N.J. Admin. Code § 3:17-9.2

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

Section 3:17-9.2 - Approved business activities for consumer lenders

(a) A consumer lender may engage in the activities related to that license without securing specific approval from the Commissioner. The activities may be conducted in the same office, room or place of business where the consumer lender conducts the business of making consumer loans.

1. Any licensed activity permitted under the Act provided that the consumer lender secures proper licensing from the Department;

2. Mortgage loan business. Any such business shall be conducted in accordance with the provisions of the New Jersey Residential Mortgage Lending Act, 17:11C-51 et seq., provided that the consumer lender secures proper licensing from the Department;

3. The home repair financing agency business. Any such business shall be conducted in accordance with the provisions of 17:16C-62 et seq., the Home Repair Financing Act;

4. The insurance premium finance company business. Any such business shall be conducted in accordance with the provisions of 17:16D-1 et seq., the Insurance Premium Finance Company Act;

5. The making of business or commercial loans;

6. The financing of installment contracts involving the time sale of goods or services that are to be utilized by the buyer for business or commercial purposes;

7. The leasing of personal property for business or commercial purposes;

8. Income tax preparation service;

9. First lien loans on non-residential real property provided that such business is conducted in accordance with the provisions of 31:1-1 et seq., N.J.A.C. 3:1 or Sections 501 et seq., of the Federal Depository Institutions Deregulation and Monetary Control Act of 1980, P.L. 96-221; and

10. Purchase of owner originated second mortgages under such reasonable terms and conditions as may be agreed to between the consumer lender and the mortgagee.

(b) A consumer lender who wishes to engage in the same office, room or place of business in an activity related to the financial services business not authorized by the consumer lending license or specified in (a) above, may apply to the Commissioner for approval to engage in such activity. Such application shall:

1. Be in writing;

2. Identify that it is an application by a consumer lender to engage in an activity pursuant to 3:17-9.2;

3. Describe in detail how the activity in which the consumer lender wishes to engage is related to the financial services business;

4. Include a statement that the consumer lender will not require that a borrower engage in the activity as a precondition for granting a consumer loan; and

5. Include a statement that the consumer lender will conduct the activity in conformity with all applicable law and regulations.

(c) The Commissioner shall approve or deny an application submitted pursuant to (b) above within 90 days of receipt. If the Commissioner does not, within 90 days of receipt, deny a consumer lender's application submitted pursuant to (b) above, the application shall be deemed approved.

(d) Consumer lenders who obtained, prior to July 1, 1997, approval from the Commissioner to engage in an activity not specified in 3:17-9.2 shall be deemed to be approved to engage in that activity under the Act.

N.J. Admin. Code § 3:17-9.2