-FUND OF THE STATE.
609-
610- (2) UNLESS OTHERWISE PROV IDED BY LAW, NO PART OF THE FUND
611-MAY REVERT OR BE CRE DITED TO:
612-
613- (I) THE GENERAL FUND OF THE STATE; OR
614-
615- (II) ANY OTHER SPECIAL FUN D OF THE STATE.
616-
617- (H) (1) IN ORDER TO ENSURE THE FUND CONTAINS SUFFICI ENT
618-AMOUNTS TO ACHIEVE I TS PURPOSE UNDER SUB SECTION (D) OF THIS SECTION, THE
619-COMMISSIONER MAY IMPO SE AN ANNUAL ASSESSM ENT ON ANY LICENSED PERSON
620-NOT MORE THAN ONCE E ACH YEAR.
621-
622- (2) IN CALCULATING AN ASS ESSMENT WIT H RESPECT TO ANY
623-LICENSED PERSON , THE COMMISSIONER MAY CONS IDER:
624-
625- (I) THE COSTS INCURRED BY THE COMMISSIONER OR THE
626-BOARD IN SUPERVISING LICENSED PERSONS OF THAT LICENSE CATEGOR Y;
627-
628- (II) THE TYPE OF BUSINESS CONDUCTED IN THE STATE BY THAT
629-LICENSED PER SON;
630-
631- (III) THE VOLUME OF BUSINES S THAT LICENSED PERS ON
632-CONDUCTS IN THE STATE;
633-
634- (IV) ASSETS OF THE LICENSE D PERSON; AND
635-
636- (V) ANY OTHER FACTOR THE COMMISSIONER CONSIDER S
637-APPROPRIATE .
638-
639- (3) A LICENSED PERSON SHAL L PAY ANY ASSESSMENT IMPOSED
640-UNDER THIS SECTION TO THE COMMISSIONER WITHIN 30 CALENDAR DAYS AFTER
641-THE ASSESSMENT IS IM POSED.
642-
643- (4) (I) FAILURE BY A LICENSED PERSON TO TIMELY PAY AN
644-ANNUAL ASSESSMENT UN DER THIS SECTION IS A VIOLATION OF THIS SECTION.
645-
646- (II) THE COMMISSIONER MAY TAKE ACTION FOR THE
647-VIOLATION AGAINST TH E LICENSED PERSON AN D THE LICENSE UNDER APPLICABLE
648-LAW. WES MOORE, Governor Ch. 567
649-
650-– 15 –
651-
652-2–121.
653-
654- (A) BEFORE USING A TRADE NAME T O ENGAGE IN ANY ACTI VITY REQUIRING
655-A LICENSE OR REGISTRATION FROM THE COMMISSIONER OR THE STATE
656-COLLECTION AGENCY LICENSING BOARD, THE LICENSED OR REGISTERED PER SON
657-SHALL:
658-
659- (1) REGISTER THE TRADE NA ME WITH THE STATE DEPARTMENT OF
660-ASSESSMENTS AND TAXATION; AND
661-
662- (2) OBTAIN THE APPROVAL O F THE COMMISSIONER , OR THE STATE
663-COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, TO USE THE
664-TRADE NAME BY :
665-
666- (I) DESIGNATING ON AN ORIGINAL LICENSE OR REGISTRATION
667-APPLICATION OR ON A LICENSE OR REGISTRAT ION RENEWAL APPLICAT ION
668-THROUGH NMLS THE TRADE NAME UNDER WHICH THE LICENSED OR REGISTERED
669-PERSON WILL ENGAGE IN LICENSED A CTIVITY IN THE STATE; OR
670-
671- (II) IF THE PERSON WISHES TO BEGIN USING A TRADE NAME
672-BEFORE RENEWING A LI CENSE OR REGISTRATIO N, NOTIFYING THE COMMISSIONER ,
673-OR THE STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE
674-BOARD, IN WRITING BY LISTIN G THE TRADE NAME IN THE PERSON’S NMLS RECORD.
675-
676- (B) AFTER RECEIVING APPRO VAL FROM THE COMMISSIONER OR FROM THE
677-STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD FOR
678-THE USE OF A TRADE N AME, THE LICENSED OR REGISTER ED PERSON SHALL :
679-
680- (1) MAINTAIN REGISTRATION OF THE TRADE NAME IN ACCORDANCE
681-WITH § 1–406 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE AND ANY
682-IMPLEMENTING REGULATIONS ;
683-
684- (2) LIST THE TRADE NAME I N NMLS; AND
685-
686- (3) IMMEDIATELY NOTIFY THE COMMISSIONER , OR THE STATE
687-COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, IF THE
688-PERSON AMENDS , CANCELS, OR OTHERWISE FAILS T O RENEW THE REGISTRATION
689-OF THE TRADE NAME .
690-
691-11–201.
692-
693- (a) In this subtitle the following words have the meanings indicated. Ch. 567 2023 LAWS OF MARYLAND
694-
695-– 16 –
696-
697- (b) [“Branch location” means any location other than the principal executive office
698-of a licensee or license applicant at which the licensee conducts, or the license applicant, on
699-licensure, will conduct, activities required to be licensed under this subtitle.
700-
701- (c)] (1) “Control person” means a person who has the power, directly or
702-indirectly, to direct the management or policies of a licensee or license applicant, whether
703-through ownership of securities, by contract, or otherwise.
704-
705- (2) “Control person” includes a person who:
706-
707- (i) Is a general partner, an officer, or a director of a licensee or
708-license applicant, or occupies a similar position or performs a similar function;
709-
710- (ii) Directly or indirectly has the right to vote 10% or more of a class
711-of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
712-voting securities of a licensee or license applicant; or
713-
714- (iii) In the case of a partnership, a limited partnership, a limited
715-liability partnership, a limited liability company, or any other business entity:
716-
717- 1. Has the right to receive on liquidation or dissolution of a
718-licensee or license applicant 10% or more of the capital of the licensee or license applicant;
719-or
720-
721- 2. Has contributed 10% or more of the capital of a licensee or
722-license applicant.
723-
724- [(d)] (C) “License” means a license issued in any form by the Commissioner
725-under this subtitle to make loans under the Maryland Consumer Loan Law, including as
726-provided for through NMLS.
727-
728- (D) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
729-IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
730-
731- (E) “LICENSED NAME ” MEANS:
732-
733- (1) THE LICENSEE’S LEGAL NAME; AND
734-
735- (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
736-§ 2–121 OF THIS ARTICLE.
737-
738- [(d–1)] (F) “Licensee” means a person licensed under this subtitle to make loans
739-under the Maryland Consumer Loan Law.
740- WES MOORE, Governor Ch. 567
741-
742-– 17 –
743- [(e)] (G) “Loan” means any loan or advance of money or credit subject to Title
744-12, Subtitle 3 of the Commercial Law Article, the Maryland Consumer Loan Law – Credit
745-Provisions, regardless of whether the loan or advance of money or credit is or purports to
746-be made under Title 12, Subtitle 3 of the Commercial Law Article.
747-
748- [(f)] (H) “Maryland Consumer Loan Law” means this subtitle and Title 12,
749-Subtitle 3 of the Commercial Law Article.
750-
751- [(g)] (I) “Person” includes an individual, corporation, business trust, statutory
752-trust, estate, trust, partnership, association, two or more persons having a joint or common
753-interest, or any other legal or commercial entity.
754-
755- [(h)] (J) “Unique identifier” means a number or another identifier assigned by
756-NMLS.
757-
758-11–203.1.
759-
760- [(b) A separate license is required for the principal executive office of the license
761-applicant or licensee and each branch location.]
762-
763- (B) EXCEPT AS OTHERWISE P ROVIDED IN § 11–204 OF THIS SUBTITLE OR
764-AUTHORIZED BY THE COMMISSIONER BY REGUL ATION, A LICENSEE MAY NOT
765-ENGAGE IN THE BUSINE SS OF MAKING LOANS A T A LOCATION OTHER T HAN A
766-LICENSED LOCATION .
767-
768-11–203.3.
769-
770- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
771-subtitle and Subtitle 3 of this title and any other fee or revenue received by the
772-Commissioner under this subtitle shall be:
773-
774- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
775-established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
776-
777- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
778-ARTICLE.
779-
780- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
781-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICENSEE UNDE R THIS SUBTITLE.
782-
783-11–204.
784-
785- (a) A person may not:
786-
787- (1) Receive any application for a loan or allow any note or contract for a Ch. 567 2023 LAWS OF MARYLAND
788-
789-– 18 –
790-loan to be signed at any place of business [for which the person does not have a license]
791-THAT IS NOT A LICENS ED LOCATION;
792-
793- (2) Conduct any business under the Maryland Consumer Loan Law under
794-a name different from the [name that appears on the person’s license] LICENSED NAME ;
795-or
796-
797- (3) Evade the application of this section by any device, subterfuge, or
798-pretense of any kind.
799-
800- (c) Notwithstanding subsections (a) and (b) of this section, for a loan that is to be
801-secured by residential real property:
802-
803- (2) Except as provided in item (3) of this subsection, the loan closing shall
804-be conducted at:
805-
806- (i) [The lender’s] A licensed location;
807-
808- (ii) The office of an attorney representing the licensee, the borrower,
809-the title company, or title insurer in connection with the loan; or
810-
811- (iii) The office of the title insurer or title agency performing closing
812-services in connection with the loan; and
813-
814-11–206.
815-
816- (a) (2) The application shall include:
817-
818- (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
819-USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
820-
821- (II) THE applicant’s principal executive office address[, and, if];
822-
823- (III) IF the applicant is not an individual, the name and residence
824-address of each control person;
825-
826- [(ii)] (IV) The address of each [branch] ADDITIONAL location, if
827-any, THAT:
828-
829- 1. THE GENERAL PUBLIC MAY REASONABLY VIEW AS A
830-LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES
831-CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS
832-VERBALLY, ELECTRONICALLY , OR IN WRITING;
833- WES MOORE, Governor Ch. 567
834-
835-– 19 –
836- 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
837-OR TECHNOL OGY SYSTEMS;
838-
839- 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
840-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
841-
842- 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
843-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and
844-
845- [(iii)] (V) Any other pertinent information that the Commissioner
846-requires for an investigation and findings under § 11–207 of this subtitle.
847-
848- (c) (3) The bond shall be:
849-
850- (i) In an amount [equal to twice the amount of the largest loan that
851-may be made unde r the Maryland Consumer Loan Law ] DETERMINED BY THE
852-COMMISSIONER UNDER SU BSECTION (D) OF THIS SECTION ;
853-
854- [(d) For the principal executive office and each branch location license for which
855-an applicant applies, the applicant shall:
856-
857- (1) Submit a separate application; and
858-
859- (2) Pay a separate investigation fee and license fee.]
860-
861- (D) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (C) OF
862-THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE
863-THAN $200,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICEN SEE.
864-
865- (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
866-COMMISSIONER MAY CONS IDER:
867-
868- (I) THE NATURE AND VOLUME OF THE BUSINESS OR P ROPOSED
869-BUSINESS OF THE LICE NSEE OR APPLICANT ;
870-
871- (II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R
872-APPLICANT, INCLUDING:
873-
874- 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
875-THE ASSETS OF THE LI CENSEE OR APPLICANT ;
876-
877- 2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
878-INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
879- Ch. 567 2023 LAWS OF MARYLAND
880-
881-– 20 –
882- 3. THE HISTORY OF AN D PROSPECTS FOR THE LICENSEE
883-OR APPLICANT TO EARN AND RETAIN INCOME ; AND
884-
885- 4. THE POTENTIAL HARM TO CONSUMERS IF THE
886-APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
887-
888- (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
889-APPLICANT;
890-
891- (IV) THE QUALITY OF THE MANAGE MENT OF THE LICENSEE OR
892-APPLICANT;
893-
894- (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
895-CONTROL OF THE LICEN SEE OR APPLICANT ; AND
896-
897- (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S
898-RELEVANT.
899-
900-[11–208.
901-
902- (a) (1) Each license provided for through NMLS shall include the following
903-information:
904-
905- (i) The name of the licensee;
906-
907- (ii) The address of the location at which the business is to be
908-conducted; and
909-
910- (iii) The unique identifier of the licensee.
911-
912- (2) The unique identifier of the licensee shall constitute the license number
913-for the license.
914-
915- (b) (1) A license authorizes the licensee to do business under the license, at the
916-licensed location and under the name stated on the license.
917-
918- (2) Only one location may be maintained under any one license.
919-
920- (c) Subject to § 11–203.1(b) of this subtitle, the Commissioner may issue more
921-than one license to an applicant who:
922-
923- (1) Conducts activities for which a license is required at more than one
924-location;
925- WES MOORE, Governor Ch. 567
926-
927-– 21 –
928- (2) Complies with § 11–206 of this subtitle; and
929-
930- (3) Otherwise meets the requirements of this subtitle.]
931-
932-11–208.
933-
934- (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
935-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
936-
937- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
938-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
939-
940- (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
941-OFFICE; AND
942-
943- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
944-THE LICENSEE DOES BU SINESS AND THAT:
945-
946- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
947-LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES
948-CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS
949-VERBALLY, ELECTRONICALLY , OR IN WRITING;
950-
951- (II) HOUSES ANY CORE OPERATIONAL INFRASTR UCTURE OR
952-TECHNOLOGY SYSTEMS ;
953-
954- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
955-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
956-
957- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
958-REGULATION THE COMMISSIONER ADOPTS UNDER THIS SU BTITLE.
959-
960- (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
961-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
962-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
963-
964- (C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE
965-LICENSE NUMBER FOR T HE LICENSE.
966-
967- (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
968-LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
969-OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION.
970- Ch. 567 2023 LAWS OF MARYLAND
971-
972-– 22 –
973-11–210.
974-
975- (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
976-[the licensee’s] EACH licensed location the following information:
977-
978- (i) The licensee’s unique identifier; and
979-
980- (ii) A statement advising consumers of the availability of the NMLS
981-Consumer Access website to verify the licensing status of the licensee.
982-
983- (c) A licensee is not required to post the information required in subsection (b)(1)
984-of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant
985-[regular] access to [the] THAT licensed location to members of the general public.
986-
987-[11–211.
988-
989- A licensee may not change the location for which a license is issued unless the
990-licensee:
991-
992- (1) Provides to the Commissioner, in the form and in accordance with the
993-process that the Commissioner requires, notice of the proposed change; and
994-
995- (2) Receives the written consent of the Commissioner by United States
996-mail, e–mail, or any means provided through NMLS.]
997-
998-11–211.
999-
1000- (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
1001-TO BE LISTED IN NMLS UNDER § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNL ESS:
1002-
1003- (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
1004-NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
1005-NOTICE OF THE AD DITION, DELETION, OR MODIFICATION ;
1006-
1007- (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
1008-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
1009-IN NMLS; AND
1010-
1011- (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
1012-OTHERWISE COMPLIES W ITH THIS SUBTITLE.
1013-
1014- (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
1015-LISTED IN NMLS BY § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION
1016-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE WES MOORE, Governor Ch. 567
1017-
1018-– 23 –
1019-IN NMLS.
1020-
1021-11–401.
1022-
1023- (a) In this subtitle the following words have the meanings indicated.
1024-
1025- (b) “Agreement” means an installment sale agreement, a renewed or extended
1026-installment sale agreement, and any renewal, extension, or refund agreement made in
1027-connection with an installment sale agreement.
1028-
1029- (c) [“Branch location” means any location other than the principal executive office
1030-of a licensee or license applicant at which the licensee conducts, or the license applicant, on
1031-licensure, will conduct, activities required to be licensed under this subtitle.
1032-
1033- (d)] (1) “Buyer” means a person who buys or leases goods under an installment
1034-sale agreement, even though the person has entered into one or more renewal, extension,
1035-or refund agreements.
1036-
1037- (2) “Buyer” includes a prospective buyer.
1038-
1039- [(e)] (D) (1) “Collateral security” means any security interest in,
1040-encumbrance on, or pledge of property or goods that is given to secure performance of an
1041-obligation of a buyer or a surety for a buyer under an agreement.
1042-
1043- (2) “Collateral security” includes the undertaking of a surety for a buyer.
1044-
1045- (3) “Collateral security” does not include any goods or interest in goods that
1046-are the subject of an installment sale agreement.
1047-
1048- [(f)] (E) (1) “Control person” means a person who has the power, directly or
1049-indirectly, to direct the management or policies of a licensee or license applicant, whether
1050-through ownership of securities, by contract, or otherwise.
1051-
1052- (2) “Control person” includes a person who:
1053-
1054- (i) Is a general partner, an officer, a director, or a member of a
1055-licensee or license applicant, or occupies a similar position or performs a similar function;
1056-
1057- (ii) Directly or indirectly has the right to vote 20% or more of a class
1058-of voting securities, or has the power to sell or direct the sale of 20% or more of a class of
1059-voting securities, of a licensee or license applicant; or
1060-
1061- (iii) In the case of a partnership, a limited partnership, a limited
1062-liability partnership, a limited liability company, or any other business entity:
1063-
1064- 1. Has the right to receive on liquidation or dissolution of a Ch. 567 2023 LAWS OF MARYLAND
1065-
1066-– 24 –
1067-licensee or license applicant 20% or more of the capital of the licensee or license applicant;
1068-or
1069-
1070- 2. Has contributed 20% or more of the capital of a licensee or
1071-license applicant.
1072-
1073- [(g)] (F) (1) “Goods” means all tangible personal property that has a cash
1074-price of $25,000 or less.
1075-
1076- (2) “Goods” does not include money or things in action.
1077-
1078- [(h)] (G) (1) “Installment sale agreement” means a contract for the retail sale
1079-of consumer goods, negotiated or entered into in this State, under which:
1080-
1081- (i) Part or all of the price is payable in one or more payments after
1082-the making of the contract; and
1083-
1084- (ii) The seller takes collateral security or keeps a security interest in
1085-the goods sold.
1086-
1087- (2) “Installment sale agreement” includes:
1088-
1089- (i) A prospective installment sale agreement;
1090-
1091- (ii) A purchase money security agreement; and
1092-
1093- (iii) A contract for the bailment or leasing of consumer goods under
1094-which the bailee or lessee contracts to pay as compensation a sum that is substantially
1095-equal to or is more than the value of the goods.
1096-
1097- (3) “Installment sale agreement” does not include:
1098-
1099- (i) A bona fide C.O.D. transaction or a layaway agreement as
1100-defined in § 14–1101(g) of the Commercial Law Article; or
1101-
1102- (ii) A lease for industrial, commercial, or agricultural purposes.
1103-
1104- [(i)] (H) “License” means a license issued in any form by the Commissioner
1105-under this subtitle to [engage in] DO business as a sales finance company, including as
1106-provided for through NMLS.
1107-
1108- (I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
1109-IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
1110-
1111- (J) “LICENSED NAME ” MEANS: WES MOORE, Governor Ch. 567
1112-
1113-– 25 –
1114-
1115- (1) THE LICENSEE’S LEGAL NAME; AND
1116-
1117- (2) ANY TRADE NAME USED B Y THE LICENSEE IN ACCORDAN CE WITH
1118-§ 2–121 OF THIS ARTICLE.
1119-
1120- [(i–1)] (K) “Licensee” means a person licensed under this subtitle to [engage in]
1121-DO business as a sales finance company.
1122-
1123- [(j)] (L) “Person” includes an individual, corporation, business trust, statutory
1124-trust, estate, trust, partnership, association, two or more persons having a joint or common
1125-interest, or any other legal or commercial entity.
1126-
1127- [(k)] (M) “Retail sale” means the sale of goods for use or consumption by the
1128-buyer or for the benefit or satisfaction that the buyer may derive from the use or
1129-consumption of the goods by another, but not for resale by the buyer.
1130-
1131- [(l)] (N) “Sales finance company” means a person who is engaged, whether by
1132-purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or
1133-lending money or credit on the security of any interest in:
1134-
1135- (1) An installment sale agreement made between other parties;
1136-
1137- (2) A retail credit account transaction, as defined in § 12–501 of the
1138-Commercial Law Article, made between other parties; or
1139-
1140- (3) A transaction that deals with home improvement, as defined in § 8–101
1141-of the Business Regulation Article, made between other parties, if collateral security is
1142-required by and given to the contractor as a condition to the transaction.
1143-
1144- [(m)] (O) “Security interest” has the meaning stated in § 1–201(37) of the
1145-Commercial Law Article.
1146-
1147- [(n)] (P) “Seller” means a person who sells or leases or agrees to sell or lease
1148-goods under an installment sale agreement.
1149-
1150- [(o)] (Q) (1) “Surety” includes a guarantor.
1151-
1152- (2) “Surety” does not include a seller who sells, transfers, or assigns an
1153-agreement.
1154-
1155- [(p)] (R) “Unique identifier” means a number or another identifier assigned by
1156-NMLS.
1157-
1158-11–402.1. Ch. 567 2023 LAWS OF MARYLAND
1159-
1160-– 26 –
1161-
1162- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
1163-subtitle and any other fee, investigation fee or assessment, or revenue received by the
1164-Commissioner under this subtitle shall be:
1165-
1166- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
1167-established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
1168-
1169- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
1170-ARTICLE.
1171-
1172- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
1173-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICENSEE UNDER THIS SUBTITLE.
1174-
1175-11–403.
1176-
1177- (b) A [separate license is required for the principal executive office and each
1178-branch location where a person engages in business as a sales finance company] LICENSEE
1179-MAY DO BUSINESS AS A SALES FINANCE COMPAN Y ONLY AT A LICENSED LOCATION
1180-OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION .
1181-
1182-11–404.
1183-
1184- (a) (2) The application shall include:
1185-
1186- (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
1187-USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
1188-
1189- (II) THE applicant’s principal executive office address[, and, if];
1190-
1191- (III) IF the applicant is not an individual, the name and residence
1192-address of each control person;
1193-
1194- [(ii)] (IV) The address of each [branch] ADDITIONAL location, if
1195-any, THAT:
1196-
1197- 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
1198-LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY
1199-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
1200-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
1201-
1202- 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
1203-OR TECHNOLOGY SYSTEM S;
1204- WES MOORE, Governor Ch. 567
1205-
1206-– 27 –
1207- 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
1208-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
1209-
1210- 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
1211-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and
1212-
1213- [(iii)] (V) Any other pertinent information that the Commissioner
1214-requires.
1215-
1216- [(c) For the principal executive office and each branch location license for which
1217-an applicant applies, the applicant shall:
1218-
1219- (1) Submit a separate application; and
1220-
1221- (2) Pay a separate investigation fee and license fee.]
1222-
1223-11–406.
1224-
1225- (a) In addition to the investigation fee required by § 11–404 of this subtitle, if an
1226-applicant [applies for a license for a place of business that is located] REQUESTS ANY
1227-LICENSED LOCATION outside of [this] THE State AND THE INVESTIGATIO N INCLUDES
1228-TRAVEL TO THAT LOCAT ION, the applicant shall pay to the Commissioner, on
1229-presentation by the Commissioner of a detailed account, the reasonable travel and living
1230-expenses incurred on account of the investigation.
1231-
1232-[11–408.
1233-
1234- (a) (1) Each license provided for through NMLS shall include the following
1235-information:
1236-
1237- (i) The name of the licensee;
1238-
1239- (ii) The address of the location at which the business will be
1240-conducted; and
1241-
1242- (iii) The unique identifier of the licensee.
1243-
1244- (2) The unique identifier of the licensee shall constitute the license number
1245-for the license.
1246-
1247- (b) (1) A license authorizes the licensee to do business under the license, at the
1248-licensed location and under the name stated on the license.
1249-
1250- (2) Only one location may be maintained under any one license.
1251- Ch. 567 2023 LAWS OF MARYLAND
1252-
1253-– 28 –
1254- (c) Subject to § 11–403(b) of this subtitle, the Commissioner may issue more than
1255-one license to an applicant who:
1256-
1257- (1) Conducts activities for which a license is required at more than one
1258-branch location;
1259-
1260- (2) Complies with §§ 11–404 and 11–406 of this subtitle; and
1261-
1262- (3) Otherwise meets the requirements of this subtitle.]
1263-
1264-11–408.
1265-
1266- (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
1267-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
1268-
1269- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
1270-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
1271-
1272- (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
1273-OFFICE; AND
1274-
1275- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
1276-THE LICENSEE DOES BU SINESS AND THAT :
1277-
1278- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
1279-LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY
1280-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
1281-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
1282-
1283- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
1284-TECHNOLOGY SYSTEMS ;
1285-
1286- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
1287-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
1288-
1289- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
1290-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
1291-
1292- (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
1293-NMLS ASSOCIATED WITH THE LICENSE E’S LICENSE TO REFLECT ACCURATELY AT
1294-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
1295-
1296- (C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE WES MOORE, Governor Ch. 567
1297-
1298-– 29 –
1299-LICENSE NUMBER FOR T HE LICENSE.
1300-
1301- (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BUSINE SS UNDER THE
1302-LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
1303-OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
1304-
1305-11–410.
1306-
1307- (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
1308-[the licensee’s] EACH licensed location the following information:
1309-
1310- (i) The licensee’s unique identifier; and
1311-
1312- (ii) A statement advising consumers of the availability of the NMLS
1313-Consumer Access website to verify the licensing status of the licensee.
1314-
1315- (c) A licensee is not required to post the information required in subsection (b)(1)
1316-of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant
1317-[regular] access to [the] THAT licensed location to members of the general public.
1318-
1319-[11–411.
1320-
1321- If a licensee changes the location for which a license is issued, the licensee
1322-immediately shall provide to the Commissioner, in the form and in accordance with the
1323-process that the Commissioner requires, notice of the change.]
1324-
1325-11–411.
1326-
1327- (A) A LICENSEE MAY NOT ADD, DELETE, OR MODIFY A LOCATION REQUIRED
1328-TO BE LISTED IN NMLS UNDER § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNL ESS:
1329-
1330- (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
1331-NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
1332-NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
1333-
1334- (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
1335-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
1336-IN NMLS; AND
1337-
1338- (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
1339-OTHERWISE COMPLIES W ITH THIS SUBTITLE.
1340-
1341- (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
1342-LISTED IN NMLS BY § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION Ch. 567 2023 LAWS OF MARYLAND
1343-
1344-– 30 –
1345-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
1346-IN NMLS.
1347-
1348-11–414.
1349-
1350- [(a)] Subject to the hearing provisions of § 11–415 of this subtitle, the
1351-Commissioner may suspend or revoke the license of any licensee, if:
1352-
1353- (1) The licensee knowingly or without exercising due care:
1354-
1355- (i) Violates any provision of this subtitle or of any other law that
1356-regulates agreements; or
1357-
1358- (ii) Fails to comply with any demand or requirement that the
1359-Commissioner makes under this subtitle;
1360-
1361- (2) The licensee makes any material misstatement in an application for a
1362-license;
1363-
1364- (3) The licensee defrauds any buyer, to the buyer’s damage;
1365-
1366- (4) The licensee willfully fails to carry out any written agreement with a
1367-buyer;
1368-
1369- (5) The licensee knowingly and repeatedly violates any provision of the
1370-Maryland Consumer Debt Collection Act;
1371-
1372- (6) An officer, director, or trustee of or partner in the licensee is responsible
1373-for any act or omission that would be a ground for suspending or revoking a license; or
1374-
1375- (7) Any agent or employee of the licensee is responsible for any act or
1376-omission that would be a ground for suspending or revoking a license, if the licensee:
1377-
1378- (i) Approves or knows of that or similar acts or omissions; and
1379-
1380- (ii) After giving approval or learning of the act or omission, keeps
1381-any benefit, proceeds, profit, or advantage resulting from the act or omission or otherwise
1382-ratifies the act or omission.
1383-
1384- [(b) If the licensee has more than one place of business, the Commissioner may
1385-suspend or revoke only the licenses of the places of business to which the grounds for
1386-suspension or revocation relate. However, if the Commissioner suspends or revokes the
1387-license of one place of business and finds that the grounds for that action apply to any other
1388-place of business, the Commissioner shall take the same action against the license for each
1389-other place of business to which the grounds apply.]
1390- WES MOORE, Governor Ch. 567
1391-
1392-– 31 –
1393-11–501.
1394-
1395- (a) In this subtitle the following words have the meanings indicated.
1396-
1397- (F–1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
1398-IN NMLS IN ACCORDANCE WITH THIS SUBTITLE .
1399-
1400- (F–2) “LICENSED NAME ” MEANS:
1401-
1402- (1) THE LICENSEE’S LEGAL NAME; AND
1403-
1404- (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
1405-§ 2–121 OF THIS ARTICLE.
1406-
1407-11–503.1.
1408-
1409- (b) The fees established by the Commissioner under this section TOGETHER
1410-WITH ANY ASSESSMENTS OF LICENSEES UNDER T HIS SUBTITLE shall be reasonable
1411-and set in a manner that will COLLECTIVELY produce funds sufficient to cover the [actual]
1412-direct and indirect costs of [regulating] FULFILLING THE STATU TORY AND
1413-REGULATORY D UTIES OF THE COMMISSIONER RELATED TO licensees in accordance
1414-with [the provisions of] this subtitle.
1415-
1416-11–503.2.
1417-
1418- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
1419-subtitle and any other fee, examination or investigation fee or assessment, or revenue
1420-received by the Commissioner under this subtitle shall be:
1421-
1422- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
1423-established under [§ 11–610] § 2–120 of this [title] ARTICLE; and
1424-
1425- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title]
1426-ARTICLE.
1427-
1428- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
1429-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
1430-
1431-11–505.
1432-
1433- (a) A license issued under this subtitle authorizes the licensee to act as a
1434-mortgage lender under the license at [the] ANY licensed [place of business] LOCATION
1435-AND UNDER ANY LICENS ED NAME, OR AS OTHERWISE AUTH ORIZED BY THE
1436-COMMISSIONER THROUGH REGULATION . Ch. 567 2023 LAWS OF MARYLAND
1437-
1438-– 32 –
1439-
1440- (b) [Only one place of business may be maintained under any one license]
1441-EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S OTHERWISE
1442-AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , A LICENSEE MAY DO
1443-BUSINESS AS A MORTGA GE LENDER ONLY AT A LICENSED LOCATION .
1444-
1445- [(c) A mortgage lender may maintain more than one license under this subtitle
1446-provided that a separate application for each license is made pursuant to § 11–507 of this
1447-subtitle and the Commissioner approves such application.
1448-
1449- (d) (1) (i) Each license provided for through NMLS shall include the
1450-following information:
1451-
1452- 1. The name of the licensee;
1453-
1454- 2. The address at which the business is to be conducted; and
1455-
1456- 3. The unique identifier of the licensee.
1457-
1458- (ii) The unique identifier of the licensee shall constitute the license
1459-number for the license.
1460-
1461- (2) A person may not conduct any mortgage loan business at any location
1462-or under any name different from the address and name that appears on the person’s
1463-license.]
1464-
1465- [(e)] (C) (1) A licensee may not allow any note, or loan contract, mortgage, or
1466-evidence of indebtedness secured by a secondary mortgage or deed of trust on a dwelling or
1467-residential real estate to be signed or executed at any place [for which the person does not
1468-have a license] OTHER THAN A LICENSE D LOCATION, except at the office of:
1469-
1470- (i) The attorney for the borrower or for the licensee; or
1471-
1472- (ii) A title insurance company, a title company, or an attorney for a
1473-title insurance company or a title company.
1474-
1475- (2) Notwithstanding paragraph (1) of this subsection, a licensee may
1476-conduct the loan closing at another location at the written request of the borrower or the
1477-borrower’s designee to accommodate the borrower because of the borrower’s sickness.
1478-
1479- (3) The Commissioner shall adopt regulations to ensure that the loan
1480-application process is conducted fairly and in a manner consistent with the best interests
1481-of both the borrower and mortgage lender.
