HB 610-FN - AS INTRODUCED
2021 SESSION
21-0545
11/04
HOUSE BILL 610-FN
AN ACT requiring certain licensing and reporting functions be conducted through the
Nationwide Multistate Licensing System and Registry, and relative to background
investigations of trust officers, to certain filing fees, assessments, and interest
rates, and to the transmission of consumer complaints by the banking
department.
SPONSORS: Rep. Hunt, Ches. 11
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill:
I. Requires retail sellers, sale finance companies, small loan lenders, debt adjusters, and money
transmitters to license and report through NMLA, and clarifies the filing deadlines for call reports
under RSA 397-A.
II. Clarifies the circumstances under which background investigations are conducted for trust
executive officers, and provides for removal of directors or officers by the commissioner.
III. Adjusts fees for filings by state chartered institutions.
IV. Requires payment of assessment by institutions seeking approval to dissolve or convert.
V. Establishes minimum interest rates tied to federal funds interest rates set by the Federal
Open Market Committee.
VI. Authorizes the department to transmit consumer complaints via email rather than by
certified mail.
This bill is a request of the banking department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 HB 610-FN - AS INTRODUCED
21-0545
11/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT requiring certain licensing and reporting functions be conducted through the
Nationwide Multistate Licensing System and Registry, and relative to background
investigations of trust officers, to certain filing fees, assessments, and interest
rates, and to the transmission of consumer complaints by the banking
department.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 New Paragraph; Retail Installment Sales of Motor Vehicles; Definitions; Nationwide
2 Multistate Licensing System and Registry. Amend RSA 361-A:1 by inserting after paragraph VII
3 the following new paragraph:
4 VII-b. "Nationwide Multistate Licensing System and Registry" means a national licensing
5 system and facility developed and maintained by the Conference of State Bank Supervisors and the
6 American Association of Residential Mortgage Regulators, or their successors, for the licensing and
7 registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers,
8 and other non-depository financial service licensees, including retail sellers and sales finance
9 companies.
10 2 Licensing of Sales Finance Companies and Retail Sellers Required. Amend the introductory
11 paragraph of RSA 361-A:2, II(a) to read as follows:
12 (a) The application for such license shall be in writing and verified [on a form prescribed
13 by the commissioner] through the Nationwide Multistate Licensing System and Registry
14 using the Nationwide Multistate Licensing System and Registry form. The application shall
15 contain the name of the applicant; the tax applicant's identification number; date of incorporation, if
16 incorporated; the address where the business is or is to be conducted and similar information as to
17 any branch office of the applicant; the trade name, if any, under which the applicant proposes to
18 conduct such business; and such other pertinent information as the commissioner may require. The
19 application shall include a list of the names and resident addresses of principals and the name of any
20 person occupying a similar status or performing similar functions. Each principal shall provide his
21 or her social security numbers and shall authorize the commissioner to conduct a background check.
22 The applicant shall submit any other information that the commissioner may require including, but
23 not limited to, the applicant's form and place of organization, the applicant's proposed method of
24 doing business, the qualifications and business history of the applicant and those persons listed in
25 the application, and in the case of sales finance companies, the applicant's financial condition and
26 history. The applicant shall disclose if any injunction or administrative order has been issued
27 against the applicant or any of its principals listed in the application and whether the applicant or
28 any of its principals have been convicted of a misdemeanor involving financial services or a financial
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1 services-related business, or any fraud, false statements or omissions, theft or any wrongful taking
2 of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of
3 these offenses, or convicted of any felony, prior to the commissioner's approval of such change.
4 3 Retail Installment Sales of Motor Vehicles; Annual Report. Amend RSA 361-A:2-b, I(a)-(c) to
5 read as follows:
6 (a) Each sales finance company licensee shall file, under oath, an annual report [with
7 the commissioner] through the Nationwide Multistate Licensing System and Registry on or
8 before March 31 each year concerning operations for the preceding year or license period ending
9 December 31 upon a form prescribed by the commissioner.
10 (b) A person who surrenders, withdraws, or does not renew a license shall file the
11 annual report as required in subparagraph (a), notwithstanding the fact that he or she is not
12 licensed on the date that the report is due.
