Chapter 013

2007 -- S 0055 SUBSTITUTE A

Enacted 04/13/07

A N A C T

RELATING TO FINANCIAL INSTITUTIONS -- UNIFORM DEBT-MANAGEMENT SERVICES ACT

Introduced By: Senator William A. Walaska

Date Introduced: January 17, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 19-14.8-9 of the General Laws in Chapter 19-14.8 entitled

"Uniform Debt-Management Services Act" is hereby amended to read as follows:

19-14.8-9. Certificate of registration -- Issuance or denial. [Effective March 31,

2007.] -- (a) Except as otherwise provided in subsections (b) and (c), the director shall issue a

certificate of registration as a provider to a person that complies with section 19-14.8-5 and

section 19-14.8-6.

      (b) The director may deny registration if:

      (1) The application contains information that is materially erroneous or incomplete;

      (2) An officer, director, or owner of the applicant has been convicted of a crime, or

suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws;

      (3) The applicant or any of its officers, directors, or owners has defaulted in the payment

of money collected for others; or

      (4) The director finds that the financial responsibility, experience, character, or general

fitness of the applicant or its owners, directors, employees, or agents does not warrant belief that

the business will be operated in compliance with this chapter.

      (c) The director shall deny registration if:

      (1) The application is not accompanied by the fee established by the director; or

      (2) With respect to an applicant that is organized as a not-for-profit entity or has obtained

tax-exempt status under the Internal Revenue Code, 26 U.S.C. section 501, the applicant's board

of directors is not independent of the applicant's employees and agents.

      (d) Subject to adjustment of the dollar amount pursuant to subsection 19-14.8-32(f), a

board of directors is not independent for purposes of subsection (c) of this section if more than

one-fourth (1/4) of its members:

      (1) Are affiliates of the applicant, as defined in this chapter sections 19-14.8-2(2)(a) or

19-14.8-2(2)(b)(i), (ii), (iv), (v), (vi), or (vii); or

      (2) After the date ten (10) years before first becoming a director of the applicant, were

employed by or directors of a person that received from the applicant more than twenty-five

thousand dollars ($25,000) in either the current year or the preceding year.

     SECTION 2. This act shall take effect on March 31, 2007.

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LC00486/SUB A

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