04 NCAC 03K .0206 NONTRANSFERABILITY OF CERTIFICATE OF AUTHORIZATION
(a) A Certificate of Authorization shall be neither transferrable nor assignable.
(b) The circumstances under which the Commissioner shall deem a change in the authorized lender's organizational structure to constitute a transfer or assignment of the Certificate of Authorization shall include, but not be limited to, the following:
(1) If the authorized lender is a corporation:
(A) A change in ownership of 50% or more of the authorized lender's stock;
(B) The conversion of the corporation into a general or limited partnership or sole proprietorship.
(2) If the authorized lender is a general or limited partnership:
(A) A change in one of the authorized lender's general partners;
(B) The conversion of the general partnership into a limited partnership, corporation or sole proprietorship;
(C) The conversion of the limited partnership into a general partnership, corporation or sole proprietorship.
(3) If the authorized lender is a sole proprietor:
(A) The conversion of the sole proprietorship into a general or limited partnership or corporation;
(B) The sale of all of the assets of the authorized lender's business to another person.
(c) Upon a change in organization as set forth in Paragraph (b) of this Rule, the authorized lender's registration shall become void and the authorized lender shall surrender its Certificate of Authorization to the Commissioner within 30 days of such change. If the entity which results from the change in the authorized lender's organizational structure would like to engage in business as a reverse mortgage lender in this State, it shall apply for authorization pursuant to Rule .0201 of this Section.
History Note: Authority G.S. 53-258(d); 53-259; 53-271(a);
Eff. January 1, 1995.