§ 58‑70‑5. Application to Commissioner for permit.
Any person, firm, corporationor association desiring to secure a permit as provided by G.S. 58‑70‑1,shall make application to the Commissioner of Insurance for each location atwhich such person, firm, corporation or association desires to carry on thecollection agency business as hereinafter defined. Such applicant shall beentitled to a permit upon submission to the Commissioner of Insurance of thefollowing:
(a) The name, tradename if any, street address, and telephone number of the applicant, includingany home office address and telephone number, if different;
(b) If the applicant isa corporation,
(1) A certified copy ofthe board of director's resolution authorizing the submission of the application;
(2) An authenticatedcopy of the Articles of Incorporation and all amendments thereto;
(3) An authenticatedcopy of the bylaws or other governing instruments;
(4) If the applicant isa foreign corporation, a copy of the certificate of authority to transactbusiness in this State issued by the North Carolina Secretary of State;
(b1) In addition to theinformation required by subsection (b) of this section, if the applicant is analien corporation, the corporation must be owned or majority controlled ultimatelyby a parent entity incorporated or organized under the laws of the UnitedStates or any jurisdiction within the United States, and the alien corporationmay only service accounts held by an affiliate or subsidiary of the same parententity. For purposes of this subsection, "control" is defined by G.S.58‑19‑5(2). Should the alien corporation be sold to an entityunrelated to the parent entity, notice shall be provided to the Department ofthe pending sale 30 days in advance of the sale. Provision of Form 8‑K,properly filed with the Securities and Exchange Commission, shall be deemedcompliance with the notice requirement of this subsection. In the event of asale, the new parent entity shall provide evidence to the Department within 30days of the sale of its and the alien corporation's compliance with therequirements of this section. In the event that the new parent entity does notprovide the evidence within 30 days after the sale, the alien corporation'spermit shall be automatically suspended until the Department is provided theevidence of compliance which is satisfactory to the Commissioner;
(c) If the applicant isa partnership, an authenticated copy of the then current partnership agreement;
(d) If the trade nameis used, certificates showing that the trade name has been filed as required byG.S. 66‑68;
(e) A surety bond asrequired by G.S. 58‑70‑20. In the case of an alien corporation, thesurety bond requirements shall be double the amount set by G.S. 58‑70‑20;
(f) A completedstatement by each stockholder owning ten percent (10%) or more of theapplicant's outstanding voting stock and each partner, director, and officeractively engaged in the collection agency business, containing: the name of thecollection agency, the name and address of the individual completing the form,the positions held by the individual, each conviction of any criminal offenseand any criminal charges pending other than minor traffic violations of theindividual, and the name and address of three people not related to theindividual who can attest to the individual's reputation for honesty and fairdealings;
(g) A statement swornto by an appropriate corporate officer, partner, or individual proprietorgiving a description of the collection method to be employed in North Carolina;
(h) A statementcertifying that there are no unsatisfied judgments against the applicant;
(i) A list of alltelephone numbers assigned to, or to be used by the applicant in the operationof the collection agency;
(j) The appropriatepermit fee as required by G.S. 58‑70‑35;
(k) A balance sheet asof the last day of the month prior to the date of submission of theapplication, certified true and correct by a corporate officer, partner, orproprietor, setting forth the current assets, fixed assets, current liabilitiesand positive net worth of the applicant;
(l) The address of thelocation at which the applicant will make those records of its collectionagency business described in G.S. 58‑70‑25 available for inspectionby the Commissioner of Insurance.
(m) A statementcertifying that no officer, individual proprietor or partner of the applicanthas been convicted of a felony involving moral turpitude, or any violation ofany State or federal debt collection law.
(n) If the collectionagency's office or records, as described in G.S. 58‑70‑25, arelocated outside of North Carolina, a statement sworn to by an appropriatecorporate officer, partner, or individual proprietor consenting to andauthorizing the reimbursement, to the Commissioner by the collection agency, ofexpenses incurred by the Commissioner in conducting routine examinations,audits, and in investigating written complaints against the collection agencyor its employees. All reimbursements shall be paid to the Commissioner no morethan 30 days after the date of billing. In the case of an alien corporation,the sworn statement must provide that the corporation will make available tothe Commissioner for his inspection, in North Carolina, those records describedin G.S. 58‑70‑25, at the expense of the corporation;
(o) If the applicant isa foreign corporation, a statement authorizing the Commissioner to be its agentfor service of process, which shall be administered pursuant to the provisionsof G.S. 58‑16‑30.
(p) In the case of analien corporation, when the corporation is in violation of this Article, theparent entity must agree to cure the violation by the alien corporation.