13 (c) Each sales finance company shall also file, under oath, its financial statement [with
14 the commissioner] through the Nationwide Multistate Licensing System and Registry within
15 90 days from the date of its fiscal year end. The financial statement shall be prepared in accordance
16 with generally accepted accounting principles and shall include a balance sheet, income statement,
17 statement of changes in owners' equity, a cash flow statement, and note disclosures. If the financial
18 statement is not audited, a certification statement shall be attached and signed by a duly authorized
19 officer of the sales finance company. The certification statement shall state that the financial
20 statement is true and accurate to the best of the officer's belief and knowledge.
21 4 New Paragraph; Regulation of Small Loans, Title Loans, and Payday Loans; Definitions.
22 Amend RSA 399-A:1 by inserting after paragraph XII the following new paragraph:
23 XII-a. "Nationwide Multistate Licensing System and Registry" means a national licensing
24 system and facility developed and maintained by the Conference of State Bank Supervisors and the
25 American Association of Residential Mortgage Regulators, or their successors, for the licensing and
26 registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers,
27 and other non-depository financial service licensees, including small loan lenders, title loan lenders
28 and payday loan lenders.
29 5 Regulation of Small Loans, Title Loans; and Payday Loans; Application and Fees. Amend the
30 introductory paragraph of RSA 399-A:4, I to read as follows:
31 I. Every applicant for licensing under this chapter shall file with the commissioner a written
32 verified application through the Nationwide Multistate Licensing System and Registry, using the
33 Nationwide Multistate Licensing System and Registry form[, or providing all the information
34 required on the application developed by the Nationwide Multistate Licensing System and Registry]
35 which shall include, but is not limited to, the following information:
36 6 Regulation of Small Loans, Title Loans, and Payday Loans; Reporting and Filing
37 Requirements. Amend RSA 399-A:10, I to read as follows:
 HB 610-FN - AS INTRODUCED
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1 I.(a) Each licensee shall file, under oath, an annual report [with the commissioner] through
2 the Nationwide Multistate Licensing System and Registry on or before March 31 each year
3 concerning its business and operations for the preceding calendar year or license period ending
4 December 31 in the form prescribed by the commissioner.
5 (b) Each licensee shall also file, under oath, its financial statement [with the
6 commissioner] through the Nationwide Multistate Licensing System and Registry within 90
7 days from the date of its fiscal year end. The financial statement shall be prepared in accordance
8 with generally accepted accounting principles and shall include a balance sheet, income statement,
9 statement of changes in owners' equity, a cash flow statement, and note disclosures. If the financial
10 statement is not audited, a certification statement shall be attached and signed by a duly authorized
11 officer of the licensee. The certification statement shall state that the financial statement is true
12 and accurate to the best of the officer's belief and knowledge.
13 7 New Paragraph; Debt Adjustment Services; Definitions. Amend RSA 399-D:1 by inserting
14 after paragraph XXIII the following new paragraph:
15 XXIII-a. "Nationwide Multistate Licensing System and Registry" means a national licensing
16 system and facility developed and maintained by the Conference of State Bank Supervisors and the
17 American Association of Residential Mortgage Regulators, or their successors, for the licensing and
18 registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers,
19 and other non-depository financial service licensees, including debt adjusters.
20 8 Debt Adjustment Services; Application and Fees. Amend the introductory paragraph of RSA
21 399-D:4, I(a) to read as follows:
22 (a) To be considered for licensing, each person shall complete and file with the
23 department one verified application through the Nationwide Multistate Licensing System and
24 Registry, using the Nationwide Multistate Licensing System and Registry form[, or providing all the
25 same information required on the application developed by using the Nationwide Multistate
26 Licensing System and Registry,] which shall include, but not be limited to, the following information:
27 9 Debt Adjustment Services; Reporting and Filing Requirements. Amend RSA 399-D:9, I(a) and
28 the introductory paragraph of I(b) to read as follows:
29 (a) Each licensee shall file, under oath, an annual report [with the banking department]
30 through the Nationwide Multistate Licensing System and Registry on or before March 31 each
31 year concerning operations for the preceding calendar year or license period ending December 31 in
32 the form prescribed by the commissioner.
