SECTION 89.204. Multiple Licenses

(a) Definitions. The words "made," "negotiated," and "collected" as used in Texas Finance Code, §351.052(b) are to be construed as follows.

(1) Made or make--Loans are "made" by the office or offices where either the credit decision is made or the cash advance is disbursed.

(2) Negotiated or arranged; negotiate or arrange--Loans are "negotiated" or "arranged" in the office or offices that received any information preliminary to a credit decision on a prospective borrower or received the executed application, agreement, or other necessary loan documentation.

(3) Collected or collect--Loans are "collected" in the office or offices from which attempts are made to collect past-due payments from the borrowers under a loan. The mere receipt and accounting of payments does not constitute "collection."

(b) Application. Any office making, negotiating, arranging, servicing, holding, or collecting loans must be licensed. For example, if a lender receives and reviews loan applications at one office, makes the loan decision at another office, funds the loan at a third, and collects past-due payments from another, all of these offices must be licensed. On the other hand, an office that merely receives, records, accounts for, and processes payments need not be licensed.

Source Note: The provisions of this §89.204 adopted to be effective November 8, 2007, 32 TexReg 7918; amended to be effective July 5, 2012, 37 TexReg 4874