Title 31, MISCELLANEOUS LOAN AGENCIES

A business development company, upon the affirmative vote of two-thirds of the votes of the stockholders entitled to vote their shares, shall dissolve the business development company as provided by Title 23B RCW, to the extent that Title 23B RCW is not in conflict with this chap…

Under no circumstances shall the credit of the state of Washington be pledged to any corporation organized under the provisions of this chapter. [ 1963 c 162 s 16.]

Any business development company organized under this chapter shall be a state development company, as authorized under Title V of the small business investment act of 1958, Public Law 85-699, 15 U.S.C. Sec. 695, as amended, or any other similar federal legislation. [ 2006 c 87 s…

(1) In addition to the purposes specified in RCW 31.24.020 a historic business development company may be formed for one or more of the following purposes: (a) To encourage and stimulate the preservation of historic buildings or historic commercial areas or neighborhoods by retur…

*Chapter 30.44 RCW applies to the insolvency and liquidation of a business development company organized under this chapter. [ 2006 c 87 s 21.] Notes: *Reviser's note: Chapter 30.44 RCW was recodified as chapter 30A.44 RCW pursuant to 2014 c 37 s 4, effective January 5, 2015.

The director has the same power and authority to exercise supervisory direction and conservatorship of, and to issue cease and desist orders upon, a business development company organized under this chapter, as the director has in regard to a bank under *Title 30 RCW. [ 2006 c 87…

(1) Subject to written approval of the director, one or more general business development companies may merge into or consolidate with each other consistent with *chapter 30.49 RCW. (2) Upon ninety days advance application to and written approval of the director, a historic busin…

(1) Notwithstanding any other provision of this chapter, a development credit corporation created under chapter 31.20 RCW, or any other company incorporated under Title 23B RCW, may convert to a business development company by filing an application with the department and receivi…

The existing privileges, immunities, and requirements of confidentiality and disclosure with respect to examination records and information obtained by the director in conducting examinations, which are applicable to banks, as set forth in *RCW 30.04.075, apply to examination rec…

Notwithstanding any other provision of this chapter, a business development company organized under this chapter may be chartered as a limited liability company, or may convert to doing business as a limited liability company, to the same extent and subject to the same terms and …

(1) An applicant may apply simultaneously for both a business development company charter, under this chapter, and for a license as a nondepository lender of federally guaranteed small business loans, under chapter 31.40 RCW. (2) An applicant may apply simultaneously for both a b…

The director has broad administrative authority and discretion to adopt rules to carry out the purposes of this chapter. [ 2006 c 87 s 31.]

This chapter shall be known and may be cited as the "business development company act." [ 2006 c 87 s 32.]

The legislature finds and declares that nondepository agricultural lenders can enhance their access to working capital for the purpose of financing agricultural borrowers by using the United States farmers home administration loan guaranty program. The farmers home administration…

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Agricultural lender" means a Washington corporation incorporated under Title 23B or 24 RCW and qualified as such under this chapter and the jurisdiction of the feder…

(1) The director shall administer this chapter. The director may issue orders and adopt rules that, in the opinion of the director, are necessary to execute, enforce, and effectuate the purposes of this chapter. Rules to enforce the provisions of this chapter shall be adopted und…

(1) An agricultural lender may participate in a loan guaranty program. If an agricultural lender participates in a loan guaranty program, the agricultural lender shall comply with the requirements of that program. (2) An agricultural lender may be incorporated under either the Wa…

(1) The director is authorized to charge a fee for the estimated direct and indirect costs for examination and supervision by the director of an agricultural lender or a subsidiary of an agricultural lender. Excess examiner time shall be billed at a reasonable rate established by…

(1) An agricultural lender shall keep books, accounts, and other records in such form and manner as required by the director. These records shall be kept at such place and shall be preserved for such length of time as specified by the director by rule. (2) Not more than ninety da…

(1) The director shall visit each agricultural lender at least every twenty-four months for the purpose of assuring that the agricultural lender remains in compliance with and qualified for the loan guaranty program. (a) The director may accept timely audited financial statements…

(1) The director shall adopt rules to enforce the intent and purposes of this chapter. Such rules shall include, but not be limited to, the following: (a) Disclosure of conflicts of interest; (b) Prohibition of false statements made to the director on any form required by the dir…

If, in the opinion of the director, an agricultural lender violates or there is reasonable cause to believe that an agricultural lender is about to violate any provision of this chapter or any rule adopted under this chapter, the director may bring an action in the appropriate co…

All agricultural lenders shall notify their members at the time of membership and annually thereafter that their investment in the agricultural lender, although regulated by the director, is not insured, guaranteed, or protected by any federal or state agency. [ 1994 c 92 s 259; …

RCW 31.24.230 (2) through (4) supersede any contrary provision of this chapter. [ 2006 c 87 s 28.]