1482-
1483- [(f)] (D) A license may be issued under this subtitle to a business entity whose WES MOORE, Governor Ch. 567
1484-
1485-– 33 –
1486-principal EXECUTIVE office is located outside [this] THE State [provided that] IF the
1487-business entity maintains a resident agent within the State at all times during the term of
1488-the license, regardless of whether:
1489-
1490- (1) The business entity maintains any office within the State; or
1491-
1492- (2) The activities of the business entity constitute doing business or having
1493-a tax situs in [this] THE State under the applicable provisions of the Corporations and
1494-Associations Article.
1495-
1496- [(g)] (E) A person exempt from licensing under this subtitle who employs a
1497-mortgage loan originator licensed under Subtitle 6 of this title shall be registered with [the
1498-Nationwide Mortgage Licensing System and Registry] NMLS.
1499-
1500- (F) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
1501-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
1502-
1503- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
1504-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
1505-
1506- (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
1507-OFFICE; AND
1508-
1509- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
1510-THE LICENSEE DOES BU SINESS AND THAT :
1511-
1512- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
1513-LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY
1514-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
1515-COMMUNICATES WITH CU STOMERS VERBA LLY, ELECTRONICALLY , OR IN WRITING;
1516-
1517- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
1518-TECHNOLOGY SYSTEMS ;
1519-
1520- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
1521-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
1522-
1523- (IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY
1524-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
1525-
1526- (G) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
1527-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
1528-ALL TIMES THE INFORM ATION REQUIRED B Y SUBSECTION (F) OF THIS SECTION.
1529- Ch. 567 2023 LAWS OF MARYLAND
1530-
1531-– 34 –
1532- (H) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE
1533-LICENSE NUMBER FOR T HE LICENSE.
1534-
1535- (I) A LICENSEE MAY NOT CON DUCT ANY BUSINESS AS A MORTGAGE
1536-LENDER:
1537-
1538- (1) UNDER ANY NAME OTHER THAN A LICENSED NAME ; OR
1539-
1540- (2) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S
1541-OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , AT A
1542-LOCATION OTHER THAN A LICENSED LOCATION .
1543-
1544-11–506.1.
1545-
1546- (b) In connection with an initial application for a license under § 11–507 of this
1547-subtitle, and at any other time the Commissioner requests, an applicant or licensee shall
1548-provide to [the Nationwide Mortgage Licensing System and Registry] NMLS information
1549-concerning the applicant’s identity, including:
1550-
1551- (1) Fingerprints for submission to the Federal Bureau of Investigation, and
1552-any other governmental agency or entity authorized to receive this information, for a state,
1553-national, or international criminal history background check; and
1554-
1555- (2) Personal history and experience in a form prescribed by [the
1556-Nationwide Mortgage Licensing System and Registry] NMLS, including the submission of
1557-authorization for [the Nationwide Mortgage Licensing System and Registry] NMLS and
1558-the Commissioner to obtain:
1559-
1560- (i) An independent credit report from a consumer reporting agency
1561-described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and
1562-
1563- (ii) Information related to any administrative, civil, or criminal
1564-findings by any governmental jurisdiction.
1565-
1566- (c) The Commissioner may request from the Federal Bureau of Investigation or
1567-[the Nationwide Mortgage Licensing System and Registry] NMLS, as applicable, for each
1568-applicant or licensee who is required to provide fingerprints under subsection (b) of this
1569-section:
1570-
1571- (1) (i) The state, national, or international criminal history records of
1572-the applicant or licensee; and
1573-
1574- (ii) A printed statement listing any conviction or other disposition of,
1575-and any plea of guilty or nolo contendere to, any criminal charge;
1576- WES MOORE, Governor Ch. 567
1577-
1578-– 35 –
1579- (2) (i) An update of the initial criminal history records check or
1580-criminal history background check of the applicant or licensee; and
1581-
1582- (ii) A revised statement listing any conviction or other disposition of,
1583-and any plea of guilty or nolo contendere to, any criminal charge occurring after the date
1584-of the initial criminal history records check or criminal history background check; and
1585-
1586- (3) An acknowledged receipt of the application for a criminal history
1587-records check or criminal history background check of the applicant or licensee.
1588-
1589- (d) An applicant or licensee who is required to provide fingerprints under
1590-subsection (b) of this section shall pay any processing or other fees required by the Federal
1591-Bureau of Investigation and [the Nationwide Mortgage Licensing System and Registry]
1592-NMLS.
1593-
1594- (e) To implement this subtitle, the Commissioner may use [the Nationwide
1595-Mortgage Licensing System and Registry] NMLS as a channeling agent to request
1596-information from and distribute information to the Department of Justice, any other
1597-governmental agency with subject matter jurisdiction, and any other state licensing entity
1598-that has loan originators registered with [the Nationwide Mortgage Licensing System and
1599-Registry] NMLS.
1600-
1601-11–507.
1602-
1603- (a) (1) To apply for a license, an applicant shall:
1604-
1605- (i) Complete, sign, and submit to the Commissioner an application
1606-made under oath in the form, and in accordance with the process, that the Commissioner
1607-requires; and
1608-
1609- (ii) Provide all information that the Commissioner requests.
1610-
1611- (2) THE APPLICATION SHALL IN CLUDE:
1612-
1613- (I) THE APPLICANT’S LEGAL NAME AND ANY TRADE NAME USED
1614-BY THE APPLICANT IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
1615-
1616- (II) THE APPLICANT’S PRINCIPAL EXECUTIV E OFFICE ADDRESS ;
1617-
1618- (III) IF THE APPLICANT IS N OT AN INDIVIDUAL , THE NAME AND
1619-RESIDENCE ADDRESS OF EACH CONTROL PERSON ;
1620-
1621- (IV) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY,
1622-THAT:
1623- Ch. 567 2023 LAWS OF MARYLAND
1624-
1625-– 36 –
1626- 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
1627-LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY
1628-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
1629-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
1630-
1631- 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
1632-OR TECHNOLOGY SYSTEM S;
1633-
1634- 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
1635-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
1636-
1637- 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
1638-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
1639-
1640- (V) ANY OTHER PERTINENT I NFORMATION THAT THE
1641-COMMISSIONER REQUIRES .
1642-
1643- (3) The applicant shall comply with all conditions and provisions of the
1644-application for licensure and be issued a license before acting as a mortgage lender [at a
1645-particular location].
1646-
1647- (b) [With each application, the] THE applicant shall pay to the Commissioner the
1648-following fees:
1649-
1650- (1) A nonrefundable investigation fee set by the Commissioner; and
1651-
1652- (2) A nonrefundable license fee set by the Commissioner.
1653-
1654- (c) In addition to the license fee required under subsection (b)(2) of this section,
1655-an applicant for an initial license shall pay to [the Nationwide Mortgage Licensing System
1656-and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System and
1657-Registry] NMLS imposes in connection with the application.
1658-
1659- (d) [For each license for which an applicant applies, the applicant shall:
1660-
1661- (1) Submit a separate application;
1662-
1663- (2) Pay a separate nonrefundable license fee;
1664-
1665- (3) Pay any application processing fee or other fees that the Nationwide
1666-Mortgage Licensing System and Registry imposes in connection with the application;
1667-
1668- (4) If applicable, pay the surcharge; and
1669- WES MOORE, Governor Ch. 567
1670-
1671-– 37 –
1672- (5) File a separate surety bond or other financial guaranty under § 11–508
1673-of this subtitle.
1674-
1675- (e)] In addition to any sanctions that may be imposed under this subtitle by the
1676-Commissioner, a nonrefundable surcharge of $500 shall be paid [with]:
1677-
1678- (1) WITH an application if the applicant has begun acting as a mortgage
1679-lender without a license [at the location for which an application is filed]; AND
1680-
1681- (2) BY A LICENSEE IF THE LICENSEE HAS ACTED A S A MORTGAGE
1682-LENDER AT A LOCATION THAT IS NOT A LICENS ED LOCATION.
1683-
1684- [(f)] (E) A person who knowingly makes a false statement under oath on an
1685-application filed with the Commissioner under this section is guilty of perjury and on
1686-conviction is subject to the penalties of § 9–101 of the Criminal Law Article.
1687-
1688-11–508.
1689-
1690- (a) With the application for a [new] license, an applicant shall file a surety bond
1691-with the Commissioner.
1692-
1693- [(c) (1) If an applicant has not conducted a mortgage lending business any time
1694-during the 36 months prior to the filing of an original application for a license, the applicant
1695-shall provide a sworn statement setting forth that fact.
1696-
1697- (2) If an applicant has conducted a mortgage lending business any time
1698-during the 36 months prior to the filing of an original application, the applicant shall
1699-provide a sworn statement setting forth the aggregate principal amount of mortgage loans
1700-secured or to be secured by property located in Maryland and applied for and accepted or
1701-serviced or mortgage loans secured or to be secured by property located in Maryland and
1702-applied for, procured, and accepted or serviced by the mortgage lender during the 12
1703-months immediately preceding the month in which the application is filed.
1704-
1705- (3) If an applicant has conducted a mortgage lending business any time
1706-during the 36 months prior to the filing of an original application, but during that time has
1707-not acted as a mortgage lender in Maryland, the applicant shall provide with the original
1708-application a sworn statement setting forth the aggregate principal amount of loans
1709-secured or to be secured by a dwelling or residential real estate located in states other than
1710-Maryland and applied for, procured, and accepted or serviced by the mortgage lender
1711-during the 12 months preceding the month in which the application is filed.
1712-
1713- (4) Except as provided in subsection (d) of this section, the applicant shall
1714-file with the original application:
1715-
1716- (i) Where the aggregate principal amount of loans set forth in the
1717-sworn statement was $3,000,000 or less, a surety bond in the amount of $50,000; Ch. 567 2023 LAWS OF MARYLAND
1718-
1719-– 38 –
1720-
1721- (ii) Where the aggregate principal amount of loans set forth in the
1722-sworn statement was more than $3,000,000 but not more than $10,000,000, a surety bond
1723-in the amount of $100,000; and
1724-
1725- (iii) Where the aggregate principal amount of loans set forth in the
1726-sworn statement was more than $10,000,000, a surety bond in the amount of $150,000.]
1727-
1728- (C) (1) THE AMOUNT OF THE SUR ETY BOND UNDER S UBSECTION (B) OF
1729-THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE
1730-THAN $750,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE.
1731-
1732- (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
1733-COMMISSIONER MAY CONS IDER:
1734-
1735- (I) THE NATURE AND VOLUME OF THE BU SINESS OR PROPOSED
1736-BUSINESS OF THE LICE NSEE OR APPLICANT ;
1737-
1738- (II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R
1739-APPLICANT, INCLUDING:
1740-
1741- 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
1742-THE ASSETS OF THE LI CENSEE OR APPLICANT ;
1743-
1744- 2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
1745-INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
1746-
1747- 3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE
1748-OR APPLICANT TO EARN AND RETAIN INCOME ; AND
1749-
1750- 4. THE POTENTIAL HARM TO CONSUMERS IF THE
1751-APPLICANT OR LICENSEE BEC OMES FINANCIALLY IMP AIRED;
1752-
1753- (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
1754-APPLICANT;
1755-
1756- (IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR
1757-APPLICANT;
1758-
1759- (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
1760-CONTROL OF THE LICENSEE OR APPLICAN T; AND
1761-
1762- (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S WES MOORE, Governor Ch. 567
1763-
1764-– 39 –
1765-RELEVANT.
1766-
1767- [(d) Notwithstanding any other provisions of this section, and subject to approval
1768-by the Commissioner, if an applicant files five or more original or renewal applications at
1769-the same time, the applicant may provide a blanket surety bond for all licensed offices in
1770-the amount of $750,000.]
1771-
1772- [(e)] (D) Subject to approval by the Commissioner, an applicant for license who
1773-files an application for a new license may satisfy the bonding requirement under this
1774-section by establishing a trust account with or obtaining an irrevocable letter of credit from
1775-a financial institution insured by the Federal Deposit Insurance Corporation in an amount
1776-equal to the bond required under this section.
1777-
1778- [(f)] (E) (1) The Commissioner may adopt regulations reasonably necessary
1779-to assure that the proper surety bond amount established by this section is maintained by
1780-each licensee throughout each licensing term.
1781-
1782- (2) The regulations may provide for periodic reporting, recalculation, and
1783-enforcement of required bond amounts.
1784-
1785- [(g)] (F) If a mortgage servicer is subject to a receivership proceeding, the
1786-Commissioner or a receiver appointed under § 7–404.1(b)(2) or § 7–506(b) of the Real
1787-Property Article, without regard to any priorities, preferences, or adverse claims, may:
1788-
1789- (1) Reduce the bond or the deposit in lieu of a bond to cash; and
1790-
1791- (2) Use the cash to defray the costs associated with the receivership.
1792-
1793-11–511.
1794-
1795- (a) Subject to any regulations the Commissioner adopts in connection with the
1796-transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, an initial
1797-license term shall:
1798-
1799- (1) Begin on the day the license is issued; and
1800-
1801- (2) Expire on December 31 of the year:
1802-
1803- (i) The license is issued, if the license is issued before November 1;
1804-or
1805-
1806- (ii) Succeeding the year that the license is issued, if the license is
1807-issued on or after November 1.
1808-
1809- (c) Subject to any regulations the Commissioner adopts in connection with the
1810-transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, a renewal Ch. 567 2023 LAWS OF MARYLAND
1811-
1812-– 40 –
1813-term shall:
1814-
1815- (1) Be for a period of 1 year;
1816-
1817- (2) Begin on January 1 of each year after the initial term; and
1818-
1819- (3) Expire on December 31 of the year the renewal term begins.
1820-
1821- (d) In addition to the license renewal fee required under subsection (b)(2) of this
1822-section, an applicant for a license renewal shall pay to [the Nationwide Mortgage Licensing
1823-System and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System
1824-and Registry] NMLS imposes in connection with the renewal application.
1825-
1826-11–512.
1827-
1828- [(a) (1) A licensee may not change the place of business for which a license is
1829-issued unless the licensee:
1830-
1831- (i) Notifies the Commissioner through NMLS of the proposed
1832-change; and
1833-
1834- (ii) Receives the approval of the Commissioner through NMLS.
1835-
1836- (2) Within 60 days after receiving a request for approval of a proposed
1837-change in the place of business for a licensee, the Commissioner shall approve or deny the
1838-request.
1839-
1840- (3) If the Commissioner does not approve or deny a request for approval of
1841-a proposed change in the place of business for a licensee as provided under paragraph (2)
1842-of this subsection, the request shall be deemed approved.]
1843-
1844- (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
1845-TO BE LISTED IN NMLS UNDER § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNL ESS:
1846-
1847- (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
1848-NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
1849-NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
1850-
1851- (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
1852-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
1853-IN NMLS; AND
1854-
1855- (3) THE ADDITION, DELETION, OR MODIFICATION OF TH E LOCATION
1856-OTHERWISE COMPLIES W ITH THIS SUBTITLE. WES MOORE, Governor Ch. 567
1857-
1858-– 41 –
1859-
1860- (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE
1861-LISTED IN NMLS BY § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION
1862-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
1863-IN NMLS.
1864-
1865- [(b)] (C) (1) A licensee may not undergo a change in control unless the
1866-licensee:
1867-
1868- (i) Notifies the Commissioner through NMLS of the proposed
1869-change;
1870-
1871- (ii) Makes a request through NMLS that the Commissioner approve
1872-the proposed change;
1873-
1874- (iii) Provides any information the Commissioner may require under
1875-paragraph (3) of this subsection; and
1876-
1877- (iv) Receives the approval of the Commissioner through NMLS.
1878-
1879- (2) For purposes of this subsection:
1880-
1881- (i) If the licensee is a corporation, “control” means direct or indirect
1882-ownership of, or the right to control, 25% or more of the voting shares of the licensee, or the
1883-ability to elect a majority of the directors or otherwise effect a change in policy; and
1884-
1885- (ii) If the licensee is an entity other than a corporation, “control”
1886-means the possession, directly or indirectly, of the power to direct or cause the direction of
1887-the management and policies of the licensee, whether through the ownership of voting
1888-securities, by contract, or otherwise.
1889-
1890- (3) Within 60 days after receiving a request for approval of a proposed
1891-change in control, the Commissioner may require the licensee to provide any information
1892-deemed necessary to determine whether a new application is required because of the
1893-proposed change in control.
1894-
1895- (4) The Commissioner shall approve or deny a request for approval of a
1896-proposed change in control:
1897-
1898- (i) Within 60 days after the date the Commissioner receives the
1899-request; or
1900-
1901- (ii) If the Commissioner requests information from the licensee
1902-under paragraph (3) of this subsection, within 60 days after the date the information is
1903-received by the Commissioner.
1904- Ch. 567 2023 LAWS OF MARYLAND
1905-
1906-– 42 –
1907- (5) If the Commissioner does not approve or deny a request for approval of
1908-a proposed change in control as provided under paragraph (4) of this subsection, the request
1909-shall be deemed approved.
1910-
1911- [(c)] (D) In addition to any sanctions which may be imposed under this subtitle
1912-by the Commissioner, a licensee who fails to provide in a timely manner the notice required
1913-under subsection (a)(1) or [(b)(1)] (C)(1) of this section shall:
1914-
1915- (1) For each such failure pay to the Commissioner a surcharge in the
1916-amount of $500; and
1917-
1918- (2) For a licensee who fails to provide in a timely manner the notice
1919-required under subsection [(b)(1)] (C)(1) of this section, file with the Commissioner an
1920-application for a new license, together with all applicable application and investigation fees.
1921-
1922-11–512.1.
1923-
1924- (a) Each licensee shall conspicuously post, in 48 point or larger type, at [the
1925-licensee’s] EACH licensed location the following information:
1926-
1927- (1) The licensee’s unique identifier; and
1928-
1929- (2) A statement advising consumers of the availability of the NMLS
1930-Consumer Access website to verify the licensing status of the licensee.
1931-
1932- (c) A licensee is not required to post the information required in subsection (a) of
1933-this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access to
1934-[the] THAT licensed location to members of the general public.
1935-
1936-11–513.
1937-
1938- (a) Each licensee shall keep and make available to the Commissioner at the
1939-licensee’s [place of business] LICENSED LOCATION any books and records that the
1940-Commissioner, by rule or regulation, requires to enable the Commissioner to enforce:
1941-
1942- (1) This subtitle;
1943-
1944- (2) Any rule or regulation adopted under this subtitle; and
1945-
1946- (3) Any other provision regulating the application, making, brokering, or
1947-servicing of mortgage loans under Titles 12 through 14 of the Commercial Law Article.
1948-
1949- (b) Subject to approval by the Commissioner, nothing in this section is to be
1950-construed to prohibit a licensee from maintaining duplicate records or electronic
1951-equivalents at the licensee’s [place of business] LICENSED LOCATION . WES MOORE, Governor Ch. 567
1952-
1953-– 43 –
1954-
1955- (c) Notwithstanding subsection (a) of this section, on approval of the
1956-Commissioner, a licensee need not keep at the licensee’s [place of business] LICENSED
1957-LOCATION any books and records otherwise required by the Commissioner under
1958-subsection (a) of this section if the licensee:
1959-
1960- (1) Makes the books and records available to the Commissioner at the
1961-licensee’s [place of business] LICENSED LOCATION within 5 business days [of] AFTER the
1962-Commissioner’s official request; and
1963-
1964- (2) Retains the records for at least 61 months in a storage facility disclosed
1965-to the Commissioner.
1966-
1967-11–601.
1968-
1969- (a) In this subtitle the following words have the meanings indicated.
1970-
1971- (f) “Fund” means the [Nondepository] NON–DEPOSITORY Special Fund
1972-established under [§ 11–610] § 2–120 of this [subtitle] ARTICLE.
1973-
1974-11–602.
1975-
1976- (c) Each licensee shall obtain and maintain a valid unique identifier issued by
1977-[the Nationwide Mortgage Licensing System and Registry] NMLS:
1978-
1979- (1) On obtaining an initial or renewal license on or after July 1, 2009; or
1980-
1981- (2) If the Commissioner has not joined [the Nationwide Mortgage
1982-Licensing System and Registry] NMLS as of July 1, 2009, on or after the date that the
1983-Commissioner joins, as instructed by the Commissioner by notice to the licensee.
1984-
1985-[11–610.
1986-
1987- (a) There is a Nondepository Special Fund that consists of:
1988-
1989- (1) Revenue received for the licensing of individuals under this subtitle;
1990-
1991- (2) Revenue received for the licensing of persons under Subtitle 2 of this
1992-title;
1993-
1994- (3) Revenue received for the licensing of persons under Subtitle 3 of this
1995-title;
1996-
1997- (4) Revenue received for the licensing of persons under Subtitle 4 of this
1998-title;
1999- Ch. 567 2023 LAWS OF MARYLAND
2000-
2001-– 44 –
2002- (5) Revenue received for the licensing of persons under Subtitle 5 of this
2003-title;
2004-
2005- (6) Revenue received for the licensing of persons under Title 12, Subtitle 1
2006-of this article;
2007-
2008- (7) Revenue received for the licensing of persons under Title 12, Subtitle 4
2009-of this article;
2010-
2011- (8) Revenue received for the licensing of persons under Title 12, Subtitle 9
2012-of this article;
2013-
2014- (9) Revenue received for the registration of persons under Title 12, Subtitle
2015-10 of this article;
2016-
2017- (10) Revenue received for the licensing of persons under Title 7 of the
2018-Business Regulation Article;
2019-
2020- (11) Revenue received for the licensing of persons under Title 14, Subtitle
2021-19 of the Commercial Law Article;
2022-
2023- (12) Income from the investments that the State Treasurer makes for the
2024-Fund; and
2025-
2026- (13) (i) Any other fee, examination or investigation fee or assessment, or
2027-revenue received by the Commissioner under this subtitle, Subtitles 2, 3, 4, and 5 of this
2028-title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the Commercial
2029-Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article; and
2030-
2031- (ii) Any other fee or revenue received by the State Collection Agency
2032-Licensing Board under Title 7 of the Business Regulation Article.
2033-
2034- (b) Notwithstanding subsection (a) of this section:
2035-
2036- (1) The Commissioner shall pay all fines and penalties collected by the
2037-Commissioner under Title 2, Subtitle 1 of this article, this subtitle, Subtitles 2, 3, 4, and 5
2038-of this title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the
2039-Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article
2040-into the General Fund of the State; and
2041-
2042- (2) The State Collection Agency Licensing Board shall pay all fines and
2043-penalties collected by the Board under Title 7 of the Business Regulation Article into the
2044-General Fund of the State.
2045-
2046- (c) The purpose of the Fund is to cover the direct and indirect costs of fulfilling
2047-the statutory and regulatory duties of the Commissioner and the State Collection Agency WES MOORE, Governor Ch. 567
2048-
2049-– 45 –
2050-Licensing Board related to:
2051-
2052- (1) Title 2, Subtitle 1 of this article;
2053-
2054- (2) This subtitle;
2055-
2056- (3) Subtitle 2 of this title;
2057-
2058- (4) Subtitle 3 of this title;
2059-
2060- (5) Subtitle 4 of this title;
2061-
2062- (6) Subtitle 5 of this title;
2063-
2064- (7) Title 12, Subtitle 1 of this article;
2065-
2066- (8) Title 12, Subtitle 4 of this article;
2067-
2068- (9) Title 12, Subtitle 9 of this article;
2069-
2070- (10) Title 12, Subtitle 10 of this article;
2071-
2072- (11) Title 7 of the Business Regulation Article;
2073-
2074- (12) Title 12 of the Commercial Law Article;
2075-
2076- (13) Title 14, Subtitles 12, 19, and 42 of the Commercial Law Article;
2077-
2078- (14) Title 7, Subtitles 1, 3, 4, and 5 of the Real Property Article;
2079-
2080- (15) Title 26, Subtitle 6 of the Education Article; and
2081-
2082- (16) Any other expense authorized in the State budget.
2083-
2084- (d) (1) The annual State budget shall include the costs and expenses of the
2085-Commissioner and the State Collection Agency Licensing Board relating to subsection (c)
2086-of this section.
2087-
2088- (2) Any expenditures from the Fund to cover costs and expenses of the
2089-Commissioner and the State Collection Agency Licensing Board relating to subsection (c)
2090-of this section may be made only:
2091-
2092- (i) With an appropriation from the Fund approved by the General
2093-Assembly in the annual State budget; or
2094-
2095- (ii) By the budget amendment procedure provided for in § 7–209 of Ch. 567 2023 LAWS OF MARYLAND
2096-
2097-– 46 –
2098-the State Finance and Procurement Article.
2099-
2100- (3) If, in any fiscal year, the amount of the revenue collected by the
2101-Commissioner and the State Collection Agency Licensing Board and deposited into the
2102-Fund exceeds the actual appropriation for the Commissioner and the State Collection
2103-Agency Licensing Board under paragraph (2)(i) of this subsection, the excess amount shall
2104-be carried forward within the Fund.
2105-
2106- (e) (1) The State Treasurer is the custodian of the Fund.
2107-
2108- (2) The State Treasurer shall deposit payments received from the
2109-Commissioner into the Fund.
2110-
2111- (f) (1) (i) The Fund is a special, nonlapsing fund that is not subject to §
2112-7–302 of the State Finance and Procurement Article.
2113-
2114- (ii) The Fund may not be deemed a part of the General Fund of the
2115-State.
2116-
2117- (2) Unless otherwise provided by law, no part of the Fund may revert or be
2118-credited to:
2119-
2120- (i) The General Fund of the State; or
2121-
2122- (ii) Any other special fund of the State.]
2123-
2124-11–612.1.
2125-
2126- (a) The Commissioner shall set by regulation the fees provided for in this subtitle.
2127-
2128- (b) The fees established by the Commissioner under this section shall be
2129-reasonable and set in a manner that will produce funds sufficient to cover the actual direct
2130-and indirect costs of regulating licensees in accordance with the provisions of this subtitle.
2131-
2132- (c) The Commissioner shall publish the fee schedule set by the Commissioner.
2133-
2134- (D) ALL REVENUE RECEIVED FOR THE LICENSING AN D ASSESSMENT OF
2135-PERSONS UNDER THIS S UBTITLE AND ANY OTHE R FEE OR REVENUE THE
2136-COMMISSIONER RECEIVES UNDER THIS SU BTITLE SHALL BE:
2137-
2138- (1) CREDITED TO THE FUND; AND
2139-
2140- (2) USED IN ACCORDANCE WI TH § 2–120(D) OF THIS ARTICLE.
2141-
2142- (E) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY WES MOORE, Governor Ch. 567
2143-
2144-– 47 –
2145-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
2146-
2147-12–101.
2148-
2149- (a) In this subtitle the following words have the meanings indicated.
2150-
2151- (b) [“Branch location” means any location other than the principal executive office
2152-of a licensee or license applicant at which the licensee conducts, or the license applicant, on
2153-licensure, will conduct, activities required to be licensed under this subtitle.
2154-
2155- (c)] (1) “Control person” means a person who has the power, directly or
2156-indirectly, to direct the management or policies of a licensee or license applicant, whether
2157-through ownership of securities, by contract, or otherwise.
2158-
2159- (2) “Control person” includes a person who:
2160-
2161- (i) Is a general partner, an officer, a director, or a member, or
2162-occupies a similar position or performs a similar function;
2163-
2164- (ii) Directly or indirectly has the right to vote 5% or more of a class
2165-of voting securities, or has the power to sell or direct the sale of 5% or more of a class of
2166-voting securities, of a licensee or license applicant; or
2167-
2168- (iii) In the case of a partnership, a limited partnership, a limited
2169-liability partnership, a limited liability company, or any other business entity:
2170-
2171- 1. Has the right to receive on liquidation or dissolution of a
2172-licensee or license applicant 5% or more of the capital of the licensee or license applicant;
2173-or
2174-
2175- 2. Has contributed 5% or more of the capital of a licensee or
2176-license applicant.
2177-
2178- [(d)] (C) “Exempt entity” means an entity that is exempt from all requirements
2179-of licensing as provided under § 12–103(b) and (c) of this subtitle.
2180-
2181- [(e)] (D) “License” means a license issued in any form by the Commissioner
2182-under this subtitle to provide check cashing services, including as provided for through
2183-NMLS.
2184-
2185- (E) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE
2186-LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
2187-
2188- (2) “LICENSED LOCATION ” INCLUDES A MOBILE UN IT.
2189-
2190- (F) “LICENSED NAME ” MEANS: Ch. 567 2023 LAWS OF MARYLAND
2191-
2192-– 48 –
2193-
2194- (1) THE LICENSEE’S LEGAL NAME; AND
2195-
2196- (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
2197-§ 2–121 OF THIS ARTICLE.
2198-
2199- [(f)] (G) “Licensee” means a person licensed under this subtitle to provide check
2200-cashing services.
2201-
2202- [(g)] (H) “Mobile unit” means a motor vehicle or other movable means from
2203-which check cashing services are provided.
2204-
2205- [(h)] (I) (1) “Payment instrument” means a check or a draft ordering a
2206-person to pay money.
2207-
2208- (2) “Payment instrument” includes a money order.
2209-
2210- [(i)] (J) “Provide check cashing services” means to accept or cash, for
2211-compensation, a payment instrument regardless of the date of the payment instrument.
2212-
2213- [(j)] (K) “Unique identifier” means a number or another identifier assigned by
2214-NMLS.
2215-
2216-12–104.1.
2217-
2218- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
2219-subtitle and any other fee or revenue received by the Commissioner under this subtitle
2220-shall be:
2221-
2222- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
2223-established under [§ 11–610] § 2–120 of this article; and
2224-
2225- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
2226-
2227- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
2228-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
2229-
2230-12–105.
2231-
2232- (b) A [separate license is required for the principal executive office of the license
2233-applicant or licensee at which, each branch location at which, and each mobile unit from
2234-which, a person provides check cashing services] LICENSEE MAY PROVIDE CHECK
2235-CASHING SERVICES ONL Y AT A LICENSED LOCA TION OR AS OTHERWISE AUTHORIZED
2236-BY THE COMMISSIONER THROUGH REGULATION . WES MOORE, Governor Ch. 567
2237-
2238-– 49 –
2239-
2240-12–106.
2241-
2242- To qualify for a license, an applicant shall satisfy the Commissioner that:
2243-
2244- (1) The applicant’s business will promote the convenience and advantage
2245-of the [community in which] COMMUNITIES WHERE the [applicant’s place of business, or
2246-mobile unit, will be located] APPLICANT WILL OPERA TE A LICENSED LOCATI ON
2247-OFFERING CHECK CASHI NG SERVICES; and
2248-
2249- (2) The applicant or, if the applicant is not an individual, each of the
2250-owners, officers, directors, or principals of the entity:
2251-
2252- (i) Has sufficient experience, character, financial responsibility, and
2253-general fitness to:
2254-
2255- 1. Command the confidence of the public; and
2256-
2257- 2. Warrant the belief that the business will be operated
2258-lawfully, honestly, fairly, and efficiently; and
2259-
2260- (ii) Has not committed any act that would be a ground for suspension
2261-or revocation of a license under this subtitle.
2262-
2263-12–108.
2264-
2265- (a) (2) The application shall include:
2266-
2267- (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME
2268-USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE;
2269-
2270- (II) THE applicant’s principal executive office address[, and, if];
2271-
2272- (III) IF the applicant is not an individual, the name and residence
2273-address of each control person;
2274-
2275- [(ii)] (IV) The address of each [branch] ADDITIONAL location, if
2276-any, THAT:
2277-
2278- 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
2279-LOCATION THAT PROVID ES CHECK CASHING SER VICES, INCLUDING ANY LOCATI ON
2280-THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH
2281-CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2282-
2283- 2. HOUSES ANY CORE OPERATION AL INFRASTRUCTURE Ch. 567 2023 LAWS OF MARYLAND
2284-
2285-– 50 –
2286-OR TECHNOLOGY SYSTEM S;
2287-
2288- 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
2289-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
2290-
2291- 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
2292-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ;
2293-
2294- [(iii)] (V) If the [license is for] LICENSEE OPERATES a mobile unit,
2295-the vehicle identification number of [the] EACH mobile unit and the geographic area [in
2296-which the] WHERE EACH mobile unit will be operating; and
2297-
2298- [(iv)] (VI) Any other information that the Commissioner requires for
2299-an investigation and findings under § 12–109 of this subtitle.
