License application; fee; surety requirement

1. Law
2. Mississippi Code
3. Banks and Financial Institutions
4. Consumer Loan Broker Act
5. License application; fee; surety requirement

1. An application to become licensed as a consumer loan broker shall be in writing, under oath and in a form prescribed by the commissioner, and shall contain:
   1. The full name and address of the applicant;
   2. The street address, municipality and county of the proposed licensed location;
   3. The complete business and residence address of:
      1. The proprietor, if an individual applicant;
      2. All partners, if a partnership applicant; or
      3. The directors and chief executive officer, if a corporate applicant; and
   4. Such other information as the commissioner may reasonably require in order to evaluate the applicant's suitability to operate as a consumer loan broker.
2. Each application shall be accompanied by the payment of Three Hundred Dollars ($300.00), which shall be the annual license fee for each licensed location of a consumer loan broker and is in addition to all other taxes and fees required by law. The twelve-month licensing period shall begin on the date the license is issued.
3. Each application shall be accompanied by evidence of a surety bond in an amount of Twenty-five Thousand Dollars ($25,000.00) issued by a company authorized to do business in Mississippi and approved by the commissioner. The bond shall be in favor of the State of Mississippi to discharge unsatisfied indebtedness or liability of the licensed consumer loan broker to the state, any political subdivision thereof or to any person who may have a cause of action against the broker by reason of the broker's conduct as a licensed consumer loan broker.

   The surety on the bond may cancel same by giving sixty (60) days' notice in writing to the commissioner and thereafter shall be relieved of liability after the effective date of cancellation. The commissioner shall require a new bond in an amount of Twenty-five Thousand Dollars ($25,000.00) at any time he has knowledge that a licensee's bond has expired, is about to expire or, in the opinion of the commissioner, is insecure for any reason. The license of any consumer loan broker who fails to post a replacement bond within ten (10) days from receipt of a notice from the commissioner shall be cancelled immediately.

   Claimants against the licensee may bring suit directly on the bond, and the Attorney General also may bring suit on behalf of claimants in one (1) or multiple actions.

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