(q) For purposes ofthis Article, the following definitions apply:
(1) "Aliencorporation" means a company incorporated or organized under the laws ofany jurisdiction outside of the United States.
(2) "Foreigncorporation" means a company incorporated or organized under the laws ofthe United States or of any jurisdiction within the United States other thanthis State.
(r) If the applicant isa subsidiary in a holding company system and if the applicant's ultimate parentregularly files financial information with the U.S. Securities and ExchangeCommission, in lieu of complying with subsection (k) of this section, theapplicant may file the ultimate parent company's balance sheet as of the mostrecent fiscal year‑end, as certified by the ultimate parent's independentauditors, and accompanied by a guarantee of the applicant's performance fromthe ultimate parent company for the benefit of the Department, limited to thoseportions of this Article that are applicable to the applicant.
(s) After a permit isissued by the Commissioner, the permittee's ultimate parent, as specified insubsection (r) of this section, shall remain responsible for the guarantee ofperformance as provided in subsection (r) of this section notwithstanding anychange in the corporate structure of the ultimate parent company. If thepermittee is acquired by any other person that has control over the permittee,the controlling person shall provide its own guarantee of performance asprovided in subsection (r) of this section for the permittee to retain itspermit. If the permittee does not have an ultimate parent company, it shallfile its own balance sheet as specified in subsection (k) of this section. (1931, c. 217, s. 2; 1943,c. 170; 1959, c. 1194, s. 2; 1969, c. 906, s. 2; 1979, c. 835; 1989, c. 441,ss. 2, 3; 2001‑269, s. 1.1; 2006‑134, s. 1; 2009‑566, s. 21.)
§ 58‑70‑5. Application to Commissioner for permit.
Any person, firm, corporationor association desiring to secure a permit as provided by G.S. 58‑70‑1,shall make application to the Commissioner of Insurance for each location atwhich such person, firm, corporation or association desires to carry on thecollection agency business as hereinafter defined. Such applicant shall beentitled to a permit upon submission to the Commissioner of Insurance of thefollowing:
(a) The name, tradename if any, street address, and telephone number of the applicant, includingany home office address and telephone number, if different;
(b) If the applicant isa corporation,
(1) A certified copy ofthe board of director's resolution authorizing the submission of the application;
(2) An authenticatedcopy of the Articles of Incorporation and all amendments thereto;
(3) An authenticatedcopy of the bylaws or other governing instruments;
(4) If the applicant isa foreign corporation, a copy of the certificate of authority to transactbusiness in this State issued by the North Carolina Secretary of State;
(b1) In addition to theinformation required by subsection (b) of this section, if the applicant is analien corporation, the corporation must be owned or majority controlled ultimatelyby a parent entity incorporated or organized under the laws of the UnitedStates or any jurisdiction within the United States, and the alien corporationmay only service accounts held by an affiliate or subsidiary of the same parententity. For purposes of this subsection, "control" is defined by G.S.58‑19‑5(2). Should the alien corporation be sold to an entityunrelated to the parent entity, notice shall be provided to the Department ofthe pending sale 30 days in advance of the sale. Provision of Form 8‑K,properly filed with the Securities and Exchange Commission, shall be deemedcompliance with the notice requirement of this subsection. In the event of asale, the new parent entity shall provide evidence to the Department within 30days of the sale of its and the alien corporation's compliance with therequirements of this section. In the event that the new parent entity does notprovide the evidence within 30 days after the sale, the alien corporation'spermit shall be automatically suspended until the Department is provided theevidence of compliance which is satisfactory to the Commissioner;
(c) If the applicant isa partnership, an authenticated copy of the then current partnership agreement;
(d) If the trade nameis used, certificates showing that the trade name has been filed as required byG.S. 66‑68;
(e) A surety bond asrequired by G.S. 58‑70‑20. In the case of an alien corporation, thesurety bond requirements shall be double the amount set by G.S. 58‑70‑20;
(f) A completedstatement by each stockholder owning ten percent (10%) or more of theapplicant's outstanding voting stock and each partner, director, and officeractively engaged in the collection agency business, containing: the name of thecollection agency, the name and address of the individual completing the form,the positions held by the individual, each conviction of any criminal offenseand any criminal charges pending other than minor traffic violations of theindividual, and the name and address of three people not related to theindividual who can attest to the individual's reputation for honesty and fairdealings;
(g) A statement swornto by an appropriate corporate officer, partner, or individual proprietorgiving a description of the collection method to be employed in North Carolina;
(h) A statementcertifying that there are no unsatisfied judgments against the applicant;
(i) A list of alltelephone numbers assigned to, or to be used by the applicant in the operationof the collection agency;
(j) The appropriatepermit fee as required by G.S. 58‑70‑35;
(k) A balance sheet asof the last day of the month prior to the date of submission of theapplication, certified true and correct by a corporate officer, partner, orproprietor, setting forth the current assets, fixed assets, current liabilitiesand positive net worth of the applicant;
(l) The address of thelocation at which the applicant will make those records of its collectionagency business described in G.S. 58‑70‑25 available for inspectionby the Commissioner of Insurance.
