Notice of Significant Events and Proposed Change in Ownership or Personnel

(1) A Licensee is required to notify the Division in writing within one business day of the occurrence of any of the following significant developments: (a) The Licensee files for bankruptcy or reorganization; (b) The Licensee receives: 1. Notification to cease and desist in any state; 2. Notification of the initiation of license denial, suspension, or revocation procedures in any state; or 3. Notification of other formal regulatory action against the Licensee in any state; (c) An officer, director, member, or principal employee of the Licensee being charged with a criminal offense that is in any way related to check cashing activities of the Licensee, including, but not limited to, the handling or reporting of moneys received; (d) Filing of a proposed settlement of a class action lawsuit that was filed on behalf of consumers against the Licensee 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; or (e) A Licensee has been subject to any robbery, burglary or theft of the Licensee’s funds. (2) (a) A Licensee shall file a notice with the Commissioner through the NMLS at least 30 days prior to the occurrence of any proposed change in control. Upon such notice, the Commissioner may investigate the Licensee as if the Licensee applied for a new license, or as the Commissioner otherwise deems necessary. In the case of a corporation, change in control is defined as: 1. A change of ownership by a person or group acting in concert to acquire 10% of the stock; or 2. 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 shareholder; and 2. 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 45.03(2)(a).