N.J. Admin. Code § 3:17-2.3

Current through Register Vol. 56, No. 11, June 3, 2024

Section 3:17-2.3 - Branch offices; branch licensing requirement; initial branch licensing application

(a) Applicants for branch office licenses shall certify on a form prescribed by the Commissioner that the location of the branch office is in compliance with the requirements of this section. A branch office location at which activity as a consumer lender or sales finance company is conducted but at which there is no direct contact with New Jersey consumers shall be licensed and shall comply with the requirement regarding the maintenance of the confidentiality of financial information set forth in 3:17-1.3(a)1 for in-State offices or 3:17-1.3(a)2 for out-of-State offices and this section, with the exception of the standards prescribed in (e)2 through 5 below regarding the suitability of office locations at which a licensee at an instate location has face to face contact with New Jersey consumers. Prior to conducting activities as a consumer lender or sales finance company that include direct contact with New Jersey consumers regarding origination from a branch office in this State or from a branch office outside this State, the licensee shall obtain a license for the branch office from the Department.

(b) The application for a branch office license shall include the following:

1. The true name of the licensed entity and no more than three trade names or alternate names conforming to 3:17-1.4 and 1.5;

2. The address of the principal office;

3. The address of the branch to be licensed; and

4. The application fee prescribed by 3:17-3.2 which shall be non-refundable.

(c) A proposed branch at which the licensee will have direct contact with New Jersey consumers shall be in a suitable location in accordance with the applicable suitability criteria set forth in 3:17-1.3(a).

(d) If an applicant for a branch license meets the requirements of this section and 17:11C-9, the Commissioner shall issue the branch license which shall run from the date of issuance to the end of the current licensing period.

(e) Branch office arrangements shall be restricted as follows:

1. A branch office shall not be a separate business entity. If an office of another entity is purchased by or merged into a licensee, the licensee shall file for a branch office license. The filing shall include documentation evidencing the acquisition and/or merger of that entity into the surviving licensed entity;

2. A branch office shall not pay its own operating expenses. Operating expenses shall include, but are not limited to, compensation of branch office employees, and payments for equipment, furniture, office rent, and other similar expenses incurred in operating a consumer lending business;

3. A branch office shall not maintain a bank account or accounts for the payment of expenses of that branch that is separate from the account or accounts of the licensee;

4. A branch office shall not maintain contractual relationships with vendors for items such as leases, telephones, utilities, and advertising in the name of the branch office; and

5. A branch office shall not indemnify the licensee against damages incurred from any apparent, express, or implied agency representation by or through the branch office's actions.

N.J. Admin. Code § 3:17-2.3