2005 Regular Session
To: Business and Financial Institutions
By: Senator(s) Mettetal
AN ACT TO AMEND SECTION 75-67-421, MISSISSIPPI CODE OF 1972, TO CLARIFY THE AMOUNT OF THE BOND REQUIRED TO BE ELIGIBLE FOR A TITLE PLEDGE LENDER LICENSE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-421, Mississippi Code of 1972, is amended as follows:
75-67-421. (1) To be eligible for a title pledge lender license, an applicant shall:
(a) Operate lawfully and fairly within the purposes of this article;
(b) Not have been convicted of a felony in the last ten (10) years or be active as a beneficial owner for someone who has been convicted of a felony in the last ten (10) years;
(c) File with the commissioner a bond with good security in the penal sum of Fifty Thousand Dollars ($50,000.00) for each location at which the applicant proposes to engage in the business of title pledge lending, but in no event shall the aggregate amount of the bond for all locations per applicant exceed Two Hundred Fifty Thousand Dollars ($250,000.00) and no more than Fifty Thousand Dollars ($50,000.00) shall be payable or recoverable on the bond for each location; the bond shall be payable to the State of Mississippi for the faithful performance by the licensee of the duties and obligations pertaining to the business so licensed and the prompt payment of any judgment which may be recovered against the licensee on account of damages or other claim arising directly or collaterally from any violation of the provisions of this article; the bond shall not be valid until it is approved by the commissioner; the applicant may file, in lieu thereof, cash, a certificate of deposit, or government bonds in the amount of Twenty-five Thousand Dollars ($25,000.00) for each location at which the applicant proposes to engage in the business of title pledge lending, but in no event shall the aggregate amount of the cash, certificate of deposit or government bonds for all locations per applicant exceed Two Hundred Fifty Thousand Dollars ($250,000.00) and no more than Twenty-five Thousand Dollars ($25,000.00) shall be payable or recoverable on the cash, certificate of deposit or government bonds for each location; the deposit of the cash, certificate of deposit or government bonds shall be filed with the commissioner and is subject to the same terms and conditions as are provided for in the surety bond required herein; any interest or earnings on such deposits are payable to the depositor.
(d) File with the commissioner an application accompanied by a set of fingerprints from any local law enforcement agency, and the initial license fee required in this article. In order to determine the applicant's suitability for license, the commissioner shall forward the fingerprints to the Department of Public Safety; and if no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Department of Public Safety to the FBI for a national criminal history record check.
(2) Upon the filing of an application in a form prescribed by the commissioner, accompanied by the fee and documents required in this article, the department shall investigate to ascertain whether the qualifications prescribed by this article have been satisfied. If the commissioner finds that the qualifications have been satisfied and, if he approves the documents so filed by the applicant, he shall issue to the applicant a license to engage in the business of title pledge lending in this state.
(3) Complete and file with the commissioner an annual renewal application accompanied by the renewal fee required in this article.
(4) The license shall be kept conspicuously posted in the place of business of the licensee.
SECTION 2. This act shall take effect and be in force from and after its passage.