33 (b) Each licensee shall also file, under oath, its financial statement [with the
34 commissioner] through the Nationwide Multistate Licensing System and Registry within 90
35 days from the date of its fiscal year end. If the financial statement is not audited, a certification
36 statement shall be attached and signed by a duly authorized officer of the licensee. The certification
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1 statement shall state that the financial statement is true and accurate to the best of the officer's
2 belief and knowledge:
3 10 New Paragraph; Licensing of Money Transmitters; Definitions. Amend RSA 399-G:1 by
4 inserting after paragraph XVII the following new paragraph:
5 XVII-a. "Nationwide Multistate Licensing System and Registry" means a national licensing
6 system and facility developed and maintained by the Conference of State Bank Supervisors and the
7 American Association of Residential Mortgage Regulators, or their successors, for the licensing and
8 registration of mortgage loan originators, mortgage lenders, mortgage servicers, mortgage brokers,
9 and other non-depository financial service licensees, including money transmitters.
10 11 Licensing of Money Transmitters; Application and Fees. Amend the introductory paragraph
11 of RSA 399-G:4, I(a) to read as follows:
12 (a) To be considered for licensing, each person shall complete and file with the
13 department one verified application through the Nationwide Multistate Licensing System and
14 Registry, using the Nationwide Multistate Licensing System and Registry form[, or providing all the
15 same information required on the application developed by the Nationwide Multistate Licensing
16 System and Registry,] which shall include but not be limited to the following information :
17 12 Licensing of Money Transmitters; License Surrender. Amend RSA 399-G:8, I to read as
18 follows:
19 I. A licensee who ceases to engage in the business of money transmission at any time during
20 a license year for any cause shall surrender such principal license and authorized delegate
21 registrations, if any, and within 15 calendar days of such cessation shall cause to be published in a
22 newspaper of general circulation in the licensee's market area a notice to such effect, and shall file
23 [an annual] any required report pursuant to RSA 399-G:10 [within 15 days of such cessation]. The
24 commissioner may adopt rules, in accordance with RSA 541-A, relative to such notice and the
25 process for surrender.
26 13 Licensing of Money Transmitters; Reporting and Filing Requirements. Amend RSA 399-
27 G:10, I-V to read as follows:
28 I. Each licensee shall [file, under oath, an annual report with the banking department on or
29 before March 31 each year concerning operations for the preceding year or license period ending
30 December 31 upon the form prescribed by the department] submit to the Nationwide Multistate
31 Licensing System and Registry reports of condition, which shall be filed within the time
32 prescribed by the Nationwide Multistate Licensing System and Registry, in such form and
33 shall contain such information as the Nationwide Multistate Licensing System and
34 Registry may require, including but not limited to the money services business call report.
35 II. Each licensee shall file, under oath, its financial statement [with the commissioner]
36 through the Nationwide Multistate Licensing System and Registry within 90 days from the
37 date of its fiscal year end. The financial statement shall be prepared in accordance with generally
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1 accepted accounting principles with appropriate note disclosures and, unless excepted by an order
2 from the commissioner for hardship reasons, shall be audited by an independent certified public
3 accountant. The financial statement shall include or be accompanied by a calculation that reflects
4 the fiscal year's average daily outstanding money transmissions as defined by RSA 399-G:1, IV in
5 United States dollars. A money transmitter's financial statement shall include:
6 (a) A balance sheet;
7 (b) Income statement;
8 (c) Statement of changes in owners' equity;
9 (d) A cash flow statement; and
10 (e) A statement of net worth.
11 III. The department shall publish its analysis of the information required in the licensee's
12 [annual] call report as a part of the commissioner's annual report.
13 IV. Any money transmitter failing to file either the [annual] call report or the financial
14 statement required by this section within the time prescribed may be required to pay to the banking
15 department a penalty [of]. The penalty shall be $25 for each calendar day the [annual] call report
16 or financial statement is overdue up to a maximum penalty of $625 per call report or $2,500 per
17 [report or] financial statement.
18 V. In addition to the [annual] call report and financial statement, the banking department
19 may require such additional regular or special reports as it may deem necessary for the proper
20 supervision of licensees under this chapter.
21 14 Licensing of Money Transmitters; Administration by Commissioner; Rulemaking. Amend
22 RSA 399-G:24, II(c) to read as follows:
23 (c) [Annual] Call reports required by RSA 399-G:10.
24 15 Nondepository Mortgage Bankers, Brokers, and Servicers; Reporting. Amend RSA 397-A:13,
25 V to read as follows:
26 V. Any mortgage banker, mortgage broker, or mortgage servicer failing to file the mortgage
27 call report required by this section within the time prescribed by the Natio