Notice of Significant Events and Proposed Change in Ownership or Personnel

(1) A Licensee shall be required to notify the Division in writing within one business day of the occurrence of any of the following significant developments: (a) Licensee filing for bankruptcy or reorganization. (b) Notification of the institution of license revocation procedures in any state against the Licensee. (c) The filing of a criminal indictment any way related to the activities of a licensee, an officer, director, or principal, including, but not limited to, the handling and/or reporting of moneys received and/or instruments sold. (d) A Licensee, officer, director, or principal being convicted of a crime. (e) The filing of a proposed settlement, or the entry of a final judgment, in a class action lawsuit that was filed on behalf of consumers against the licensed small loan company, sales finance company, or premium finance agency that is substantially related to the operation of the licensed business. Written notification to the Commissioner under this subsection must be provided within ten business days of the occurrence of each significant development. (2) (a) 30 days prior to any proposed change in control occurs in the ownership of a Licensee, or among the officers, partners or directors of a Licensee, a notice shall forthwith be filed with the Commissioner who may thereupon cause such investigation to be made as he deems necessary, as if it were a new license. In the case of a corporation, control is defined as a change of ownership by a person or group acting in concert to acquire 10% of the stock, or the ability of a person or group acting in concert to elect a majority of the directors or otherwise effect a change in policy of the corporation. (b) A notice of change in personnel or ownership shall contain the following information: 1. the name, address and occupation of each proposed officer, partner, director or shareholders; and 2. provide such other information as the Commissioner may require. (3) A Licensee shall notify the Commissioner as soon as the Licensee becomes aware of any change to its net worth resulting from month-end market valuation or future loss liability or any other change which causes the net worth of the Licensee to fall below the requirements of 209 CMR 20.03(2)(a)(1) and (2).