N.J. Admin. Code § 3:17-4.4

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

Section 3:17-4.4 - Failure to maintain net worth or liquid assets; action by the Department

(a) If the net worth or liquid assets of a consumer lender falls below the amounts required by 17:11C-16, or if the consumer lender is insolvent, the Department may take such action as it deems appropriate and necessary to protect the public. The action may include requiring the consumer lender to operate pursuant to a memorandum of understanding, or directing the consumer lender to submit and comply with a capital plan within a time frame established by the Department to attain the net worth or liquid assets required by the Act.

(b) When considering whether to suspend, revoke or refuse to renew the license of a consumer lender who does not have the net worth or liquid assets required by the Act, the Commissioner shall consider the following factors:

1. How far the consumer lender is below the level of net worth or liquid assets required by the Act;

2. The correspondent relationship that a consumer lender may have with another financial institution;

3. The number and amount of loans typically made by the consumer lender;

4. The history of consumer complaints received by the Department concerning the consumer lender;

5. Whether the consumer lender has committed to make loans that it has been unable to fund; and

6. Any other factors reflecting on the ability and fitness of the consumer lender to transact business in its licensed capacity.

N.J. Admin. Code § 3:17-4.4