2300-
2301- [(c) For the principal executive office, each branch location, and each mobile unit
2302-license for which an applicant applies, the applicant shall:
2303-
2304- (1) Submit a separate application; and
2305-
2306- (2) Pay a separate investigation fee and license fee.]
2307-
2308-[12–110.
2309-
2310- (a) (1) Each license provided for through NMLS shall include the following
2311-information:
2312-
2313- (i) The name of the licensee;
2314-
2315- (ii) 1. The address of the location at which check cashing services
2316-will be provided; or
2317-
2318- 2. If the license is for a mobile unit, the vehicle identification
2319-number of the mobile unit and the geographic area in which check cashing services will be
2320-provided; and
2321-
2322- (iii) The unique identifier of the licensee.
2323-
2324- (2) The unique identifier of the licensee shall constitute the license number
2325-for the license.
2326-
2327- (b) (1) A license authorizes the licensee to provide check cashing services
2328-under the name stated on the license and at the location at which, or if the license is for a
2329-mobile unit the geographic area in which, check cashing services will be provided.
2330- WES MOORE, Governor Ch. 567
2331-
2332-– 51 –
2333- (2) Only one location, or one mobile unit, may be maintained under any one
2334-license.
2335-
2336- (c) Subject to § 12–105(b) of this subtitle, the Commissioner may issue more than
2337-one license to an applicant who:
2338-
2339- (1) Conducts activities for which a license is required at more than one
2340-location;
2341-
2342- (2) Complies with § 12–108 of this subtitle; and
2343-
2344- (3) Otherwise meets the requirements of this subtitle.]
2345-
2346-12–110.
2347-
2348- (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
2349-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
2350-
2351- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
2352-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
2353-
2354- (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
2355-OFFICE;
2356-
2357- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
2358-THE LICENSEE DOES BU SINESS AND THAT :
2359-
2360- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
2361-LOCATION THAT OFFERS CHECK CASHING SERVIC ES, INCLUDING ANY LOCATI ON
2362-THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH
2363-CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2364-
2365- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTURE OR
2366-TECHNOLOGY SYSTEMS ;
2367-
2368- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
2369-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
2370-
2371- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
2372-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE; AND
2373-
2374- (4) THE INFORMATION REQUI RED BY § 12–108(A)(2)(V) OF THIS
2375-SUBTITLE FOR EACH MO BILE UNIT, IF ANY, OF THE LICENSEE .
2376- Ch. 567 2023 LAWS OF MARYLAND
2377-
2378-– 52 –
2379- (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
2380-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
2381-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
2382-
2383- (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
2384-CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
2385-
2386- (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
2387-LICENSE AT ANY LICENSE D LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH
2388-MOBILE UNIT, IN THE GEOGRAPHIC AR EA LISTED FOR THE MO BILE UNIT IN NMLS,
2389-OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION .
2390-
2391-12–112.
2392-
2393- (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at
2394-[the licensee’s] EACH licensed location [or mobile unit] the following information:
2395-
2396- (i) The licensee’s unique identifier; and
2397-
2398- (ii) A statement advising consumers of the availability of the NMLS
2399-Consumer Access website to verify the licensing status of the licensee.
2400-
2401- (c) A licensee is not required to post the information required in subsection (b)(1)
2402-of this section AT A LICENSED LOCATI ON if THE LICENSED LOCATIO N IS NOT A MOBILE
2403-UNIT AND the licensee does not regularly grant access to [the] THAT licensed location to
2404-members of the general public.
2405-
2406-[12–113.
2407-
2408- A licensee may not change the location for which a license is issued unless the
2409-licensee:
2410-
2411- (1) Provides to the Commissioner, in the form and in accordance with the
2412-process that the Commissioner requires, notice of the proposed change; and
2413-
2414- (2) Receives the consent of the Commissioner through NMLS prior to the
2415-change.]
2416-
2417-12–113.
2418-
2419- (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED
2420-TO BE LISTED IN NMLS UNDER § 12–110(A)(2), (3), OR (4) OF THIS SUBTITLE
2421-UNLESS:
2422- WES MOORE, Governor Ch. 567
2423-
2424-– 53 –
2425- (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH
2426-NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS ,
2427-NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
2428-
2429- (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
2430-IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE
2431-IN NMLS; AND
2432-
2433- (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION
2434-OTHERWISE COMPLIES W ITH THIS SUBTITLE.
2435-
2436- (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A
2437-GEOGRAPHIC AREA REQU IRED TO BE LISTED IN NMLS BY § 12–110(A)(2), (3), OR
2438-(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED
2439-WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS.
2440-
2441-12–114.
2442-
2443- (c) A licensee may retain the records required under this subtitle at any location,
2444-[provided that] IF the licensee:
2445-
2446- (1) Notifies the Commissioner in writing of the location of the records; and
2447-
2448- (2) Makes the records available at [a place of business for which a license
2449-has been issued or at the licensee’s principal place of business] THE LICENSED LOCATIO N,
2450-as agreed by the Commissioner and the licensee, within 7 days [of] AFTER a written
2451-request for examination by the Commissioner.
2452-
2453-12–118.
2454-
2455- A licensee shall conspicuously post, in 48 point or larger type, at each [place of
2456-business at which, or mobile unit from which,] LICENSED LOCATION WH ERE the licensee
2457-provides check cashing services:
2458-
2459- (1) A notice of the fees for check cashing services; and
2460-
2461- (2) The phone number of the Commissioner for customers to file
2462-complaints.
2463-
2464-12–401.
2465-
2466- (a) In this subtitle the following words have the meanings indicated.
2467-
2468- (c) [(1)] “Authorized delegate” means a person who is authorized by a licensee Ch. 567 2023 LAWS OF MARYLAND
2469-
2470-– 54 –
2471-to engage in the business of money transmission under [the name of the licensee] A
2472-LICENSED NAME at any location other than [the place of business specified in the license]
2473-A LICENSED LOCATION .
2474-
2475- [(2) “Authorized delegate” does not include a branch location of a licensee.]
2476-
2477- [(e) (1) “Branch location” means any location other than the principal executive
2478-office of a licensee or license applicant at which money transmission services are, or will be
2479-on licensure, conducted in the State or with a person in the State.
2480-
2481- (2) “Branch location” does not include an authorized delegate.]
2482-
2483- (K) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE
2484-LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE.
2485-
2486- (2) “LICENSED LOCATION ” INCLUDES A SELF –SERVICE FINANCIAL
2487-KIOSK.
2488-
2489- (3) “LICENSED LOCATION ” DOES NOT INCLUDE AN AUTHORIZED
2490-DELEGATE.
2491-
2492- (L) “LICENSED NAME ” MEANS:
2493-
2494- (1) THE LICENSEE’S LEGAL NAME; AND
2495-
2496- (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
2497-§ 2–121 OF THIS ARTICLE.
2498-
2499- [(k–1)] (M) “Licensee” means a person licensed under this subtitle to engage in the
2500-business of money transmission.
2501-
2502-12–404.
2503-
2504- (a) All revenue received for the licensing AND ASSESSMENT of money
2505-transmitters under this subtitle and any other fee, examination assessment, or revenue
2506-received by the Commissioner under this subtitle shall be:
2507-
2508- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
2509-established under [§ 11–610] § 2–120 of this article; and
2510-
2511- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
2512-
2513- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
2514-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE. WES MOORE, Governor Ch. 567
2515-
2516-– 55 –
2517-
2518-12–406.
2519-
2520- (a) To qualify for a license, an applicant shall satisfy the Commissioner that the
2521-applicant:
2522-
2523- (3) Has a tangible net worth computed according to generally accepted
2524-accounting principles of at least $150,000, plus an additional net worth of $10,000 for each
2525-[additional branch] LICENSED location or authorized delegate, up to a maximum of
2526-$500,000 as provided in subsection (b) of this section; and
2527-
2528-12–407.
2529-
2530- (b) An applicant shall provide:
2531-
2532- [(1) The trade name of the applicant, as filed with the State Department of
2533-Assessments and Taxation under § 1–406 of the Corporations and Associations Article, and
2534-any fictitious or other name used by the applicant in the conduct of the applicant’s
2535-business;]
2536-
2537- (1) THE APPLICANT ’S LEGAL NAME AND ANY TRADE NAME USED BY
2538-THE APPLICANT IN ACC ORDANCE WITH § 2–121 OF THIS ARTICLE;
2539-
2540- (2) (I) The address of the principal executive office of the applicant[,
2541-each branch location, and each self–service financial kiosk];
2542-
2543- (II) THE ADDRESS OF EACH ADDITIONAL LOCATION, IF ANY,
2544-THAT:
2545-
2546- 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
2547-LOCATION THAT ENGAGE S IN THE BUSINESS OF MONEY TRANSMISSION , INCLUDING
2548-ANY LOCATION THAT IN VESTIGATES CUSTOMER COMPLAINTS OR DIRECT LY
2549-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2550-
2551- 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E
2552-OR TECHNOLOGY SYSTEM S;
2553-
2554- 3. CONDUCTS AN Y CORE MANAGEMENT , INFORMATION
2555-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
2556-
2557- 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
2558-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
2559-
2560- (III) IF THE LICENSEE OPERA TES A SELF–SERVICE FINANCIAL Ch. 567 2023 LAWS OF MARYLAND
2561-
2562-– 56 –
2563-KIOSK, THE FOLLOWING INFORM ATION FOR EACH SELF –SERVICE FINANCIAL KI OSK:
2564-
2565- 1. UNIQUE IDENTIFYING IN FORMATION FOR THE
2566-SELF–SERVICE FINANCIAL KI OSK, SUCH AS THE MANUFACT URER NAME , MODEL
2567-NUMBER, SERIAL NUMBER , OR ASSET TAG;
2568-
2569- 2. IF THE LICENSEE INTEN DS TO OPERATE THE
2570-SELF–SERVICE FINANCIAL KI OSK FROM ANY FIXED L OCATION FOR MORE THA N 30
2571-DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE SELF –SERVICE
2572-FINANCIAL KIOSK WILL BE OPERATED ; AND
2573-
2574- 3. IF THE LICENSEE INTEN DS TO OPE RATE THE
2575-SELF–SERVICE FINANCIAL KI OSK AT ANY LOCATION FOR 30 DAYS OR LESS IN A
2576-CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO
2577-OPERATE THE SELF –SERVICE FINANCIAL KI OSK;
2578-
2579- [(h) (1) In addition to any license required under §§ 12–405 and 12–410 of this
2580-subtitle, each money transmitter shall obtain and maintain a license for its principal
2581-executive office.
2582-
2583- (2) For each branch location license for which an applicant applies, the
2584-applicant shall:
2585-
2586- (i) Submit a separate application;
2587-
2588- (ii) Pay a separate nonrefundable license fee of $1,000; and
2589-
2590- (iii) Pay the application processing fee that NMLS imposes in
2591-connection with processing the application for the branch location.
2592-
2593- (3) For each self–service financial kiosk license for which an applicant
2594-applies, the applicant shall:
2595-
2596- (i) Submit a separate application;
2597-
2598- (ii) Pay a separate nonrefundable license fee of $500; and
2599-
2600- (iii) Pay the application processing fee that NMLS imposes in
2601-connection with processing the application for the self–service financial kiosk.
2602-
2603- (4) If an applicant has or is applying for more than one license, the
2604-applicant may comply with subsection (g) of this section by filing evidence of only one surety
2605-device.
2606-
2607- (5) If an applicant has or is applying for more than one license, the WES MOORE, Governor Ch. 567
2608-
2609-– 57 –
2610-applicant is not required to pay a separate investigation fee.]
2611-
2612-12–410.
2613-
2614- [(a) (1) Each license provided for through NMLS shall include the following
2615-information:
2616-
2617- (i) The name of the licensee;
2618-
2619- (ii) The trade name of the licensee;
2620-
2621- (iii) The address at which the business is to be conducted; and
2622-
2623- (iv) The unique identifier of the licensee.
2624-
2625- (2) The unique identifier of the licensee shall constitute the license number
2626-for the license.
2627-
2628- (b) (1) A license authorizes the licensee to do business under the license, at the
2629-licensed place of business.
2630-
2631- (2) A license does not authorize the licensee to accept deposits or engage
2632-otherwise in a banking business except as authorized in this subtitle.
2633-
2634- (3) Only one place of business may be maintained under any one license.
2635-
2636- (c) The Commissioner may issue more than one license to an applicant who:
2637-
2638- (1) Complies with § 12–407 of this subtitle; and
2639-
2640- (2) Otherwise meets the requirements of this subtitle.]
2641-
2642- (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
2643-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
2644-
2645- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
2646-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
2647-
2648- (2) THE ADDRESS OF THE LICEN SEE’S PRINCIPAL EXECUTIV E
2649-OFFICE;
2650-
2651- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
2652-THE LICENSEE DOES BU SINESS AND THAT :
2653-
2654- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A Ch. 567 2023 LAWS OF MARYLAND
2655-
2656-– 58 –
2657-LOCATION THAT OFFERS MONEY TRANSMISSION S ERVICES, INCLUDING ANY
2658-LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY
2659-COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING;
2660-
2661- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
2662-TECHNOLOGY SYSTEMS ;
2663-
2664- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
2665-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
2666-
2667- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
2668-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND
2669-
2670- (4) THE INFORMATION REQUI RED BY § 12–407(B)(2)(III) OF THIS
2671-SUBTITLE FOR EACH SE LF–SERVICE FINANCIAL KI OSK, IF ANY, OF THE LICENSEE .
2672-
2673- (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
2674-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
2675-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
2676-
2677- (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
2678-CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
2679-
2680- (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
2681-LICENSE AT ANY LICEN SED LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH
2682-SELF–SERVICE FINANCIAL KI OSK, THE ADDRESS OR GEOGR APHIC AREA LISTED FO R
2683-THE SELF–SERVICE FINANCIAL KI OSK IN NMLS, OR AS OTHERWISE AUTH ORIZED BY
2684-THE COMMISSIONER THROUGH REGULATION .
2685-
2686- [(d)] (E) A license may not be transferred or assigned.
2687-
2688- [(e)] (F) (1) Each licensee shall conspicuously post, in 48 point or larger type,
2689-at [the licensee’s] EACH licensed location the following information:
2690-
2691- (i) The licensee’s unique identifier; and
2692-
2693- (ii) A statement advising consumers of the availability of the NMLS
2694-Consumer Access website to verify the licensing status of the licensee.
2695-
2696- (2) Each authorized delegate, at each location open to the public, shall
2697-conspicuously post, in at least [48–point] 48 POINT type, the following information:
2698-
2699- (i) A notice stating, “the Commissioner of Financial Regulation for WES MOORE, Governor Ch. 567
2700-
2701-– 59 –
2702-the State of Maryland will accept all questions or complaints regarding this authorized
2703-delegate of (name of licensee and unique identifier) at (address of Commissioner), phone
2704-(toll–free phone number of the Commissioner)”; and
2705-
2706- (ii) A statement advising consumers of the availability of the NMLS
2707-Consumer Access website to verify the licensing status of the licensee.
2708-
2709- (3) Each licensee shall conspicuously display the following information on
2710-the licensee’s website, any mobile application through which the services are offered, the
2711-outside of the self–service financial kiosk, any software application accessible to the public
2712-and used for money transmission services, and profile page within each social media
2713-platform the licensee uses:
2714-
2715- (i) The licensee’s unique identifier;
2716-
2717- (ii) A link to the NMLS Consumer Access website; and
2718-
2719- (iii) A notice stating, “The Commissioner of Financial Regulation for
2720-the State of Maryland will accept all questions or complaints from Maryland residents
2721-regarding (name of licensee and unique identifier) at (address of Commissioner), phone
2722-(toll–free phone number of the Commissioner)”.
2723-
2724- [(f)] (G) A licensee is not required to post the information required in subsection
2725-[(e)(1)] (F)(1) of this section AT A LICENSED LOCATI ON if the LICENSED LOCATION IS
2726-NOT A SELF–SERVICE FINANCIAL KI OSK AND THE licensee does not regularly grant
2727-access to [the] THAT licensed location to members of the general public.
2728-
2729-12–412.
2730-
2731- (a) (1) In this section[, “trust] THE FOLLOWING WORDS HAVE THE
2732-MEANINGS INDICATED .
2733-
2734- (2) “AVERAGE DAILY MONEY T RANSMISSION LIABILIT Y” MEANS THE
2735-AMOUNT OF THE APPLIC ANT’S OR LICENSEE’S OUTSTANDING MONEY TRANSMISSION
2736-OBLIGATIONS IN THE STATE AT THE END OF E ACH DAY IN A GIVEN QUART ER, ADDED
2737-TOGETHER AND DIVIDED BY THE TOTAL NUMBER OF DAYS IN THAT QUAR TER.
2738-
2739- (3) “TRUST company” has the meaning stated in § 1–101 of the Estates
2740-and Trusts Article.
2741-
2742- (d) (1) The amount of the surety bond under subsection (b) of this section or
2743-the deposit in lieu of a surety bond under subsection (c) of this section shall be [in an
2744-amount of not less than] THE GREATER OF :
2745-
2746- (I) $150,000 [and not more than $1,000,000, as determined by the Ch. 567 2023 LAWS OF MARYLAND
2747-
2748-– 60 –
2749-Commissioner]; OR
2750-
2751- (II) 100% OF THE APPLICANT ’S AVERAGE DAILY MONE Y
2752-TRANSMISSION LIABILI TY IN THE STATE CALCULATED FOR THE MOST RECENTLY
2753-COMPLETED QUARTER , UP TO A MAXIMUM OF $2,000,000.
2754-
2755- [(2) In setting the amount of the surety bond or the deposit in lieu of a surety
2756-bond, the Commissioner shall consider:
2757-
2758- (i) The financial condition of the licensee or applicant;
2759-
2760- (ii) For a licensee, the average monthly outstanding money
2761-transmission liability for the previous 12 months;
2762-
2763- (iii) For an applicant, the projected monthly money transmissions
2764-volume in the State, the business experience, and any other factor deemed appropriate; and
2765-
2766- (iv) The potential loss of money transmissions by persons for whom
2767-or to whom money is transmitted if the applicant or licensee becomes financially impaired.]
2768-
2769- (2) THE QUARTERS FOR CALC ULATING THE AVERAGE DAILY MONEY
2770-TRANSMISSION LIABILI TY UNDER PARAGRAPH (1) OF THIS SUBSECTION F OR ANY
2771-LICENSEE REQUIRED TO DO SO SHALL BE THE Q UARTERS ENDING MARCH 31, JUNE
2772-30, SEPTEMBER 30, AND DECEMBER 31.
2773-
2774-12–415.
2775-
2776- [(a) (1) A licensee may not change the place of business for which a license is
2777-issued unless the licensee:
2778-
2779- (i) Notifies the Commissioner through NMLS of the proposed
2780-change; and
2781-
2782- (ii) Receives the approval of the Commissioner through NMLS.
2783-
2784- (2) Within 60 days after receiving a request for approval of a proposed
2785-change in the place of business for a licensee, the Commissioner shall approve or deny the
2786-request.
2787-
2788- (3) If the Commissioner does not deny a request for approval of a proposed
2789-change in the place of business for a licensee as provided under paragraph (2) of this
2790-subsection, the request shall be deemed approved.]
2791-
2792- (A) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION WES MOORE, Governor Ch. 567
2793-
2794-– 61 –
2795-REQUIRED TO B E LISTED IN NMLS UNDER § 12–410(A)(2), (3), OR (4) OF THIS
2796-SUBTITLE UNLESS :
2797-
2798- (I) THE LICENSEE PROVIDES TO THE COMMISSIONER ,
2799-THROUGH NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS A DOPTED BY THE
2800-COMMISSIONER , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATI ON;
2801-
2802- (II) THE ADDITION , DELETION, OR MODIFICATION OF T HE
2803-LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE
2804-LICENSEE’S LICENSE IN NMLS; AND
2805-
2806- (III) THE ADDITION , DELETION, OR MODIFICATION OF T HE
2807-LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE.
2808-
2809- (2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A
2810-GEOGRAPHIC AREA REQU IRED TO BE LISTED IN NMLS BY § 12–410(A)(2), (3), OR
2811-(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED
2812-WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS.
2813-
2814-12–424.
2815-
2816- (a) The Commissioner may conduct an [on–site] examination of a licensee or AN
2817-authorized delegate with not less than 7 business [days] DAYS’ prior notice.
2818-
2819- (b) With good cause, the Commissioner may conduct an [on–site] examination of
2820-a licensee or AN authorized delegate with no prior notice.
2821-
2822- (c) The licensee shall pay all reasonably incurred costs of an examination
2823-conducted under this section, including a per–day fee set by the Commissioner for each of
2824-the Commissioner’s employees engaged in the examination.
2825-
2826- (d) [The on–site] ANY examination may be conducted in conjunction with an
2827-examination performed by a representative of a responsible supervisory agency of another
2828-state.
2829-
2830- (e) (1) The Commissioner, in lieu of an [on–site] examination, may accept the
2831-examination report of a responsible supervisory agency of another state, or a report
2832-prepared by an independent accounting firm.
2833-
2834- (2) A report accepted under paragraph (1) of this subsection is considered
2835-for all purposes as an official report of the Commissioner.
2836-
2837- (f) The Commissioner may:
2838- Ch. 567 2023 LAWS OF MARYLAND
2839-
2840-– 62 –
2841- (1) Examine all books, accounts, and records the Commissioner determines
2842-are necessary to conduct a complete examination; and
2843-
2844- (2) Examine under oath any officer, director, or employee of the licensee,
2845-or any other individual who may provide information on behalf of the licensee.
2846-
2847-12–901.
2848-
2849- (a) In this subtitle the following words have the meanings indicated.
2850-
2851- (b) “Annual gross revenue” means income or revenue from all sources, before any
2852-expenses or taxes, computed according to generally accepted accounting principles for the
2853-preceding fiscal year.
2854-
2855- (c) [“Branch location” means any location other than the principal executive office
2856-of a licensee or license applicant at which the licensee conducts, or the license applicant, on
2857-licensure, will conduct, activities required to be licensed under this subtitle.
2858-
2859- (d)] “Consultation fee” means a fee paid by a consumer to a debt management
2860-services provider in connection with the processing of any application that the consumer
2861-makes for debt management services.
2862-
2863- [(e)] (D) “Consumer” means an individual who:
2864-
2865- (1) Resides in the State; and
2866-
2867- (2) Is seeking debt management services or has entered into a debt
2868-management services agreement.
2869-
2870- [(f)] (E) “Consumer education program” means a program or plan that:
2871-
2872- (1) Seeks to improve the financial literacy of consumers regarding personal
2873-finance, budgeting, and credit and debt management; and
2874-
2875- (2) Provides counseling tailored to the needs and circumstances of the
2876-consumer with regard to options and strategies for addressing the consumer’s debt
2877-problems, including:
2878-
2879- (i) Creating and maintaining a budget;
2880-
2881- (ii) Establishing debt management payment plans with creditors;
2882-
2883- (iii) Negotiating directly with creditors on payment or interest rate
2884-relief; and
2885-
2886- (iv) Filing for bankruptcy. WES MOORE, Governor Ch. 567
2887-
2888-– 63 –
2889-
2890- [(g)] (F) (1) “Control person” means a person who has the power, directly or
2891-indirectly, to direct the management or policies of a licensee or license applicant, whether
2892-through ownership of securities, by contract, or otherwise.
2893-
2894- (2) “Control person” includes a person who:
2895-
2896- (i) Is a general partner, an officer, or a director of a licensee or
2897-license applicant, or a member that occupies a similar position or performs a similar
2898-function;
2899-
2900- (ii) Directly or indirectly has the right to vote 10% or more of a class
2901-of voting securities, or has the power to sell or direct the sale of 10% or more of a class of
2902-voting securities, of a licensee or license applicant; or
2903-
2904- (iii) In the case of a partnership, a limited partnership, a limited
2905-liability partnership, a limited liability company, or any other business entity:
2906-
2907- 1. Has the right to receive on liquidation or dissolution of a
2908-licensee or license applicant 10% or more of the capital of the licensee or license applicant;
2909-or
2910-
2911- 2. Has contributed 10% or more of the capital of a licensee or
2912-license applicant.
2913-
2914- [(h)] (G) “Debt management counselor” means a permanent, temporary, or
2915-contractual employee of a debt management services provider or its agent who provides
2916-counseling to consumers on behalf of the debt management services provider.
2917-
2918- [(i)] (H) “Debt management services” means receiving funds periodically from a
2919-consumer under an agreement with the consumer for the purpose of distributing the funds
2920-among the consumer’s creditors in full or partial payment of the consumer’s debts.
2921-
2922- [(j)] (I) “Debt management services agreement” means a written contract, plan,
2923-or agreement between a debt management services provider and a consumer for the
2924-performance of debt management services.
2925-
2926- [(k)] (J) “Debt management services provider” means a person that provides or
2927-offers to provide debt management services to a consumer.
2928-
2929- [(k–1)] (K) “License” means a license issued in any form by the Commissioner
2930-under this subtitle to provide debt management services, including as provided for through
2931-NMLS.
2932-
2933- (L) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E
2934-IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. Ch. 567 2023 LAWS OF MARYLAND
2935-
2936-– 64 –
2937-
2938- (M) “LICENSED NAME ” MEANS:
2939-
2940- (1) THE LICENSEE’S LEGAL NAME; AND
2941-
2942- (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH
2943-§ 2–121 OF THIS ARTICLE.
2944-
2945- [(l)] (N) “Licensee” means a person licensed under this subtitle to provide debt
2946-management services.
2947-
2948- [(m)] (O) “Maintenance fee” means a fee paid by a consumer to a debt
2949-management services provider for the maintenance or servicing of the consumer’s accounts
2950-with the consumer’s creditors in accordance with a debt management services agreement.
2951-
2952- [(n)] (P) “Relative” means any of the following who are related to an individual
2953-by blood, marriage, or adoption:
2954-
2955- (1) A spouse;
2956-
2957- (2) A child;
2958-
2959- (3) A sibling;
2960-
2961- (4) A parent;
2962-
2963- (5) A grandparent;
2964-
2965- (6) A grandchild;
2966-
2967- (7) A stepparent;
2968-
2969- (8) A stepchild;
2970-
2971- (9) A stepsibling;
2972-
2973- (10) An aunt; or
2974-
2975- (11) An uncle.
2976-
2977- [(o)] (Q) “Resident agent” means an individual residing in the State or a
2978-Maryland corporation whose name, address, and designation as a resident agent are filed
2979-or recorded with the State Department of Assessments and Taxation in accordance with
2980-[the provisions of] the Corporations and Associations Article.
2981- WES MOORE, Governor Ch. 567
2982-
2983-– 65 –
2984- [(p)] (R) “Trust account” means an account that is:
2985-
2986- (1) Established in a financial institution that is federally insured;
2987-
2988- (2) Separate from the debt management services provider’s operating
2989-account;
2990-
2991- (3) Designated as a “trust account” or by another appropriate designation
2992-indicating that the funds in the account are not the funds of the licensee or its officers,
2993-employees, or agents;
2994-
2995- (4) Unavailable to creditors of the debt management services provider; and
2996-
2997- (5) Used to hold funds paid by consumers to a debt management services
2998-provider for disbursement to creditors of the consumers.
2999-
3000- [(q)] (S) “Unique identifier” means a number or another identifier assigned by
3001-NMLS.
3002-
3003-12–904.
3004-
3005- [(a) An applicant shall submit separate applications for the applicant’s principal
3006-executive office and each branch location.
3007-
3008- (b)] With the license application [for the principal executive office of an applicant],
3009-the applicant shall pay to the Commissioner:
3010-
3011- (1) A nonrefundable investigation fee of $1,000 for an initial license; and
3012-
3013- (2) A license fee for an initial license or a license renewal for an additional
3014-1–year term, as follows:
3015-
3016- (i) $500, if the applicant’s annual gross revenue is not more than
3017-$3,000,000;
3018-
3019- (ii) $1,000, if the applicant’s annual gross revenue is more than
3020-$3,000,000 but not more than $6,000,000;
3021-
3022- (iii) $2,000, if the applicant’s annual gross revenue is more than
3023-$6,000,000 but not more than $15,000,000;
3024-
3025- (iv) $3,000, if the applicant’s annual gross revenue is more than
3026-$15,000,000 but not more than $30,000,000; or
3027-
3028- (v) $4,000, if the applicant’s annual gross revenue is more than
3029-$30,000,000. Ch. 567 2023 LAWS OF MARYLAND
3030-
3031-– 66 –
3032-
3033- [(c) With the license application for each branch location of an applicant, the
3034-applicant shall pay to the Commissioner a $100 license fee for an initial license or a license
3035-renewal for an additional 1–year term.]
3036-
3037-12–905.
3038-
3039- (a) All revenue received for the licensing AND ASSESSMENT of persons under this
3040-subtitle and, except as provided in subsection (b) of this section, any other fee, examination
3041-assessment, or revenue received by the Commissioner under this subtitle shall be:
3042-
3043- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
3044-established under [§ 11–610] § 2–120 of this article; and
3045-
3046- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
3047-
3048- (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY
3049-IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE.
3050-
3051-12–906.
3052-
3053- (b) A [separate license is required for the principal executive office of the license
3054-applicant or licensee and each branch location] LICENSEE MAY DO BUSI NESS AS A DEBT
3055-MANAGEMENT SERVICES PROVID ER ONLY AT A LICENSE D LOCATION OR AS
3056-OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
3057-
3058-12–908.
3059-
3060- (b) The application shall include:
3061-
3062- (1) The applicant’s LEGAL name AND ANY TRADE NAME USED BY THE
3063-APPLICANT IN ACCORDA NCE WITH § 2–121 OF THIS ARTICLE , THE APPLICANT ’S
3064-principal executive office address, and website address, if any, and, if the applicant is not
3065-an individual, the name and residence address of each control person, if any;
3066-
3067- (2) The address of each [branch] ADDITIONAL location, if any, [at which
3068-the applicant will provide debt management services;] THAT:
3069-
3070- (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A
3071-LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER,
3072-INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS O R
3073-DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN
3074-WRITING;
3075- WES MOORE, Governor Ch. 567
3076-
3077-– 67 –
3078- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
3079-TECHNOLOGY SYSTEMS ;
3080-
3081- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
3082-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
3083-
3084- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
3085-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ;
3086-
3087-12–911.
3088-
3089- [(a) (1) Each license provided for through NMLS shall include the following
3090-information:
3091-
3092- (i) The name of the licensee;
3093-
3094- (ii) The address of the location at which the business is to be
3095-conducted; and
3096-
3097- (iii) The unique identifier of the licensee.
3098-
3099- (2) The unique identifier of the licensee shall constitute the license number
3100-for the license.
3101-
3102- (b) A license authorizes the licensee to provide debt management services.]
3103-
3104- (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY
3105-THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING :
3106-
3107- (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY
3108-THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE;
3109-
3110- (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E
3111-OFFICE; AND
3112-
3113- (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE
3114-THE LICENSEE DOES BU SINESS AND THAT :
3115-
3116- (I) THE GENERAL PUBLIC MAY R EASONABLY VIEW AS A
3117-LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER,
3118-INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS OR
3119-DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN
3120-WRITING;
3121- Ch. 567 2023 LAWS OF MARYLAND
3122-
3123-– 68 –
3124- (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR
3125-TECHNOLOGY SYSTEMS ;
3126-
3127- (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION
3128-SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR
3129-
3130- (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY
3131-REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE .
