§ 715 — Changes in control

§ 715. Changes in control. 1. It shall be unlawful except with the\nprior approval of the superintendent for any action to be taken which\nresults in a change of control of the business of a student loan\nservicer required to be licensed under section seven hundred eleven of\nthis article. Prior to any change of control, the person desirous of\nacquiring control of the business of a student loan servicer shall make\nwritten application to the superintendent and pay an investigation fee\nas prescribed pursuant to section eighteen-a of this chapter to the\nsuperintendent. The application shall contain such information as the\nsuperintendent, by rule or regulation, may prescribe as necessary or\nappropriate for the purpose of making the determination required by\nsubdivision two of this section. This information shall include but not\nbe limited to the information and other material required for a student\nloan servicer by subdivision one of section seven hundred twelve of this\narticle.\n 2. The superintendent shall approve or disapprove the proposed change\nof control of a student loan servicer required to be licensed under\nsection seven hundred eleven of this article in accordance with the\nprovisions of section seven hundred thirteen of this article.\n 3. For a period of six months from the date of qualification thereof\nand for such additional period of time as the superintendent may\nprescribe, in writing, the provisions of subdivisions one and two of\nthis section shall not apply to a transfer of control by operation of\nlaw to the legal representative, as hereinafter defined, of one who has\ncontrol of a student loan servicer. Thereafter, such legal\nrepresentative shall comply with the provisions of subdivisions one and\ntwo of this section. The provisions of subdivisions one and two of this\nsection shall be applicable to an application made under such section by\na legal representative. The term "legal representative", for the\npurposes of this subdivision, shall mean one duly appointed by a court\nof competent jurisdiction to act as executor, administrator, trustee,\ncommittee, conservator or receiver, including one who succeeds a legal\nrepresentative and one acting in an ancillary capacity thereto in\naccordance with the provisions of such court appointment.\n 4. As used in this section the term "control" means the possession,\ndirectly or indirectly, of the power to direct or cause the direction of\nthe management and policies of a student loan servicer, whether through\nthe ownership of voting stock of such student loan servicer, the\nownership of voting stock of any person which possesses such power or\notherwise. Control shall be presumed to exist if any person, directly or\nindirectly, owns, controls or holds with power to vote ten per centum or\nmore of the voting stock of any student loan servicer or of any person\nwhich owns, controls or holds with power to vote ten per centum or more\nof the voting stock of any student loan servicer, but no person shall be\ndeemed to control a student loan servicer solely by reason of being an\nofficer or director of such student loan servicer. The superintendent\nmay in his or her discretion, upon the application of a student loan\nservicer or any person who, directly or indirectly, owns, controls or\nholds with power to vote or seeks to own, control or hold with power to\nvote any voting stock of such student loan servicer, determine whether\nor not the ownership, control or holding of such voting stock\nconstitutes or would constitute control of such student loan servicer\nfor purposes of this section.\n