Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007 Page: 7,919
7777-8060 p. ; 28 cm.View a full description of this periodical.
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Section 89.203 outlines transactions that are considered to con-
stitute a "device, subterfuge, or pretense" under Texas Finance
Code, 351.051(b), and attempted evasion of the applicability of
7 TAC Chapter 89.
Section 89.204 defines particular terms applicable to licensees
with multiple licenses, and also outlines situations in which mul-
tiple licenses are required.
Section 89.205 outlines situations where licenses are required
to conduct loans by mail, refers the reader to 89.204 for def-
initions, and provides that loans conducted via the Internet are
considered to be loans by mail.
Section 89.206 provides the procedures for an individual to ap-
ply for an exemption from licensing as a qualifying individual un-
der Texas Finance Code, 351.051(c)(2). Upon receipt of an
individual's signed, dated, and notarized affidavit containing the
required information, the agency will issue a certificate of exemp-
tion to the individual.
The commenter believes that the procedure under 89.206
should be revised, stating: "This procedure might be a little too
cumbersome and end up hindering the ability of someone to do
a transfer without going to a licensed property tax lender." The
commission disagrees with the commenter and maintains that
the 89.206 procedure as proposed is a streamlined process,
requests the basic information required to issue an exemption,
and merely tries to implement the statute. Therefore, while the
commission declines to revise this procedure, as exemption
applications are received by the agency, special attention will
be paid to the time-sensitive nature of property tax loan trans-
actions.
Another suggestion with regard to 89.206 is presented
by the commenter. The commenter recommends that the
phrases "street address" and "legal description" be switched in
89.206(a)(4), "so that the application must include the legal
description, but they need only supply the street address in
supplement thereof." The commenter supports this change
with the following: "All taxation and collection operates by legal
description. Appraisal districts often do not have full or complete
street addresses.... Therefore, street addresses are not relied
upon and often, not even used in the assessment/collection
process." As proposed, 89.206 tracks the statutory language
as enacted by HB 2138. From a practical standpoint, however,
the commenter presents a persuasive argument. Thus, for
practical use by the industry, the commission has made the
suggested change to 89.206(a)(4) to address this concern.
Compliance with these rules is optional prior to March 1, 2008.
Property tax lenders under this chapter should apply for licensure
no later than March 1, 2008.
The new sections are adopted under Texas Finance Code,
351.007 (Acts 2007, 80th Leg., ch. 1220), which authorizes
the Finance Commission to adopt rules to ensure compliance
with the "Property Tax Lender License Act."
The statutory provisions affected by the adopted new sections
are contained in Texas Finance Code, Chapter 351, Property
Tax Lenders, known as the "Property Tax Lender License Act"
(Acts 2007, 80th Leg., ch. 1220, eff. Sept. 1, 2007).
89.202. Knowledge of Laws and Regulations Required.
Each officer, director, employee, and agent of a licensee shall have a
working knowledge of Texas Finance Code, Chapter 351, Property Tax
Lenders, known as the "Property Tax Lender License Act" (Acts 2007,
80th Leg., ch. 1220), its implementing regulations, Texas Tax Code,32.06 and 32.065, and other pertinent state and federal statutes and
regulations that apply to the licensee's business. This section applies
to the listed parties to the extent that the individual has contact with
borrowers or potential borrowers, or has responsibility for compliance
with Texas Finance Code, Chapter 351, or other laws or regulations
governing the licensee's business.
89.206. Application for Exemption.
(a) For an individual to apply for exemption from licensing un-
der this chapter as a qualifying individual under Texas Finance Code,
351.051(c)(2) (Acts 2007, 80th Leg., ch. 1220), the individual must
provide a signed, dated, and notarized affidavit containing the follow-
ing:
(1) the individual's name and address;
(2) the individual's social security number;
(3) the anticipated date of the property tax loan;
(4) a description of the property by legal description, and
if applicable, street address; and
(5) a sworn statement that the individual is someone who:
(A) is making a property tax loan from the individual's
own funds to a spouse, former spouse, or persons in the lineal line of
consanguinity of the individual lending the money; or
(B) makes five or fewer property tax loans in any con-
secutive 12-month period from the individual's own funds.
(b) Upon receipt of an affidavit fulfilling the requirements of
subsection (a) of this section, the commissioner will issue a certificate
of exemption to the individual.
(c) Individuals applying for exemption under Texas Finance
Code, 351.051(c)(2) must submit an application according to this sec-
tion for each property tax loan transaction.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of the Secretary of State on October 19,
2007.
TRD-200705010
Leslie L. Pettijohn
Commissioner
Office of Consumer Credit Commissioner
Effective date: November 8, 2007
Proposal publication date: August 31, 2007
For further information, please call: (512) 936-7621
SUBCHAPTER C. APPLICATION
PROCEDURES
7 TAC 89.301 - 89.311
The Finance Commission of Texas (commission) adopts new 7
TAC Chapter 89, 89.301 - 89.311, concerning Property Tax
Lenders. The new rules contained in 7 TAC 89.301 - 89.311
outline Subchapter C, concerning Application Procedures. The
new rules are adopted without changes to the proposed text as
published in the August 31, 2007, issue of the Texas Register
(32 TexReg 5571).ADOPTED RULES November 2, 2007 32 TexReg 7919
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Texas. Secretary of State. Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007, periodical, November 2, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97421/m1/139/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.