§ 36a-540 — (Formerly Sec. 36-258). License. Change in control person. Automatic suspension of license. Surrender of license.

Connecticut § 36a-540

• Jurisdiction: Connecticut
• Title 36a: The Banking Law of Connecticut
• Ch. 668: Nondepository Financial Institutions

Text

(a) Each license shall specify the location at which the business is to be conducted. Such license shall not be transferable or assignable. Any change in any control person of the licensee, except a change of a director, general partner or executive officer that is not the result of an acquisition or change of control of the licensee, shall be the subject of an advance change notice filed on the system not later than thirty days prior to the effective date of such change and no such change shall occur without the commissioner's approval. For purposes of this section, “change of control” means any change causing the majority ownership, voting rights or control of a licensee to be held by a different control person or group of control persons. (b) No licensee may use any name other than its legal name or a fictitious name approved by the commissioner, provided such licensee may not use its legal name if the commissioner disapproves use of such name. No licensee shall use any name or address other than the name and address specified on the license issued by the commissioner. A licensee may change the name of the licensee or address of the office specified on the most recent filing with the system if at least thirty calendar days prior to such change, the licensee files such change with the system and the commissioner does not disapprove such change, in writing, or request further information from the licensee within such thirty-day period. (c) The commissioner may automatically suspend any license for a violation of subsection (a) or (b) of this section. After the license has been automatically suspended pursuant to this subsection, the commissioner shall (1) give the licensee notice of the automatic suspension, pending proceedings for revocation of or refusal to renew the license pursuant to section 36a-543 and an opportunity for a hearing in accordance with section 36a-51 , and (2) require the licensee to take or refrain from taking action as the commissioner deems necessary to effectuate the purpose of this section. (d) Not later than fifteen days after the date a licensee ceases to engage in this state in the business of a sales finance company for any reason, including a business decision to terminate operations in this state, license revocation, bankruptcy or voluntary dissolution, such licensee shall surrender to the commissioner, in accordance with subsection (c) of section 36a-51 , its license for each location in which such licensee has ceased to engage in such business.

Legislative History

(1949 Rev., S. 5964 (4); 1957, P.A. 356, S. 2; P.A. 02-111, S. 30; P.A. 08-119, S. 6; P.A. 18-173, S. 27; P.A. 21-138, S. 8.) History: Sec. 36-258 transferred to Sec. 36a-540 in 1995; P.A. 02-111 replaced former provisions with provisions re license to specify location at which business is conducted, license maintenance and availability for public inspection, license not transferable or assignable, notice to commissioner of change of location and licensee's use of specified name; P.A. 08-119 added requirement for surrender of license when licensee ceases to engage in the business of a sales finance company; P.A. 18-173 designated existing provisions re license to specify location at which business is conducted and license not transferrable or assignable as Subsec. (a) and substantially amended same, including by deleting provisions re location where license is to be maintained, change in location of licensee and use of name other than name specified on license with provisions re change in control person of licensee or change in control of licensee to be subject of advance change notice filed on system, added Subsec. (b) re licensee use of name other than legal name or approved fictitious name, added Subsec. (c) re automatic suspension of license, notice to licensee and opportunity for hearing, designated existing provisions re surrendering license to commissioner, and amended same by replacing provision re surrender in person or by registered or certified mail with provision re surrender in accordance with Sec. 36a-51(c); P.A. 21-138 amended Subsec. (a) by defining “change of control” and making a conforming change.