3132-
3133- (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN
3134-NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT
3135-ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION.
3136-
3137- (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL
3138-CONSTITUTE THE LICEN SEE’S LICENSE NUMBER .
3139-
3140- (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE
3141-LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS
3142-OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION .
3143-
3144- [(c)] (E) A license may not be transferred, assigned, or pledged.
3145-
3146- [(d)] (F) Each licensee shall conspicuously post, in 48 point or larger type, at
3147-[the licensee’s] EACH licensed location the following information:
3148-
3149- (1) The licensee’s unique identifier; and
3150-
3151- (2) A statement advising consumers of the availability of the NMLS
3152-Consumer Access website to verify the licensing status of the licensee.
3153-
3154- [(e)] (G) Each licensee shall conspicuously display the following information on
3155-the licensee’s website, any software application accessible to the public and used to provide
3156-debt management services, and profile page within each social media platform the licensee
3157-uses:
3158-
3159- (1) The licensee’s unique identifier;
3160-
3161- (2) A link to the NMLS Consumer Access website; and
3162-
3163- (3) A notice stating, “The Commissioner of Financial Regulation for the
3164-State of Maryland will accept any questions and complaints from Maryland residents
3165-regarding (name and unique identifier of the debt management services provider) at
3166-(address of Commissioner), phone (toll–free number of the Commissioner).
3167- WES MOORE, Governor Ch. 567
3168-
3169-– 69 –
3170- [(f) Only one location may be maintained under any one license.]
3171-
3172- [(g)] (H) A licensee is not required to post the information required in subsection
3173-[(d)] (F) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant
3174-access to [the] THAT licensed location to members of the general public.
3175-
3176-12–914.
3177-
3178- (b) (2) The bond shall be:
3179-
3180- (i) In an amount [not less than $10,000 and not more than
3181-$1,000,000, as set] DETERMINED by the Commissioner UNDER SUBSECTION (F) OF THIS
3182-SECTION;
3183-
3184- [(8) In setting the amount of the surety bond, the Commissioner shall
3185-consider:
3186-
3187- (i) The financial condition and business experience of the applicant
3188-or licensee and the agent of the applicant or licensee;
3189-
3190- (ii) For an applicant, the projected monthly and annual volume of
3191-debt management services to be provided in the State;
3192-
3193- (iii) For a licensee, the average monthly and annual volume of debt
3194-management services provided in the State during the previous 12–month period;
3195-
3196- (iv) The potential loss to consumers who remit funds to the applicant
3197-or licensee if the applicant or licensee becomes financially impaired; and
3198-
3199- (v) Any other factor the Commissioner considers appropriate.]
3200-
3201- (F) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (B) OF
3202-THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $10,000 AND NOT MORE
3203-THAN $1,000,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE.
3204-
3205- (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE
3206-COMMISSIONER MAY CONS IDER:
3207-
3208- (I) THE NATURE AND VOLUME OF THE BUSINESS OR P ROPOSED
3209-BUSINESS OF THE LICE NSEE OR APPLICANT ;
3210-
3211- (II) THE FINANCIAL CONDITION OF THE LIC ENSEE OR
3212-APPLICANT, INCLUDING:
3213- Ch. 567 2023 LAWS OF MARYLAND
3214-
3215-– 70 –
3216- 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF
3217-THE ASSETS OF THE LI CENSEE OR APPLICANT ;
3218-
3219- 2. THE AMOUNT AND NATURE OF THE LIABILITIES ,
3220-INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT;
3221-
3222- 3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE
3223-OR APPLICANT TO EARN AND RETAIN INCOME ; AND
3224-
3225- 4. THE POTENTIAL HARM TO CONSUMERS IF THE
3226-APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED;
3227-
3228- (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR
3229-APPLICANT;
3230-
3231- (IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR
3232-APPLICANT;
3233-
3234- (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS
3235-CONTROL OF THE LICEN SEE OR APPLICANT ; AND
3236-
3237- (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S
3238-RELEVANT.
3239-
3240-12–915.
3241-
3242- (a) (1) [A] EXCEPT FOR A CHANGE O F A LICENSED LOCATIO N MADE IN
3243-COMPLIANCE WITH SUBS ECTION (D) OF THIS SECTION, A licensee shall update through
3244-NMLS any change in the information required to be included in the licensee’s application
3245-under § 12–908(b)(1) [and (2)] of this subtitle at least 30 days before the change is effective.
3246-
3247- (2) The licensee shall ensure that, after the change described in this
3248-subsection, the licensee will continue to satisfy the surety bond requirement under §
3249-12–914 of this subtitle.
3250-
3251- (b) Unless approved by the Commissioner through NMLS, a licensee may not
3252-change a control person of the licensee, or an agent who is acting on behalf of the licensee
3253-to manage a trust account, listed on the licensee’s application under § 12–908(b)(3) and (6)
3254-of this subtitle.
3255-
3256- (c) (1) To request approval of a proposed change described in subsection (b) of
3257-this section, the licensee shall notify the Commissioner through NMLS of the proposed
3258-change and submit any information that the Commissioner requires.
3259- WES MOORE, Governor Ch. 567
3260-
3261-– 71 –
3262- (2) For a proposed change in owner or agent acting on behalf of the licensee
3263-to manage a trust account, the Commissioner may determine that the filing of a new
3264-application for the issuance of a license is warranted.
3265-
3266- (3) Unless the Commissioner notifies the licensee that a different time
3267-period is necessary, the Commissioner shall approve or deny a request for a change
3268-described in subsection (b) of this section within 60 days after the date the Commissioner
3269-receives all information required under paragraph (1) of this subsection.
3270-
3271- (D) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION
3272-REQUIRED TO BE LISTE D IN NMLS UNDER § 12–911(A)(2) OR (3) OF THIS SUBTITLE
3273-UNLESS:
3274-
3275- (I) THE LICENSEE PROVIDES TO THE COMMISSIONER ,
3276-THROUGH NMLS AND IN ACCORDANCE WITH AN Y REGULATIONS THE
3277-COMMISSIONER ADOPTS , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ;
3278-
3279- (II) THE ADDITION , DELETION, OR MODIFICATION OF T HE
3280-LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE
3281-LICENSEE’S LICENSE IN NMLS; AND
3282-
3283- (III) THE ADDITION , DELETION, OR MODIFICATION OF T HE
3284-LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE.
3285-
3286- (2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED
3287-TO BE LISTED IN NMLS BY § 12–911(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE
3288-LOCATION IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE
3289-LICENSEE’S LICENSE IN NMLS.
3290-
3291-12–923.
3292-
3293- (b) For the purposes of this section, the Commissioner:
3294-
3295- (1) Shall be given access to [the] ANY LICENSED LOCATIO N OR OTHER
3296-place of business AND ALL books, papers, records, safes, and vaults of the person under
3297-investigation; and
3298-
3299- 12–924.
3300-
3301- (a) The Commissioner may conduct an [on–site] examination of a licensee with
3302-or without prior notice.
3303-
3304- (c) [An on–site] ANY examination may be conducted in conjunction with an
3305-examination performed by a representative of a responsible supervisory agency of another Ch. 567 2023 LAWS OF MARYLAND
3306-
3307-– 72 –
3308-state.
3309-
3310- (d) (1) The Commissioner, in lieu of an [on–site] examination, may accept the
3311-examination report of a responsible supervisory agency of another state.
3312-
3313- (2) A report accepted under paragraph (1) of this subsection is considered
3314-for all purposes as an official report of the Commissioner.
3315-
3316-12–1007.
3317-
3318- (a) All revenue received for the registration of persons under this subtitle and,
3319-except as provided in subsection (b) of this section, any other fee, examination assessment,
3320-or revenue received by the Commissioner under this subtitle shall be:
3321-
3322- (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund
3323-established under [§ 11–610] § 2–120 of this article; and
3324-
3325- (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article.
3326-
3327-Article – State Finance and Procurement
3328-
3329-6–226.
3330-
3331- (a) (2) (i) Notwithstanding any other provision of law, and unless
3332-inconsistent with a federal law, grant agreement, or other federal requirement or with the
3333-terms of a gift or settlement agreement, net interest on all State money allocated by the
3334-State Treasurer under this section to special funds or accounts, and otherwise entitled to
3335-receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
3336-Fund of the State.
3337-
3338- (ii) The provisions of subparagraph (i) of this paragraph do not apply
3339-to the following funds:
3340-
3341- 170. the Cannabis Public Health Fund; [and]
3342-
3343- 171. the Community Reinvestment and Repair Fund; AND
3344-
3345- 172. THE NON–DEPOSITORY SPECIAL FUND.
3346-
3347- SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 12 –401(f) through
3348-(k) and (l) through (v) of Article – Financial Institutions of the Annotated Code of Maryland
3349-be renumbered to be Section(s) 12–401(e) through (j) and (n) through (x), respectively.
3350-
3351- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
3352-1, 2023. WES MOORE, Governor Ch. 567
3353-
3354-– 73 –
3355-
3356-Approved by the Governor, May 8, 2023.
1+
2+
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0686*
9+
10+HOUSE BILL 686
11+I1, I2 3lr1369
12+
13+By: Delegate Queen
14+Introduced and read first time: February 6, 2023
15+Assigned to: Economic Matters
16+Committee Report: Favorable
17+House action: Adopted
18+Read second time: March 11, 2023
19+
20+CHAPTER ______
21+
22+AN ACT concerning 1
23+
24+Financial Regulation – Modernizing Licensing of Non–Depository Institutions 2
25+and Elimination of Branch License Requirements 3
26+
27+FOR the purpose of eliminating requirements for collection agencies and certain 4
28+non–depository financial institutions to maintain separate licenses for branch 5
29+locations and authorizing them to conduct business at multiple licensed locations 6
30+under a single license; altering certain other requirements and provisions governing 7
31+the licensing and regulation of collection agencies and certain non–depository 8
32+financial institutions, including applications, Nationwide Mortgage Licensing 9
33+System and Registry (NMLS) information, use of trade names, examination, 10
34+Commissioner of Financial Regulation assessments, and bond requirements; and 11
35+generally relating to the licensing of financial services providers. 12
36+
37+BY repealing and reenacting, with amendments, 13
38+ Article – Business Regulation 14
39+Section 7–101, 7–206, 7–301(c), 7–302(b), (d), and (e), 7–302.1(b), 7–302.2(a), 15
40+7–304(c)(1), 7–305, 7–306.1(a) and (c), and 7–308(c) 16
41+ Annotated Code of Maryland 17
42+ (2015 Replacement Volume and 2022 Supplement) 18
43+
44+BY repealing 19
45+ Article – Business Regulation 20
46+Section 7–302(c) and 7–308(b) 21
47+ Annotated Code of Maryland 22
48+ (2015 Replacement Volume and 2022 Supplement) 23 2 HOUSE BILL 686
49+
50+
51+
52+BY adding to 1
53+ Article – Business Regulation 2
54+Section 7–302.2(c) and 7–304(j) 3
55+ Annotated Code of Maryland 4
56+ (2015 Replacement Volume and 2022 Supplement) 5
57+
58+BY repealing and reenacting, with amendments, 6
59+ Article – Commercial Law 7
60+Section 14–1216(d) and (e) 8
61+ Annotated Code of Maryland 9
62+ (2013 Replacement Volume and 2022 Supplement) 10
63+
64+BY adding to 11
65+ Article – Financial Institutions 12
66+Section 2–120, 2–121, 11–203.1(b), 11–203.3(c), 11–206(d), 11–208, 11–211, 13
67+11–402.1(c), 11–408, 11–411, 11–501(f–1) and (f–2), 11–503.2(c), 11–508(c), 14
68+12–104.1(c), 12–110, 12–113, 12–401(k) and (l), 12–404(c), 12–407(b)(1), 15
69+12–415(a), 12–905(c), and 12–914(f) 16
70+ Annotated Code of Maryland 17
71+ (2020 Replacement Volume and 2022 Supplement) 18
72+
73+BY repealing and reenacting, with amendments, 19
74+ Article – Financial Institutions 20
75+Section 11–201, 11–203.3(a), 11–204(a) and (c)(2), 11–206(a)(2) and (c)(3)(i), 21
76+11–210(b)(1) and (c), 11 –401, 11 –402.1(a), 11–403(b), 22
77+11–404(a)(2), 11–406(a), 11–410(b)(1) and (c), 11–414, 11–503.1(b), 23
78+11–503.2(a), 11–505, 11–506.1(b) through (e), 11–507, 11–508(a) and (e) 24
79+through (g), 11–511(a), (c), and (d), 11–512, 11–512.1(a) and (c), 11–513, 25
80+11–601(f), 11–602(c), 11–612.1, 12–101, 12–104.1(a), 12–105(b), 12–106, 26
81+12–108(a)(2), 12–112(b)(1) and (c), 12–114(c), 12–118, 12–401(c) and (k–1), 27
82+12–404(a), 12–406(a)(3), 12–407(b)(2), 12–410, 12–412(a) and (d), 28
83+12–424, 12–901, 12–904, 12–905(a), 12–906(b), 12–908(b)(1) and (2), 12–911, 29
84+12–914(b)(2)(i), 12–915, 12–923(b)(1), 12–924(a), (c), and (d), and 12–1007(a) 30
85+ Annotated Code of Maryland 31
86+ (2020 Replacement Volume and 2022 Supplement) 32
87+
88+BY repealing 33
89+ Article – Financial Institutions 34
90+Section 11–203.1(b), 11–206(d), 11–208, 11–211, 11–404(c), 11–408, 11–411, 35
91+11–508(c) and (d), 11–610, 12–108(c), 12–110, 12–113, 12–401(e), 12–407(b)(1) 36
92+and (h), 12–415(a), and 12–914(b)(8) 37
93+ Annotated Code of Maryland 38
94+ (2020 Replacement Volume and 2022 Supplement) 39
95+
96+BY repealing and reenacting, without amendments, 40
97+ Article – Financial Institutions 41 HOUSE BILL 686 3
98+
99+
100+Section 11–501(a), 11–601(a), and 12–401(a) 1
101+ Annotated Code of Maryland 2
102+ (2020 Replacement Volume and 2022 Supplement) 3
103+
104+BY repealing and reenacting, without amendments, 4
105+ Article – State Finance and Procurement 5
106+ Section 6–226(a)(2)(i) 6
107+ Annotated Code of Maryland 7
108+ (2021 Replacement Volume and 2022 Supplement) 8
109+
110+BY repealing and reenacting, with amendments, 9
111+ Article – State Finance and Procurement 10
112+ Section 6–226(a)(2)(ii)170. and 171. 11
113+ Annotated Code of Maryland 12
114+ (2021 Replacement Volume and 2022 Supplement) 13
115+
116+BY adding to 14
117+ Article – State Finance and Procurement 15
118+ Section 6–226(a)(2)(ii)172. 16
119+ Annotated Code of Maryland 17
120+ (2021 Replacement Volume and 2022 Supplement) 18
121+
122+BY renumbering 19
123+ Article – Financial Institutions 20
124+ Section 12–401(f) through (k) and (l) through (v) 21
125+ to be Section 12–401(e) through (j) and (n) through (x), respectively 22
126+ Annotated Code of Maryland 23
127+ (2020 Replacement Volume and 2022 Supplement) 24
128+
129+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
130+That the Laws of Maryland read as follows: 26
131+
132+Article – Business Regulation 27
133+
134+7–101. 28
135+
136+ (a) In this title the following words have the meanings indicated. 29
137+
138+ (b) “Board” means the State Collection Agency Licensing Board. 30
139+
140+ (c) [“Branch location” means any location other than the principal executive office 31
141+of a licensee or license applicant at which a person does business as a collection agency or, 32
142+on licensure, will do business as a collection agency, in the State or with a person in the 33
143+State. 34
144+
145+ (d)] “Collection agency” means a person who engages directly or indirectly in the 35
146+business of: 36 4 HOUSE BILL 686
147+
148+
149+
150+ (1) (i) collecting for, or soliciting from another, a consumer claim; or 1
151+
152+ (ii) collecting a consumer claim the person owns, if the claim was in 2
153+default when the person acquired it; 3
154+
155+ (2) collecting a consumer claim the person owns, using a name or other 4
156+artifice that indicates that another party is attempting to collect the consumer claim; 5
157+
158+ (3) giving, selling, attempting to give or sell to another, or using, for 6
159+collection of a consumer claim, a series or system of forms or letters that indicates directly 7
160+or indirectly that a person other than the owner is asserting the consumer claim; or 8
161+
162+ (4) employing the services of an individual or business to solicit or sell a 9
163+collection system to be used for collection of a consumer claim. 10
164+
165+ [(e)] (D) “Commissioner” means the Commissioner of Financial Regulation. 11
166+
167+ [(f)] (E) “Consumer claim” means a claim that: 12
168+
169+ (1) is for money owed or said to be owed by a resident of the State; and 13
170+
171+ (2) arises from a transaction in which, for a family, household, or personal 14
172+purpose, the resident sought or got credit, money, personal property, real property, or 15
173+services. 16
174+
175+ [(g)] (F) (1) “Control person” means a person who has the power, directly or 17
176+indirectly, to direct the management or policies of a collection agency, whether through 18
177+ownership of securities, by contract, or otherwise. 19
178+
179+ (2) “Control person” includes a person who: 20
180+
181+ (i) is a general partner, an officer, a director, or a member of a 21
182+collection agency, or occupies a similar position or performs a similar function; 22
183+
184+ (ii) directly or indirectly has the right to vote 10% or more of a class 23
185+of voting securities, or has the power to sell or direct the sale of 10% or more of a class of 24
186+voting securities of a collection agency; or 25
187+
188+ (iii) in the case of a partnership, a limited partnership, a limited 26
189+liability partnership, a limited liability company, or any other business entity: 27
190+
191+ 1. has the right to receive on liquidation or dissolution of a 28
192+collection agency 10% or more of the capital of the collection agency; or 29
193+
194+ 2. has contributed 10% or more of the capital of a collection 30
195+agency. 31 HOUSE BILL 686 5
196+
197+
198+
199+ [(h)] (G) “License” means a license issued in any form by the Board under this 1
200+title to do business as a collection agency, including as provided for through NMLS. 2
201+
202+ [(h–1) “Licensee” means a person licensed under this title to do business as a 3
203+collection agency.] 4
204+
205+ [(i)] (H) “Licensed collection agency” means a person who is required to be 5
206+licensed under this title, regardless of whether the person is actually licensed. 6
207+
208+ (I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E 7
209+IN NMLS IN ACCORDANCE WITH T HIS TITLE. 8
210+
211+ (J) “LICENSED NAME ” MEANS: 9
212+
213+ (1) THE LICENSEE’S LEGAL NAME; AND 10
214+
215+ (2) ANY TRADE NAME USED BY THE LICENSEE IN ACCORDANCE WITH 11
216+§ 2–121 OF THE FINANCIAL INSTITUTIONS ARTICLE. 12
217+
218+ (K) “LICENSEE” MEANS A PERSON LICEN SED UNDER THIS TITLE TO DO 13
219+BUSINESS AS A COLLECTION AGENCY . 14
220+
221+ [(j)] (L) “NMLS” [means a multistate uniform licensing system developed and 15
222+maintained by the Conference of State Bank Supervisors, or by a subsidiary or an affiliate 16
223+of the Conference of State Bank Supervisors, that may be used for the licensing of persons 17
224+required to be licensed by the Board] HAS THE MEANING STAT ED IN § 1–101 OF THE 18
225+FINANCIAL INSTITUTIONS ARTICLE. 19
226+
227+ [(k)] (M) “Unique identifier” means a number or another identifier assigned by 20
228+NMLS. 21
229+
230+7–206. 22
231+
232+ [The] EXCEPT AS PROVID ED IN § 7–302.2 OF THIS TITLE, THE Board shall pay 23
233+all money collected under this title into the General Fund of the State. 24
234+
235+7–301. 25
236+
237+ (c) A [separate license is required for the principal executive office and each 26
238+branch location of a person who does business as a collection agency] LICENSEE MAY DO 27
239+BUSINESS AS A COLLEC TION AGENCY ONLY AT A LICENSED LOCATION OR AS 28
240+OTHERWISE AUTHORIZED BY REGULATION . 29
241+ 6 HOUSE BILL 686
242+
243+
244+7–302. 1
245+
246+ (b) An application shall be made under oath and shall include: 2
247+
248+ (1) the applicant’s LEGAL name, ANY TRADE NAME USED BY THE 3
249+APPLICANT IN ACCORDA NCE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS 4
250+ARTICLE, AND THE APPLICANT ’S principal executive office address, telephone number, 5
251+e–mail address, and Web site addresses, if any; 6
252+
253+ (2) the address of each [branch] ADDITIONAL location, if any, THAT: 7
254+
255+ (I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A 8
256+LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY 9
257+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 10
258+COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 11
259+
260+ (II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR 12
261+TECHNOLOGY SYSTEMS ; 13
262+
263+ (III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION 14
264+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 15
265+
266+ (IV) IS OTHERWISE REQUIRED TO BE LISTE D IN NMLS BY 16
267+REGULATION ADOPTED U NDER THIS TITLE ; 17
268+
269+ (3) the federal employer identification number or Social Security number 18
270+of the applicant, as applicable; 19
271+
272+ (4) the state of formation and the date of formation of the applicant if the 20
273+applicant is a business entity; 21
274+
275+ (5) the name and residence address of each control person; 22
276+
277+ (6) the name and address of the principal contact for consumer complaints; 23
278+
279+ (7) the name, address, and telephone number of the applicant’s resident 24
280+agent; and 25
281+
282+ (8) any other information that the Board requests. 26
283+
284+ [(c) If an applicant wishes to do business as a collection agency at a branch 27
285+location, the applicant shall submit a separate application and pay a separate application 28
286+fee and investigation fee for each branch location.] 29
287+
288+ [(d)] (C) In addition to any other requirement for licensure under this subtitle, 30 HOUSE BILL 686 7
289+
290+
291+an applicant for a license shall file with the Board a surety bond as required under § 7–304 1
292+of this subtitle. 2
293+
294+ [(e)] (D) The Board shall issue a license to each applicant who meets the 3
295+requirements of this subtitle. 4
296+
297+7–302.1. 5
298+
299+ (b) The fees established by the Board under this section AND ANY ANNUAL 6
300+ASSESSMENTS IMPOSED BY THE COMMISSIONER UNDER § 2–120 OF THE FINANCIAL 7
301+INSTITUTIONS ARTICLE shall be reasonable and set in a manner that will 8
302+COLLECTIVELY produce funds sufficient to cover the actual direct and indirect costs of 9
303+regulating collection agencies in accordance with [the provisions of] this title. 10
304+
305+7–302.2. 11
306+
307+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 12
308+title and any other fee or revenue received by THE COMMISSIONER OR the Board under 13
309+this title shall be: 14
310+
311+ (1) credited to the [Nondepository] NON–DEPOSITORY Special Fund 15
312+established under [§ 11–610] § 2–120 of the Financial Institutions Article; and 16
313+
314+ (2) used in accordance with [§ 11–610(c)] § 2–120(D) of the Financial 17
315+Institutions Article. 18
316+
317+ (C) SUBJECT TO § 2–120(H) OF THE FINANCIAL INSTITUTIONS ARTICLE, 19
318+THE COMMISSIONER MAY IMPO SE AN ANNUAL ASSES SMENT ON ANY LICENSE E 20
319+UNDER THIS TITLE . 21
320+
321+7–304. 22
322+
323+ (c) The bond shall be: 23
324+
325+ (1) in the amount [of $5,000] DETERMINED BY THE BOARD UNDER 24
326+SUBSECTION (J) OF THIS SECTION ; 25
327+
328+ (J) (1) THE AMOUNT OF THE SUR ETY BOND REQUIRED UN DER 26
329+SUBSECTION (C) OF THIS SECTION SHALL BE IN AN AMOUN T OF NOT LESS THAN 27
330+$50,000 AND NOT MORE THAN $1,000,000, AS DETERMINED BY THE BOARD FOR 28
331+EACH LICENSEE . 29
332+
333+ (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE BOARD MAY 30
334+CONSIDER: 31
335+ 8 HOUSE BILL 686
336+
337+
338+ (I) THE NATURE AND VOLUM E OF THE BUSINESS OR PROPOSED 1
339+BUSINESS OF THE LICENS EE OR APPLICANT ; 2
340+
341+ (II) THE FINANCIAL CONDIT ION OF THE LICENSEE OR 3
342+APPLICANT, INCLUDING: 4
343+
344+ 1. THE AMOUNT , NATURE, QUALITY, AND LIQUIDITY OF 5
345+THE ASSETS OF THE LI CENSEE OR APPLICANT ; 6
346+
347+ 2. THE AMOUNT AND NATUR E OF THE LIABILITIES , 7
348+INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT; 8
349+
350+ 3. THE HISTORY OF AND P ROSPECTS FOR THE LIC ENSEE 9
351+OR APPLICANT TO EARN AND RETAIN INCOME ; AND 10
352+
353+ 4. THE POTENTIAL HARM T O CONSUMERS IF THE 11
354+APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED; 12
355+
356+ (III) THE QUALITY OF THE O PERATIONS OF THE LIC ENSEE OR 13
357+APPLICANT; 14
358+
359+ (IV) THE QUALITY OF THE M ANAGEMENT OF THE LIC ENSEE OR 15
360+APPLICANT; 16
361+
362+ (V) THE NATURE AND QUALI TY OF EACH CONTROL P ERSON; 17
363+AND 18
364+
365+ (VI) ANY OTHER FACTOR THA T THE BOARD CONSIDERS 19
366+RELEVANT. 20
367+
368+7–305. 21
369+
370+ (a) A license authorizes the licensee to do business as a collection agency at [only 22
371+the] EACH licensed location AND UNDER EACH LICEN SED NAME, OR AS OTHERWISE 23
372+AUTHORIZED BY REGULA TION. 24
373+
374+ [(b) Subject to § 7–301(c) of this subtitle, a licensee may hold more than 1 license 25
375+under this title. 26
376+
377+ (c) (1) Each license provided for through NMLS shall include the following 27
378+information: 28
379+
380+ (i) the name of the licensee; 29
381+ HOUSE BILL 686 9
382+
383+
384+ (ii) the address at which the business is to be conducted; and 1
385+
386+ (iii) the unique identifier of the licensee. 2
387+
388+ (2) The unique identifier of the licensee shall constitute the license number 3
389+for the license.] 4
390+
391+ (B) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 5
392+THE BOARD UNDER THIS SUBT ITLE SHALL INCLUDE T HE FOLLOWING : 6
393+
394+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY THE 7
395+LICENSEE IN ACCORDAN CE WITH § 2–121 OF THE FINANCIAL INSTITUTIONS 8
396+ARTICLE; 9
397+
398+ (2) THE ADDRESS OF THE L ICENSEE’S PRINCIPAL EXECUTIV E OFFICE; 10
399+AND 11
400+
401+ (3) THE ADDRESS OF EACH ADDITIONAL LOCATION , IF ANY, WHERE 12
402+THE LICENSEE DOES BU SINESS AND THAT : 13
403+
404+ (I) THE GENERAL PUBLIC M AY REASONABLY VIEW A S A 14
405+LOCATION THAT DOES B USINESS AS A COLLECT ION AGENCY , INCLUDING ANY 15
406+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 16
407+COMMUNICATES WITH CU STOMERS VERBALLY, ELECTRONICALLY , OR IN WRITING; 17
408+
409+ (II) HOUSES ANY CORE OPER ATIONAL INFRASTRUCTU RE OR 18
410+TECHNOLOGY SYSTEMS ; 19
411+
412+ (III) CONDUCTS ANY CORE MA NAGEMENT, INFORMATION 20
413+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 21
414+
415+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 22
416+REGULATION . 23
417+
418+ (C) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 24
419+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 25
420+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (B) OF THIS SECTION. 26
421+
422+ (D) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE 27
423+LICENSE NUMBER FOR T HE LICENSE. 28
424+
425+ (E) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED 29
426+TO BE LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNLE SS: 30
427+ 10 HOUSE BILL 686
428+
429+
430+ (1) THE LICENSEE PROVIDES TO THE BOARD, THROUGH NMLS AND 1
431+IN ACCORDANCE WITH A NY APPLICABLE REGULA TIONS, NOTICE OF THE ADDITI ON, 2
432+DELETION, OR MODIFICATION ; 3
433+
434+ (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 4
435+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE’S LICENSE 5
436+IN NMLS; AND 6
437+
438+ (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 7
439+OTHERWISE COMPLIES W ITH THIS TITLE. 8
440+
441+ (F) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE 9
442+LISTED IN NMLS UNDER SUBSECTION (B) OF THIS SECTION UNTI L THE LOCATION 10
443+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE 11
444+IN NMLS. 12
445+
446+7–306.1. 13
447+
448+ (a) Each licensee shall conspicuously post, in 48 point or larger type, at [the 14
449+licensee’s] EACH licensed location, the following information: 15
450+
451+ (1) the licensee’s unique identifier; and 16
452+
453+ (2) a statement advising consumers of the availability of the NMLS 17
454+Consumer Access website to verify the licensing status of the licensee. 18
455+
456+ (c) A licensee is not required to post the information required under subsection 19
457+(a) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access 20
458+to [the] THAT licensed location to members of the general public. 21
459+
460+7–308. 22
461+
462+ [(b) If the Board finds that a ground for suspension or revocation of a license 23
463+applies to more than 1 place of business that the licensee operates, the Board may act 24
464+against: 25
465+
466+ (1) each license of the licensee; or 26
467+
468+ (2) only the licenses to which the ground applies.] 27
469+
470+ [(c)] (B) In determining whether to reprimand a licensee or to suspend or revoke 28
471+a license for a reason described in subsection (a)(2) of this section, the Board shall consider: 29
472+
473+ (1) the nature of the crime; 30
474+ HOUSE BILL 686 11
475+
476+
477+ (2) the relationship of the crime to the activities authorized by the license; 1
478+
479+ (3) with respect to a felony, the relevance of the conviction to the fitness 2
480+and qualification of the licensee to engage in the collection agency business; 3
481+
482+ (4) the length of time since the conviction; and 4
483+
484+ (5) the behavior and activities of the licensee since the conviction. 5
485+
486+Article – Commercial Law 6
487+
488+14–1216. 7
489+
490+ (d) Except as provided in § 14–1226 of this subtitle, all fees and other revenues 8
491+collected under this subtitle shall be deposited into the [Nondepository] 9
492+NON–DEPOSITORY Special Fund established under [§ 11–610] § 2–120 of the Financial 10
493+Institutions Article. 11
494+
495+ (e) The Commissioner may require a consumer reporting agency to register 12
496+through [the Nationwide Mortgage Licensing System and Registry] NMLS or through 13
497+other means specified by the Commissioner by regulation. 14
498+
499+Article – Financial Institutions 15
500+
501+2–120. 16
502+
503+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 17
504+INDICATED. 18
505+
506+ (2) “BOARD” MEANS THE STATE COLLECTION AGENCY LICENSING 19
507+BOARD ESTABLISHED UND ER TITLE 7 OF THE BUSINESS REGULATION ARTICLE. 20
508+
509+ (3) “FUND” MEANS THE NON–DEPOSITORY SPECIAL FUND 21
510+ESTABLISHED UNDER TH IS SECTION. 22
511+
512+ (4) “LICENSE” MEANS ANY LICENSE IS SUED BY THE COMMISSIONER 23
513+OR THE BOARD UNDER APPLICABL E LAW. 24
514+
515+ (5) “LICENSE CATEGORY ” REFERS TO ALL LICENS ES ISSUED BY 25
516+EITHER THE COMMISSIONER OR THE BOARD UNDER ANY OF TH E FOLLOWING 26
517+PROVISIONS: 27
518+
519+ (I) TITLE 11, SUBTITLE 2 OF THIS ARTICLE; 28
520+
521+ (II) TITLE 11, SUBTITLE 3 OF THIS ARTICLE; 29 12 HOUSE BILL 686
522+
523+
524+
525+ (III) TITLE 11, SUBTITLE 4 OF THIS ARTICLE; 1
526+
527+ (IV) TITLE 11, SUBTITLE 5 OF THIS ARTICLE; 2
528+
529+ (V) TITLE 11, SUBTITLE 6 OF THIS ARTICLE; 3
530+
531+ (VI) TITLE 12, SUBTITLE 1 OF THIS ARTICLE; 4
532+