If any provision of this act or its application to any person or circumstance is held invalid or, if in the written opinion of the farmers home administration, is contrary to the intent and purposes of the loan guaranty program, the director shall not enforce such provision, but …

The legislature finds and declares that small and moderate-size companies can enhance their access to working capital and to capital for acquiring and equipping commercial and industrial facilities by using the United States small business administration national small business l…

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Licensee" means a Washington corporation licensed under the terms of this chapter. (2) "Director" means the director of financial institutions. [ 1994 c 92 s 262; 19…

(1) The director shall administer this chapter. The director may issue orders and adopt rules that, in the opinion of the director, are necessary to execute, enforce, and effectuate the purposes of this chapter. Rules to enforce the provisions of this chapter shall be adopted und…

(1) A licensee may participate in the 7(a) loan guaranty program of the small business administration pursuant to section 7(a) of the federal small business investment act of 1958, 15 U.S.C. Sec. 636(a), or any other government program for which the licensee is eligible and which…

After a review of information regarding the directors, officers, and controlling persons of the applicant for a license, a review of the applicant's business plan, including at least three years of detailed financial projections and other relevant information, and a review of suc…

(1) Either by itself or in concert with a director, officer, principal shareholder, or affiliate, or with another licensee, a licensee shall not hold control of a business firm to which it has made a loan under section 7(a) of the federal small business investment act of 1958, 15…

(1) The director is authorized to charge a fee for the estimated direct and indirect costs of the following: (a) An application for a license and the investigation thereof; (b) An application for approval to acquire control of a licensee and the investigation thereof; (c) An appl…

(1) A licensee shall keep books, accounts, and other records in such a form and manner as the director may require. These records shall be kept at such a place and shall be preserved for such a length of time as the director may specify. (2) Not more than ninety days after the cl…

(1) The director shall examine each licensee not less than once every twenty-four months. (2) The director may with or without notice and at any time during regular business hours examine a licensee or a subsidiary of a licensee. (3) A director, officer, or employee of a licensee…

If the director denies an application, the director shall provide the applicant with a written statement explaining the basis for the denial. [ 1994 c 92 s 269; 1989 c 212 s 10.]

(1) The director shall adopt rules to enforce the intent and purposes of this chapter. Such rules shall include, but need not be limited to, the following: (a) Disclosure of conflicts of interest; (b) Prohibition of false statements made to the director on any form required by th…

If, in the opinion of the director, a person violates or there is reasonable cause to believe that a person is about to violate any provision of this chapter or any rule adopted under this chapter, the director may bring an action in the appropriate court to enjoin the violation …

The director may deny, suspend, or revoke a license if the applicant or holder violates any provision of this chapter or any rules promulgated pursuant to this chapter. [ 1994 c 92 s 272; 1989 c 212 s 13.]

RCW 31.24.230 (1), (3), and (4) supersede any contrary provision of this chapter. [ 2006 c 87 s 29.]

If any provision of this act or its application to any person or circumstance is held invalid or, if in the written opinion of the small business administration, is contrary to the intent and purposes of the 7(a) loan guaranty program, the director shall not enforce such provisio…

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Applicant" means a person that files an application for a license under this chapter, including the applicant's sole proprietor, owners, directors, officers, partner…

(1) This chapter does not apply to: (a) Any financial institution or trust company authorized to do business in Washington; (b) The cashing of checks, drafts, or money orders by any person who cashes checks, drafts, or money orders as a convenience, as a minor part of its customa…

(1) The requirements under any federal law or laws of another state regarding the privacy or confidentiality of any information or material provided to the department [of financial institutions], and any privilege arising under federal or state law, including the rules of any fed…

(1) Except as provided in RCW 31.45.020, no check casher or seller may engage in business without first obtaining a license from the director in accordance with this chapter. A license is required for each location where a licensee engages in the business of cashing or selling ch…

(1) The director shall conduct an investigation of every applicant to determine the financial responsibility, experience, character, and general fitness of the applicant. The director shall issue the applicant a license to engage in the business of cashing or selling checks, or b…

Applicants may be required to make application through a multistate licensing system as prescribed by the director. Existing licensees may be required to transition onto a multistate licensing system as prescribed by the director. [ 2012 c 17 s 8.]