Notification requirements

(a) A licensee shall send written notice to the department within ten days of the following: (1) Any knowledge or discovery that any of the licensee’s owners, executive officers, directors, trustees, agents, or covered employees has been convicted of a felony as described in subsection (a) of Code Section 7-3-42; (2) Any knowledge or discovery that any of the licensee’s owners, executive officers, directors, trustees, agents, or covered employees has committed fraud, engaged in dishonest activities, or made any misrepresentation; (3) The discharge of a covered employee for actual or suspected misrepresentations, dishonest acts, or fraudulent acts; (4) Any knowledge or discovery of an administrative, civil, or criminal action initiated by any governmental entity against the licensee; (5) Any knowledge or discovery of a criminal action initiated by any governmental entity for misrepresentations, dishonest acts, or fraudulent acts against any owner, executive officer, director, trustee, agent, or covered employee of a licensee; and (6) The filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. Sections 101 through 110, for bankruptcy reorganization or the filing of a petition by or against the licensee for receivership or the making of a general assignment for the benefit of its creditors. (b) A licensee shall send written notice to the department within 30 days of the following: (1) The commencement of any action brought against it relating to its business of installment lending in Georgia; (2) The commencement of any action by any creditor or claimant relating to its business of installment lending in Georgia or involving a claim against the bond filed with the department pursuant to Code Section 7-3-21; (3) The entry of any judgment against the licensee related to its business of installment lending in Georgia; and 664 7-3-32 (4) Any change in the address of its principal place of business or registered agent for service in Georgia. (c) The corporate surety that issued a licensee a bond pursuant to Code Section 7-3-21 shall send written notice to the department via registered or certified mail or statutory overnight delivery within ten days of paying any claim or judgment to any creditor or claimant with details sufficient to identify the claimant and the claim or judgment so paid. History. Code 1981, § 7-3-31, enacted by Ga. L. 2020, p. 156, § 2/SB 462; Ga. L. 2022, p. 220, § 44/HB 891. Amendments. The 2022 amendment, effective July 1, 2022, in subsection (c), inserted “via registered or certified mail or statutory overnight delivery” and added “with details sufficient to identify the claimant and the claim or judgment so paid” at the end; and deleted former subsection (d), which read: “Any notice sent pursuant to this Code section shall be sent by registered or certified mail or statutory overnight delivery and include sufficient details for the department to identify any relevant creditor or claimant, claim, cause of action, judgment, payment, or prohibited act.”. 7-3-32. Locations; managers; change in control; approval of department. (a) A licensee shall not engage in the business of installment lending at a location in this state unless the licensee has first received written approval from the department. Applications or renewals for such additional locations shall be made in writing on a form prescribed by the department and accompanied by a nonrefundable fee in an amount established by rules and regulations of the department. (b) Each manager of a licensee’s location in Georgia shall be approved in writing by the department. A licensee may allow an individual to begin working as a new location manager prior to such approval, provided that the licensee submits an application for approval within 15 days of the new location manager beginning work as a location manager. If the department denies approval of such new location manager, the licensee shall immediately remove the individual upon notice of such denial. (c) No person shall become an owner of any licensee through acquisition or other change in control or become an executive officer of a licensee unless the person has first received written approval from the department. To apply for such approval, the person shall: (1) Submit an application to the department in such form as the department may prescribe; (2) Provide such other information as the department may require concerning the financial responsibility, background, experience, 665 7-3-33 and activities of the applicant or its directors, owners, and executive officers; and (3) Pay a nonrefundable application fee as prescribed by rule and regulation of the department. (d) The department may prescribe by rule and regulation additional requirements for approval of an application submitted pursuant to this Code section. (e) The department shall approve an application properly submitted pursuant to this Code section if it finds that the applicant and its directors, owners, and executive officers have the financial responsibility, character, reputation, experience, and general fitness to warrant a belief that the business will be operated efficiently and fairly, in the public interest, and in accordance with the law. (f) This Code section shall not apply to: (1) The acquisition of an interest in a licensee by merger or consolidation with a person licensed pursuant to this article or a person exempt from the licensure requirements of this article under Code Section 7-3-4; (2) The acquisition of an interest in a licensee by merger or consolidation with a person affiliated through common ownership with the licensee; or (3) The acquisition of an interest in a licensee by a person by bequest, descent, or survivorship or by operation of law. (g) Any person acquiring an interest in a licensee in a transaction which is exempt pursuant to subsection (f) of this Code section shall send written notice to the department of such acquisition within 30 days of the closing of such transaction. History. Code 1981, § 7-3-32, enacted by Ga. L. 2020, p. 156, § 2/SB 462. 7-3-33. Unreasonable collection tactics.