533+ (VII) TITLE 12, SUBTITLE 4 OF THIS ARTICLE; 5
534+
535+ (VIII) TITLE 12, SUBTITLE 9 OF THIS ARTICLE; OR 6
536+
537+ (IX) TITLE 7 OF THE BUSINESS REGULATION ARTICLE. 7
538+
539+ (6) “LICENSED PERSON ” MEANS ANY PERSON REQ UIRED BY LAW TO 8
540+BE LICENSED BY EITHE R THE COMMISSIONER OR THE BOARD, REGARDLESS OF 9
541+WHETHER THE PERSON M AINTAINS THE REQUIRE D LICENSE. 10
542+
543+ (7) “REGISTERED PERSON ” MEANS ANY PERSON REQ UIRED BY LAW 11
544+TO BE REGISTERED BY THE COMMISSIONER OR THE BOARD, REGARDLESS OF 12
545+WHETHER THE PERSON M AINTAINS THE REQUIRE D REGISTRATION . 13
546+
547+ (8) “REGULATED PERSON ” MEANS: 14
548+
549+ (I) A LICENSED PERSON OR R EGISTERED PERSON ; OR 15
550+
551+ (II) ANY PERSON OTHERWISE ENGAGING IN ACTIVITY SUBJECT 16
552+TO A PROVISION OF LA W, REGULATION , RULE, OR ORDER OVER WHICH THE 17
553+COMMISSIONER HAS JURI SDICTION, OTHER THAN ACTIVITY SUBJECT TO ANY OF 18
554+TITLES 3 THROUGH 9 OF THIS ARTICLE. 19
555+
556+ (B) THERE IS A NON–DEPOSITORY SPECIAL FUND THAT CONSISTS OF : 20
557+
558+ (1) ALL REVENUES RECEIVED FROM LICENSING FEES FROM EAC H 21
559+LICENSED PERSON ; 22
560+
561+ (2) ALL REVENUES RECEIVED FROM REGISTRATION FE ES FROM 23
562+EACH REGISTERED PERS ON; 24
563+
564+ (3) ALL REVENUES RECEIVED FROM ANNUAL ASSESSME NTS UNDER 25
565+SUBSECTION (H) OF THIS SECTION; 26
566+ HOUSE BILL 686 13
567+
568+
569+ (4) INCOME FROM THE INVES TMENTS THAT THE STATE TREASURER 1
570+MAKES FOR THE FUND; AND 2
571+
572+ (5) ANY OTHER FEE , EXAMINATION OR INVES TIGATION FEE OR 3
573+ASSESSMENT , OR REVENUE RECEIVED BY THE COMMISSIONER OR THE BOARD WITH 4
574+RESPECT TO ANY REGUL ATED PERSON . 5
575+
576+ (C) NOTWITHSTAN DING SUBSECTION (B) OF THIS SECTION: 6
577+
578+ (1) THE COMMISSIONER AND THE BOARD SHALL PAY ALL F INES AND 7
579+PENALTIES COLLECTED FROM ANY REGULATED P ERSON INTO THE GENERAL FUND 8
580+OF THE STATE; AND 9
581+
582+ (2) REVENUE RECEIVED BY T HE COMMISSIONER FOR USE OF THE 10
583+FORECLOSED PROPERTY REGISTRY ESTABLISHED UNDER TITLE 7 OF THE REAL 11
584+PROPERTY ARTICLE SHALL BE PAID BY THE COMMISSIONER TO THE FORECLOSED 12
585+PROPERTY REGISTRY FUND ESTABLISHED UNDE R § 7–105.14 OF THE REAL 13
586+PROPERTY ARTICLE. 14
587+
588+ (D) THE PURPOSE OF THE FUND IS TO COVER THE DIRECT AND INDIRECT 15
589+COSTS OF FULFILLING THE STATUTORY AND RE GULATORY DUTIES OF T HE 16
590+COMMISSIONER AND THE BOARD RELATED TO REGU LATED PERSONS . 17
591+
592+ (E) (1) THE ANNUAL STATE BUDGET SHALL IN CLUDE THE COSTS AND 18
593+EXPENSES OF THE COMMISSIONER AND THE BOARD RELATING TO SUBSECTION (D) 19
594+OF THIS SECTION. 20
595+
596+ (2) ANY EXPENDITURES FROM THE FUND TO COVER COSTS A ND 21
597+EXPENSES OF THE COMMISSIONER AND THE BOARD RELATING TO SUB SECTION (D) 22
598+OF THIS SECTION MAY BE MADE ONLY : 23
599+
600+ (I) WITH AN APPROPRIATION FROM THE FUND APPROVED BY 24
601+THE GENERAL ASSEMBLY IN THE ANNUA L STATE BUDGET ; OR 25
602+
603+ (II) BY THE BUDGET AMENDME NT PROCEDURE UNDER § 7–209 26
604+OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 27
605+
606+ (3) IF, IN ANY FISCAL YEAR , THE AMOUNT OF THE RE VENUE 28
607+COLLECTED BY THE COMMISSIONER AND THE BOARD AND DE POSITED INTO THE 29
608+FUND EXCEEDS THE ACTU AL APPROPRIATION FOR THE COMMISSIONER AND THE 30
609+BOARD UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION , THE EXCESS AMOUNT 31
610+SHALL BE CARRIED FOR WARD WITHIN THE FUND. 32
611+ 14 HOUSE BILL 686
612+
613+
614+ (F) (1) THE STATE TREASURER IS THE CUST ODIAN OF THE FUND. 1
615+
616+ (2) THE STATE TREASURER SHALL DEPOS IT PAYMENTS RECEIVED 2
617+FROM THE COMMISSIONER AND THE BOARD INTO THE FUND. 3
618+
619+ (G) (1) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 4
620+SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 5
621+
622+ (II) THE FUND MAY NOT BE DEEMED A P ART OF THE GENERAL 6
623+FUND OF THE STATE. 7
624+
625+ (2) UNLESS OTHERWISE PROV IDED BY LAW, NO PART OF THE FUND 8
626+MAY REVERT OR BE CRE DITED TO: 9
627+
628+ (I) THE GENERAL FUND OF THE STATE; OR 10
629+
630+ (II) ANY OTHER SPECIAL FUN D OF THE STATE. 11
631+
632+ (H) (1) IN ORDER TO ENSURE THE FUND CONTAINS SUFFICI ENT 12
633+AMOUNTS TO ACHIEVE I TS PURPOSE UNDER SUB SECTION (D) OF THIS SECTION, THE 13
634+COMMISSIONER MAY IMPO SE AN ANNUAL ASSESSM ENT ON ANY LICENSED PERSON 14
635+NOT MORE THAN ONCE E ACH YEAR. 15
636+
637+ (2) IN CALCULATING AN ASS ESSMENT WITH RESPE CT TO ANY 16
638+LICENSED PERSON , THE COMMISSIONER MAY CONS IDER: 17
639+
640+ (I) THE COSTS INCURRED BY THE COMMISSIONER OR THE 18
641+BOARD IN SUPERVISING LICENSED PERSONS OF THAT LICENSE CATEGOR Y; 19
642+
643+ (II) THE TYPE OF BUSINESS CONDUCTED IN THE STATE BY THAT 20
644+LICENSED PERSON ; 21
645+
646+ (III) THE VOLUME OF BUSINES S THAT LICENSED PERS ON 22
647+CONDUCTS IN THE STATE; 23
648+
649+ (IV) ASSETS OF THE LICENSE D PERSON; AND 24
650+
651+ (V) ANY OTHER FACTOR THE COMMISSIONER CONSIDER S 25
652+APPROPRIATE . 26
653+
654+ (3) A LICENSED PERSON SHAL L PAY ANY ASSESSMENT IMPOSED 27
655+UNDER THIS SEC TION TO THE COMMISSIONER WITHIN 30 CALENDAR DAYS AFTER 28
656+THE ASSESSMENT IS IM POSED. 29 HOUSE BILL 686 15
657+
658+
659+
660+ (4) (I) FAILURE BY A LICENSED PERSON TO TIMELY PAY AN 1
661+ANNUAL ASSESSMENT UN DER THIS SECTION IS A VIOLATION OF THIS SECTION. 2
662+
663+ (II) THE COMMISSIONER MAY TAKE ACTION FOR TH E 3
664+VIOLATION AGAINST TH E LICENSED PERSON AN D THE LICENSE UNDER APPLICABLE 4
665+LAW. 5
666+
667+2–121. 6
668+
669+ (A) BEFORE USING A TRADE NAME T O ENGAGE IN ANY ACTI VITY REQUIRING 7
670+A LICENSE OR REGISTRATION FROM THE COMMISSIONER OR THE STATE 8
671+COLLECTION AGENCY LICENSING BOARD, THE LICENSED OR REGISTERED PER SON 9
672+SHALL: 10
673+
674+ (1) REGISTER THE TRADE NA ME WITH THE STATE DEPARTMENT OF 11
675+ASSESSMENTS AND TAXATION; AND 12
676+
677+ (2) OBTAIN THE APPROVAL O F THE COMMISSIONER , OR THE STATE 13
678+COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, TO USE THE 14
679+TRADE NAME BY : 15
680+
681+ (I) DESIGNATING ON AN ORIGINAL LICENSE OR REGISTRATION 16
682+APPLICATION OR ON A LICENSE OR REGISTRAT ION RENEWAL APPLICAT ION 17
683+THROUGH NMLS THE TRADE NAME UNDER WHICH THE LICENSE D OR REGISTERED 18
684+PERSON WILL ENGAGE IN LICENSED A CTIVITY IN THE STATE; OR 19
685+
686+ (II) IF THE PERSON WISHES TO BEGIN USING A TRADE NAME 20
687+BEFORE RENEWING A LI CENSE OR REGISTRATIO N, NOTIFYING THE COMMISSIONER , 21
688+OR THE STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE 22
689+BOARD, IN WRITING BY LISTIN G THE TRADE NAME IN THE PERSON’S NMLS RECORD. 23
690+
691+ (B) AFTER RECEIVING APPRO VAL FROM THE COMMISSIONER OR FROM THE 24
692+STATE COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD FOR 25
693+THE USE OF A TRADE N AME, THE LICENSED OR REGISTER ED PERSON SHALL : 26
694+
695+ (1) MAINTAIN REGISTRATI ON OF THE TRADE NAME IN ACCORDANCE 27
696+WITH § 1–406 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE AND ANY 28
697+IMPLEMENTING REGULATIONS ; 29
698+
699+ (2) LIST THE TRADE NAME I N NMLS; AND 30
700+
701+ (3) IMMEDIATELY NOTIFY TH E COMMISSIONER , OR THE STATE 31 16 HOUSE BILL 686
702+
703+
704+COLLECTION AGENCY LICENSING BOARD IF LICENSED BY THE BOARD, IF THE 1
705+PERSON AMENDS , CANCELS, OR OTHERWISE FAILS T O RENEW THE REGISTRATION 2
706+OF THE TRADE NAME . 3
707+
708+11–201. 4
709+
710+ (a) In this subtitle the following words have the meanings indicated. 5
711+
712+ (b) [“Branch location” means any location other than the principal executive office 6
713+of a licensee or license applicant at which the licensee conducts, or the license applicant, on 7
714+licensure, will conduct, activities required to be licensed under this subtitle. 8
715+
716+ (c)] (1) “Control person” means a person who has the power, directly or 9
717+indirectly, to direct the management or policies of a licensee or license applicant, whether 10
718+through ownership of securities, by contract, or otherwise. 11
719+
720+ (2) “Control person” includes a person who: 12
721+
722+ (i) Is a general partner, an officer, or a director of a licensee or 13
723+license applicant, or occupies a similar position or performs a similar function; 14
724+
725+ (ii) Directly or indirectly has the right to vote 10% or more of a class 15
726+of voting securities, or has the power to sell or direct the sale of 10% or more of a class of 16
727+voting securities of a licensee or license applicant; or 17
728+
729+ (iii) In the case of a partnership, a limited partnership, a limited 18
730+liability partnership, a limited liability company, or any other business entity: 19
731+
732+ 1. Has the right to receive on liquidation or dissolution of a 20
733+licensee or license applicant 10% or more of the capital of the licensee or license applicant; 21
734+or 22
735+
736+ 2. Has contributed 10% or more of the capital of a licensee or 23
737+license applicant. 24
738+
739+ [(d)] (C) “License” means a license issued in any form by the Commissioner 25
740+under this subtitle to make loans under the Maryland Consumer Loan Law, including as 26
741+provided for through NMLS. 27
742+
743+ (D) “LICENSED LOCATION” MEANS ANY LOCATION L ISTED BY THE LICENSE E 28
744+IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 29
745+
746+ (E) “LICENSED NAME ” MEANS: 30
747+
748+ (1) THE LICENSEE’S LEGAL NAME; AND 31
749+ HOUSE BILL 686 17
750+
751+
752+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH 1
753+§ 2–121 OF THIS ARTICLE. 2
754+
755+ [(d–1)] (F) “Licensee” means a person licensed under this subtitle to make loans 3
756+under the Maryland Consumer Loan Law. 4
757+
758+ [(e)] (G) “Loan” means any loan or advance of money or credit subject to Title 5
759+12, Subtitle 3 of the Commercial Law Article, the Maryland Consumer Loan Law – Credit 6
760+Provisions, regardless of whether the loan or advance of money or credit is or purports to 7
761+be made under Title 12, Subtitle 3 of the Commercial Law Article. 8
762+
763+ [(f)] (H) “Maryland Consumer Loan Law” means this subtitle and Title 12, 9
764+Subtitle 3 of the Commercial Law Article. 10
765+
766+ [(g)] (I) “Person” includes an individual, corporation, business trust, statutory 11
767+trust, estate, trust, partnership, association, two or more persons having a joint or common 12
768+interest, or any other legal or commercial entity. 13
769+
770+ [(h)] (J) “Unique identifier” means a number or another identifier assigned by 14
771+NMLS. 15
772+
773+11–203.1. 16
774+
775+ [(b) A separate license is required for the principal executive office of the license 17
776+applicant or licensee and each branch location.] 18
777+
778+ (B) EXCEPT AS OTHERWISE P ROVIDED IN § 11–204 OF THIS SUBTITLE OR 19
779+AUTHORIZED BY THE COMMISSIONER BY REGUL ATION, A LICENSEE MAY NOT 20
780+ENGAGE IN THE BUSINE SS OF MAKING LOANS A T A LOCATION OTHER T HAN A 21
781+LICENSED LOCATION . 22
782+
783+11–203.3. 23
784+
785+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 24
786+subtitle and Subtitle 3 of this title and any other fee or revenue received by the 25
787+Commissioner under this subtitle shall be: 26
788+
789+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 27
790+established under [§ 11–610] § 2–120 of this [title] ARTICLE; and 28
791+
792+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title] 29
793+ARTICLE. 30
794+
795+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 31
796+IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICENSEE UNDE R THIS SUBTITLE. 32 18 HOUSE BILL 686
797+
798+
799+
800+11–204. 1
801+
802+ (a) A person may not: 2
803+
804+ (1) Receive any application for a loan or allow any note or contract for a 3
805+loan to be signed at any place of business [for which the person does not have a license] 4
806+THAT IS NOT A LICE NSED LOCATION ; 5
807+
808+ (2) Conduct any business under the Maryland Consumer Loan Law under 6
809+a name different from the [name that appears on the person’s license] LICENSED NAME ; 7
810+or 8
811+
812+ (3) Evade the application of this section by any device, subterfuge, or 9
813+pretense of any kind. 10
814+
815+ (c) Notwithstanding subsections (a) and (b) of this section, for a loan that is to be 11
816+secured by residential real property: 12
817+
818+ (2) Except as provided in item (3) of this subsection, the loan closing shall 13
819+be conducted at: 14
820+
821+ (i) [The lender’s] A licensed location; 15
822+
823+ (ii) The office of an attorney representing the licensee, the borrower, 16
824+the title company, or title insurer in connection with the loan; or 17
825+
826+ (iii) The office of the title insurer or title agency performing closing 18
827+services in connection with the loan; and 19
828+
829+11–206. 20
830+
831+ (a) (2) The application shall include: 21
832+
833+ (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME 22
834+USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE; 23
835+
836+ (II) THE applicant’s principal executive office address[, and, if]; 24
837+
838+ (III) IF the applicant is not an individual, the name and residence 25
839+address of each control person; 26
840+
841+ [(ii)] (IV) The address of each [branch] ADDITIONAL location, if 27
842+any, THAT: 28
843+
844+ 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 29 HOUSE BILL 686 19
845+
846+
847+LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES 1
848+CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS 2
849+VERBALLY, ELECTRONICALLY , OR IN WRITING; 3
850+
851+ 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E 4
852+OR TECHNOLOGY SYSTEM S; 5
853+
854+ 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 6
855+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 7
856+
857+ 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 8
858+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and 9
859+
860+ [(iii)] (V) Any other pertinent information that the Commissioner 10
861+requires for an investigation and findings under § 11–207 of this subtitle. 11
862+
863+ (c) (3) The bond shall be: 12
864+
865+ (i) In an amount [equal to twice the amount of the largest loan that 13
866+may be made under the Maryla nd Consumer Loan Law ] DETERMINED BY THE 14
867+COMMISSIONER UNDER SU BSECTION (D) OF THIS SECTION ; 15
868+
869+ [(d) For the principal executive office and each branch location license for which 16
870+an applicant applies, the applicant shall: 17
871+
872+ (1) Submit a separate application; and 18
873+
874+ (2) Pay a separate investigation fee and license fee.] 19
875+
876+ (D) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (C) OF 20
877+THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE 21
878+THAN $200,000, AS DETERMINED BY THE COMMISSIONER FOR EA CH LICENSEE. 22
879+
880+ (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE 23
881+COMMISSIONER MAY CONS IDER: 24
882+
883+ (I) THE NATURE AND VOLUME OF THE BUSINESS OR P ROPOSED 25
884+BUSINESS OF THE LICE NSEE OR APPLICANT ; 26
885+
886+ (II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R 27
887+APPLICANT, INCLUDING: 28
888+
889+ 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF 29
890+THE ASSETS OF THE LI CENSEE OR APPLICANT ; 30 20 HOUSE BILL 686
891+
892+
893+
894+ 2. THE AMOUNT AND NATURE OF THE LIABILITIES , 1
895+INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT; 2
896+
897+ 3. THE HISTORY OF AND PR OSPECTS FOR THE LICENSEE 3
898+OR APPLICANT TO EARN AND RETAIN INCOME ; AND 4
899+
900+ 4. THE POTENTIAL HARM TO CONSUMERS IF THE 5
901+APPLICANT OR LICENSE E BECOMES FINANCIALL Y IMPAIRED; 6
902+
903+ (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR 7
904+APPLICANT; 8
905+
906+ (IV) THE QUALITY OF THE MANAGEMENT OF THE LI CENSEE OR 9
907+APPLICANT; 10
908+
909+ (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS 11
910+CONTROL OF THE LICEN SEE OR APPLICANT ; AND 12
911+
912+ (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S 13
913+RELEVANT. 14
914+
915+[11–208. 15
916+
917+ (a) (1) Each license provided for through NMLS shall include the following 16
918+information: 17
919+
920+ (i) The name of the licensee; 18
921+
922+ (ii) The address of the location at which the business is to be 19
923+conducted; and 20
924+
925+ (iii) The unique identifier of the licensee. 21
926+
927+ (2) The unique identifier of the licensee shall constitute the license number 22
928+for the license. 23
929+
930+ (b) (1) A license authorizes the licensee to do business under the license, at the 24
931+licensed location and under the name stated on the license. 25
932+
933+ (2) Only one location may be maintained under any one license. 26
934+
935+ (c) Subject to § 11–203.1(b) of this subtitle, the Commissioner may issue more 27
936+than one license to an applicant who: 28
937+ HOUSE BILL 686 21
938+
939+
940+ (1) Conducts activities for which a license is required at more than one 1
941+location; 2
942+
943+ (2) Complies with § 11–206 of this subtitle; and 3
944+
945+ (3) Otherwise meets the requirements of this subtitle.] 4
946+
947+11–208. 5
948+
949+ (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 6
950+THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING : 7
951+
952+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 8
953+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 9
954+
955+ (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E 10
956+OFFICE; AND 11
957+
958+ (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE 12
959+THE LICENSEE DOES BU SINESS AND THAT : 13
960+
961+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 14
962+LOCATION THAT MAKES LOANS, INCLUDING ANY LOCATI ON THAT INVESTIGATES 15
963+CUSTOMER COMPLAINTS OR DIRECTLY COMMUNIC ATES WITH CUSTOMERS 16
964+VERBALLY, ELECTRONICALLY , OR IN WRITING; 17
965+
966+ (II) HOUSES ANY CORE OPERA TIONAL INFRA STRUCTURE OR 18
967+TECHNOLOGY SYSTEMS ; 19
968+
969+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 20
970+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 21
971+
972+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 22
973+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE. 23
974+
975+ (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 24
976+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 25
977+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION. 26
978+
979+ (C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHALL CONSTITUTE THE 27
980+LICENSE NUMBER FOR T HE LICENSE. 28
981+
982+ (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE 29
983+LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS 30 22 HOUSE BILL 686
984+
985+
986+OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION . 1
987+
988+11–210. 2
989+
990+ (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at 3
991+[the licensee’s] EACH licensed location the following information: 4
992+
993+ (i) The licensee’s unique identifier; and 5
994+
995+ (ii) A statement advising consumers of the availability of the NMLS 6
996+Consumer Access website to verify the licensing status of the licensee. 7
997+
998+ (c) A licensee is not required to post the information required in subsection (b)(1) 8
999+of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant 9
1000+[regular] access to [the] THAT licensed location to members of the general public. 10
1001+
1002+[11–211. 11
1003+
1004+ A licensee may not change the location for which a license is issued unless the 12
1005+licensee: 13
1006+
1007+ (1) Provides to the Commissioner, in the form and in accordance with the 14
1008+process that the Commissioner requires, notice of the proposed change; and 15
1009+
1010+ (2) Receives the written consent of the Commissioner by United States 16
1011+mail, e–mail, or any means provided through NMLS.] 17
1012+
1013+11–211. 18
1014+
1015+ (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED 19
1016+TO BE LISTED IN NMLS UNDER § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNL ESS: 20
1017+
1018+ (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH 21
1019+NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS , 22
1020+NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 23
1021+
1022+ (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 24
1023+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE 25
1024+IN NMLS; AND 26
1025+
1026+ (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 27
1027+OTHERWISE COMPLIES W ITH THIS SUBTITLE. 28
1028+
1029+ (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE 29
1030+LISTED IN NMLS BY § 11–208(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION 30 HOUSE BILL 686 23
1031+
1032+
1033+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE 1
1034+IN NMLS. 2
1035+
1036+11–401. 3
1037+
1038+ (a) In this subtitle the following words have the meanings indicated. 4
1039+
1040+ (b) “Agreement” means an installment sale agreement, a renewed or extended 5
1041+installment sale agreement, and any renewal, extension, or refund agreement made in 6
1042+connection with an installment sale agreement. 7
1043+
1044+ (c) [“Branch location” means any location other than the principal executive office 8
1045+of a licensee or license applicant at which the licensee conducts, or the license applicant, on 9
1046+licensure, will conduct, activities required to be licensed under this subtitle. 10
1047+
1048+ (d)] (1) “Buyer” means a person who buys or leases goods under an installment 11
1049+sale agreement, even though the person has entered into one or more renewal, extension, 12
1050+or refund agreements. 13
1051+
1052+ (2) “Buyer” includes a prospective buyer. 14
1053+
1054+ [(e)] (D) (1) “Collateral security” means any security interest in, 15
1055+encumbrance on, or pledge of property or goods that is given to secure performance of an 16
1056+obligation of a buyer or a surety for a buyer under an agreement. 17
1057+
1058+ (2) “Collateral security” includes the undertaking of a surety for a buyer. 18
1059+
1060+ (3) “Collateral security” does not include any goods or interest in goods that 19
1061+are the subject of an installment sale agreement. 20
1062+
1063+ [(f)] (E) (1) “Control person” means a person who has the power, directly or 21
1064+indirectly, to direct the management or policies of a licensee or license applicant, whether 22
1065+through ownership of securities, by contract, or otherwise. 23
1066+
1067+ (2) “Control person” includes a person who: 24
1068+
1069+ (i) Is a general partner, an officer, a director, or a member of a 25
1070+licensee or license applicant, or occupies a similar position or performs a similar function; 26
1071+
1072+ (ii) Directly or indirectly has the right to vote 20% or more of a class 27
1073+of voting securities, or has the power to sell or direct the sale of 20% or more of a class of 28
1074+voting securities, of a licensee or license applicant; or 29
1075+
1076+ (iii) In the case of a partnership, a limited partnership, a limited 30
1077+liability partnership, a limited liability company, or any other business entity: 31
1078+ 24 HOUSE BILL 686
1079+
1080+
1081+ 1. Has the right to receive on liquidation or dissolution of a 1
1082+licensee or license applicant 20% or more of the capital of the licensee or license applicant; 2
1083+or 3
1084+
1085+ 2. Has contributed 20% or more of the capital of a licensee or 4
1086+license applicant. 5
1087+
1088+ [(g)] (F) (1) “Goods” means all tangible personal property that has a cash 6
1089+price of $25,000 or less. 7
1090+
1091+ (2) “Goods” does not include money or things in action. 8
1092+
1093+ [(h)] (G) (1) “Installment sale agreement” means a contract for the retail sale 9
1094+of consumer goods, negotiated or entered into in this State, under which: 10
1095+
1096+ (i) Part or all of the price is payable in one or more payments after 11
1097+the making of the contract; and 12
1098+
1099+ (ii) The seller takes collateral security or keeps a security interest in 13
1100+the goods sold. 14
1101+
1102+ (2) “Installment sale agreement” includes: 15
1103+
1104+ (i) A prospective installment sale agreement; 16
1105+
1106+ (ii) A purchase money security agreement; and 17
1107+
1108+ (iii) A contract for the bailment or leasing of consumer goods under 18
1109+which the bailee or lessee contracts to pay as compensation a sum that is substantially 19
1110+equal to or is more than the value of the goods. 20
1111+
1112+ (3) “Installment sale agreement” does not include: 21
1113+
1114+ (i) A bona fide C.O.D. transaction or a layaway agreement as 22
1115+defined in § 14–1101(g) of the Commercial Law Article; or 23
1116+
1117+ (ii) A lease for industrial, commercial, or agricultural purposes. 24
1118+
1119+ [(i)] (H) “License” means a license issued in any form by the Commissioner 25
1120+under this subtitle to [engage in] DO business as a sales finance company, including as 26
1121+provided for through NMLS. 27
1122+
1123+ (I) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E 28
1124+IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 29
1125+
1126+ (J) “LICENSED NAME ” MEANS: 30 HOUSE BILL 686 25
1127+
1128+
1129+
1130+ (1) THE LICENSEE’S LEGAL NAME; AND 1
1131+
1132+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH 2
1133+§ 2–121 OF THIS ARTICLE. 3
1134+
1135+ [(i–1)] (K) “Licensee” means a person licensed under this subtitle to [engage in] 4
1136+DO business as a sales finance company. 5
1137+
1138+ [(j)] (L) “Person” includes an individual, corporation, business trust, statutory 6
1139+trust, estate, trust, partnership, association, two or more persons having a joint or common 7
1140+interest, or any other legal or commercial entity. 8
1141+
1142+ [(k)] (M) “Retail sale” means the sale of goods for use or consumption by the 9
1143+buyer or for the benefit or satisfaction that the buyer may derive from the use or 10
1144+consumption of the goods by another, but not for resale by the buyer. 11
1145+
1146+ [(l)] (N) “Sales finance company” means a person who is engaged, whether by 12
1147+purchase, discount, pledge, loan, or otherwise, in the business of acquiring, investing in, or 13
1148+lending money or credit on the security of any interest in: 14
1149+
1150+ (1) An installment sale agreement made between other parties; 15
1151+
1152+ (2) A retail credit account transaction, as defined in § 12–501 of the 16
1153+Commercial Law Article, made between other parties; or 17
1154+
1155+ (3) A transaction that deals with home improvement, as defined in § 8–101 18
1156+of the Business Regulation Article, made between other parties, if collateral security is 19
1157+required by and given to the contractor as a condition to the transaction. 20
1158+
1159+ [(m)] (O) “Security interest” has the meaning stated in § 1–201(37) of the 21
1160+Commercial Law Article. 22
1161+
1162+ [(n)] (P) “Seller” means a person who sells or leases or agrees to sell or lease 23
1163+goods under an installment sale agreement. 24
1164+
1165+ [(o)] (Q) (1) “Surety” includes a guarantor. 25
1166+
1167+ (2) “Surety” does not include a seller who sells, transfers, or assigns an 26
1168+agreement. 27
1169+
1170+ [(p)] (R) “Unique identifier” means a number or another identifier assigned by 28
1171+NMLS. 29
1172+
1173+11–402.1. 30
1174+ 26 HOUSE BILL 686
1175+
1176+
1177+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 1
1178+subtitle and any other fee, investigation fee or assessment, or revenue received by the 2
1179+Commissioner under this subtitle shall be: 3
1180+
1181+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 4
1182+established under [§ 11–610] § 2–120 of this [title] ARTICLE; and 5
1183+
1184+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title] 6
1185+ARTICLE. 7
1186+
1187+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 8
1188+IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THI S SUBTITLE. 9
1189+
1190+11–403. 10
1191+
1192+ (b) A [separate license is required for the principal executive office and each 11
1193+branch location where a person engages in business as a sales finance company] LICENSEE 12
1194+MAY DO BUSINESS AS A SALES FINANCE COMPAN Y ONLY AT A LICENSED LOCATION 13
1195+OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION . 14
1196+
1197+11–404. 15
1198+
1199+ (a) (2) The application shall include: 16
1200+
1201+ (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME 17
1202+USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE; 18
1203+
1204+ (II) THE applicant’s principal executive office address[, and, if]; 19
1205+
1206+ (III) IF the applicant is not an individual, the name and residence 20
1207+address of each control person; 21
1208+
1209+ [(ii)] (IV) The address of each [branch] ADDITIONAL location, if 22
1210+any, THAT: 23
1211+
1212+ 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 24
1213+LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY 25
1214+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 26
1215+COMMUNICATES WITH CUSTO MERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 27
1216+
1217+ 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E 28
1218+OR TECHNOLOGY SYSTEM S; 29
1219+
1220+ 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 30 HOUSE BILL 686 27
1221+
1222+
1223+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 1
1224+
1225+ 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 2
1226+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; and 3
1227+
1228+ [(iii)] (V) Any other pertinent information that the Commissioner 4
1229+requires. 5
1230+
1231+ [(c) For the principal executive office and each branch location license for which 6
1232+an applicant applies, the applicant shall: 7
1233+
1234+ (1) Submit a separate application; and 8
1235+
1236+ (2) Pay a separate investigation fee and license fee.] 9
1237+
1238+11–406. 10
1239+
1240+ (a) In addition to the investigation fee required by § 11–404 of this subtitle, if an 11
1241+applicant [applies for a license for a place of business that is located] REQUESTS ANY 12
1242+LICENSED LOCATION outside of [this] THE State AND THE INVESTIGATIO N INCLUDES 13
1243+TRAVEL TO THAT LOCATION , the applicant shall pay to the Commissioner, on 14
1244+presentation by the Commissioner of a detailed account, the reasonable travel and living 15
1245+expenses incurred on account of the investigation. 16
1246+
1247+[11–408. 17
1248+
1249+ (a) (1) Each license provided for through NMLS shall include the following 18
1250+information: 19
1251+
1252+ (i) The name of the licensee; 20
1253+
1254+ (ii) The address of the location at which the business will be 21
1255+conducted; and 22
1256+
1257+ (iii) The unique identifier of the licensee. 23
1258+
1259+ (2) The unique identifier of the licensee shall constitute the license number 24
1260+for the license. 25
1261+
1262+ (b) (1) A license authorizes the licensee to do business under the license, at the 26
1263+licensed location and under the name stated on the license. 27
1264+
1265+ (2) Only one location may be maintained under any one license. 28
1266+
1267+ (c) Subject to § 11–403(b) of this subtitle, the Commissioner may issue more than 29
1268+one license to an applicant who: 30 28 HOUSE BILL 686
1269+
1270+
1271+
1272+ (1) Conducts activities for which a license is required at more than one 1
1273+branch location; 2
1274+
1275+ (2) Complies with §§ 11–404 and 11–406 of this subtitle; and 3
1276+
1277+ (3) Otherwise meets the requirements of this subtitle.] 4
1278+
1279+11–408. 5
1280+
1281+ (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 6
1282+THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING : 7
1283+