(m) A statementcertifying that no officer, individual proprietor or partner of the applicanthas been convicted of a felony involving moral turpitude, or any violation ofany State or federal debt collection law.
(n) If the collectionagency's office or records, as described in G.S. 58‑70‑25, arelocated outside of North Carolina, a statement sworn to by an appropriatecorporate officer, partner, or individual proprietor consenting to andauthorizing the reimbursement, to the Commissioner by the collection agency, ofexpenses incurred by the Commissioner in conducting routine examinations,audits, and in investigating written complaints against the collection agencyor its employees. All reimbursements shall be paid to the Commissioner no morethan 30 days after the date of billing. In the case of an alien corporation,the sworn statement must provide that the corporation will make available tothe Commissioner for his inspection, in North Carolina, those records describedin G.S. 58‑70‑25, at the expense of the corporation;
(o) If the applicant isa foreign corporation, a statement authorizing the Commissioner to be its agentfor service of process, which shall be administered pursuant to the provisionsof G.S. 58‑16‑30.
(p) In the case of analien corporation, when the corporation is in violation of this Article, theparent entity must agree to cure the violation by the alien corporation.
(q) For purposes ofthis Article, the following definitions apply:
(1) "Aliencorporation" means a company incorporated or organized under the laws ofany jurisdiction outside of the United States.
(2) "Foreigncorporation" means a company incorporated or organized under the laws ofthe United States or of any jurisdiction within the United States other thanthis State.
(r) If the applicant isa subsidiary in a holding company system and if the applicant's ultimate parentregularly files financial information with the U.S. Securities and ExchangeCommission, in lieu of complying with subsection (k) of this section, theapplicant may file the ultimate parent company's balance sheet as of the mostrecent fiscal year‑end, as certified by the ultimate parent's independentauditors, and accompanied by a guarantee of the applicant's performance fromthe ultimate parent company for the benefit of the Department, limited to thoseportions of this Article that are applicable to the applicant.
(s) After a permit isissued by the Commissioner, the permittee's ultimate parent, as specified insubsection (r) of this section, shall remain responsible for the guarantee ofperformance as provided in subsection (r) of this section notwithstanding anychange in the corporate structure of the ultimate parent company. If thepermittee is acquired by any other person that has control over the permittee,the controlling person shall provide its own guarantee of performance asprovided in subsection (r) of this section for the permittee to retain itspermit. If the permittee does not have an ultimate parent company, it shallfile its own balance sheet as specified in subsection (k) of this section. (1931, c. 217, s. 2; 1943,c. 170; 1959, c. 1194, s. 2; 1969, c. 906, s. 2; 1979, c. 835; 1989, c. 441,ss. 2, 3; 2001‑269, s. 1.1; 2006‑134, s. 1; 2009‑566, s. 21.)
§ 58‑70‑5. Application to Commissioner for permit.
Any person, firm, corporationor association desiring to secure a permit as provided by G.S. 58‑70‑1,shall make application to the Commissioner of Insurance for each location atwhich such person, firm, corporation or association desires to carry on thecollection agency business as hereinafter defined. Such applicant shall beentitled to a permit upon submission to the Commissioner of Insurance of thefollowing:
(a) The name, tradename if any, street address, and telephone number of the applicant, includingany home office address and telephone number, if different;
(b) If the applicant isa corporation,
(1) A certified copy ofthe board of director's resolution authorizing the submission of the application;
(2) An authenticatedcopy of the Articles of Incorporation and all amendments thereto;
(3) An authenticatedcopy of the bylaws or other governing instruments;
(4) If the applicant isa foreign corporation, a copy of the certificate of authority to transactbusiness in this State issued by the North Carolina Secretary of State;
(b1) In addition to theinformation required by subsection (b) of this section, if the applicant is analien corporation, the corporation must be owned or majority controlled ultimatelyby a parent entity incorporated or organized under the laws of the UnitedStates or any jurisdiction within the United States, and the alien corporationmay only service accounts held by an affiliate or subsidiary of the same parententity. For purposes of this subsection, "control" is defined by G.S.58‑19‑5(2). Should the alien corporation be sold to an entityunrelated to the parent entity, notice shall be provided to the Department ofthe pending sale 30 days in advance of the sale. Provision of Form 8‑K,properly filed with the Securities and Exchange Commission, shall be deemedcompliance with the notice requirement of this subsection. In the event of asale, the new parent entity shall provide evidence to the Department within 30days of the sale of its and the alien corporation's compliance with therequirements of this section. In the event that the new parent entity does notprovide the evidence within 30 days after the sale, the alien corporation'spermit shall be automatically suspended until the Department is provided theevidence of compliance which is satisfactory to the Commissioner;