1284+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 8
1285+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 9
1286+
1287+ (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E 10
1288+OFFICE; AND 11
1289+
1290+ (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE 12
1291+THE LICENSEE DOES BU SINESS AND THAT : 13
1292+
1293+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 14
1294+LOCATION THAT DOES B USINESS AS A SALES F INANCE COMPANY , INCLUDING ANY 15
1295+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 16
1296+COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 17
1297+
1298+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 18
1299+TECHNOLOGY SYSTEMS ; 19
1300+
1301+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 20
1302+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 21
1303+
1304+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 22
1305+REGULATIO N THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE . 23
1306+
1307+ (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 24
1308+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 25
1309+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION. 26
1310+
1311+ (C) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE 27
1312+LICENSE NUMBER FOR T HE LICENSE. 28
1313+
1314+ (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE 29 HOUSE BILL 686 29
1315+
1316+
1317+LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS 1
1318+OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION . 2
1319+
1320+11–410. 3
1321+
1322+ (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at 4
1323+[the licensee’s] EACH licensed location the following information: 5
1324+
1325+ (i) The licensee’s unique identifier; and 6
1326+
1327+ (ii) A statement advising consumers of the availability of the NMLS 7
1328+Consumer Access website to verify the licensing status of the licensee. 8
1329+
1330+ (c) A licensee is not required to post the information required in subsection (b)(1) 9
1331+of this section AT A LICENSED LOCATI ON if the licensee does not REGULARLY grant 10
1332+[regular] access to [the] THAT licensed location to members of the general public. 11
1333+
1334+[11–411. 12
1335+
1336+ If a licensee changes the location for which a license is issued, the licensee 13
1337+immediately shall provide to the Commissioner, in the form and in accordance with the 14
1338+process that the Commissioner requires, notice of the change.] 15
1339+
1340+11–411. 16
1341+
1342+ (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED 17
1343+TO BE LISTED IN NMLS UNDER § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNL ESS: 18
1344+
1345+ (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH 19
1346+NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS , 20
1347+NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 21
1348+
1349+ (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 22
1350+IS RECORDED WITH THE INFORMATION ASSO CIATED WITH THE LICE NSEE’S LICENSE 23
1351+IN NMLS; AND 24
1352+
1353+ (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 25
1354+OTHERWISE COMPLIES W ITH THIS SUBTITLE. 26
1355+
1356+ (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE 27
1357+LISTED IN NMLS BY § 11–408(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION 28
1358+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE 29
1359+IN NMLS. 30
1360+ 30 HOUSE BILL 686
1361+
1362+
1363+11–414. 1
1364+
1365+ [(a)] Subject to the hearing provisions of § 11–415 of this subtitle, the 2
1366+Commissioner may suspend or revoke the license of any licensee, if: 3
1367+
1368+ (1) The licensee knowingly or without exercising due care: 4
1369+
1370+ (i) Violates any provision of this subtitle or of any other law that 5
1371+regulates agreements; or 6
1372+
1373+ (ii) Fails to comply with any demand or requirement that the 7
1374+Commissioner makes under this subtitle; 8
1375+
1376+ (2) The licensee makes any material misstatement in an application for a 9
1377+license; 10
1378+
1379+ (3) The licensee defrauds any buyer, to the buyer’s damage; 11
1380+
1381+ (4) The licensee willfully fails to carry out any written agreement with a 12
1382+buyer; 13
1383+
1384+ (5) The licensee knowingly and repeatedly violates any provision of the 14
1385+Maryland Consumer Debt Collection Act; 15
1386+
1387+ (6) An officer, director, or trustee of or partner in the licensee is responsible 16
1388+for any act or omission that would be a ground for suspending or revoking a license; or 17
1389+
1390+ (7) Any agent or employee of the licensee is responsible for any act or 18
1391+omission that would be a ground for suspending or revoking a license, if the licensee: 19
1392+
1393+ (i) Approves or knows of that or similar acts or omissions; and 20
1394+
1395+ (ii) After giving approval or learning of the act or omission, keeps 21
1396+any benefit, proceeds, profit, or advantage resulting from the act or omission or otherwise 22
1397+ratifies the act or omission. 23
1398+
1399+ [(b) If the licensee has more than one place of business, the Commissioner may 24
1400+suspend or revoke only the licenses of the places of business to which the grounds for 25
1401+suspension or revocation relate. However, if the Commissioner suspends or revokes the 26
1402+license of one place of business and finds that the grounds for that action apply to any other 27
1403+place of business, the Commissioner shall take the same action against the license for each 28
1404+other place of business to which the grounds apply.] 29
1405+
1406+11–501. 30
1407+
1408+ (a) In this subtitle the following words have the meanings indicated. 31
1409+ HOUSE BILL 686 31
1410+
1411+
1412+ (F–1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E 1
1413+IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 2
1414+
1415+ (F–2) “LICENSED NAME ” MEANS: 3
1416+
1417+ (1) THE LICENSEE’S LEGAL NAME; AND 4
1418+
1419+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN ACCORDANCE WI TH 5
1420+§ 2–121 OF THIS ARTICLE. 6
1421+
1422+11–503.1. 7
1423+
1424+ (b) The fees established by the Commissioner under this section TOGETHER 8
1425+WITH ANY ASSESSMENTS OF LICENSEES UNDER T HIS SUBTITLE shall be reasonable 9
1426+and set in a manner that will COLLECTIVELY produce funds sufficient to cover the [actual] 10
1427+direct and indirect costs of [regulating] FULFILLING THE STATU TORY AND 11
1428+REGULATORY DUTIES OF THE COMMISSIONER RELATED TO licensees in accordance 12
1429+with [the provisions of] this subtitle. 13
1430+
1431+11–503.2. 14
1432+
1433+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 15
1434+subtitle and any other fee, examination or investigation fee or assessment, or revenue 16
1435+received by the Commissioner under this subtitle shall be: 17
1436+
1437+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 18
1438+established under [§ 11–610] § 2–120 of this [title] ARTICLE; and 19
1439+
1440+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this [title] 20
1441+ARTICLE. 21
1442+
1443+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 22
1444+IMPOSE AN ANNUAL ASSESSMENT ON ANY LI CENSEE UNDER THIS SU BTITLE. 23
1445+
1446+11–505. 24
1447+
1448+ (a) A license issued under this subtitle authorizes the licensee to act as a 25
1449+mortgage lender under the license at [the] ANY licensed [place of business] LOCATION 26
1450+AND UNDER ANY LICENS ED NAME, OR AS OTHERWISE AUTHORIZED BY THE 27
1451+COMMISSIONER THROUGH REGULATION . 28
1452+
1453+ (b) [Only one place of business may be maintained under any one license] 29
1454+EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S OTHERWISE 30
1455+AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , A LICENSEE MAY DO 31
1456+BUSINESS AS A MORTGA GE LENDER ONLY AT A LICENSED LOCATION . 32 32 HOUSE BILL 686
1457+
1458+
1459+
1460+ [(c) A mortgage lender may maintain more than one license under this subtitle 1
1461+provided that a separate application for each license is made pursuant to § 11–507 of this 2
1462+subtitle and the Commissioner approves such application. 3
1463+
1464+ (d) (1) (i) Each license provided for through NMLS shall include the 4
1465+following information: 5
1466+
1467+ 1. The name of the licensee; 6
1468+
1469+ 2. The address at which the business is to be conducted; and 7
1470+
1471+ 3. The unique identifier of the licensee. 8
1472+
1473+ (ii) The unique identifier of the licensee shall constitute the license 9
1474+number for the license. 10
1475+
1476+ (2) A person may not conduct any mortgage loan business at any location 11
1477+or under any name different from the address and name that appears on the person’s 12
1478+license.] 13
1479+
1480+ [(e)] (C) (1) A licensee may not allow any note, or loan contract, mortgage, or 14
1481+evidence of indebtedness secured by a secondary mortgage or deed of trust on a dwelling or 15
1482+residential real estate to be signed or executed at any place [for which the person does not 16
1483+have a license] OTHER THAN A LICENSE D LOCATION, except at the office of: 17
1484+
1485+ (i) The attorney for the borrower or for the licensee; or 18
1486+
1487+ (ii) A title insurance company, a title company, or an attorney for a 19
1488+title insurance company or a title company. 20
1489+
1490+ (2) Notwithstanding paragraph (1) of this subsection, a licensee may 21
1491+conduct the loan closing at another location at the written request of the borrower or the 22
1492+borrower’s designee to accommodate the borrower because of the borrower’s sickness. 23
1493+
1494+ (3) The Commissioner shall adopt regulations to ensure that the loan 24
1495+application process is conducted fairly and in a manner consistent with the best interests 25
1496+of both the borrower and mortgage lender. 26
1497+
1498+ [(f)] (D) A license may be issued under this subtitle to a business entity whose 27
1499+principal EXECUTIVE office is located outside [this] THE State [provided that] IF the 28
1500+business entity maintains a resident agent within the State at all times during the term of 29
1501+the license, regardless of whether: 30
1502+
1503+ (1) The business entity maintains any office within the State; or 31
1504+ HOUSE BILL 686 33
1505+
1506+
1507+ (2) The activities of the business entity constitute doing business or having 1
1508+a tax situs in [this] THE State under the applicable provisions of the Corporations and 2
1509+Associations Article. 3
1510+
1511+ [(g)] (E) A person exempt from licensing under this subtitle who employs a 4
1512+mortgage loan originator licensed under Subtitle 6 of this title shall be registered with [the 5
1513+Nationwide Mortgage Licensing System and Registry] NMLS. 6
1514+
1515+ (F) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 7
1516+THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING : 8
1517+
1518+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 9
1519+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 10
1520+
1521+ (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E 11
1522+OFFICE; AND 12
1523+
1524+ (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE 13
1525+THE LICENSEE DOES BU SINESS AND THAT: 14
1526+
1527+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 15
1528+LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY 16
1529+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 17
1530+COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 18
1531+
1532+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 19
1533+TECHNOLOGY SYSTEMS ; 20
1534+
1535+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 21
1536+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 22
1537+
1538+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 23
1539+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE . 24
1540+
1541+ (G) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 25
1542+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 26
1543+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (F) OF THIS SECTION. 27
1544+
1545+ (H) THE UNIQUE IDENTIFIER OF THE LICENSEE SHAL L CONSTITUTE THE 28
1546+LICENSE NUMBER FOR T HE LICENSE. 29
1547+
1548+ (I) A LICENSEE MAY NOT CON DUCT ANY BUSINESS AS A MORTGAGE 30
1549+LENDER: 31
1550+ 34 HOUSE BILL 686
1551+
1552+
1553+ (1) UNDER ANY NAME OTHER THAN A LICENSED NAME ; OR 1
1554+
1555+ (2) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION OR A S 2
1556+OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION , AT A 3
1557+LOCATION OTHER THAN A LICENSED LOCATION . 4
1558+
1559+11–506.1. 5
1560+
1561+ (b) In connection with an initial application for a license under § 11–507 of this 6
1562+subtitle, and at any other time the Commissioner requests, an applicant or licensee shall 7
1563+provide to [the Nationwide Mortgage Licensing System and Registry] NMLS information 8
1564+concerning the applicant’s identity, including: 9
1565+
1566+ (1) Fingerprints for submission to the Federal Bureau of Investigation, and 10
1567+any other governmental agency or entity authorized to receive this information, for a state, 11
1568+national, or international criminal history background check; and 12
1569+
1570+ (2) Personal history and experience in a form prescribed by [the 13
1571+Nationwide Mortgage Licensing System and Registry] NMLS, including the submission of 14
1572+authorization for [the Nationwide Mortgage Licensing System and Registry] NMLS and 15
1573+the Commissioner to obtain: 16
1574+
1575+ (i) An independent credit report from a consumer reporting agency 17
1576+described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and 18
1577+
1578+ (ii) Information related to any administrative, civil, or criminal 19
1579+findings by any governmental jurisdiction. 20
1580+
1581+ (c) The Commissioner may request from the Federal Bureau of Investigation or 21
1582+[the Nationwide Mortgage Licensing System and Registry] NMLS, as applicable, for each 22
1583+applicant or licensee who is required to provide fingerprints under subsection (b) of this 23
1584+section: 24
1585+
1586+ (1) (i) The state, national, or international criminal history records of 25
1587+the applicant or licensee; and 26
1588+
1589+ (ii) A printed statement listing any conviction or other disposition of, 27
1590+and any plea of guilty or nolo contendere to, any criminal charge; 28
1591+
1592+ (2) (i) An update of the initial criminal history records check or 29
1593+criminal history background check of the applicant or licensee; and 30
1594+
1595+ (ii) A revised statement listing any conviction or other disposition of, 31
1596+and any plea of guilty or nolo contendere to, any criminal charge occurring after the date 32
1597+of the initial criminal history records check or criminal history background check; and 33
1598+ HOUSE BILL 686 35
1599+
1600+
1601+ (3) An acknowledged receipt of the application for a criminal history 1
1602+records check or criminal history background check of the applicant or licensee. 2
1603+
1604+ (d) An applicant or licensee who is required to provide fingerprints under 3
1605+subsection (b) of this section shall pay any processing or other fees required by the Federal 4
1606+Bureau of Investigation and [the Nationwide Mortgage Licensing System and Registry] 5
1607+NMLS. 6
1608+
1609+ (e) To implement this subtitle, the Commissioner may use [the Nationwide 7
1610+Mortgage Licensing System and Registry] NMLS as a channeling agent to request 8
1611+information from and distribute information to the Department of Justice, any other 9
1612+governmental agency with subject matter jurisdiction, and any other state licensing entity 10
1613+that has loan originators registered with [the Nationwide Mortgage Licensing System and 11
1614+Registry] NMLS. 12
1615+
1616+11–507. 13
1617+
1618+ (a) (1) To apply for a license, an applicant shall: 14
1619+
1620+ (i) Complete, sign, and submit to the Commissioner an application 15
1621+made under oath in the form, and in accordance with the process, that the Commissioner 16
1622+requires; and 17
1623+
1624+ (ii) Provide all information that the Commissioner requests. 18
1625+
1626+ (2) THE APPLICATION SHALL INCLUDE: 19
1627+
1628+ (I) THE APPLICANT’S LEGAL NAME AND ANY TRADE NAME USED 20
1629+BY THE APPLICANT IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE; 21
1630+
1631+ (II) THE APPLICANT’S PRINCIPAL EXECUTIV E OFFICE ADDRESS ; 22
1632+
1633+ (III) IF THE APPLICANT IS N OT AN INDIVIDUAL, THE NAME AND 23
1634+RESIDENCE ADDRESS OF EACH CONTROL PERSON ; 24
1635+
1636+ (IV) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, 25
1637+THAT: 26
1638+
1639+ 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 27
1640+LOCATION THAT DOES B USINESS AS A MORTGAG E LENDER, INCLUDING ANY 28
1641+LOCATION THAT INVESTIGATES CUSTOMER COMPLAINTS OR DIRECTLY 29
1642+COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 30
1643+
1644+ 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E 31
1645+OR TECHNOLOGY SYSTEM S; 32 36 HOUSE BILL 686
1646+
1647+
1648+
1649+ 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 1
1650+SECURITY AND TECHNOLOGY , RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 2
1651+
1652+ 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 3
1653+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND 4
1654+
1655+ (V) ANY OTHER PERTINENT I NFORMATION THAT THE 5
1656+COMMISSIONER REQUIRES . 6
1657+
1658+ (3) The applicant shall comply with all conditions and provisions of the 7
1659+application for licensure and be issued a license before acting as a mortgage lender [at a 8
1660+particular location]. 9
1661+
1662+ (b) [With each application, the] THE applicant shall pay to the Commissioner the 10
1663+following fees: 11
1664+
1665+ (1) A nonrefundable investigation fee set by the Commissioner; and 12
1666+
1667+ (2) A nonrefundable license fee set by the Commissioner. 13
1668+
1669+ (c) In addition to the license fee required under subsection (b)(2) of this section, 14
1670+an applicant for an initial license shall pay to [the Nationwide Mortgage Licensing System 15
1671+and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System and 16
1672+Registry] NMLS imposes in connection with the application. 17
1673+
1674+ (d) [For each license for which an applicant applies, the applicant shall: 18
1675+
1676+ (1) Submit a separate application; 19
1677+
1678+ (2) Pay a separate nonrefundable license fee; 20
1679+
1680+ (3) Pay any application processing fee or other fees that the Nationwide 21
1681+Mortgage Licensing System and Registry imposes in connection with the application; 22
1682+
1683+ (4) If applicable, pay the surcharge; and 23
1684+
1685+ (5) File a separate surety bond or other financial guaranty under § 11–508 24
1686+of this subtitle. 25
1687+
1688+ (e)] In addition to any sanctions that may be imposed under this subtitle by the 26
1689+Commissioner, a nonrefundable surcharge of $500 shall be paid [with]: 27
1690+
1691+ (1) WITH an application if the applicant has begun acting as a mortgage 28
1692+lender without a license [at the location for which an application is filed]; AND 29 HOUSE BILL 686 37
1693+
1694+
1695+
1696+ (2) BY A LICENSEE IF THE LICENSEE HAS ACTED A S A MORTGAGE 1
1697+LENDER AT A LOCATION THAT IS NOT A LICENS ED LOCATION. 2
1698+
1699+ [(f)] (E) A person who knowingly makes a false statement under oath on an 3
1700+application filed with the Commissioner under this section is guilty of perjury and on 4
1701+conviction is subject to the penalties of § 9–101 of the Criminal Law Article. 5
1702+
1703+11–508. 6
1704+
1705+ (a) With the application for a [new] license, an applicant shall file a surety bond 7
1706+with the Commissioner. 8
1707+
1708+ [(c) (1) If an applicant has not conducted a mortgage lending business any time 9
1709+during the 36 months prior to the filing of an original application for a license, the applicant 10
1710+shall provide a sworn statement setting forth that fact. 11
1711+
1712+ (2) If an applicant has conducted a mortgage lending business any time 12
1713+during the 36 months prior to the filing of an original application, the applicant shall 13
1714+provide a sworn statement setting forth the aggregate principal amount of mortgage loans 14
1715+secured or to be secured by property located in Maryland and applied for and accepted or 15
1716+serviced or mortgage loans secured or to be secured by property located in Maryland and 16
1717+applied for, procured, and accepted or serviced by the mortgage lender during the 12 17
1718+months immediately preceding the month in which the application is filed. 18
1719+
1720+ (3) If an applicant has conducted a mortgage lending business any time 19
1721+during the 36 months prior to the filing of an original application, but during that time has 20
1722+not acted as a mortgage lender in Maryland, the applicant shall provide with the original 21
1723+application a sworn statement setting forth the aggregate principal amount of loans 22
1724+secured or to be secured by a dwelling or residential real estate located in states other than 23
1725+Maryland and applied for, procured, and accepted or serviced by the mortgage lender 24
1726+during the 12 months preceding the month in which the application is filed. 25
1727+
1728+ (4) Except as provided in subsection (d) of this section, the applicant shall 26
1729+file with the original application: 27
1730+
1731+ (i) Where the aggregate principal amount of loans set forth in the 28
1732+sworn statement was $3,000,000 or less, a surety bond in the amount of $50,000; 29
1733+
1734+ (ii) Where the aggregate principal amount of loans set forth in the 30
1735+sworn statement was more than $3,000,000 but not more than $10,000,000, a surety bond 31
1736+in the amount of $100,000; and 32
1737+
1738+ (iii) Where the aggregate principal amount of loans set forth in the 33
1739+sworn statement was more than $10,000,000, a surety bond in the amount of $150,000.] 34
1740+ 38 HOUSE BILL 686
1741+
1742+
1743+ (C) (1) THE AMOUNT OF THE SUR ETY BOND UNDE R SUBSECTION (B) OF 1
1744+THIS SECTION SHALL B E IN AN AMOUNT OF NO T LESS THAN $50,000 AND NOT MORE 2
1745+THAN $750,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE. 3
1746+
1747+ (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE 4
1748+COMMISSIONER MAY CONS IDER: 5
1749+
1750+ (I) THE NATURE AND VOLUME OF TH E BUSINESS OR PROPOS ED 6
1751+BUSINESS OF THE LICE NSEE OR APPLICANT ; 7
1752+
1753+ (II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R 8
1754+APPLICANT, INCLUDING: 9
1755+
1756+ 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF 10
1757+THE ASSETS OF THE LI CENSEE OR APPLICANT ; 11
1758+
1759+ 2. THE AMOUNT AND NATURE OF THE LIABILITIES , 12
1760+INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT; 13
1761+
1762+ 3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE 14
1763+OR APPLICANT TO EARN AND RETAIN INCOME ; AND 15
1764+
1765+ 4. THE POTENTIAL HARM TO CONSUMERS IF THE 16
1766+APPLICANT OR LICENSEE BECOMES FINANCIALLY IMPAIRED; 17
1767+
1768+ (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR 18
1769+APPLICANT; 19
1770+
1771+ (IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR 20
1772+APPLICANT; 21
1773+
1774+ (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS 22
1775+CONTROL OF THE LICENSEE OR APPL ICANT; AND 23
1776+
1777+ (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S 24
1778+RELEVANT. 25
1779+
1780+ [(d) Notwithstanding any other provisions of this section, and subject to approval 26
1781+by the Commissioner, if an applicant files five or more original or renewal applications at 27
1782+the same time, the applicant may provide a blanket surety bond for all licensed offices in 28
1783+the amount of $750,000.] 29
1784+
1785+ [(e)] (D) Subject to approval by the Commissioner, an applicant for license who 30
1786+files an application for a new license may satisfy the bonding requirement under this 31 HOUSE BILL 686 39
1787+
1788+
1789+section by establishing a trust account with or obtaining an irrevocable letter of credit from 1
1790+a financial institution insured by the Federal Deposit Insurance Corporation in an amount 2
1791+equal to the bond required under this section. 3
1792+
1793+ [(f)] (E) (1) The Commissioner may adopt regulations reasonably necessary 4
1794+to assure that the proper surety bond amount established by this section is maintained by 5
1795+each licensee throughout each licensing term. 6
1796+
1797+ (2) The regulations may provide for periodic reporting, recalculation, and 7
1798+enforcement of required bond amounts. 8
1799+
1800+ [(g)] (F) If a mortgage servicer is subject to a receivership proceeding, the 9
1801+Commissioner or a receiver appointed under § 7–404.1(b)(2) or § 7–506(b) of the Real 10
1802+Property Article, without regard to any priorities, preferences, or adverse claims, may: 11
1803+
1804+ (1) Reduce the bond or the deposit in lieu of a bond to cash; and 12
1805+
1806+ (2) Use the cash to defray the costs associated with the receivership. 13
1807+
1808+11–511. 14
1809+
1810+ (a) Subject to any regulations the Commissioner adopts in connection with the 15
1811+transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, an initial 16
1812+license term shall: 17
1813+
1814+ (1) Begin on the day the license is issued; and 18
1815+
1816+ (2) Expire on December 31 of the year: 19
1817+
1818+ (i) The license is issued, if the license is issued before November 1; 20
1819+or 21
1820+
1821+ (ii) Succeeding the year that the license is issued, if the license is 22
1822+issued on or after November 1. 23
1823+
1824+ (c) Subject to any regulations the Commissioner adopts in connection with the 24
1825+transition to [the Nationwide Mortgage Licensing System and Registry] NMLS, a renewal 25
1826+term shall: 26
1827+
1828+ (1) Be for a period of 1 year; 27
1829+
1830+ (2) Begin on January 1 of each year after the initial term; and 28
1831+
1832+ (3) Expire on December 31 of the year the renewal term begins. 29
1833+
1834+ (d) In addition to the license renewal fee required under subsection (b)(2) of this 30 40 HOUSE BILL 686
1835+
1836+
1837+section, an applicant for a license renewal shall pay to [the Nationwide Mortgage Licensing 1
1838+System and Registry] NMLS any fees that [the Nationwide Mortgage Licensing System 2
1839+and Registry] NMLS imposes in connection with the renewal application. 3
1840+
1841+11–512. 4
1842+
1843+ [(a) (1) A licensee may not change the place of business for which a license is 5
1844+issued unless the licensee: 6
1845+
1846+ (i) Notifies the Commissioner through NMLS of the proposed 7
1847+change; and 8
1848+
1849+ (ii) Receives the approval of the Commissioner through NMLS. 9
1850+
1851+ (2) Within 60 days after receiving a request for approval of a proposed 10
1852+change in the place of business for a licensee, the Commissioner shall approve or deny the 11
1853+request. 12
1854+
1855+ (3) If the Commissioner does not approve or deny a request for approval of 13
1856+a proposed change in the place of business for a licensee as provided under paragraph (2) 14
1857+of this subsection, the request shall be deemed approved.] 15
1858+
1859+ (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED 16
1860+TO BE LISTED IN NMLS UNDER § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNL ESS: 17
1861+
1862+ (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH 18
1863+NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS, 19
1864+NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 20
1865+
1866+ (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 21
1867+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE ’S LICENSE 22
1868+IN NMLS; AND 23
1869+
1870+ (3) THE ADDITION, DELETION, OR MODIFICATI ON OF THE LOCATION 24
1871+OTHERWISE COMPLIES W ITH THIS SUBTITLE. 25
1872+
1873+ (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED TO BE 26
1874+LISTED IN NMLS BY § 11–505(F)(2) OR (3) OF THIS SUBTITLE UNT IL THE LOCATION 27
1875+IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE LICENSEE’S LICENSE 28
1876+IN NMLS. 29
1877+
1878+ [(b)] (C) (1) A licensee may not undergo a change in control unless the 30
1879+licensee: 31
1880+
1881+ (i) Notifies the Commissioner through NMLS of the proposed 32 HOUSE BILL 686 41
1882+
1883+
1884+change; 1
1885+
1886+ (ii) Makes a request through NMLS that the Commissioner approve 2
1887+the proposed change; 3
1888+
1889+ (iii) Provides any information the Commissioner may require under 4
1890+paragraph (3) of this subsection; and 5
1891+
1892+ (iv) Receives the approval of the Commissioner through NMLS. 6
1893+
1894+ (2) For purposes of this subsection: 7
1895+
1896+ (i) If the licensee is a corporation, “control” means direct or indirect 8
1897+ownership of, or the right to control, 25% or more of the voting shares of the licensee, or the 9
1898+ability to elect a majority of the directors or otherwise effect a change in policy; and 10
1899+
1900+ (ii) If the licensee is an entity other than a corporation, “control” 11
1901+means the possession, directly or indirectly, of the power to direct or cause the direction of 12
1902+the management and policies of the licensee, whether through the ownership of voting 13
1903+securities, by contract, or otherwise. 14
1904+
1905+ (3) Within 60 days after receiving a request for approval of a proposed 15
1906+change in control, the Commissioner may require the licensee to provide any information 16
1907+deemed necessary to determine whether a new application is required because of the 17
1908+proposed change in control. 18
1909+
1910+ (4) The Commissioner shall approve or deny a request for approval of a 19
1911+proposed change in control: 20
1912+
1913+ (i) Within 60 days after the date the Commissioner receives the 21
1914+request; or 22
1915+
1916+ (ii) If the Commissioner requests information from the licensee 23
1917+under paragraph (3) of this subsection, within 60 days after the date the information is 24
1918+received by the Commissioner. 25
1919+
1920+ (5) If the Commissioner does not approve or deny a request for approval of 26
1921+a proposed change in control as provided under paragraph (4) of this subsection, the request 27
1922+shall be deemed approved. 28
1923+
1924+ [(c)] (D) In addition to any sanctions which may be imposed under this subtitle 29
1925+by the Commissioner, a licensee who fails to provide in a timely manner the notice required 30
1926+under subsection (a)(1) or [(b)(1)] (C)(1) of this section shall: 31
1927+
1928+ (1) For each such failure pay to the Commissioner a surcharge in the 32
1929+amount of $500; and 33
1930+ 42 HOUSE BILL 686
1931+
1932+
1933+ (2) For a licensee who fails to provide in a timely manner the notice 1
1934+required under subsection [(b)(1)] (C)(1) of this section, file with the Commissioner an 2
1935+application for a new license, together with all applicable application and investigation fees. 3
1936+
1937+11–512.1. 4
1938+
1939+ (a) Each licensee shall conspicuously post, in 48 point or larger type, at [the 5
1940+licensee’s] EACH licensed location the following information: 6
1941+
1942+ (1) The licensee’s unique identifier; and 7
1943+
1944+ (2) A statement advising consumers of the availability of the NMLS 8
1945+Consumer Access website to verify the licensing status of the licensee. 9
1946+
1947+ (c) A licensee is not required to post the information required in subsection (a) of 10