(c) If the applicant isa partnership, an authenticated copy of the then current partnership agreement;
(d) If the trade nameis used, certificates showing that the trade name has been filed as required byG.S. 66‑68;
(e) A surety bond asrequired by G.S. 58‑70‑20. In the case of an alien corporation, thesurety bond requirements shall be double the amount set by G.S. 58‑70‑20;
(f) A completedstatement by each stockholder owning ten percent (10%) or more of theapplicant's outstanding voting stock and each partner, director, and officeractively engaged in the collection agency business, containing: the name of thecollection agency, the name and address of the individual completing the form,the positions held by the individual, each conviction of any criminal offenseand any criminal charges pending other than minor traffic violations of theindividual, and the name and address of three people not related to theindividual who can attest to the individual's reputation for honesty and fairdealings;
(g) A statement swornto by an appropriate corporate officer, partner, or individual proprietorgiving a description of the collection method to be employed in North Carolina;
(h) A statementcertifying that there are no unsatisfied judgments against the applicant;
(i) A list of alltelephone numbers assigned to, or to be used by the applicant in the operationof the collection agency;
(j) The appropriatepermit fee as required by G.S. 58‑70‑35;
(k) A balance sheet asof the last day of the month prior to the date of submission of theapplication, certified true and correct by a corporate officer, partner, orproprietor, setting forth the current assets, fixed assets, current liabilitiesand positive net worth of the applicant;
(l) The address of thelocation at which the applicant will make those records of its collectionagency business described in G.S. 58‑70‑25 available for inspectionby the Commissioner of Insurance.
(m) A statementcertifying that no officer, individual proprietor or partner of the applicanthas been convicted of a felony involving moral turpitude, or any violation ofany State or federal debt collection law.
(n) If the collectionagency's office or records, as described in G.S. 58‑70‑25, arelocated outside of North Carolina, a statement sworn to by an appropriatecorporate officer, partner, or individual proprietor consenting to andauthorizing the reimbursement, to the Commissioner by the collection agency, ofexpenses incurred by the Commissioner in conducting routine examinations,audits, and in investigating written complaints against the collection agencyor its employees. All reimbursements shall be paid to the Commissioner no morethan 30 days after the date of billing. In the case of an alien corporation,the sworn statement must provide that the corporation will make available tothe Commissioner for his inspection, in North Carolina, those records describedin G.S. 58‑70‑25, at the expense of the corporation;
(o) If the applicant isa foreign corporation, a statement authorizing the Commissioner to be its agentfor service of process, which shall be administered pursuant to the provisionsof G.S. 58‑16‑30.
(p) In the case of analien corporation, when the corporation is in violation of this Article, theparent entity must agree to cure the violation by the alien corporation.
(q) For purposes ofthis Article, the following definitions apply:
(1) "Aliencorporation" means a company incorporated or organized under the laws ofany jurisdiction outside of the United States.
(2) "Foreigncorporation" means a company incorporated or organized under the laws ofthe United States or of any jurisdiction within the United States other thanthis State.
(r) If the applicant isa subsidiary in a holding company system and if the applicant's ultimate parentregularly files financial information with the U.S. Securities and ExchangeCommission, in lieu of complying with subsection (k) of this section, theapplicant may file the ultimate parent company's balance sheet as of the mostrecent fiscal year‑end, as certified by the ultimate parent's independentauditors, and accompanied by a guarantee of the applicant's performance fromthe ultimate parent company for the benefit of the Department, limited to thoseportions of this Article that are applicable to the applicant.
(s) After a permit isissued by the Commissioner, the permittee's ultimate parent, as specified insubsection (r) of this section, shall remain responsible for the guarantee ofperformance as provided in subsection (r) of this section notwithstanding anychange in the corporate structure of the ultimate parent company. If thepermittee is acquired by any other person that has control over the permittee,the controlling person shall provide its own guarantee of performance asprovided in subsection (r) of this section for the permittee to retain itspermit. If the permittee does not have an ultimate parent company, it shallfile its own balance sheet as specified in subsection (k) of this section. (1931, c. 217, s. 2; 1943,c. 170; 1959, c. 1194, s. 2; 1969, c. 906, s. 2; 1979, c. 835; 1989, c. 441,ss. 2, 3; 2001‑269, s. 1.1; 2006‑134, s. 1; 2009‑566, s. 21.)