1948+this section AT A LICENSED LOCATI ON if the licensee does not regularly grant access to 11
1949+[the] THAT licensed location to members of the general public. 12
1950+
1951+11–513. 13
1952+
1953+ (a) Each licensee shall keep and make available to the Commissioner at the 14
1954+licensee’s [place of business] LICENSED LOCATION any books and records that the 15
1955+Commissioner, by rule or regulation, requires to enable the Commissioner to enforce: 16
1956+
1957+ (1) This subtitle; 17
1958+
1959+ (2) Any rule or regulation adopted under this subtitle; and 18
1960+
1961+ (3) Any other provision regulating the application, making, brokering, or 19
1962+servicing of mortgage loans under Titles 12 through 14 of the Commercial Law Article. 20
1963+
1964+ (b) Subject to approval by the Commissioner, nothing in this section is to be 21
1965+construed to prohibit a licensee from maintaining duplicate records or electronic 22
1966+equivalents at the licensee’s [place of business] LICENSED LOCATION . 23
1967+
1968+ (c) Notwithstanding subsection (a) of this section, on approval of the 24
1969+Commissioner, a licensee need not keep at the licensee’s [place of business] LICENSED 25
1970+LOCATION any books and records otherwise required by the Commissioner under 26
1971+subsection (a) of this section if the licensee: 27
1972+
1973+ (1) Makes the books and records available to the Commissioner at the 28
1974+licensee’s [place of business] LICENSED LOCATION within 5 business days [of] AFTER the 29
1975+Commissioner’s official request; and 30
1976+
1977+ (2) Retains the records for at least 61 months in a storage facility disclosed 31
1978+to the Commissioner. 32 HOUSE BILL 686 43
1979+
1980+
1981+
1982+11–601. 1
1983+
1984+ (a) In this subtitle the following words have the meanings indicated. 2
1985+
1986+ (f) “Fund” means the [Nondepository] NON–DEPOSITORY Special Fund 3
1987+established under [§ 11–610] § 2–120 of this [subtitle] ARTICLE. 4
1988+
1989+11–602. 5
1990+
1991+ (c) Each licensee shall obtain and maintain a valid unique identifier issued by 6
1992+[the Nationwide Mortgage Licensing System and Registry] NMLS: 7
1993+
1994+ (1) On obtaining an initial or renewal license on or after July 1, 2009; or 8
1995+
1996+ (2) If the Commissioner has not joined [the Nationwide Mortgage 9
1997+Licensing System and Registry] NMLS as of July 1, 2009, on or after the date that the 10
1998+Commissioner joins, as instructed by the Commissioner by notice to the licensee. 11
1999+
2000+[11–610. 12
2001+
2002+ (a) There is a Nondepository Special Fund that consists of: 13
2003+
2004+ (1) Revenue received for the licensing of individuals under this subtitle; 14
2005+
2006+ (2) Revenue received for the licensing of persons under Subtitle 2 of this 15
2007+title; 16
2008+
2009+ (3) Revenue received for the licensing of persons under Subtitle 3 of this 17
2010+title; 18
2011+
2012+ (4) Revenue received for the licensing of persons under Subtitle 4 of this 19
2013+title; 20
2014+
2015+ (5) Revenue received for the licensing of persons under Subtitle 5 of this 21
2016+title; 22
2017+
2018+ (6) Revenue received for the licensing of persons under Title 12, Subtitle 1 23
2019+of this article; 24
2020+
2021+ (7) Revenue received for the licensing of persons under Title 12, Subtitle 4 25
2022+of this article; 26
2023+
2024+ (8) Revenue received for the licensing of persons under Title 12, Subtitle 9 27
2025+of this article; 28
2026+ 44 HOUSE BILL 686
2027+
2028+
2029+ (9) Revenue received for the registration of persons under Title 12, Subtitle 1
2030+10 of this article; 2
2031+
2032+ (10) Revenue received for the licensing of persons under Title 7 of the 3
2033+Business Regulation Article; 4
2034+
2035+ (11) Revenue received for the licensing of persons under Title 14, Subtitle 5
2036+19 of the Commercial Law Article; 6
2037+
2038+ (12) Income from the investments that the State Treasurer makes for the 7
2039+Fund; and 8
2040+
2041+ (13) (i) Any other fee, examination or investigation fee or assessment, or 9
2042+revenue received by the Commissioner under this subtitle, Subtitles 2, 3, 4, and 5 of this 10
2043+title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the Commercial 11
2044+Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article; and 12
2045+
2046+ (ii) Any other fee or revenue received by the State Collection Agency 13
2047+Licensing Board under Title 7 of the Business Regulation Article. 14
2048+
2049+ (b) Notwithstanding subsection (a) of this section: 15
2050+
2051+ (1) The Commissioner shall pay all fines and penalties collected by the 16
2052+Commissioner under Title 2, Subtitle 1 of this article, this subtitle, Subtitles 2, 3, 4, and 5 17
2053+of this title, Title 12, Subtitles 1, 4, 9, and 10 of this article, Title 12, Subtitle 14 of the 18
2054+Commercial Law Article, and Title 14, Subtitles 12 and 19 of the Commercial Law Article 19
2055+into the General Fund of the State; and 20
2056+
2057+ (2) The State Collection Agency Licensing Board shall pay all fines and 21
2058+penalties collected by the Board under Title 7 of the Business Regulation Article into the 22
2059+General Fund of the State. 23
2060+
2061+ (c) The purpose of the Fund is to cover the direct and indirect costs of fulfilling 24
2062+the statutory and regulatory duties of the Commissioner and the State Collection Agency 25
2063+Licensing Board related to: 26
2064+
2065+ (1) Title 2, Subtitle 1 of this article; 27
2066+
2067+ (2) This subtitle; 28
2068+
2069+ (3) Subtitle 2 of this title; 29
2070+
2071+ (4) Subtitle 3 of this title; 30
2072+
2073+ (5) Subtitle 4 of this title; 31
2074+
2075+ (6) Subtitle 5 of this title; 32 HOUSE BILL 686 45
2076+
2077+
2078+
2079+ (7) Title 12, Subtitle 1 of this article; 1
2080+
2081+ (8) Title 12, Subtitle 4 of this article; 2
2082+
2083+ (9) Title 12, Subtitle 9 of this article; 3
2084+
2085+ (10) Title 12, Subtitle 10 of this article; 4
2086+
2087+ (11) Title 7 of the Business Regulation Article; 5
2088+
2089+ (12) Title 12 of the Commercial Law Article; 6
2090+
2091+ (13) Title 14, Subtitles 12, 19, and 42 of the Commercial Law Article; 7
2092+
2093+ (14) Title 7, Subtitles 1, 3, 4, and 5 of the Real Property Article; 8
2094+
2095+ (15) Title 26, Subtitle 6 of the Education Article; and 9
2096+
2097+ (16) Any other expense authorized in the State budget. 10
2098+
2099+ (d) (1) The annual State budget shall include the costs and expenses of the 11
2100+Commissioner and the State Collection Agency Licensing Board relating to subsection (c) 12
2101+of this section. 13
2102+
2103+ (2) Any expenditures from the Fund to cover costs and expenses of the 14
2104+Commissioner and the State Collection Agency Licensing Board relating to subsection (c) 15
2105+of this section may be made only: 16
2106+
2107+ (i) With an appropriation from the Fund approved by the General 17
2108+Assembly in the annual State budget; or 18
2109+
2110+ (ii) By the budget amendment procedure provided for in § 7–209 of 19
2111+the State Finance and Procurement Article. 20
2112+
2113+ (3) If, in any fiscal year, the amount of the revenue collected by the 21
2114+Commissioner and the State Collection Agency Licensing Board and deposited into the 22
2115+Fund exceeds the actual appropriation for the Commissioner and the State Collection 23
2116+Agency Licensing Board under paragraph (2)(i) of this subsection, the excess amount shall 24
2117+be carried forward within the Fund. 25
2118+
2119+ (e) (1) The State Treasurer is the custodian of the Fund. 26
2120+
2121+ (2) The State Treasurer shall deposit payments received from the 27
2122+Commissioner into the Fund. 28
2123+
2124+ (f) (1) (i) The Fund is a special, nonlapsing fund that is not subject to § 29 46 HOUSE BILL 686
2125+
2126+
2127+7–302 of the State Finance and Procurement Article. 1
2128+
2129+ (ii) The Fund may not be deemed a part of the General Fund of the 2
2130+State. 3
2131+
2132+ (2) Unless otherwise provided by law, no part of the Fund may revert or be 4
2133+credited to: 5
2134+
2135+ (i) The General Fund of the State; or 6
2136+
2137+ (ii) Any other special fund of the State.] 7
2138+
2139+11–612.1. 8
2140+
2141+ (a) The Commissioner shall set by regulation the fees provided for in this subtitle. 9
2142+
2143+ (b) The fees established by the Commissioner under this section shall be 10
2144+reasonable and set in a manner that will produce funds sufficient to cover the actual direct 11
2145+and indirect costs of regulating licensees in accordance with the provisions of this subtitle. 12
2146+
2147+ (c) The Commissioner shall publish the fee schedule set by the Commissioner. 13
2148+
2149+ (D) ALL REVENUE RECEIVED FOR THE LICENSING AN D ASSESSMENT OF 14
2150+PERSONS UNDER THIS S UBTITLE AND ANY OTHE R FEE OR REVENUE THE 15
2151+COMMISSIONER RECEIVES UNDER THIS SUBTITLE SHALL BE: 16
2152+
2153+ (1) CREDITED TO THE FUND; AND 17
2154+
2155+ (2) USED IN ACCORDANCE WI TH § 2–120(D) OF THIS ARTICLE. 18
2156+
2157+ (E) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 19
2158+IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE. 20
2159+
2160+12–101. 21
2161+
2162+ (a) In this subtitle the following words have the meanings indicated. 22
2163+
2164+ (b) [“Branch location” means any location other than the principal executive office 23
2165+of a licensee or license applicant at which the licensee conducts, or the license applicant, on 24
2166+licensure, will conduct, activities required to be licensed under this subtitle. 25
2167+
2168+ (c)] (1) “Control person” means a person who has the power, directly or 26
2169+indirectly, to direct the management or policies of a licensee or license applicant, whether 27
2170+through ownership of securities, by contract, or otherwise. 28
2171+
2172+ (2) “Control person” includes a person who: 29 HOUSE BILL 686 47
2173+
2174+
2175+
2176+ (i) Is a general partner, an officer, a director, or a member, or 1
2177+occupies a similar position or performs a similar function; 2
2178+
2179+ (ii) Directly or indirectly has the right to vote 5% or more of a class 3
2180+of voting securities, or has the power to sell or direct the sale of 5% or more of a class of 4
2181+voting securities, of a licensee or license applicant; or 5
2182+
2183+ (iii) In the case of a partnership, a limited partnership, a limited 6
2184+liability partnership, a limited liability company, or any other business entity: 7
2185+
2186+ 1. Has the right to receive on liquidation or dissolution of a 8
2187+licensee or license applicant 5% or more of the capital of the licensee or license applicant; 9
2188+or 10
2189+
2190+ 2. Has contributed 5% or more of the capital of a licensee or 11
2191+license applicant. 12
2192+
2193+ [(d)] (C) “Exempt entity” means an entity that is exempt from all requirements 13
2194+of licensing as provided under § 12–103(b) and (c) of this subtitle. 14
2195+
2196+ [(e)] (D) “License” means a license issued in any form by the Commissioner 15
2197+under this subtitle to provide check cashing services, including as provided for through 16
2198+NMLS. 17
2199+
2200+ (E) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE 18
2201+LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 19
2202+
2203+ (2) “LICENSED LOCATION” INCLUDES A MOBILE UN IT. 20
2204+
2205+ (F) “LICENSED NAME ” MEANS: 21
2206+
2207+ (1) THE LICENSEE’S LEGAL NAME; AND 22
2208+
2209+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH 23
2210+§ 2–121 OF THIS ARTICLE. 24
2211+
2212+ [(f)] (G) “Licensee” means a person licensed under this subtitle to provide check 25
2213+cashing services. 26
2214+
2215+ [(g)] (H) “Mobile unit” means a motor vehicle or other movable means from 27
2216+which check cashing services are provided. 28
2217+
2218+ [(h)] (I) (1) “Payment instrument” means a check or a draft ordering a 29
2219+person to pay money. 30
2220+ 48 HOUSE BILL 686
2221+
2222+
2223+ (2) “Payment instrument” includes a money order. 1
2224+
2225+ [(i)] (J) “Provide check cashing services” means to accept or cash, for 2
2226+compensation, a payment instrument regardless of the date of the payment instrument. 3
2227+
2228+ [(j)] (K) “Unique identifier” means a number or another identifier assigned by 4
2229+NMLS. 5
2230+
2231+12–104.1. 6
2232+
2233+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 7
2234+subtitle and any other fee or revenue received by the Commissioner under this subtitle 8
2235+shall be: 9
2236+
2237+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 10
2238+established under [§ 11–610] § 2–120 of this article; and 11
2239+
2240+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article. 12
2241+
2242+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 13
2243+IMPOSE AN ANNUA L ASSESSMENT ON ANY LICENSEE UNDER THIS SUBTITLE. 14
2244+
2245+12–105. 15
2246+
2247+ (b) A [separate license is required for the principal executive office of the license 16
2248+applicant or licensee at which, each branch location at which, and each mobile unit from 17
2249+which, a person provides check cashing services] LICENSEE MAY PROVIDE CHECK 18
2250+CASHING SERVICES ONL Y AT A LICENSED LOCA TION OR AS OTHERWISE AUTHORIZED 19
2251+BY THE COMMISSIONER THROUGH REGULATION . 20
2252+
2253+12–106. 21
2254+
2255+ To qualify for a license, an applicant shall satisfy the Commissioner that: 22
2256+
2257+ (1) The applicant’s business will promote the convenience and advantage 23
2258+of the [community in which] COMMUNITIES WHERE the [applicant’s place of business, or 24
2259+mobile unit, will be located] APPLICANT WILL OPERA TE A LICENSED LOCATI ON 25
2260+OFFERING CHECK CASHI NG SERVICES; and 26
2261+
2262+ (2) The applicant or, if the applicant is not an individual, each of the 27
2263+owners, officers, directors, or principals of the entity: 28
2264+
2265+ (i) Has sufficient experience, character, financial responsibility, and 29
2266+general fitness to: 30
2267+
2268+ 1. Command the confidence of the public; and 31 HOUSE BILL 686 49
2269+
2270+
2271+
2272+ 2. Warrant the belief that the business will be operated 1
2273+lawfully, honestly, fairly, and efficiently; and 2
2274+
2275+ (ii) Has not committed any act that would be a ground for suspension 3
2276+or revocation of a license under this subtitle. 4
2277+
2278+12–108. 5
2279+
2280+ (a) (2) The application shall include: 6
2281+
2282+ (i) The applicant’s LEGAL name[, the] AND ANY TRADE NAME 7
2283+USED BY THE APPLICAN T IN ACCORDANCE WITH § 2–121 OF THIS ARTICLE; 8
2284+
2285+ (II) THE applicant’s principal executive office address[, and, if]; 9
2286+
2287+ (III) IF the applicant is not an individual, the name and residence 10
2288+address of each control person; 11
2289+
2290+ [(ii)] (IV) The address of each [branch] ADDITIONAL location, if 12
2291+any, THAT: 13
2292+
2293+ 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 14
2294+LOCATION THAT PROVIDES CHECK C ASHING SERVICES , INCLUDING ANY LOCATI ON 15
2295+THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH 16
2296+CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 17
2297+
2298+ 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E 18
2299+OR TECHNOLOGY SYSTEM S; 19
2300+
2301+ 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 20
2302+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 21
2303+
2304+ 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 22
2305+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; 23
2306+
2307+ [(iii)] (V) If the [license is for] LICENSEE OPERATES a mobile unit, 24
2308+the vehicle identification number of [the] EACH mobile unit and the geographic area [in 25
2309+which the] WHERE EACH mobile unit will be operating; and 26
2310+
2311+ [(iv)] (VI) Any other information that the Commissioner requires for 27
2312+an investigation and findings under § 12–109 of this subtitle. 28
2313+
2314+ [(c) For the principal executive office, each branch location, and each mobile unit 29
2315+license for which an applicant applies, the applicant shall: 30 50 HOUSE BILL 686
2316+
2317+
2318+
2319+ (1) Submit a separate application; and 1
2320+
2321+ (2) Pay a separate investigation fee and license fee.] 2
2322+
2323+[12–110. 3
2324+
2325+ (a) (1) Each license provided for through NMLS shall include the following 4
2326+information: 5
2327+
2328+ (i) The name of the licensee; 6
2329+
2330+ (ii) 1. The address of the location at which check cashing services 7
2331+will be provided; or 8
2332+
2333+ 2. If the license is for a mobile unit, the vehicle identification 9
2334+number of the mobile unit and the geographic area in which check cashing services will be 10
2335+provided; and 11
2336+
2337+ (iii) The unique identifier of the licensee. 12
2338+
2339+ (2) The unique identifier of the licensee shall constitute the license number 13
2340+for the license. 14
2341+
2342+ (b) (1) A license authorizes the licensee to provide check cashing services 15
2343+under the name stated on the license and at the location at which, or if the license is for a 16
2344+mobile unit the geographic area in which, check cashing services will be provided. 17
2345+
2346+ (2) Only one location, or one mobile unit, may be maintained under any one 18
2347+license. 19
2348+
2349+ (c) Subject to § 12–105(b) of this subtitle, the Commissioner may issue more than 20
2350+one license to an applicant who: 21
2351+
2352+ (1) Conducts activities for which a license is required at more than one 22
2353+location; 23
2354+
2355+ (2) Complies with § 12–108 of this subtitle; and 24
2356+
2357+ (3) Otherwise meets the requirements of this subtitle.] 25
2358+
2359+12–110. 26
2360+
2361+ (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 27
2362+THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING : 28
2363+ HOUSE BILL 686 51
2364+
2365+
2366+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 1
2367+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 2
2368+
2369+ (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E 3
2370+OFFICE; 4
2371+
2372+ (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE 5
2373+THE LICENSEE DOES BU SINESS AND THAT : 6
2374+
2375+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 7
2376+LOCATION THAT OFFERS CHECK CASHING SERVIC ES, INCLUDING ANY LOCATIO N 8
2377+THAT INVESTIGATES CU STOMER COMPLAINTS OR DIRECTLY COMMUNICATE S WITH 9
2378+CUSTOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 10
2379+
2380+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 11
2381+TECHNOLOGY SYSTEMS ; 12
2382+
2383+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 13
2384+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 14
2385+
2386+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 15
2387+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND 16
2388+
2389+ (4) THE INFORMATION REQUI RED BY § 12–108(A)(2)(V) OF THIS 17
2390+SUBTITLE FOR EACH MO BILE UNIT, IF ANY, OF THE LICENSEE . 18
2391+
2392+ (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 19
2393+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 20
2394+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION. 21
2395+
2396+ (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL 22
2397+CONSTITUTE THE LICEN SEE’S LICENSE NUMBER . 23
2398+
2399+ (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE 24
2400+LICENSE AT ANY LICEN SED LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH 25
2401+MOBILE UNIT, IN THE GEOGRAPHIC AR EA LISTED FOR THE MO BILE UNIT IN NMLS, 26
2402+OR AS OTHERWISE AUTH ORIZED BY THE COMMISSIONER THROUGH REGULATION . 27
2403+
2404+12–112. 28
2405+
2406+ (b) (1) Each licensee shall conspicuously post, in 48 point or larger type, at 29
2407+[the licensee’s] EACH licensed location [or mobile unit] the following information: 30
2408+
2409+ (i) The licensee’s unique identifier; and 31 52 HOUSE BILL 686
2410+
2411+
2412+
2413+ (ii) A statement advising consumers of the availability of the NMLS 1
2414+Consumer Access website to verify the licensing status of the licensee. 2
2415+
2416+ (c) A licensee is not required to post the information required in subsection (b)(1) 3
2417+of this section AT A LICENSED LOCATI ON if THE LICENSED LOCATIO N IS NOT A MOBILE 4
2418+UNIT AND the licensee does not regularly grant access to [the] THAT licensed location to 5
2419+members of the general public. 6
2420+
2421+[12–113. 7
2422+
2423+ A licensee may not change the location for which a license is issued unless the 8
2424+licensee: 9
2425+
2426+ (1) Provides to the Commissioner, in the form and in accordance with the 10
2427+process that the Commissioner requires, notice of the proposed change; and 11
2428+
2429+ (2) Receives the consent of the Commissioner through NMLS prior to the 12
2430+change.] 13
2431+
2432+12–113. 14
2433+
2434+ (A) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION REQUIRED 15
2435+TO BE LISTED IN NMLS UNDER § 12–110(A)(2), (3), OR (4) OF THIS SUBTITLE 16
2436+UNLESS: 17
2437+
2438+ (1) THE LICENSEE PROVIDES TO THE COMMISSIONER , THROUGH 18
2439+NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE COMMISSIONER ADOPTS , 19
2440+NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 20
2441+
2442+ (2) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 21
2443+IS RECORDED WITH THE INFORM ATION ASSOCIATED WIT H THE LICENSEE’S LICENSE 22
2444+IN NMLS; AND 23
2445+
2446+ (3) THE ADDITION, DELETION, OR MODIFICATION OF T HE LOCATION 24
2447+OTHERWISE COMPLIES W ITH THIS SUBTITLE. 25
2448+
2449+ (B) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A 26
2450+GEOGRAPHIC ARE A REQUIRED TO BE LIS TED IN NMLS BY § 12–110(A)(2), (3), OR 27
2451+(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED 28
2452+WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS. 29
2453+
2454+12–114. 30
2455+
2456+ (c) A licensee may retain the records required under this subtitle at any location, 31 HOUSE BILL 686 53
2457+
2458+
2459+[provided that] IF the licensee: 1
2460+
2461+ (1) Notifies the Commissioner in writing of the location of the records; and 2
2462+
2463+ (2) Makes the records available at [a place of business for which a license 3
2464+has been issued or at the licensee’s principal place of business] THE LICENSED LOCATIO N, 4
2465+as agreed by the Commissioner and the licensee, within 7 days [of] AFTER a written 5
2466+request for examination by the Commissioner. 6
2467+
2468+12–118. 7
2469+
2470+ A licensee shall conspicuously post, in 48 point or larger type, at each [place of 8
2471+business at which, or mobile unit from which,] LICENSED LOCATION WH ERE the licensee 9
2472+provides check cashing services: 10
2473+
2474+ (1) A notice of the fees for check cashing services; and 11
2475+
2476+ (2) The phone number of the Commissioner for customers to file 12
2477+complaints. 13
2478+
2479+12–401. 14
2480+
2481+ (a) In this subtitle the following words have the meanings indicated. 15
2482+
2483+ (c) [(1)] “Authorized delegate” means a person who is authorized by a licensee 16
2484+to engage in the business of money transmission under [the name of the licensee] A 17
2485+LICENSED NAME at any location other than [the place of business specified in the license] 18
2486+A LICENSED LOCATION . 19
2487+
2488+ [(2) “Authorized delegate” does not include a branch location of a licensee.] 20
2489+
2490+ [(e) (1) “Branch location” means any location other than the principal executive 21
2491+office of a licensee or license applicant at which money transmission services are, or will be 22
2492+on licensure, conducted in the State or with a person in the State. 23
2493+
2494+ (2) “Branch location” does not include an authorized delegate.] 24
2495+
2496+ (K) (1) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE 25
2497+LICENSEE IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 26
2498+
2499+ (2) “LICENSED LOCATION ” INCLUDES A SELF –SERVICE FINANCIAL 27
2500+KIOSK. 28
2501+
2502+ (3) “LICENSED LOCATION ” DOES NOT INCLUDE AN AUTHORIZED 29
2503+DELEGATE. 30 54 HOUSE BILL 686
2504+
2505+
2506+
2507+ (L) “LICENSED NAME ” MEANS: 1
2508+
2509+ (1) THE LICENSEE’S LEGAL NAME; AND 2
2510+
2511+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH 3
2512+§ 2–121 OF THIS ARTICLE. 4
2513+
2514+ [(k–1)] (M) “Licensee” means a person licensed under this subtitle to engage in the 5
2515+business of money transmission. 6
2516+
2517+12–404. 7
2518+
2519+ (a) All revenue received for the licensing AND ASSESSMENT of money 8
2520+transmitters under this subtitle and any other fee, examination assessment, or revenue 9
2521+received by the Commissioner under this subtitle shall be: 10
2522+
2523+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 11
2524+established under [§ 11–610] § 2–120 of this article; and 12
2525+
2526+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article. 13
2527+
2528+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 14
2529+IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE. 15
2530+
2531+12–406. 16
2532+
2533+ (a) To qualify for a license, an applicant shall satisfy the Commissioner that the 17
2534+applicant: 18
2535+
2536+ (3) Has a tangible net worth computed according to generally accepted 19
2537+accounting principles of at least $150,000, plus an additional net worth of $10,000 for each 20
2538+[additional branch] LICENSED location or authorized delegate, up to a maximum of 21
2539+$500,000 as provided in subsection (b) of this section; and 22
2540+
2541+12–407. 23
2542+
2543+ (b) An applicant shall provide: 24
2544+
2545+ [(1) The trade name of the applicant, as filed with the State Department of 25
2546+Assessments and Taxation under § 1–406 of the Corporations and Associations Article, and 26
2547+any fictitious or other name used by the applicant in the conduct of the applicant’s 27
2548+business;] 28
2549+
2550+ (1) THE APPLICANT ’S LEGAL NAME AND ANY TRADE NAME USED BY 29 HOUSE BILL 686 55
2551+
2552+
2553+THE APPLICANT IN ACC ORDANCE WITH § 2–121 OF THIS ARTICLE; 1
2554+
2555+ (2) (I) The address of the principal executive office of the applicant[, 2
2556+each branch location, and each self–service financial kiosk]; 3
2557+
2558+ (II) THE ADDRESS OF EACH ADDITIONAL LOCATION, IF ANY, 4
2559+THAT: 5
2560+
2561+ 1. THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 6
2562+LOCATION THAT ENGAGE S IN THE BUSINESS OF MONEY TRANSMISSION , INCLUDING 7
2563+ANY LOCATION THAT IN VESTIGATES CUSTOMER COMPLAINTS OR DIRECTLY 8
2564+COMMUNICATES WITH CU STOMERS VERBALLY , ELECTRONICALLY , OR IN WRITING; 9
2565+
2566+ 2. HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E 10
2567+OR TECHNOLOGY SYSTEM S; 11
2568+
2569+ 3. CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 12
2570+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 13
2571+
2572+ 4. IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 14
2573+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND 15
2574+
2575+ (III) IF THE LICENSEE OPERA TES A SELF–SERVICE FINANCIAL 16
2576+KIOSK, THE FOLLOWING INFORM ATION FOR EACH SELF –SERVICE FINANC IAL KIOSK: 17
2577+
2578+ 1. UNIQUE IDENTIFYING IN FORMATION FOR THE 18
2579+SELF–SERVICE FINANCIAL KI OSK, SUCH AS THE MANUFACT URER NAME , MODEL 19
2580+NUMBER, SERIAL NUMBER , OR ASSET TAG; 20
2581+
2582+ 2. IF THE LICENSEE INTEN DS TO OPERATE THE 21
2583+SELF–SERVICE FINANCIAL KI OSK FROM ANY FIXED L OCATION FOR MORE THA N 30 22
2584+DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE SELF –SERVICE 23
2585+FINANCIAL KIOSK WILL BE OPERATED ; AND 24
2586+
2587+ 3. IF THE LICENSEE INTEN DS TO OPERATE THE 25
2588+SELF–SERVICE FINANCIAL KI OSK AT ANY LOCATION FOR 30 DAYS OR LESS IN A 26
2589+CALENDAR YEAR, THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO 27
2590+OPERATE THE SELF –SERVICE FINANCIAL KI OSK; 28
2591+
2592+ [(h) (1) In addition to any license required under §§ 12–405 and 12–410 of this 29
2593+subtitle, each money transmitter shall obtain and maintain a license for its principal 30
2594+executive office. 31
2595+
2596+ (2) For each branch location license for which an applicant applies, the 32 56 HOUSE BILL 686
2597+
2598+
2599+applicant shall: 1
2600+
2601+ (i) Submit a separate application; 2
2602+
2603+ (ii) Pay a separate nonrefundable license fee of $1,000; and 3
2604+
2605+ (iii) Pay the application processing fee that NMLS imposes in 4
2606+connection with processing the application for the branch location. 5
2607+
2608+ (3) For each self–service financial kiosk license for which an applicant 6
2609+applies, the applicant shall: 7
2610+
2611+ (i) Submit a separate application; 8
2612+
2613+ (ii) Pay a separate nonrefundable license fee of $500; and 9
2614+
2615+ (iii) Pay the application processing fee that NMLS imposes in 10
2616+connection with processing the application for the self–service financial kiosk. 11
2617+
2618+ (4) If an applicant has or is applying for more than one license, the 12
2619+applicant may comply with subsection (g) of this section by filing evidence of only one surety 13
2620+device. 14
2621+
2622+ (5) If an applicant has or is applying for more than one license, the 15
2623+applicant is not required to pay a separate investigation fee.] 16
2624+
2625+12–410. 17
2626+
2627+ [(a) (1) Each license provided for through NMLS shall include the following 18
2628+information: 19
2629+
2630+ (i) The name of the licensee; 20
2631+
2632+ (ii) The trade name of the licensee; 21
2633+
2634+ (iii) The address at which the business is to be conducted; and 22
2635+
2636+ (iv) The unique identifier of the licensee. 23
2637+
2638+ (2) The unique identifier of the licensee shall constitute the license number 24
2639+for the license. 25
2640+
2641+ (b) (1) A license authorizes the licensee to do business under the license, at the 26
2642+licensed place of business. 27
2643+
2644+ (2) A license does not authorize the licensee to accept deposits or engage 28
2645+otherwise in a banking business except as authorized in this subtitle. 29 HOUSE BILL 686 57
2646+
2647+
2648+
2649+ (3) Only one place of business may be maintained under any one license. 1
2650+
2651+ (c) The Commissioner may issue more than one license to an applicant who: 2
2652+
2653+ (1) Complies with § 12–407 of this subtitle; and 3
2654+
2655+ (2) Otherwise meets the requirements of this subtitle.] 4
2656+
2657+ (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 5
2658+THE COMMISSIONER U NDER THIS SUBTITLE S HALL INCLUDE THE FOL LOWING: 6
2659+
2660+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 7
2661+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 8
2662+
2663+ (2) THE ADDRESS OF THE LI CENSEE’S PRINCIPAL EXECUTIV E 9
2664+OFFICE; 10
2665+
2666+ (3) THE ADDRESS OF EACH ADDITIONAL LOCATION , IF ANY, WHERE 11
2667+THE LICENSEE DOES BU SINESS AND THAT : 12
2668+
2669+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 13
2670+LOCATION THAT OFFERS MONEY TRANSMISSION S ERVICES, INCLUDING ANY 14
2671+LOCATION THAT INVEST IGATES CUSTOMER COMP LAINTS OR DIRECTLY 15
2672+COMMUNIC ATES WITH CUSTOMERS VERBALLY, ELECTRONICALLY , OR IN WRITING; 16
2673+
2674+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 17
2675+TECHNOLOGY SYSTEMS ; 18
2676+
2677+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 19
2678+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 20
2679+
2680+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 21
2681+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; AND 22
2682+
2683+ (4) THE INFORMATION REQUI RED BY § 12–407(B)(2)(III) OF THIS 23
2684+SUBTITLE FOR EACH SE LF–SERVICE FINANCIAL KI OSK, IF ANY, OF THE LICENSEE . 24
2685+
2686+ (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATION IN 25
2687+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 26
2688+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION. 27
2689+
2690+ (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSE E SHALL 28
2691+CONSTITUTE THE LICEN SEE’S LICENSE NUMBER . 29 58 HOUSE BILL 686
2692+
2693+
2694+
2695+ (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE 1
2696+LICENSE AT ANY LICEN SED LOCATION, UNDER ANY LICENSED N AME AND, FOR EACH 2
2697+SELF–SERVICE FINANCIAL KI OSK, THE ADDRESS OR GEOGR APHIC AREA LISTED FOR 3
2698+THE SELF–SERVICE FINANCIAL KI OSK IN NMLS, OR AS OTHERWISE AUTH ORIZED BY 4
2699+THE COMMISSIONER THROUGH REGULATION . 5
2700+
2701+ [(d)] (E) A license may not be transferred or assigned. 6
2702+
2703+ [(e)] (F) (1) Each licensee shall conspicuously post, in 48 point or larger type, 7
2704+at [the licensee’s] EACH licensed location the following information: 8
2705+
2706+ (i) The licensee’s unique identifier; and 9
2707+
2708+ (ii) A statement advising consumers of the availability of the NMLS 10
2709+Consumer Access website to verify the licensing status of the licensee. 11
2710+
2711+ (2) Each authorized delegate, at each location open to the public, shall 12
2712+conspicuously post, in at least [48–point] 48 POINT type, the following information: 13
2713+
2714+ (i) A notice stating, “the Commissioner of Financial Regulation for 14
2715+the State of Maryland will accept all questions or complaints regarding this authorized 15
2716+delegate of (name of licensee and unique identifier) at (address of Commissioner), phone 16
2717+(toll–free phone number of the Commissioner)”; and 17
2718+
2719+ (ii) A statement advising consumers of the availability of the NMLS 18
2720+Consumer Access website to verify the licensing status of the licensee. 19
2721+
2722+ (3) Each licensee shall conspicuously display the following information on 20
2723+the licensee’s website, any mobile application through which the services are offered, the 21
2724+outside of the self–service financial kiosk, any software application accessible to the public 22
2725+and used for money transmission services, and profile page within each social media 23
2726+platform the licensee uses: 24
2727+
2728+ (i) The licensee’s unique identifier; 25
2729+
2730+ (ii) A link to the NMLS Consumer Access website; and 26
2731+
2732+ (iii) A notice stating, “The Commissioner of Financial Regulation for 27
2733+the State of Maryland will accept all questions or complaints from Maryland residents 28
2734+regarding (name of licensee and unique identifier) at (address of Commissioner), phone 29
2735+(toll–free phone number of the Commissioner)”. 30
2736+
2737+ [(f)] (G) A licensee is not required to post the information required in subsection 31
2738+[(e)(1)] (F)(1) of this section AT A LICENSED LOCATI ON if the LICENSED LOCATION IS 32
2739+NOT A SELF–SERVICE FINANCIAL KI OSK AND THE licensee does not regularly grant 33 HOUSE BILL 686 59
2740+
2741+
2742+access to [the] THAT licensed location to members of the general public. 1
2743+
2744+12–412. 2
2745+
2746+ (a) (1) In this section[, “trust] THE FOLLOWING WORDS HAVE THE 3
2747+MEANINGS IND ICATED. 4
2748+
2749+ (2) “AVERAGE DAILY MONEY T RANSMISSION LIABILIT Y” MEANS THE 5
2750+AMOUNT OF THE APPLIC ANT’S OR LICENSEE’S OUTSTANDING MONEY TRANSMISSION 6
2751+OBLIGATIONS IN THE STATE AT THE END OF E ACH DAY IN A GIVEN Q UARTER, ADDED 7
2752+TOGETHER AND DIVIDED BY THE TOTAL NUMBER OF DAYS IN THAT QUAR TER. 8
2753+
2754+ (3) “TRUST company” has the meaning stated in § 1–101 of the Estates 9
2755+and Trusts Article. 10
2756+
2757+ (d) (1) The amount of the surety bond under subsection (b) of this section or 11
2758+the deposit in lieu of a surety bond under subsection (c) of this section shall be [in an 12
2759+amount of not less than] THE GREATER OF : 13
2760+
2761+ (I) $150,000 [and not more than $1,000,000, as determined by the 14
2762+Commissioner]; OR 15
2763+
2764+ (II) 100% OF THE APPLICANT ’S AVERAGE DAILY MONE Y 16
2765+TRANSMISSION LIABILI TY IN THE STATE CALCULATED FOR THE MOST RECENTLY 17
2766+COMPLETED QUARTER , UP TO A MAXIMUM OF $2,000,000. 18
2767+
2768+ [(2) In setting the amount of the surety bond or the deposit in lieu of a surety 19
2769+bond, the Commissioner shall consider: 20
2770+
2771+ (i) The financial condition of the licensee or applicant; 21
2772+
2773+ (ii) For a licensee, the average monthly outstanding money 22
2774+transmission liability for the previous 12 months; 23
2775+
2776+ (iii) For an applicant, the projected monthly money transmissions 24
2777+volume in the State, the business experience, and any other factor deemed appropriate; and 25
2778+
2779+ (iv) The potential loss of money transmissions by persons for whom 26
2780+or to whom money is transmitted if the applicant or licensee becomes financially impaired.] 27
2781+
2782+ (2) THE QUARTERS FOR CALC ULATING THE AVERAGE DAILY MONEY 28
2783+TRANSMISSION LIABILI TY UNDER PARAGRAPH (1) OF THIS SUBSECTION F OR ANY 29
2784+LICENSEE REQUIRED TO DO SO SHALL BE THE Q UARTERS ENDING MARCH 31, JUNE 30
2785+30, SEPTEMBER 30, AND DECEMBER 31. 31
2786+ 60 HOUSE BILL 686
2787+
2788+
2789+12–415. 1
2790+
2791+ [(a) (1) A licensee may not change the place of business for which a license is 2
2792+issued unless the licensee: 3
2793+
2794+ (i) Notifies the Commissioner through NMLS of the proposed 4
2795+change; and 5
2796+
2797+ (ii) Receives the approval of the Commissioner through NMLS. 6
2798+
2799+ (2) Within 60 days after receiving a request for approval of a proposed 7
2800+change in the place of business for a licensee, the Commissioner shall approve or deny the 8
2801+request. 9
2802+
2803+ (3) If the Commissioner does not deny a request for approval of a proposed 10
2804+change in the place of business for a licensee as provided under paragraph (2) of this 11
2805+subsection, the request shall be deemed approved.] 12
2806+
2807+ (A) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION 13
2808+REQUIRED TO BE L ISTED IN NMLS UNDER § 12–410(A)(2), (3), OR (4) OF THIS 14
2809+SUBTITLE UNLESS : 15
2810+
2811+ (I) THE LICENSEE PROVIDES TO THE COMMISSIONER , 16
2812+THROUGH NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS A DOPTED BY THE 17
2813+COMMISSIONER , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 18
2814+
2815+ (II) THE ADDITION , DELETION, OR MODIFICATION OF T HE 19
2816+LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE 20
2817+LICENSEE’S LICENSE IN NMLS; AND 21
2818+
2819+ (III) THE ADDITION , DELETION, OR MODIFICATION OF T HE 22
2820+LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE. 23
2821+
2822+ (2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION OR IN A 24
2823+GEOGRAPHIC AREA REQU IRED TO BE LISTED IN NMLS BY § 12–410(A)(2), (3), OR 25
2824+(4) OF THIS SUBTITLE UNT IL THE LOCATION OR G EOGRAPHIC AREA IS RE CORDED 26
2825+WITH THE INFORMATION ASSOCIATED WITH THE LICENSEE’S LICENSE IN NMLS. 27
2826+
2827+12–424. 28
2828+
2829+ (a) The Commissioner may conduct an [on–site] examination of a licensee or AN 29
2830+authorized delegate with not less than 7 business [days] DAYS’ prior notice. 30
2831+
2832+ (b) With good cause, the Commissioner may conduct an [on–site] examination of 31
2833+a licensee or AN authorized delegate with no prior notice. 32 HOUSE BILL 686 61
2834+
2835+
2836+
2837+ (c) The licensee shall pay all reasonably incurred costs of an examination 1
2838+conducted under this section, including a per–day fee set by the Commissioner for each of 2
2839+the Commissioner’s employees engaged in the examination. 3
2840+
2841+ (d) [The on–site] ANY examination may be conducted in conjunction with an 4
2842+examination performed by a representative of a responsible supervisory agency of another 5
2843+state. 6
2844+
2845+ (e) (1) The Commissioner, in lieu of an [on–site] examination, may accept the 7
2846+examination report of a responsible supervisory agency of another state, or a report 8
2847+prepared by an independent accounting firm. 9
2848+
2849+ (2) A report accepted under paragraph (1) of this subsection is considered 10
2850+for all purposes as an official report of the Commissioner. 11
2851+
2852+ (f) The Commissioner may: 12
2853+
2854+ (1) Examine all books, accounts, and records the Commissioner determines 13
2855+are necessary to conduct a complete examination; and 14
2856+
2857+ (2) Examine under oath any officer, director, or employee of the licensee, 15
2858+or any other individual who may provide information on behalf of the licensee. 16
2859+
2860+12–901. 17
2861+
2862+ (a) In this subtitle the following words have the meanings indicated. 18
2863+
2864+ (b) “Annual gross revenue” means income or revenue from all sources, before any 19
2865+expenses or taxes, computed according to generally accepted accounting principles for the 20
2866+preceding fiscal year. 21
2867+
2868+ (c) [“Branch location” means any location other than the principal executive office 22
2869+of a licensee or license applicant at which the licensee conducts, or the license applicant, on 23
2870+licensure, will conduct, activities required to be licensed under this subtitle. 24
2871+
2872+ (d)] “Consultation fee” means a fee paid by a consumer to a debt management 25
2873+services provider in connection with the processing of any application that the consumer 26
2874+makes for debt management services. 27
2875+
2876+ [(e)] (D) “Consumer” means an individual who: 28
2877+
2878+ (1) Resides in the State; and 29
2879+
2880+ (2) Is seeking debt management services or has entered into a debt 30
2881+management services agreement. 31
2882+ 62 HOUSE BILL 686
2883+
2884+
2885+ [(f)] (E) “Consumer education program” means a program or plan that: 1
2886+
2887+ (1) Seeks to improve the financial literacy of consumers regarding personal 2
2888+finance, budgeting, and credit and debt management; and 3
2889+
2890+ (2) Provides counseling tailored to the needs and circumstances of the 4
2891+consumer with regard to options and strategies for addressing the consumer’s debt 5
2892+problems, including: 6
2893+
2894+ (i) Creating and maintaining a budget; 7
2895+
2896+ (ii) Establishing debt management payment plans with creditors; 8
2897+
2898+ (iii) Negotiating directly with creditors on payment or interest rate 9
2899+relief; and 10
2900+
2901+ (iv) Filing for bankruptcy. 11
2902+
2903+ [(g)] (F) (1) “Control person” means a person who has the power, directly or 12
2904+indirectly, to direct the management or policies of a licensee or license applicant, whether 13
2905+through ownership of securities, by contract, or otherwise. 14
2906+
2907+ (2) “Control person” includes a person who: 15
2908+
2909+ (i) Is a general partner, an officer, or a director of a licensee or 16
2910+license applicant, or a member that occupies a similar position or performs a similar 17
2911+function; 18
2912+
2913+ (ii) Directly or indirectly has the right to vote 10% or more of a class 19
2914+of voting securities, or has the power to sell or direct the sale of 10% or more of a class of 20
2915+voting securities, of a licensee or license applicant; or 21
2916+
2917+ (iii) In the case of a partnership, a limited partnership, a limited 22
2918+liability partnership, a limited liability company, or any other business entity: 23
2919+
2920+ 1. Has the right to receive on liquidation or dissolution of a 24
2921+licensee or license applicant 10% or more of the capital of the licensee or license applicant; 25
2922+or 26
2923+
2924+ 2. Has contributed 10% or more of the capital of a licensee or 27
2925+license applicant. 28
2926+
2927+ [(h)] (G) “Debt management counselor” means a permanent, temporary, or 29
2928+contractual employee of a debt management services provider or its agent who provides 30
2929+counseling to consumers on behalf of the debt management services provider. 31
2930+
2931+ [(i)] (H) “Debt management services” means receiving funds periodically from a 32 HOUSE BILL 686 63
2932+
2933+
2934+consumer under an agreement with the consumer for the purpose of distributing the funds 1
2935+among the consumer’s creditors in full or partial payment of the consumer’s debts. 2
2936+
2937+ [(j)] (I) “Debt management services agreement” means a written contract, plan, 3
2938+or agreement between a debt management services provider and a consumer for the 4
2939+performance of debt management services. 5
2940+
2941+ [(k)] (J) “Debt management services provider” means a person that provides or 6
2942+offers to provide debt management services to a consumer. 7
2943+
2944+ [(k–1)] (K) “License” means a license issued in any form by the Commissioner 8
2945+under this subtitle to provide debt management services, including as provided for through 9
2946+NMLS. 10
2947+
2948+ (L) “LICENSED LOCATION ” MEANS ANY LOCATION L ISTED BY THE LICENSE E 11
2949+IN NMLS IN ACCORDANCE WITH T HIS SUBTITLE. 12
2950+
2951+ (M) “LICENSED NAME ” MEANS: 13
2952+
2953+ (1) THE LICENSEE’S LEGAL NAME; AND 14
2954+
2955+ (2) ANY TRADE NAME USED B Y THE LICENSEE IN AC CORDANCE WITH 15
2956+§ 2–121 OF THIS ARTICLE. 16
2957+
2958+ [(l)] (N) “Licensee” means a person licensed under this subtitle to provide debt 17
2959+management services. 18
2960+
2961+ [(m)] (O) “Maintenance fee” means a fee paid by a consumer to a debt 19
2962+management services provider for the maintenance or servicing of the consumer’s accounts 20
2963+with the consumer’s creditors in accordance with a debt management services agreement. 21
2964+
2965+ [(n)] (P) “Relative” means any of the following who are related to an individual 22
2966+by blood, marriage, or adoption: 23
2967+
2968+ (1) A spouse; 24
2969+
2970+ (2) A child; 25
2971+
2972+ (3) A sibling; 26
2973+
2974+ (4) A parent; 27
2975+
2976+ (5) A grandparent; 28
2977+
2978+ (6) A grandchild; 29
2979+ 64 HOUSE BILL 686
2980+
2981+
2982+ (7) A stepparent; 1
2983+
2984+ (8) A stepchild; 2
2985+
2986+ (9) A stepsibling; 3
2987+
2988+ (10) An aunt; or 4
2989+
2990+ (11) An uncle. 5
2991+
2992+ [(o)] (Q) “Resident agent” means an individual residing in the State or a 6
2993+Maryland corporation whose name, address, and designation as a resident agent are filed 7
2994+or recorded with the State Department of Assessments and Taxation in accordance with 8
2995+[the provisions of] the Corporations and Associations Article. 9
2996+
2997+ [(p)] (R) “Trust account” means an account that is: 10
2998+
2999+ (1) Established in a financial institution that is federally insured; 11
3000+
3001+ (2) Separate from the debt management services provider’s operating 12
3002+account; 13
3003+
3004+ (3) Designated as a “trust account” or by another appropriate designation 14
3005+indicating that the funds in the account are not the funds of the licensee or its officers, 15
3006+employees, or agents; 16
3007+
3008+ (4) Unavailable to creditors of the debt management services provider; and 17
3009+
3010+ (5) Used to hold funds paid by consumers to a debt management services 18
3011+provider for disbursement to creditors of the consumers. 19
3012+
3013+ [(q)] (S) “Unique identifier” means a number or another identifier assigned by 20
3014+NMLS. 21
3015+
3016+12–904. 22
3017+
3018+ [(a) An applicant shall submit separate applications for the applicant’s principal 23
3019+executive office and each branch location. 24
3020+
3021+ (b)] With the license application [for the principal executive office of an applicant], 25
3022+the applicant shall pay to the Commissioner: 26
3023+
3024+ (1) A nonrefundable investigation fee of $1,000 for an initial license; and 27
3025+
3026+ (2) A license fee for an initial license or a license renewal for an additional 28
3027+1–year term, as follows: 29 HOUSE BILL 686 65
3028+
3029+
3030+
3031+ (i) $500, if the applicant’s annual gross revenue is not more than 1
3032+$3,000,000; 2
3033+
3034+ (ii) $1,000, if the applicant’s annual gross revenue is more than 3
3035+$3,000,000 but not more than $6,000,000; 4
3036+
3037+ (iii) $2,000, if the applicant’s annual gross revenue is more than 5
3038+$6,000,000 but not more than $15,000,000; 6
3039+
3040+ (iv) $3,000, if the applicant’s annual gross revenue is more than 7
3041+$15,000,000 but not more than $30,000,000; or 8
3042+
3043+ (v) $4,000, if the applicant’s annual gross revenue is more than 9
3044+$30,000,000. 10
3045+
3046+ [(c) With the license application for each branch location of an applicant, the 11
3047+applicant shall pay to the Commissioner a $100 license fee for an initial license or a license 12
3048+renewal for an additional 1–year term.] 13
3049+
3050+12–905. 14
3051+
3052+ (a) All revenue received for the licensing AND ASSESSMENT of persons under this 15
3053+subtitle and, except as provided in subsection (b) of this section, any other fee, examination 16
3054+assessment, or revenue received by the Commissioner under this subtitle shall be: 17
3055+
3056+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 18
3057+established under [§ 11–610] § 2–120 of this article; and 19
3058+
3059+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article. 20
3060+
3061+ (C) SUBJECT TO § 2–120(H) OF THIS ARTICLE , THE COMMISSIONER MAY 21
3062+IMPOSE AN ANNUAL ASS ESSMENT ON ANY LICEN SEE UNDER THIS SUBTI TLE. 22
3063+
3064+12–906. 23
3065+
3066+ (b) A [separate license is required for the principal executive office of the license 24
3067+applicant or licensee and each branch location] LICENSEE MAY DO BUSI NESS AS A DEBT 25
3068+MANAGEMENT SERVICES PROVIDER ONLY AT A L ICENSED LOCATION OR AS 26
3069+OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION . 27
3070+
3071+12–908. 28
3072+
3073+ (b) The application shall include: 29
3074+
3075+ (1) The applicant’s LEGAL name AND ANY TRADE NAME USED BY THE 30 66 HOUSE BILL 686
3076+
3077+
3078+APPLICANT IN ACCORDA NCE WITH § 2–121 OF THIS ARTICLE , THE APPLICANT ’S 1
3079+principal executive office address, and website address, if any, and, if the applicant is not 2
3080+an individual, the name and residence address of each control person, if any; 3
3081+
3082+ (2) The address of each [branch] ADDITIONAL location, if any, [at which 4
3083+the applicant will provide debt management services;] THAT: 5
3084+
3085+ (I) THE GENERAL PUBLIC MAY R EASONABLY VIEW AS A 6
3086+LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER, 7
3087+INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS OR 8
3088+DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN 9
3089+WRITING; 10
3090+
3091+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 11
3092+TECHNOLOGY SYSTEMS ; 12
3093+
3094+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 13
3095+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 14
3096+
3097+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 15
3098+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE ; 16
3099+
3100+12–911. 17
3101+
3102+ [(a) (1) Each license provided for through NMLS shall include the following 18
3103+information: 19
3104+
3105+ (i) The name of the licensee; 20
3106+
3107+ (ii) The address of the location at which the business is to be 21
3108+conducted; and 22
3109+
3110+ (iii) The unique identifier of the licensee. 23
3111+
3112+ (2) The unique identifier of the licensee shall constitute the license number 24
3113+for the license. 25
3114+
3115+ (b) A license authorizes the licensee to provide debt management services.] 26
3116+
3117+ (A) INFORMATION IN NMLS ASSOCIATED WITH A LI CENSE APPROVED BY 27
3118+THE COMMISSIONER UNDER TH IS SUBTITLE SHALL IN CLUDE THE FOLLOWING : 28
3119+
3120+ (1) THE LICENSEE’S LEGAL NAME AND ANY TRADE NAME USED BY 29
3121+THE LICENSEE IN ACCO RDANCE WITH § 2–121 OF THIS ARTICLE; 30
3122+ HOUSE BILL 686 67
3123+
3124+
3125+ (2) THE ADDRESS OF THE L ICENSEE’S PRINCIPAL EXECUTIV E 1
3126+OFFICE; AND 2
3127+
3128+ (3) THE ADDRESS OF EACH A DDITIONAL LOCATION , IF ANY, WHERE 3
3129+THE LICENSEE DOES BU SINESS AND THAT : 4
3130+
3131+ (I) THE GENERAL PUBLIC MA Y REASONABLY VIEW AS A 5
3132+LOCATION THAT DOES B USINESS AS A DEBT MA NAGEMENT SERVICES PR OVIDER, 6
3133+INCLUDING ANY LOCATI ON THAT INVESTIGATES CUSTOMER COMPLAINTS OR 7
3134+DIRECTLY COMMUNICATE S WITH CUSTOMERS VER BALLY, ELECTRONICALLY , OR IN 8
3135+WRITING; 9
3136+
3137+ (II) HOUSES ANY CORE OPERA TIONAL INFRASTRUCTUR E OR 10
3138+TECHNOLOGY SYSTEMS ; 11
3139+
3140+ (III) CONDUCTS ANY CORE MAN AGEMENT, INFORMATION 12
3141+SECURITY AND TECHNOL OGY, RISK AND COMPLIANCE , OR FINANCE FUNCTIONS ; OR 13
3142+
3143+ (IV) IS OTHERWISE REQUIRED TO BE LISTED IN NMLS BY 14
3144+REGULATION THE COMMISSIONER ADOPTS U NDER THIS SUBTITLE . 15
3145+
3146+ (B) A LICENSEE SHALL MAINT AIN AND UPDATE THE I NFORMATI ON IN 16
3147+NMLS ASSOCIATED WITH THE LICENSEE’S LICENSE TO REFLECT ACCURATELY AT 17
3148+ALL TIMES THE INFORM ATION REQUIRED BY SU BSECTION (A) OF THIS SECTION. 18
3149+
3150+ (C) THE UNIQUE IDENTIFIER ASSIGNED BY NMLS TO A LICENSEE SHALL 19
3151+CONSTITUTE THE LICEN SEE’S LICENSE NUMBER . 20
3152+
3153+ (D) A LICENSE AUTHORIZES T HE LICENSEE TO DO BU SINESS UNDER THE 21
3154+LICENSE AT ANY LICEN SED LOCATION AND UND ER ANY LICENSED NAME , OR AS 22
3155+OTHERWISE AUTHORIZED BY THE COMMISSIONER THROUGH REGULATION . 23
3156+
3157+ [(c)] (E) A license may not be transferred, assigned, or pledged. 24
3158+
3159+ [(d)] (F) Each licensee shall conspicuously post, in 48 point or larger type, at 25
3160+[the licensee’s] EACH licensed location the following information: 26
3161+
3162+ (1) The licensee’s unique identifier; and 27
3163+
3164+ (2) A statement advising consumers of the availability of the NMLS 28
3165+Consumer Access website to verify the licensing status of the licensee. 29
3166+
3167+ [(e)] (G) Each licensee shall conspicuously display the following information on 30
3168+the licensee’s website, any software application accessible to the public and used to provide 31 68 HOUSE BILL 686
3169+
3170+
3171+debt management services, and profile page within each social media platform the licensee 1
3172+uses: 2
3173+
3174+ (1) The licensee’s unique identifier; 3
3175+
3176+ (2) A link to the NMLS Consumer Access website; and 4
3177+
3178+ (3) A notice stating, “The Commissioner of Financial Regulation for the 5
3179+State of Maryland will accept any questions and complaints from Maryland residents 6
3180+regarding (name and unique identifier of the debt management services provider) at 7
3181+(address of Commissioner), phone (toll–free number of the Commissioner). 8
3182+
3183+ [(f) Only one location may be maintained under any one license.] 9
3184+
3185+ [(g)] (H) A licensee is not required to post the information required in subsection 10
3186+[(d)] (F) of this section AT A LICENSED LOCATI ON if the licensee does not regularly grant 11
3187+access to [the] THAT licensed location to members of the general public. 12
3188+
3189+12–914. 13
3190+
3191+ (b) (2) The bond shall be: 14
3192+
3193+ (i) In an amount [not less than $10,000 and not more than 15
3194+$1,000,000, as set] DETERMINED by the Commissioner UNDER SUBSECTION (F) OF THIS 16
3195+SECTION; 17
3196+
3197+ [(8) In setting the amount of the surety bond, the Commissioner shall 18
3198+consider: 19
3199+
3200+ (i) The financial condition and business experience of the applicant 20
3201+or licensee and the agent of the applicant or licensee; 21
3202+
3203+ (ii) For an applicant, the projected monthly and annual volume of 22
3204+debt management services to be provided in the State; 23
3205+
3206+ (iii) For a licensee, the average monthly and annual volume of debt 24
3207+management services provided in the State during the previous 12–month period; 25
3208+
3209+ (iv) The potential loss to consumers who remit funds to the applicant 26
3210+or licensee if the applicant or licensee becomes financially impaired; and 27
3211+
3212+ (v) Any other factor the Commissioner considers appropriate.] 28
3213+
3214+ (F) (1) THE AMOUNT OF THE SUR ETY BOND UNDER SUBSE CTION (B) OF 29
3215+THIS SECTION SHALL BE IN AN AMOUNT OF NOT LES S THAN $10,000 AND NOT MORE 30
3216+THAN $1,000,000, AS DETERMINED BY THE COMMISSIONER FOR EACH LICENSEE. 31 HOUSE BILL 686 69
3217+
3218+
3219+
3220+ (2) IN SETTING THE AMOUNT OF THE SURETY BOND , THE 1
3221+COMMISSIONER MAY CONS IDER: 2
3222+
3223+ (I) THE NATURE AND VOLUME OF THE BUSINESS OR PROPOSED 3
3224+BUSINESS OF THE LICE NSEE OR APPLICANT ; 4
3225+
3226+ (II) THE FINANCIAL CONDITI ON OF THE LICENSEE O R 5
3227+APPLICANT, INCLUDING: 6
3228+
3229+ 1. THE AMOUNT, NATURE, QUALITY, AND LIQUIDITY OF 7
3230+THE ASSETS OF THE LI CENSEE OR APPLICANT ; 8
3231+
3232+ 2. THE AMOUNT AND NATU RE OF THE LIABILITIE S, 9
3233+INCLUDING CONTINGENT LIABILITIES, OF THE LICENSEE OR A PPLICANT; 10
3234+
3235+ 3. THE HISTORY OF AND PR OSPECTS FOR THE LICE NSEE 11
3236+OR APPLICANT TO EARN AND RETAIN INCOME ; AND 12
3237+
3238+ 4. THE POTENTIAL HARM TO CONSUMERS IF THE 13
3239+APPLICANT OR LICENSE E BECOMES FINANCIALLY IMPAIRED; 14
3240+
3241+ (III) THE QUALITY OF THE OP ERATIONS OF THE LICE NSEE OR 15
3242+APPLICANT; 16
3243+
3244+ (IV) THE QUALITY OF THE MA NAGEMENT OF THE LICE NSEE OR 17
3245+APPLICANT; 18
3246+
3247+ (V) THE NATURE AND QUALIT Y OF THE PERSON THAT HAS 19
3248+CONTROL OF THE LICEN SEE OR APPLIC ANT; AND 20
3249+
3250+ (VI) ANY OTHER FACTOR THAT THE COMMISSIONER CONSIDER S 21
3251+RELEVANT. 22
3252+
3253+12–915. 23
3254+
3255+ (a) (1) [A] EXCEPT FOR A CHANGE O F A LICENSED LOCATIO N MADE IN 24
3256+COMPLIANCE WITH SUBS ECTION (D) OF THIS SECTION, A licensee shall update through 25
3257+NMLS any change in the information required to be included in the licensee’s application 26
3258+under § 12–908(b)(1) [and (2)] of this subtitle at least 30 days before the change is effective. 27
3259+
3260+ (2) The licensee shall ensure that, after the change described in this 28
3261+subsection, the licensee will continue to satisfy the surety bond requirement under § 29
3262+12–914 of this subtitle. 30 70 HOUSE BILL 686
3263+
3264+
3265+
3266+ (b) Unless approved by the Commissioner through NMLS, a licensee may not 1
3267+change a control person of the licensee, or an agent who is acting on behalf of the licensee 2
3268+to manage a trust account, listed on the licensee’s application under § 12–908(b)(3) and (6) 3
3269+of this subtitle. 4
3270+
3271+ (c) (1) To request approval of a proposed change described in subsection (b) of 5
3272+this section, the licensee shall notify the Commissioner through NMLS of the proposed 6
3273+change and submit any information that the Commissioner requires. 7
3274+
3275+ (2) For a proposed change in owner or agent acting on behalf of the licensee 8
3276+to manage a trust account, the Commissioner may determine that the filing of a new 9
3277+application for the issuance of a license is warranted. 10
3278+
3279+ (3) Unless the Commissioner notifies the licensee that a different time 11
3280+period is necessary, the Commissioner shall approve or deny a request for a change 12
3281+described in subsection (b) of this section within 60 days after the date the Commissioner 13
3282+receives all information required under paragraph (1) of this subsection. 14
3283+
3284+ (D) (1) A LICENSEE MAY NOT ADD , DELETE, OR MODIFY A LOCATION 15
3285+REQUIRED TO BE LISTE D IN NMLS UNDER § 12–911(A)(2) OR (3) OF THIS SUBTITLE 16
3286+UNLESS: 17
3287+
3288+ (I) THE LICENSEE PROVIDES TO THE COMMISSIONER , 18
3289+THROUGH NMLS AND IN ACCORDANCE WI TH ANY REGULATIONS T HE 19
3290+COMMISSIONER ADOPTS , NOTICE OF THE ADDITI ON, DELETION, OR MODIFICATION ; 20
3291+
3292+ (II) THE ADDITION , DELETION, OR MODIFICATION OF T HE 21
3293+LOCATION IS RECORDED WITH THE INFORMATION ASSOCIAT ED WITH THE 22
3294+LICENSEE’S LICENSE IN NMLS; AND 23
3295+
3296+ (III) THE ADDITION , DELETION, OR MODIFICATION OF T HE 24
3297+LOCATION OTHERWISE C OMPLIES WITH THIS SU BTITLE. 25
3298+
3299+ (2) THE LICENSEE MAY NOT DO BUSINESS AT A LOC ATION REQUIRED 26
3300+TO BE LISTED IN NMLS BY § 12–911(A)(2) OR (3) OF THIS SUBTITLE UNT IL THE 27
3301+LOCATION IS RECORDED WITH THE INFORMATION ASSOCIATED WITH THE 28
3302+LICENSEE’S LICENSE IN NMLS. 29
3303+
3304+12–923. 30
3305+
3306+ (b) For the purposes of this section, the Commissioner: 31
3307+
3308+ (1) Shall be given access to [the] ANY LICENSED LOCATIO N OR OTHER 32
3309+place of business AND ALL books, papers, records, safes, and vaults of the person under 33 HOUSE BILL 686 71
3310+
3311+
3312+investigation; and 1
3313+
3314+ 12–924. 2
3315+
3316+ (a) The Commissioner may conduct an [on–site] examination of a licensee with 3
3317+or without prior notice. 4
3318+
3319+ (c) [An on–site] ANY examination may be conducted in conjunction with an 5
3320+examination performed by a representative of a responsible supervisory agency of another 6
3321+state. 7
3322+
3323+ (d) (1) The Commissioner, in lieu of an [on–site] examination, may accept the 8
3324+examination report of a responsible supervisory agency of another state. 9
3325+
3326+ (2) A report accepted under paragraph (1) of this subsection is considered 10
3327+for all purposes as an official report of the Commissioner. 11
3328+
3329+12–1007. 12
3330+
3331+ (a) All revenue received for the registration of persons under this subtitle and, 13
3332+except as provided in subsection (b) of this section, any other fee, examination assessment, 14
3333+or revenue received by the Commissioner under this subtitle shall be: 15
3334+
3335+ (1) Credited to the [Nondepository] NON–DEPOSITORY Special Fund 16
3336+established under [§ 11–610] § 2–120 of this article; and 17
3337+
3338+ (2) Used in accordance with [§ 11–610(c)] § 2–120(D) of this article. 18
3339+
3340+Article – State Finance and Procurement 19
3341+
3342+6–226. 20
3343+
3344+ (a) (2) (i) Notwithstanding any other provision of law, and unless 21
3345+inconsistent with a federal law, grant agreement, or other federal requirement or with the 22
3346+terms of a gift or settlement agreement, net interest on all State money allocated by the 23
3347+State Treasurer under this section to special funds or accounts, and otherwise entitled to 24
3348+receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 25
3349+Fund of the State. 26
3350+
3351+ (ii) The provisions of subparagraph (i) of this paragraph do not apply 27
3352+to the following funds: 28
3353+
3354+ 170. the Cannabis Public Health Fund; [and] 29
3355+
3356+ 171. the Community Reinvestment and Repair Fund; AND 30
3357+ 72 HOUSE BILL 686
3358+
3359+
3360+ 172. THE NON–DEPOSITORY SPECIAL FUND. 1
3361+
3362+ SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 12 –401(f) through 2
3363+(k) and (l) through (v) of Article – Financial Institutions of the Annotated Code of Maryland 3
3364+be renumbered to be Section(s) 12–401(e) through (j) and (n) through (x), respectively. 4
3365+
3366+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
3367+1, 2023. 6
3368+
3369+
3370+
3371+
3372+Approved:
3373+________________________________________________________________________________
3374+ Governor.
3375+________________________________________________________________________________
3376+ Speaker of the House of Delegates.
3377+________________________________________________________________________________
3378+ President of the Senate.